Introduction
Dubai has established itself as a global business hub, attracting entrepreneurs and investors from all over the world. business setup in dubai mainland provides companies with numerous advantages, including access to a thriving economy, a strategic geographic location, and a business-friendly regulatory environment. Whether you’re a startup, SME, or multinational corporation, Dubai Mainland offers flexibility and growth opportunities that make it an ideal destination for business formation.
In this guide, we’ll cover everything you need to know about setting up a business in Dubai Mainland, including the legal structures, benefits, costs, and step-by-step registration process.
What is Dubai Mainland?
Dubai Mainland refers to the areas governed by the Department of Economy and Tourism (DET) (formerly known as the Department of Economic Development – DED). Businesses registered in Mainland Dubai can operate freely across the UAE and internationally without restrictions. Unlike free zone companies, Mainland businesses do not have location limitations and can trade directly with the local UAE market.
Benefits of Setting Up a Business in Dubai Mainland
1. 100% Foreign Ownership
regarding business setup in dubai mainland, Previously, foreign investors needed a local Emirati sponsor (holding 51% ownership). However, as of 2021, 100% foreign ownership is allowed in most business activities.
2. No Geographic Restrictions
business setup in dubai mainland can operate anywhere in Dubai, across the UAE, and internationally without needing additional permissions.
3. Access to Government Contracts
Unlike free zone companies, Mainland companies can bid for government tenders and projects, opening opportunities for lucrative contracts.
4. No Currency Restrictions
Dubai Mainland businesses face no restrictions on currency transactions, ensuring smooth international trade.
5. Business Expansion Flexibility
Mainland companies can open multiple branches across the UAE without restrictions, making expansion easier.
6. Unlimited Visa Eligibility
Companies in Mainland Dubai can sponsor an unlimited number of visas, depending on office space and company size.
7. No Mandatory Audits for Small Businesses
Small and medium-sized enterprises (SMEs) in Dubai Mainland are not required to conduct annual audits, reducing compliance costs.
Legal Structures for Mainland Companies
1. Sole Proprietorship
- Owned by a single individual (UAE or foreign national).
- The owner has full control but also full liability.
2. Limited Liability Company (LLC)
- Most popular business structure.
- Requires at least two shareholders (up to 50).
- Liability is limited to the capital invested.
3. Civil Company
- Ideal for professional services (consultants, lawyers, doctors).
- Requires a UAE National as a service agent (not a shareholder).
4. Branch of a Foreign Company
- Allows foreign companies to establish a 100% owned branch in Dubai Mainland.
- The branch operates under the parent company’s legal identity.
Steps to Set Up a Business in Dubai Mainland
Step 1: Choose Your Business Activity
- The first step is to select a business activity from the Department of Economy and Tourism (DET) list.
- Dubai offers over 2,000 business activities, categorized into commercial, industrial, and professional licenses.
Step 2: Select a Business Structure
- Choose the appropriate legal entity (LLC, sole proprietorship, etc.) based on your business model.
Step 3: Get Initial Approval from DET
- Apply for initial approval from DET, confirming that your business activity complies with local regulations.
Step 4: Choose a Trade Name
- Select a unique business name and register it with DET.
- The name must comply with UAE naming regulations and should not include offensive or religious terms.
Step 5: Secure a Business Location
- Mainland businesses must have a physical office or workspace as per UAE regulations.
- Lease an office space and obtain an Ejari (tenancy contract).
Step 6: Obtain Additional Approvals (if required)
- Some industries (e.g., healthcare, education, finance) require additional approvals from relevant authorities.
Step 7: Apply for the Trade License
- Submit all required documents and apply for a Mainland trade license through DET.
- The license type depends on the business activity (Commercial, Professional, or Industrial).
Step 8: Register for VAT & Corporate Tax (If Applicable)
- Businesses exceeding AED 375,000 annual revenue must register for VAT (5%) with the UAE Federal Tax Authority.
- As of 2023, corporate tax (9%) applies to businesses with a net profit of over AED 375,000 per year.
Step 9: Open a Corporate Bank Account
- Once the trade license is issued, open a corporate bank account in a UAE-based bank.
Step 10: Apply for Visas & Labor Registration
- Register your company with the Ministry of Human Resources and Emiratisation (MOHRE).
- Obtain work permits and visas for employees and business owners.
Cost of Business Setup in Dubai Mainland
The cost of setting up a Dubai Mainland company varies depending on business activity, office space, and government fees. The estimated costs include:
| Expense Type | Estimated Cost (AED) |
|---|---|
| Trade License | 10,000 – 15,000 |
| Office Space Rent | 15,000 – 50,000+ |
| Visa Costs (per person) | 3,500 – 5,500 |
| Bank Account Setup | 1,000 – 5,000 |
| Other Government Fees | 5,000 – 10,000 |
Total setup costs typically range between AED 25,000 to AED 50,000, depending on the business type.
Why Choose Dubai Mainland Over Free Zones?
| Feature | Dubai Mainland | Free Zones |
|---|---|---|
| Business Scope | Operate anywhere in UAE | Limited to free zone |
| Government Contracts | Eligible | Not eligible |
| Local Market Access | Direct access | Needs a local distributor |
| Office Requirement | Mandatory | Optional (some zones) |
| Tax Benefits | 0% tax for small businesses | 0% corporate tax in some free zones |
Conclusion
Setting up a business in Dubai Mainland is an excellent choice for entrepreneurs who want maximum operational freedom, local market access, and business expansion flexibility. With 100% foreign ownership, no trade restrictions, and a simplified registration process, Dubai Mainland remains one of the most attractive destinations for investors worldwide.
If you’re planning to launch your business in Dubai, partnering with business setup consultants can streamline the registration process, ensuring compliance with all legal requirements. With the right strategy, your Dubai Mainland company can thrive in one of the world’s most dynamic business landscapes.
