What is the Cost of Dubai Mainland Company Formation?

9 min read

October 17, 2025October 17, 2025

What is the Cost of Dubai Mainland Company Formation?

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	Description	Typical Cost Range (AED)	Notes
Trade Name Reservation	DED fee to check and reserve the company’s unique name.	600–2,000	Premium or specific names may incur higher fees.
Initial Approval Fees	Charges by the DED to issue the initial approval certificate.	2,000–5,000+	The cost varies depending on the business activity chosen.
License Fee	The primary annual fee for the business/company trade license.	10,000–25,000+	This is a major part of the Dubai mainland license cost. Industrial and certain commercial activities are higher.
Office Rent / Ejari	Mandatory fee for registering the office tenancy contract.	5,000–50,000+	Costs range from shared desk solutions to private offices.
Legal Docs / MOA	Fee for drafting and notarizing the Memorandum of Association.	500–2,000+	The complexity of the MOA and the number of partners can affect the cost.
Local Service Agent (LSA)	Annual fee paid to the LSA if required for a professional license.	Varies	Can range from AED 8,000 to AED 20,000+ annually.
Regulatory Approvals	Fees for permits from specific ministries (e.g., Health, RTA).	1,000–10,000+	Only applicable to certain business activities.
Visa Costs	Includes investor or employee visa application and processing.	2,000–6,000+ per visa	The total Dubai mainland visa cost includes medical tests and Emirates ID fees.
Chamber Membership	Mandatory annual membership fee for the Dubai Chamber of Commerce.	Few thousand	The fee is usually linked to the company’s legal structure and activity.
PRO / Consultant Fees	Fees for professional services to manage the setup process.	Varies	Typically ranges from AED 5,000 to AED 15,000.
Renewal Fees	Annual cost to renew the trade license and other permits.	Similar to the initial fee	A recurring cost that must be budgeted for.
Misc. Admin / VAT	Includes government service fees, taxes, and other administrative charges.	Several hundred to–few thousand	It is wise to add a buffer for these miscellaneous expenses.

Note: These costs are estimates and can vary based on the business type, location, and services chosen. Always consult with a professional for accurate pricing.

Costs can vary based on your chosen business structure. 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.

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: The fees for professional setup services vary based on the firm’s experience and the scope of their services.
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.

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.

What Are the Steps in Dubai Mainland Business Setup?

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: Choose Your Business Name

When: Before applying for your license.
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: Submit Initial Approval Application

When: After reserving your 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 Your 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: After getting your trade license.
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 getting your license and office space.
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 the legal structure is set.
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: Submit Visa Applications

When: After obtaining your license and office space.
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: Obtain Chamber Membership

When: After 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.

Common Challenges and Solutions

Entrepreneurs may face a few challenges during the setup 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.

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.

Conclusion & Takeaways

The cost of Dubai mainland company formation is not a single price tag but a sum of various components influenced by specific business needs. While the initial investment can seem substantial, the benefits of unrestricted market access and the ability to work with government entities offer unparalleled growth potential.

The key takeaway for any entrepreneur is the importance of planning and transparency. By understanding each cost component, identifying the key variables, and working with a reputable consultant, the setup process can be a predictable and manageable investment. A well-planned mainland company in Dubai is a powerful vehicle for long-term success in the thriving UAE economy.

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.