What is the Cost of Dubai Mainland Company Formation?

10 min read

Oct 17, 2025Jan 21, 2026

What is the Cost of Dubai Mainland Company Formation?

Dubai’s mainland is a preferred destination for entrepreneurs due to its numerous advantages. Mainland company formation in dubai gives you access to the entire UAE market, helps you serve local clients, and supports direct business with government entities. Mainland company formation in dubai requires you to plan each cost carefully. The total Dubai company formation cost includes license fees, rent, document approvals, and visa charges.

Dubai mainland company formation involves registering a business with the Dubai Department of Economy and Tourism (DET). This allows the business to operate freely across all Emirates, providing access to both the local market and government contracts. This process is often the preferred choice for entrepreneurs aiming to expand their presence within the UAE.

Cost Components: Step-by-Step Breakdown for Dubai Mainland Company

The total cost of Dubai mainland company formation is a sum of several one-time and recurring fees. The following table provides a detailed breakdown of each component. Note that these are typical cost ranges and can vary.

Component	Typical Cost Range (AED)	Description	Notes
Trade Name Reservation	600–2,000	DED fee to check and reserve the company’s unique name.	You pay this to reserve your business name with Dubai’s Department of Economy and Tourism (DET). Creative or foreign names cost more.
Initial Approval Fees	2,000–5,000+	Charges by the DED to issue the initial approval certificate.	This is a mandatory clearance before applying for your license. The cost depends on your selected business activity.
License Fee	10,000–25,000+	The primary annual fee for the business/company trade license.	This annual fee is one of the biggest costs. General trading and industrial licenses usually cost more.
Office Rent / Ejari	5,000–50,000+	Mandatory fee for registering the office tenancy contract.	You must have a registered address. Costs depend on whether you use a co-working desk or rent a private office.
Legal Docs / MOA	500–2,000+	Fee for drafting and notarizing the Memorandum of Association.	Includes notarizing your Memorandum of Association. More partners or complex business types may raise this fee.
Local Service Agent (LSA)	8,000–20,000+ annually	Annual fee paid to the LSA if required for a professional license.	This applies only to professional licenses needing a local agent.
Regulatory Approvals	1,000–10,000+	Fees for permits from specific ministries (e.g., Health, RTA).	Required for regulated sectors like healthcare, food, education, and transport.
Visa Costs	2,000–6,000+ per visa	Includes investor or employee visa application and processing.	This includes medical tests, Emirates ID, and visa stamping.
Chamber Membership	Few thousand	Mandatory annual membership fee for the Dubai Chamber of Commerce.	Required to register your business with the Dubai Chamber of Commerce.
PRO / Consultant Fees	5,000–15,000	Fees for professional services to manage the setup process.	You pay this if you hire a business consultant to handle your application.
Renewal Fees	Similar to the initial fee	Annual cost to renew the trade license and other permits.	A recurring cost that must be budgeted for. You’ll need to renew your license and other permits each year.
Misc. Admin / VAT	Several hundred to few thousand	Includes government service fees, taxes, and other administrative charges.	It is wise to add a buffer for these miscellaneous expenses.

Note: If you’re comparing options, remember that the actual company formation in Dubai cost vary based on office type, visa needs, and whether you use setup support.

Discover the best setup option for your goals, explore the different types of company formation in Dubai, and find the one that fits your business plan.

Understanding Dubai Mainland License Cost at a Glance

Component	Typical Cost (AED)
Trade License	10,000–25,000+
Office Rent	5,000–50,000+
Visa (per investor/employee)	2,000–6,000+

The actual Dubai company formation cost depends on business activity, office type, and how many people you plan to sponsor. Planning ahead ensures your budget is accurate and prevents unexpected expenses.

Cost Optimization Tips for Dubai Mainland Company Formation

While setting up a Dubai mainland business requires a significant investment, several strategies can help manage and reduce the initial outlay.

Start with a Flexi-Desk or Shared Office: Instead of leasing an expensive private office, new businesses can opt for a flexi-desk in a registered business center. This fulfills the physical address requirement at a fraction of the cost.
Choose Your Business Activity Wisely: Research the Dubai mainland business activities list carefully. Opting for an activity that does not require extensive external approvals can save thousands of dirhams in fees and time.
Phase Your Visa Applications: Instead of applying for the maximum number of visas at once, start with only the essential investor or manager visas. Employee visas can be added later as the business grows.
Compare Professional Service Fees: Obtain quotes from multiple business setup consultants. Compare their service offerings and fees to find a package that offers the best value. This can help find the provider for the cheapest mainland license in Dubai.
Look for Bundled Packages: Many business setup firms offer all-inclusive packages that bundle the license fee, office space, and visa processing for a fixed price, which can sometimes be more economical.

Some company formation consultants in Dubai cost less when offering bundled packages. Comparing multiple providers is a good move. These packages from consultants often reduce the overall company formation in Dubai by combining services.

Key Cost Drivers & Variables for Dubai Mainland Company Formation

The figures in the table above represent a range because the final Dubai mainland license cost is influenced by several variables. Understanding these drivers helps in forecasting the total investment more accurately.

Business Activity & License Type: This is the primary cost driver. Some activities in the Dubai mainland business activities list require more external approvals, which adds to the cost. A general trading license is typically more expensive than a license for a specific commercial activity.
Legal Structure & Number of Shareholders: An LLC with multiple partners may have higher legal documentation and notarization costs compared to a sole proprietorship.
Office Space (Ejari): The mandatory physical office requirement is a significant expense. Costs vary dramatically between a shared desk, a business center office, and a standalone private office. The registration of the tenancy contract (Ejari) is a key step.
Visa Requirements: The number of investor and employee visas required directly impacts the total setup cost. Each visa involves multiple steps and fees.
Regulatory Approvals: Businesses in sectors like healthcare, food trading, education, or transport need approvals from specific government bodies, each with its own fee structure.
Location within Dubai: While the DED fees are standard, office rental costs can vary significantly depending on the location (e.g., Business Bay vs. Deira).
Consultant / PRO Fees: If you’re unsure about legal steps, hiring company formation consultants in Dubai can be worth the cost. Their support helps you avoid delays, penalties, or rejected filings.
Renewal & Recurring Costs: The license fee, office rent, and Chamber of Commerce membership are annual recurring expenses that must be planned for.

Ensure your business activity aligns with the right licensing structure. If you want to explore other locations, then apply for your Dubai Mainland License today and operate with full market access. Not sure where to establish your office? Find the best location for your Dubai business setup and make the most of your investment.

What Are the Steps in Dubai Mainland Business Formation?

Starting a business on the Dubai mainland involves clear steps. Each step comes with its own costs. Here’s a simplified timeline, showing when you’ll face costs during the process.

Step 1: Reserve Business Name

When: Before license application
Cost: AED 600–2,000 for name reservation.

You must reserve your company name with the Dubai Department of Economy and Tourism (DET). Special or premium names may cost more.

Step 2: Get Initial Approval

When: After reserving the name.
Cost: AED 2,000–5,000.

This approval gives you the green light to start setting up. The cost depends on your business activity.

Step 3: Apply for Trade License

When: After initial approval.
AED 10,000–25,000+ annually.

The main cost is for your trade license. It depends on your business type. Commercial and industrial licenses are typically more expensive.

Step 4: Register Office Space (Ejari)

When: Post-license approval
AED 5,000–50,000+ annually.

You need to have a physical office. The cost depends on the type of office you choose, from shared spaces to private offices.

Step 5: Draft Legal Documents (MOA)

When: After office space approval is obtained.
AED 500–2,000+.

The Memorandum of Association (MOA) is a key document. The cost depends on the complexity and the number of partners.

Step 6: Pay Local Service Agent (LSA) Fee (if applicable)

When: After selecting the legal structure.
AED 8,000–20,000+ annually (if needed).

If you are setting up a professional license, you need an LSA (a UAE national). They help with legal processes for a fee.

Step 7: Apply for Visa

When: After the license and office space is secured.
Cost: AED 2,000–6,000+ per visa.

You need to apply for visas for yourself and your employees. The cost includes medical tests, Emirates ID, and visa stamping.

Step 8: Get Chamber Membership

When: Post visa approval.
Cost: A few thousand AED.

You must join the Dubai Chamber of Commerce, and the fee depends on your business type and size.

Step 9: Renew Your License Annually

When: Annually.
Cost: Similar to the initial setup cost.

After the first year, renew your license, office contract, and visas. Budget for the same costs each year, however, the pricing for different zones vary. Check out the Dubai Free Zone Company Setup Cost to get detailed understanding of forming a company.

Common Challenges and Solutions

Entrepreneurs may face a few challenges during the mainland company formation in dubai process. Being aware of them can help in finding proactive solutions.

Challenge: Unexpected Delays in Approvals
- Solution: Ensure that all submitted documents are accurate, complete, and properly attested. Work with an experienced PRO who understands the specific requirements of each government department to minimize back-and-forth.
Challenge: Difficulty in Opening a Corporate Bank Account
- Solution: Banks in the UAE have strict due diligence processes. Prepare a comprehensive business plan and maintain a professional online presence. A business consultant with strong relationships with local banks can facilitate introductions and guide you through the process.
Challenge: Underestimating Recurring Annual Costs
- Solution: Create a detailed annual budget from day one. Factor in not just the license renewal fee but also office rent, LSA fees (if applicable), staff salaries, and potential visa renewal costs. This prevents financial strain in the second year of operation.
Challenge: Choosing the Wrong Legal Structure
- Solution: Seek professional legal and business advice before finalizing the legal structure. The choice between an LLC, a Civil Company, or a Sole Proprietorship has long-term implications for liability, ownership, and scalability.

Planning these steps carefully helps control your company formation in Dubai costs and avoids unnecessary issues.

Setting up the right structure also means understanding taxation and compliance. Learn how Dubai’s tax-free benefits can boost your business and optimize your profits legally.

Business Setup in Dubai Free Zone or Mainland? Which One Is Right for You

Starting a business in Dubai means choosing between a free zone and the mainland. The best choice depends on your business model, customer base, and visa needs.

When Mainland Is Better:

You want to serve clients across the UAE
You need a physical office inside Dubai city limits
You plan to hire staff and apply for multiple visas
You may work with the UAE government or public clients

When Free Zone Works:

You only sell online or export goods
You want 100% foreign ownership with limited paperwork
You don’t need a large office or retail shop
Your clients are mostly outside the UAE

You can explore our Business Setup in Dubai Free Zone service if your business model fits this structure.

If your goal is local trading, in-person operations, or dealing with UAE authorities, then the Dubai company formation cost for a mainland setup is justified by the access it gives you.

Conclusion & Takeaways

There is no one-size-fits-all breakdown for Dubai company formation costs. Your mainland company formation in dubai depends on business activity, office space, and how many visas you need.

Understand each step and its cost. This helps you avoid delays and surprise expenses. If you’re unsure, work with company formation consultants in Dubai. They guide you through forms, checks, and approvals.

With smart planning, you can launch or Start a Business in Dubai Mainland smoothly and legally.

Frequently Asked Questions

Q-1. Can foreigners own 100% of a mainland company in Dubai?

Yes, for most business activities, foreigners can now own 100% of a Dubai mainland company. Following recent legal amendments, the requirement for a UAE national to hold 51% of the shares has been removed for over 1,000 commercial and industrial activities. However, some strategic sectors and professional service licenses may still have specific ownership requirements.

Q-2. What is the minimum capital requirement for a mainland company?

There is no longer a legally mandated minimum share capital requirement for most Limited Liability Companies (LLCs) in Dubai. However, the Memorandum of Association (MOA) must state a "sufficient" or "adequate" capital for the business to operate. The amount should be realistic and reflect the nature of the company's activities, even if it does not need to be deposited in a bank.

Q-3. How long does the mainland company setup process take?

The timeline for setting up a mainland company is very efficient. If all documents are in order and no extensive external approvals are needed, the entire process from name reservation to license issuance can be completed in as little as one to two weeks. Activities requiring approvals from other ministries may extend this timeline slightly.

Q-4. Can I operate my mainland company from home?

No, a Dubai mainland company cannot be operated from a home address. It is a mandatory legal requirement for all mainland companies to have a physical office space with a registered tenancy contract (Ejari). However, cost-effective options like flexi-desks or shared offices in registered business centers can fulfill this requirement for new businesses.

Q-5. Can I switch from a free zone company to a mainland company?

It is not possible to directly "convert" or "switch" a free zone license to a mainland one. The process involves liquidating the existing free zone company and setting up a completely new mainland entity. This means undergoing the full mainland company formation process, including applying for a new license, leasing a new office, and reapplying for visas.

Q-6. What happens if I miss the license renewal deadline?

Failing to renew a mainland trade license on time results in financial penalties. The DED imposes fines for late renewal, and these can accumulate. Additionally, operating with an expired license is illegal and can lead to the company being blacklisted. This can also block the renewal of employee visas, disrupting business operations significantly.

Q-7. When do visa costs become part of the setup process?

Visa costs are typically incurred after the trade license has been issued and the company's Establishment Card is active. The Dubai mainland visa cost applies to each individual, whether an investor or an employee. The process includes application fees, medical fitness tests, Emirates ID registration, and final visa stamping, all of which must be paid for each applicant.

Q-8. Is VAT charged on the company setup services?

Yes, Value Added Tax (VAT) at the standard rate of 5% is applicable on the professional fees charged by business setup consultants, PROs, and any other service providers. It is important to confirm with the service provider if their quotes are inclusive or exclusive of VAT to avoid any surprises in the final invoice.

Q-9. What is the difference between a Local Sponsor and a Local Service Agent?

A Local Sponsor was historically a UAE national who held 51% of the shares in an LLC, a requirement now largely abolished. A Local Service Agent (LSA) is a UAE national required for professional licenses (like consultancies) with 100% foreign ownership. The LSA does not hold any shares but acts as a liaison for government processes for a fixed annual fee.

Q-10. Are annual audits mandatory for mainland LLCs in Dubai?

Yes, according to the UAE Commercial Companies Law, all Limited Liability Companies (LLCs) are required to appoint an auditor and have their financial accounts audited annually. While submission to the authorities is not always enforced for all small companies, maintaining audited financials is a legal requirement and is crucial for bank financing, investor relations, and overall good governance.