Mainland Company Formation in Dubai

Mainland Company Formation in Dubai is the process of establishing and registering a business directly with the Department of Economy and Tourism (DET) to operate across the UAE market. Mainland companies can trade freely with local clients and government entities with a business location in Dubai. Certain business activities allow full ownership, while others may require a local service agent. 

Under the UAE (federal) reforms (e.g., Federal Decree‑Law No. 26 of 2020 on foreign direct investment), many mainland activities now allow 100% foreign ownership (i.e., no Emirati “sponsor” required) for most commercial/industrial activities in Dubai.

The process typically includes trade name reservation, initial approvals, business license application, preparation of incorporation documents, and support for visas and corporate bank accounts. This makes business formation in the UAE seamless and straightforward for both foreign and local entrepreneurs.

Setting up a company in the Dubai Mainland allows both local and foreign entrepreneurs to operate efficiently while enjoying strategic advantages, such as:

• Direct Market Access: Mainland companies can trade freely with clients across the UAE, including government entities, without restrictions. This opens opportunities for wider business growth and contracts.
• Wide Range of Business Activities: Dubai Mainland allows businesses to operate in a variety of sectors, from trading and consulting to manufacturing and professional services. This provides greater flexibility in business operations.
• Flexible Office Solutions: Companies can choose from physical offices, co-working spaces, or flexi-desk options, depending on business needs. Flexi-offices are subject to approval for the business activity, zoning, and visa quota requirements.
• Employee Recruitment: Mainland companies can hire employees from anywhere in the UAE, making it easier to attract skilled talent and build a strong workforce.
• Visa Allocation: The setup allows multiple visas for owners, partners, and employees, simplifying staff relocation and legal compliance.
• Banking Access: Businesses can open local and international corporate bank accounts, enabling smooth financial operations and transactions.
• Streamlined Registration: Licensing and registration are handled efficiently by the DET, ensuring a smooth setup process.
• Credibility and Reputation: A mainland company carries credibility in the local market, helping attract clients, partners, and investors.

For more information, check out here Major Benefits of Mainland Company Formation in Dubai.

Dubai Mainland offers several types of company setups to suit different business needs and objectives. Choosing the right structure depends on factors such as business activity, ownership preferences, and the scale of operations.

• Limited Liability Company (LLC): An LLC formation is the most common setup for mainland businesses. It allows flexibility in ownership and protects partners’ personal assets from business liabilities.

• Sole Establishment: A sole proprietorship is ideal for individual entrepreneurs. This structure allows a single owner to run the business and take full control of operations.

• Civil Company: Suitable for professional services such as consulting, legal, or accounting firms, this structure allows partners to provide specialized services while sharing responsibilities.

• Branch Office: International companies can set up a branch in the Dubai Mainland to operate locally without establishing a separate legal entity.

• Representative Office: Designed for foreign companies, a representative office can promote products and services in Dubai but cannot conduct direct commercial activities.

Choosing the right type of entity is crucial for successful company formation in Dubai, ensuring compliance with local regulations while maximizing operational flexibility and market access.

Major documents required for company formation in the Dubai mainland are:

• Passport Copies: Valid copies of all owners, partners, and shareholders.
• Visa Copies: UAE visa copies for residents, if applicable.
• Emirates ID Copies: Required for UAE residents and partners.
• No Objection Certificate (NOC): For individuals sponsored by another company or employer.
• Proof of Address: Utility bill or tenancy contract for the office location in Dubai Mainland.
• Memorandum of Association (MOA): Drafted agreement outlining ownership and business operations for LLCs or partnerships.
• Local Service Agent Agreement: Required if a local service agent is involved in the business.
• POA: A Power of Attorney (POA) is required if someone is handling the registration on behalf of the owner.
• Business Plan: A brief outline of the business activities and objectives (sometimes required for certain licenses).
• Educational or Professional Certificates: Attested documents may be required for professional or consultancy businesses.
• Initial Approvals from Relevant Authorities: Certain business activities, such as healthcare, education, or food services, require extra government approvals.
• Bank Reference Letter / Financial Statements: Sometimes requested for opening corporate bank accounts.
• Partnership Agreement: For LLCs with multiple partners, detailing profit-sharing and responsibilities.
• Trade Name Reservation Form: Official approval of the company name from DET.
• Office Tenancy Contract: Ejari or notarized proof of office space required for licensing.

Having all these documents ready can significantly reduce delays and ensure a smooth process for setting up a mainland company in Dubai.

You can refer to our Dubai DED license guide for complete instructions on license acquisition.

Registering a Dubai Mainland company involves several key steps, including:

Step 1. Determine Business Activity

• Identify the primary business activity to ensure the chosen company type and license align with legal requirements.
• Some industries, such as healthcare, education, food & beverage, or transportation, may require additional government approvals.

Timeline: 1-3 days

Step 2. Choose the Company Type

• Select the appropriate company structure.
• Refer to the “Types of Company Setup in Dubai Mainland” for more information.

Timeline: 1-2 days

Step 3. Reserve Trade Name

• Submit the proposed company name to DET for approval.
• Ensure the name follows UAE naming regulations (no offensive terms, political references, or restricted words).
• Once approved, the trade name is reserved for registration purposes.

Timeline: 1-2 days

Step 4. Obtain Initial Approvals

• Apply for initial approvals from DET and, if required, other government authorities.
• This ensures the business is legally permitted to operate in the chosen sector.

Timeline: 3-5 days

Step 5. Prepare Legal Documents

• Draft and notarize required documents:
  • Memorandum of Association (MOA) for LLCs and partnerships.
  • Local Service Agent Agreement (if applicable).
  • Power of Attorney (if a representative handles registration).
  • Partnership agreements detailing ownership and responsibilities.

Timeline: 3-7 days

Step 6. Secure Office Space

• Provide proof of a physical office, flexi-desk, or co-working space in Dubai Mainland.
• Ensure tenancy agreements comply with local regulations (Ejari registration if required).

Timeline: 2-7 days

Step 7. Approvals from Special Authorities (if required)

• Certain sectors, such as food, healthcare, education, and construction, need additional approvals:
  • Dubai Municipality (for food and health permits)
  • Ministry of Health (for medical-related businesses)
  • Dubai Civil Aviation Authority (for aviation-related activities)

Timeline: 5-15 days

Step 8. Compliance with Safety and Environmental Regulations

• Businesses in manufacturing, food, or construction must comply with fire, safety, and environmental regulations before operations begin.

Timeline: 2-7 days

Step 9. Company Seal / Stamp

• Some authorities or banks require an official company seal or stamp for legal documents and banking purposes.

Timeline: 1-2 days

Step 10. Open Corporate Bank Account

• Provide the required documents (license, MOA, passport copies, proof of address) to open a corporate account.
• This is necessary for company operations and visa processing.

Timeline: 3-7 days

Step 11. Register with Labor and Immigration Authorities

• Register with the Ministry of Human Resources & Emiratisation (MOHRE) for hiring employees.
• Register with the General Directorate of Residency and Foreigners Affairs (GDRFA) for employee visas and permits.

Timeline: 3-5 days

Step 12. Visa Processing

• Apply for investor visas for owners and residency visas for employees.
• Complete Emirates ID registration, health checks, and immigration formalities.

Timeline: 7-15 days

Step 13. Tax and Regulatory Compliance

• Register for VAT, if applicable.
• Ensure compliance with accounting, auditing, and other regulatory obligations.

Timeline: 2-5 days

Step 14. Company Registration and License Issuance

• Submit all documents and approvals to DET for final company registration.
• Receive the official trade license and certificate of incorporation, confirming that the company is legally registered in the Dubai Mainland.

Timeline: 3-7 days

For details on investment requirements, check Minimum Investment to start a business in Dubai.

Below is a breakdown of the typical expenses associated with the setup process:

For a detailed breakdown, you can refer to our blog titled “Cost of a License in Dubai”.

A Dubai Mainland License is the official permit that allows businesses to legally operate within Dubai and across the UAE. Issued by the Dubai Department of Economy and Tourism (DET), it defines the scope of business activities and ensures compliance with local regulations. Obtaining the license is essential for trading, providing services, or conducting industrial operations on the mainland.

• Commercial License: For trading activities, including import, export, and general trading. Enables direct trading with local and international clients.
• Professional License: For service-based businesses such as consultancies, legal, accounting, IT, and other professional services. Focuses on expertise rather than goods.
• Industrial License: For companies involved in manufacturing, production, or industrial operations. Often requires approvals from relevant municipal or governmental authorities.
• Full Market Access: Allows operations anywhere in Dubai and across the UAE, including contracts with government entities.
• Employee Sponsorship: Supports hiring employees from anywhere in the UAE and sponsoring multiple visas.
• Ownership Options: Certain business activities allow full foreign ownership, while others may require a local service agent.
• Validity: The license is valid for one year and must be renewed annually to maintain compliance.

For more information, read our blog on “How to Obtain a Dubai Mainland License”.

Forming a mainland company in Dubai requires compliance with specific legal regulations. Meeting these requirements ensures the company can operate legally, hire employees, and engage with clients and government entities across the UAE.

• Trade Name Approval: The company must reserve and register a unique trade name that complies with UAE naming regulations. Offensive, religious, or politically sensitive names are prohibited.
• Business Activity Approval: The chosen business activity must be approved by DET. Certain activities, such as healthcare, food, or education, may require additional approvals from relevant authorities.
• Local Sponsor / Service Agent: For certain business activities, a UAE national must act as a local sponsor or service agent, as per legal requirements.
• Office Requirement: Companies must have a physical office or flexi-desk in the Dubai Mainland. A tenancy contract (Ejari) is mandatory for trade license issuance.
• Legal Documentation: Required documents include the Memorandum of Association (MOA), local service agent agreement (if applicable), passport copies, and NOC (if the owner is under another sponsor).
• Capital Requirements: Some business activities or company types may have minimum capital requirements, which must be deposited and reflected in company documents.
• Registration with Authorities: Companies must register with DET, the MOHRE, and the General Directorate of Residency and Foreigners Affairs (GDRFA) for labor and visa compliance.
• Compliance with UAE Laws: Companies must adhere to UAE commercial, labor, and immigration laws, as well as regulations specific to their industry.
• Annual License Renewal: The trade license must be renewed annually, and the company must maintain compliance with all legal and regulatory requirements.

Meeting these legal requirements is essential for establishing a credible and fully compliant mainland business in Dubai, allowing smooth operations and growth in the local market.

For insights on taxes, read Is Dubai really tax-free.

Best Business Activities for Mainland Company Setup in Dubai

Dubai Mainland allows businesses to operate across a wide range of industries, offering flexibility and access to the local market. Choosing the right business activity is essential for regulatory compliance, market access, and growth potential.

• Trading and General Trading: Such activities cover import, export, wholesale, and retail of goods. This type of business allows companies to deal with multiple product categories under a single license and provides direct access to both local and international markets. It is one of the most common and flexible business activities for Mainland companies.
• Professional Services: These services include consultancies, legal firms, accounting agencies, IT solutions, digital marketing, and business advisory services. These activities are ideal for businesses offering expertise rather than physical goods, providing entrepreneurs with the ability to operate without significant inventory requirements.
• Construction and Contracting: This activity encompasses building, engineering, and contracting services. Companies can bid for both government and private projects, but approvals from Dubai Municipality and other relevant authorities are necessary. It is suitable for businesses aiming to work on large-scale projects in Dubai.
• Healthcare and Medical Services: Healthcare businesses include clinics, diagnostic labs, pharmacies, and wellness centers. These activities are in high demand and require licenses and approvals from the Dubai Health Authority (DHA). They offer long-term growth potential given the increasing focus on healthcare services in Dubai.
• Food and Beverage: Restaurants, cafes, catering services, and food trading fall under this category. Businesses must comply with strict hygiene and safety regulations and obtain approvals from the Dubai Municipality. The F&B sector is highly profitable due to Dubai’s thriving hospitality and tourism market.
• Education and Training: These activities cover private schools, training centers, vocational institutes, and coaching services. Licensing is required from the Knowledge and Human Development Authority (KHDA) or other relevant authorities. This sector is ideal for entrepreneurs offering specialized knowledge or skill development.
• Industrial and Manufacturing: Industrial and manufacturing activities include production, packaging, and light manufacturing. These companies must follow safety, environmental, and municipal regulations. Mainland setup allows direct sales of manufactured goods in the UAE market and supports export activities.
• Tourism and Hospitality Services: This includes travel agencies, tour operators, hotels, and leisure services. Approval from the Department of Tourism and Commerce Marketing (DTCM) is required. The sector benefits from Dubai’s status as a global tourist and business hub.
• Logistics and Transportation: Such businesses include freight forwarding, courier services, supply chain solutions, and vehicle rental. Mainland companies in this sector can operate locally and internationally, supporting Dubai’s position as a regional trade and logistics hub.
• IT and Technology Services: These cover software development, app development, IT consultancy, and cybersecurity services. This sector is growing rapidly as Dubai positions itself as a tech and innovation hub, making it ideal for startups and technology-driven businesses.
• E-Commerce and Retail: Such activities involve online marketplaces, digital retail stores, and trading via digital platforms. Mainland setup allows companies to sell directly in the UAE market and provides flexibility in combining online and offline operations.
• Import-Export Consulting and Trading Agencies: These businesses provide specialized support for companies looking to trade goods internationally. Activities include consultancy, documentation handling, and market research, often combined with direct trading operations.

The UAE has introduced significant reforms allowing greater flexibility for foreign investors in mainland companies. Understanding these updated rules is essential for legal compliance and optimal business structuring.

• Full Foreign Ownership of Commercial Companies: Foreign investors can now hold 100% ownership in most mainland commercial companies under Federal Decree-Law No. 26 of 2020. This allows complete operational and financial control without the need for a local partner in many sectors.
• Local Sponsor Requirement: For certain restricted business activities, such as oil and gas exploration and defense and security-related businesses, a UAE national may still be required as a local sponsor or partner. In such cases, the local sponsor typically holds a 51% share, but agreements can define profit sharing and operational control separately. The sponsor’s role is generally passive, without involvement in day-to-day operations.
• Professional Services and Local Service Agent: Professional companies, such as consultancies, legal, accounting, or IT firms, may appoint a UAE national as a local service agent. This agent facilitates government interactions but does not hold company shares or participate in management.
• Compliance and Documentation: All mainland companies, regardless of ownership structure, must register with the DET, obtain the necessary trade licenses, and comply with UAE commercial and labor laws. Formal agreements with local sponsors or service agents help prevent disputes and clarify roles.

These updates highlight the UAE’s investor-friendly approach, allowing greater foreign participation while maintaining compliance for restricted sectors.

Dubai offers a range of strategic areas, each suited to different business activities, from commercial trading to professional services and industrial operations.

• Business Bay: This is one of Dubai’s prime commercial hubs, ideal for offices, professional services, and trading companies. Its central location, modern infrastructure, and proximity to Downtown Dubai make it attractive for client-facing businesses.
• Deira: Deira is known as Dubai’s traditional commercial center. It is particularly suitable for trading, wholesale, and import-export businesses due to its historical markets, accessibility, and established business networks.
• Al Quoz: Al Quoz is a versatile area for industrial, creative, and manufacturing businesses. With warehouses, light industrial units, and co-working spaces, it is ideal for companies involved in production, storage, and distribution.
• Jumeirah Lake Towers (JLT): JLT offers a modern business environment with office towers, retail spaces, and co-working facilities. It is popular among startups, consultancy firms, and tech companies due to its competitive office rents and connectivity.
• Dubai Silicon Oasis (DSO): While technically a free zone, DSO also supports mainland-style activities for technology and IT companies. It is ideal for software development, innovation-driven startups, and research-based businesses.
• Dubai Investment Park (DIP): DIP caters to manufacturing, logistics, and industrial companies. It provides large plots for factories, warehouses, and distribution centers, making it suitable for businesses requiring substantial operational space.
• Al Rigga and Oud Metha: These areas are suitable for small to medium trading companies and professional services. They offer affordable office spaces, excellent connectivity, and proximity to major transport hubs.
• Downtown Dubai: Downtown Dubai is a premium location, ideal for corporate headquarters, consultancy firms, and client-facing businesses that benefit from high visibility and proximity to luxury commercial and retail spaces.

Selecting the right location for a Dubai Mainland company depends on the type of business, target market, budget, and operational needs. Strategic location choices can improve market reach, streamline logistics, and enhance the company’s professional image.

For more details, click- Best Location for Setting Up a Business in Dubai.

While mainland company formation allows businesses to operate across the UAE, free zones provide strategic alternatives for entrepreneurs looking for 100% foreign ownership, simplified compliance, and sector-specific benefits. Popular free zones in Dubai include:

• DMCC Free Zone: Ideal for trading, commodities, and professional services. Learn more about company formation in DMCC.
• Dubai Airport Free Zone (DAFZA): Perfect for logistics, trading, and aviation-related businesses. Start your company in Dubai Airport Free Zone.
• Meydan Free Zone: Designed for startups and service-based companies seeking flexible setups. Explore company formation in Meydan Free Zone.
• Other Dubai Free Zones: Catering to IT, media, e-commerce, and industrial activities. Check options for company setup in Dubai Free Zone.

Free zones are especially attractive for entrepreneurs seeking tax benefits, full ownership, and a simplified licensing process while focusing on specific industries or international trade.