Starting a business in Dubai is a dream for many. One of the most popular options is setting up a mainland company. A Dubai mainland company allows you to trade anywhere in the UAE and internationally, without the same restrictions that free zones have. It also gives you the freedom to work with government projects.
In this guide, we will explain the costs, step-by-step process, and the many benefits of a mainland company in Dubai.
What is a Dubai Mainland Company?
A Dubai mainland company is a business licensed by the Department of Economy and Tourism (DET), formerly known as the Department of Economic Development (DED). It can operate anywhere inside and outside the UAE.
Key points:
- It has no geographical restrictions for doing business.
- Can work with UAE government contracts.
- Can open offices anywhere in Dubai.
- Needs to follow UAE laws for licensing and ownership.
Why Choose Mainland Over Free Zone or Offshore?
Before starting, it’s important to know why a mainland company might be better than other options.
Overview: Mainland gives more trading freedom, while free zones have location and activity restrictions. Offshore is for holding assets and not for trading inside UAE.
Key benefits over free zones and offshore:
- Trade anywhere in the UAE without restrictions.
- Take on government projects and contracts.
- Hire more staff without limits on visa quotas.
- Office space flexibility — can rent or own anywhere in Dubai.
- No yearly audit requirement for some activities (depends on license).
Types of Mainland Company Structures in Dubai
Overview: There are different types of company setups depending on your business activity and ownership plans.
Types include:
- Limited Liability Company (LLC): Most common. Can have 1–50 shareholders.
- Sole Establishment: Owned by one person, usually for professional services.
- Civil Company: For professionals like doctors, engineers, lawyers.
- Branch of a Foreign Company: For international companies wanting to open in Dubai.
- Representative Office: For marketing and research without direct selling.
Ownership Rules
Overview: Recent changes in UAE laws allow 100% foreign ownership for many business activities.
Details:
- Earlier, mainland companies required a UAE national sponsor with 51% ownership.
- Now, 100% foreign ownership is allowed for many business types.
- Some strategic activities (like oil and gas) still need a local sponsor.
Step-by-Step Process for Dubai Mainland Company Formation
Overview: Setting up a mainland company involves a few simple but important steps.
Steps include:
- Choose your business activity: This determines your license type and approvals.
- Select a company name: Must follow UAE naming rules (no offensive or religious terms).
- Get initial approval from DET: This allows you to start the process.
- Draft and sign the Memorandum of Association (MOA): Legal document outlining ownership.
- Choose a business location: Lease an office or workspace.
- Get external approvals if needed: Some industries need extra clearance.
- Pay license fees and collect your trade license: Officially start your business.
Costs of Dubai Mainland Company Formation
Overview: Costs depend on the business type, size, and location.
Main costs include:
- Trade license fee: Usually between AED 10,000 to AED 15,000.
- Office rent: Varies by location; starting from AED 15,000 per year.
- Government approvals: Extra costs if your activity needs special clearance.
- Sponsorship fee (if required): Only for activities that still need local sponsorship.
- Visa costs: Around AED 3,000–5,000 per visa.
Tip: Some packages from business setup companies can reduce costs.
Documents Needed
Overview: You will need to submit certain documents to the DET and other authorities.
Common documents include:
- Passport copies of all shareholders.
- UAE residence visa or entry stamp (if available).
- Emirates ID (if you are a UAE resident).
- Business plan (for certain activities).
- Lease agreement for office space.
- Initial approval certificate from DET.
Visa and Employment Rules
Overview: Mainland companies can sponsor visas for owners, employees, and their families.
Key points:
- No strict limit on the number of visas (depends on office space size).
- Family sponsorship allowed for employees meeting salary requirements.
- Easy process to renew visas every 2–3 years.
Advantages of Dubai Mainland Company
Overview: Mainland companies offer flexibility, growth opportunities, and access to a bigger market.
Main advantages:
- Trade without restrictions across UAE and internationally.
- Access to government tenders and contracts.
- Flexible office location options.
- Ability to expand easily with more branches.
- Unlimited visa quotas (subject to space).
- Strong UAE reputation for business credibility.
Disadvantages to Consider
Overview: Mainland companies have many benefits, but also some limitations.
Possible drawbacks:
- Higher setup costs compared to some free zones.
- Need for office space (not virtual offices).
- Compliance with UAE labor and tax laws.
Recent Changes in Mainland Company Laws
Overview: Dubai has updated its laws to make starting a business easier for foreign investors.
Main updates:
- 100% foreign ownership allowed for most activities.
- Faster license approval process.
- Reduced business license renewal requirements.
Tips for a Smooth Setup
Overview: A little planning can save time and money.
Tips:
- Choose the right business activity for your goals.
- Work with a trusted business setup consultant.
- Budget for at least the first year’s costs.
- Learn UAE labor laws before hiring.
- Keep track of license renewal dates.
Working with a Business Setup Consultant
Overview: Consultants can make the process faster and stress-free.
Benefits of using a consultant:
- They know the laws and processes.
- Can handle paperwork and approvals.
- Offer packages with office space and visa support.
- Can help reduce setup costs.
Conclusion
A Dubai mainland company is a great choice if you want full trading freedom and access to government contracts. While the setup costs are higher than some free zones, the benefits of growth, market access, and flexibility make it a smart investment.
With the right planning and support, your Dubai mainland company can be up and running in just a few weeks.
