How to Start a Dubai Mainland Company in 2025 with 100% Foreign Ownership (No Local Sponsor Needed)

The UAE business landscape has seen a major shift in recent years. One of the biggest game-changers is the introduction of 100% foreign ownership for many business activities in Dubai Mainland, with no local sponsor required. This change has made the emirate more attractive than ever for entrepreneurs and international investors looking to enter the Gulf market.

If you’re planning to start a Dubai mainland company in 2025, this guide walks you through everything—from requirements to setup steps, benefits, costs, and FAQs.

What is a Dubai Mainland Company?

A Dubai mainland company is a business entity that is licensed by the Department of Economy and Tourism (DET), formerly known as the Department of Economic Development (DED). It allows businesses to operate throughout the UAE mainland, unlike Free Zone companies that are restricted to certain areas.

These companies can:

• Do business with any local or international market

• Work with government entities

• Open branches across the UAE

• Enjoy no currency restrictions

Key Advantages of Mainland Business Setup

Starting a mainland company in Dubai offers unmatched flexibility and business potential.

Major Benefits:

• 100% foreign ownership in eligible activities

• Unlimited market access within the UAE

• No restrictions on hiring local or foreign staff

• Ability to bid on government contracts

• Freedom to open multiple branches

• No minimum capital requirement for most activities

Understanding 100% Foreign Ownership in Dubai Mainland

Prior to 2021, foreign investors needed a UAE national as a local sponsor, holding 51% shares in the company. However, under Federal Decree-Law No. (26) of 2020, full foreign ownership is now allowed in many sectors.

This means:

• Investors have complete control of their business

• No need for local UAE national sponsorship

• 100% profit repatriation is possible

• Ownership rights are fully protected by law

Who Can Benefit from Full Ownership?

The rule is applicable to a wide range of commercial, industrial, and service-based businesses. It especially benefits:

• Startups & SMEs

• International brands

• E-commerce businesses

• Tech, legal, and financial consultancies

• Logistics and trading firms

If your activity is not yet listed, you may still be able to open in partnership with a UAE national as a service agent (non-shareholding role).

Legal Reforms That Enabled 100% Ownership

The legal backbone of 100% ownership includes:

• UAE Commercial Companies Law update (2021)

• Cabinet Decision No. 16 of 2020

• Revised FDI laws and economic substance regulations

The UAE government introduced these laws to:

• Attract global investors

• Boost the private sector

• Encourage innovation and entrepreneurship

Top Business Activities Eligible for 100% Foreign Ownership

While not all activities are allowed, the DET (DED) has approved over 1,000+ activities eligible for full ownership.

Some of the Common Ones:

• Software and IT services

• Marketing consultancies

• Management consultancies

• Logistics and shipping services

• Trading and retail

• Industrial manufacturing

• Construction and interior fit-out

Always verify your selected activity with the latest DET guidelines.

Step-by-Step Guide to Start a Dubai Mainland Company in 2025

Let’s go through the steps to successfully launch your Dubai mainland business with 100% ownership:

Step 1: Choose Your Business Activity

The first step is to select from approved DET activities. Your trade license will reflect this, so it must align with your actual operations.

Choose precisely to:

• Avoid legal issues

• Access the right approvals

• Avoid license amendments later

Step 2: Select a Legal Structure

Common legal structures in Dubai Mainland include:

• LLC (Limited Liability Company) – for most businesses

• Sole Proprietorship – for individuals providing services

• Civil Company – for professionals like doctors, lawyers

• Branch Office – for foreign companies

Most investors opt for LLC, now with 100% ownership.

Step 3: Register a Trade Name

Your company name must be:

• Unique

• Reflect your business activity

• Free from prohibited terms (e.g., religious or political)

The DET will check for availability and approve it.

Step 4: Obtain Initial Approval from DED

This approval confirms that the DET has no objection to you proceeding with the business.

You’ll need:

• Passport copy

• Business activity list

• Name reservation receipt

This is not the final license but an early go-ahead.

Step 5: Draft the Memorandum of Association (MOA)

The MOA defines your business objectives, share distribution, and management roles.

For 100% foreign-owned companies, MOA must state that one party owns all the shares.

It needs to be:

• Written in Arabic (with English copy)

• Notarized by a UAE public notary

Step 6: Lease Office Space and Get Ejari Certificate

To complete the registration:

• Rent a commercial office space or desk

• Register your lease through Ejari

• Submit the Ejari Certificate with your application

Virtual offices may not be accepted for some activities.

Step 7: Submit Documents and Pay Fees

Submit all documents to DET:

• Initial approval

• MOA

• Trade name certificate

• Ejari

• Passports and Emirates IDs (if applicable)

Pay the applicable license fees.

Step 8: Get Your Mainland Trade License

Once all is approved and paid, you’ll receive your mainland license, which legally allows you to operate across the UAE.

You’re now free to:

• Start operations

• Apply for visas

• Open bank accounts

• Sign contracts

Required Documents for Mainland Company Formation

• Passport copy of shareholders

• Recent photographs

• Initial approval and name reservation

• Notarized MOA

• Ejari lease contract

• Trade license application form

• NOC from sponsor (if on employment visa)

Cost of Starting a Mainland Company in 2025

While costs vary depending on your business size and activity, the average starting price is:

These costs may differ based on activity, visa requirements, and location.

Differences Between Mainland, Free Zone, and Offshore Companies

Bank Account Opening for Mainland Businesses

With a mainland license, you can open a corporate bank account in UAE.

Documents Required:

• Trade license

• MOA

• Shareholders’ passport copies

• Office tenancy contract

• Business plan (optional)

Approach banks like Emirates NBD, ADCB, Mashreq, or international banks like HSBC.

Visa Eligibility for Investors and Employees

A mainland company allows:

• Investor visa for the owner

• Employment visas for staff

• Family sponsorship for dependents

Each license comes with a visa quota based on office size and activity.

Compliance and Renewal Requirements

• Annual license renewal

• Office lease renewal

• Submission of Economic Substance Regulations (ESR) if applicable

• Filing of corporate tax returns from 2024 onwards

Ensure timely compliance to avoid penalties or blacklisting.

Mistakes to Avoid When Starting a Dubai Mainland Business

• Choosing the wrong business activity

• Selecting an inexperienced consultant

• Renting space without Ejari

• Failing to update MOA post-ownership changes

• Delaying license renewal

Avoiding these mistakes ensures a smooth business setup.

Why Dubai Mainland is Ideal for Growth-Focused Businesses

Dubai Mainland is perfect for companies that:

• Need full UAE market access

• Want to work with government projects

• Plan to expand or open branches

• Require a large workforce

• Aim for long-term scalability

With 100% ownership and evolving regulations, the opportunities are vast and accessible.

Conclusion

Starting a Dubai mainland company in 2025 with 100% foreign ownership is now a reality—offering you full control, flexibility, and access to the entire UAE market. The setup process is clear but involves legal and procedural steps that must be carefully followed.

To simplify the journey and ensure accuracy, consider working with professional experts for your Company Formation in Dubai Mainland. This gives you peace of mind and saves time, so you can focus on what matters—growing your business in the UAE.

FAQs

Can I own 100% of my company in Dubai mainland in 2025?

Yes, many business activities now allow full foreign ownership without a local sponsor.

Do I still need a UAE partner or service agent?

Only certain restricted activities require a UAE national service agent. Most do not.

How long does it take to form a mainland company in Dubai?

It takes 5–10 working days, depending on the activity, documents, and approvals.

Is a physical office required for a mainland company?

Yes, Ejari-registered office space is mandatory.

Can I upgrade from Free Zone to Mainland company?

Yes, but it involves cancellation, new licensing, and sometimes transfer of assets.