Business Setup in Dubai Mainland
Dubai mainland offers a strategic location, a dynamic economy, and a business-friendly environment – making it an attractive choice for entrepreneurs and investors worldwide.
If you’re considering business setup in Dubai mainland, you’re on the right track. Not only does Dubai mainland allow companies to trade across the UAE freely, but recent regulatory updates also enable 100% foreign ownership in many sectors.
In other words, you can fully own your mainland company formation in Dubai without needing a local sponsor for most business activities.
At Corporate Business Services (CBS), we specialize in business setup in Dubai and have helped countless businesses launch successfully in Dubai.
In this guide, we’ll walk you through the benefits of setting up a business in Dubai mainland, the step-by-step process to get your Dubai mainland license, and answer common questions.
Our goal is to make your company setup in Dubai mainland smooth and hassle-free.
Why Choose Dubai Mainland for Your Business?
When it comes to mainland company setup, Dubai stands out as one of the best jurisdictions globally. Here are some of the key benefits of establishing your business in Dubai mainland:
- Strategic Location & Connectivity: Dubai’s location at the crossroads of Europe, Asia, and Africa gives your business unparalleled access to global markets.
With world-class airports and seaports, you can easily import, export, and reach customers internationally. This connectivity makes Dubai a perfect base for regional headquarters and international trade operations.
- Business-Friendly Environment: Dubai mainland offers pro-business policies, including 100% foreign ownership in many sectors, zero personal income tax, and attractive corporate tax incentives.
The government has streamlined the process for obtaining a trade license (mainland license) in Dubai, making it faster and easier to start a company.
These policies, combined with a robust legal framework, allow businesses to thrive and retain more profits for growth.
- Diverse, Resilient Economy: The economy of Dubai is highly diversified across industries like tourism, real estate, finance, technology, logistics, and more.
This diversity means your business can tap into multiple revenue streams and isn’t solely reliant on one sector. Dubai’s commitment to innovation and continuous infrastructure development creates a stable environment where businesses can remain competitive and adapt to new opportunities.
- Unrestricted UAE Market Access: Setting up in Dubai mainland allows your company to operate anywhere in the UAE without geographic restrictions.
Unlike free zone companies, which may be limited to doing business within their zone or through distributors, a mainland company can trade freely across Dubai and the wider UAE.
You can also engage in government contracts and large projects directly. This unrestricted market access is a huge advantage for businesses aiming to scale across the Emirates.
We at CBS help you maximize these advantages by providing expert guidance at every step of your business journey.
Step-by-Step Guide to Mainland Company Formation in Dubai
Ready to start your mainland company in Dubai? Mainland company formation in Dubai involves several key steps, but don’t worry — we guide you through each one.
Here’s a simple step-by-step process to obtain your Dubai mainland license and launch your business:
1. Choose Your Business Activity:
First, decide on the nature of your business. Dubai’s Department of Economy and Tourism (DET) classifies all business setup in Dubai mainland by specific activities (commercial, professional, industrial, tourism, etc.).
The activity you choose will determine the type of license you need (for example, a commercial license for trading businesses or a professional license for consultancy services).
Our experts at CBS will help you identify the right business activity to ensure you meet all the requirements and get the appropriate license.
2.Select a Legal Structure:
Next, choose the legal structure for your company. Dubai mainland offers several options, including a Limited Liability Company (LLC), sole proprietorship, branch office, or representative office.
Each structure has its own benefits and considerations. For instance, an LLC is the most common mainland format – it provides limited liability protection and now can have 100% foreign ownership in permitted sectors.
We will consult with you to select the optimal legal structure that fits your ownership preferences, liability needs, and long-term vision.
3.Reserve a Trade Name:
Every company in Dubai needs an approved trade name. You’ll want to pick a unique name that reflects your business and complies with Dubai’s naming rules (no offensive terms, avoids well-known brand names, etc.).
We will reserve your trade name with the DET on your behalf, making sure it meets all guidelines.
A proper trade name not only establishes your brand identity from the start but also prevents legal issues by not infringing on any trademarks.
4.Obtain Initial Approval:
Before you can fully proceed, the Dubai authorities need to grant initial approval for your business idea.
This is basically the government’s “green light” to move forward, indicating no objection in principle to your proposed company.
We prepare and submit the required documents to the DET for you to secure this initial approval quickly. Our PRO services cover all the paperwork and liaison with government departments, so you get the approval hassle-free.
5.Draft the Memorandum of Association (MOA):
For an LLC or any partnership-based company, you must draft a Memorandum of Association.
The MOA outlines the share distribution, ownership percentages, and company rules between partners (if any). It must be notarized and submitted to the authorities.
At CBS, our legal team will draft a robust MOA tailored to your business, ensuring all parties are protected and the document adheres to UAE company laws. This way, your company’s foundation is legally sound from day one.
6.Secure a Business Location:
Dubai mainland companies are required to have a physical office or workspace.
This can be an office unit, retail shop, warehouse, or even a flexi-desk in some cases – it depends on your business activity and needs. The lease (Ejari) for your office must be in place to proceed with the license.
Choosing the right location is crucial for visibility and for practical reasons. Consider factors like customer accessibility, proximity to suppliers, and cost.
We can assist you in finding and securing an ideal business location that fits your budget and gives you room to grow. Keep in mind, the size of your office can also impact the number of visas your company can obtain (larger office space allows for more employee visas).
7.Obtain Your Dubai Mainland License:
Once you have your initial approval, trade name, MOA, and office lease, the final step is to apply for your trade license (the mainland license Dubai issues to officially register your company).
We will submit all the documents to the Dubai DET and handle any further requirements until your business license is issued. This Dubai mainland company setup license confirms your business is legally established and ready to operate anywhere in Dubai and the UAE.
Licenses are typically issued within a few days once all paperwork is in order. After issuance, we’ll also remind you about annual license renewals and help manage them so your company stays fully compliant.
8.Register for Taxes (VAT and Corporate Tax):
After your company is formed, you must register for any applicable taxes. Dubai imposes a 5% Value Added Tax (VAT) on most goods and services, so if your business crosses the mandatory sales threshold, you need to register for VAT.
Additionally, as of 2023, the UAE has introduced a corporate tax (currently 9% on business profits over a certain threshold). Even though Dubai’s tax environment is very friendly (many businesses end up paying 0% corporate tax if they fall below the profit threshold or meet exemption criteria), it’s important to complete the required registrations.
Our team will guide you through registering with the tax authorities and ensure you understand your company’s tax obligations. Proper tax compliance will keep your business in good standing and avoid any penalties down the line.
Following these steps will set you on the path to successfully launching your company in Dubai mainland.
Throughout this process, CBS will be by your side to handle the paperwork, coordinate with government agencies, and offer advice at each decision point. With our support, setting up a mainland company in Dubai becomes a streamlined experience rather than a daunting task.
Start Your Dubai Mainland Business with CBS
Establishing a business in Dubai mainland is an exciting venture, especially with all the opportunities the city offers. However, navigating the legal requirements and procedures can be complex if you’re new to it.
This is where Corporate Business Services (CBS) comes in as your dedicated partner. With years of experience in business setup consulting Services, we understand every nuance of the process.
Our services cover everything you need for a successful company setup in Dubai: from choosing the right license and legal structure, to preparing all documentation, obtaining approvals, and even post-establishment support like visa processing and accounting.
We take pride in simplifying the setup journey for our clients. When you work with us, you won’t have to worry about language barriers, paperwork, or compliance issues – we handle all the heavy lifting so you can focus on planning your business strategy.
Ready to make your Dubai business dream a reality? Book a free consultation with our team today. We’ll discuss your business setup plan, answer any questions you have, and chart out the next steps tailored to your needs.
Our advisors will provide personalized guidance and a transparent breakdown of the Dubai mainland company formation cost for your specific situation. This initial consultation is absolutely free and will give you clarity and confidence to move forward.
Take the first step now – schedule your free consultation with CBS and let’s start your Dubai mainland business journey together!
Dubai Mainland Business Setup FAQs
What is a Dubai mainland license and why do I need it?
Often referred to as a mainland license in Dubai, this document is essentially your business permit. Every company in Dubai mainland must have a valid license corresponding to its activity (e.g. commercial, professional, industrial).
In short, without a business license in Dubai, you cannot open a bank account for your company, sponsor visas, or conduct any business in Dubai. Obtaining this license is a core part of the company formation process, and we make sure our clients get their Dubai trade license quickly and smoothly.
How much does Dubai mainland company formation cost?
Key cost factors include the license type and government fees, the size and location of your office (rent), visa fees per employee or partner, and any additional approvals needed for special activities.
As a ballpark, a simple mainland company setup can start from around AED 15,000–20,000 in government fees and basic expenses, but it differs case by case. For example, if you need a larger office or multiple visas, your costs will be higher.
The good news is Dubai mainland allows you to start small and scale up as needed. To get an accurate estimate, you can consult with us directly. We’ll provide a transparent quote so you know exactly what to budget for your mainland company formation.
Free Zone vs Mainland Dubai – which is better for my business?
Free zones in Dubai offer 100% foreign ownership as well, and they often come with benefits like zero corporate tax for a certain period, simplified customs for import/export within the zone, and no need for an onshore office (some offer flexi-desk packages).
However, free zone companies are generally restricted from doing business in the mainland UAE market unless they work through local distributors or agents.
In contrast, a Dubai mainland company allows you to trade anywhere in the UAE freely and even globally, without restrictions on where you can offer your services or products.
Mainland companies can also take on government projects and have the flexibility to expand branches across Dubai and other Emirates.
If your business will primarily cater to the local UAE market or you plan to scale broadly, a mainland setup is usually the better choice.
On the other hand, if you aim to focus on export or a specific zone-based activity, a free zone might suffice.
We at CBS help clients weigh the pros and cons of free zone vs mainland Dubai based on their specific business model, ensuring you make the best decision for your situation.
How many visas can I get with a Dubai mainland company?
There isn’t a fixed cap on the number of visas for Dubai mainland companies – it largely depends on the size of your office space and the nature of your business.
Typically, Dubai authorities allow a certain number of visas per square foot of office space (for example, about 100 square feet per visa is a common guideline).
So the larger your office (or the more desks you have), the more visas you can sponsor. In practice, this means a mainland company can grow its team without the strict visa limits that some free zones impose (free zones often have set packages like 2 visas, 5 visas, etc., unless you upgrade your facility).
With a mainland license, you can sponsor investor visas for owners, employment visas for staff, and even family visas for dependents under the right conditions.
CBS will advise you on the visa process and help you handle all the paperwork to obtain Dubai mainland visas for your team once your company is established.
Do I need a local sponsor to start a company in Dubai mainland?
As of now, most business activities in Dubai mainland allow 100% foreign ownership, which means you do not need a local Emirati partner and can own the business entirely yourself.
There are only a few strategic sectors (like oil & gas, telecom, etc.) or regulated professions where some local involvement might still be needed. For the vast majority of normal trading or service businesses, no local sponsor is required – you’ll simply need a Local Service Agent for administrative purposes if you set up a professional sole establishment (which is an agent with no ownership stake, just helps with licensing paperwork).
CBS will inform you upfront if your chosen activity requires any local stakeholder or if it’s fully open to 100% foreign ownership. In most cases, you can enjoy full control of your mainland company while we handle the local liaising requirements as your agent.
Ready to begin your Dubai mainland company setup? Our team at Corporate Business Services is here to help. Get in touch with us for personalized support and make your Dubai business setup journey seamless and successful.
