Starting a mainland company in Dubai is a very smart way to take advantage of the entire UAE market. It gives you the freedom to do business in all the emirates without any restrictions and opens the doors to government and private sector contracts. In this article, we will explain everything – from its benefits to costs and legal structure – and all this is written in a smooth manner that is perfect for both readers and search engines.
Understand Dubai Mainland
Before registering a company, it is important to understand what “Dubai mainland” is. Mainland means those businesses that have a license from Dubai’s Department of Economy and Tourism (DET) and can operate anywhere in the UAE without any restrictions. These companies can do both B2C and B2B work and can also take up government projects, which Free Zone and Offshore companies cannot normally do.
What is a Mainland Company?
The mainland company is a legal business entity that is set up under the civil jurisdiction of Dubai. This company can trade within the UAE and internationally, sell products, and provide services.
DET Oversight
All mainland businesses are registered under the Department of Economy and Tourism (DET) and operate under its rules, which ensures that everything is legally compliant and transparent.
Benefits of Mainland Company Formation in Dubai
Mainland companies are the most flexible option in Dubai’s business ecosystem. They allow for broader activity, more visa eligibility, and complete UAE market access. These features make them ideal for entrepreneurs looking to scale up operations without limits.
100% Market Access in the UAE
Mainland companies are not restricted to one area or Free Zone. You can offer services and trade throughout Dubai, Abu Dhabi, Sharjah, and all other emirates.
Eligibility for Government Projects
Free Zone companies are usually restricted from bidding on public contracts. Mainland companies can work with government departments, offering massive growth potential.
Unlimited Visa Quota
There’s no hard limit on employee visas. The number depends on your office space size, making mainland companies perfect for large teams.
Freedom of Office Location
Mainland businesses can set up anywhere in Dubai. This gives you a location advantage based on your target audience or business model.
Key Requirements for Mainland Company Registration
To start a mainland company, you need to meet specific legal, regulatory, and financial requirements. These ensure that your business operates transparently and aligns with UAE’s business laws.
Legal Structure Selection
Choose from structures like LLC (Limited Liability Company), Civil Company, or Sole Establishment based on your business activity and ownership plans.
Trade Name Approval
You must select a unique, non-offensive trade name that complies with DET’s naming rules. The name must reflect your business nature.
Local Sponsorship or Agent
Depending on your license type, you’ll need either a UAE national sponsor (for LLC) or a local service agent (for professional licenses).
Steps to Establish a Mainland Company in Dubai
The process for mainland company formation is straightforward but must be done step by step to avoid legal or compliance issues. Here’s a clear breakdown.
Step 1 – Finalize Business Activity
Choose the right activity from DET’s approved list. This affects your license type, permits, and operational permissions.
Step 2 – Choose a Company Structure
Decide between LLC, Sole Establishment, or Civil Company depending on ownership split and liability.
Step 3 – Reserve a Trade Name
Apply with DET to get your company name reserved. Avoid any names with religious, political, or offensive terms.
Step 4 – Initial Approval
This non-objection certificate shows that the government has no objection to your business starting operations.
Step 5 – Draft MOA and LSA Agreement
Prepare a Memorandum of Association and if needed, a Local Service Agent Agreement, which must be notarized.
Step 6 – Secure Office Space
Lease a physical office or flexi-desk. The number of employee visas depends on your workspace size.
Step 7 – Submit Documents
File all documents with DET and pay the relevant license issuance fee.
Step 8 – Get Your Trade License
Once approved, you’ll receive your Dubai mainland trade license, officially making you a registered business.
Types of Business Licenses for Mainland Companies
Your chosen business activity determines what type of license you’ll need. Each license has specific terms, renewal timelines, and government body approvals.
Commercial License
For businesses involved in trading, retail, import/export, or general commerce.
Professional License
Suited for service providers, consultants, legal, IT, and education professionals. It requires a local service agent.
Industrial License
Required for companies engaged in manufacturing or production, and usually needs environmental clearances.
Choosing the Right Business Activity
Choosing the correct activity is not just a formality. It affects your licensing, approvals, legal compliance, and growth potential. It’s best to consult a business advisor to avoid mistakes.
Importance of Aligning With DET Categories
Activities must match DET’s approved list. Any mismatch can delay your license or restrict your operations.
Planning for Future Growth
Pick a category that allows room for expansion into related activities without needing a whole new license.
Costs and Fees for Mainland Company Formation
The cost to set up a mainland company varies depending on your business type, office size, and government fees. Planning your budget early helps avoid delays.
License and Registration Fees
On average, the trade license fee is AED 10,000–AED 15,000, excluding visa, sponsor, and office rent.
Office Rent and Ejari
You’ll need a valid Ejari contract for your office. Rents start from AED 15,000/year for shared spaces.
Sponsor or Agent Fees
Local sponsor fees generally range from AED 8,000 to AED 20,000 yearly depending on agreement terms.
Role of a Local Sponsor in Mainland Companies
A local sponsor or agent helps facilitate legal operations for foreign-owned companies. However, they typically have no involvement in day-to-day operations.
51% Shareholder (Nominee)
UAE law requires 51% ownership by a UAE national for LLCs. This is often managed through nominee agreements.
Finding the Right Sponsor
Always work with a business setup consultancy to find reliable, legally sound sponsorships.
Differences Between Mainland, Free Zone, and Offshore Companies
Understanding the core differences between these three structures will help you choose what’s best for your goals.
Mainland
Operate across the UAE, no restrictions on clients, needs local sponsor for LLC.
Free Zone
100% foreign ownership, limited to operating within the Free Zone or overseas, no local contracts.
Offshore
Meant for international holdings, cannot do business within the UAE, best for asset protection.
Tips for Successful Mainland Company Setup in Dubai
Setting up your business the right way from the start saves time, money, and legal issues down the road.
Tip 1 – Partner with a Reputable Setup Consultant
Use expert help for documentation, legal advice, and sponsor arrangements to avoid costly errors.
Tip 2 – Ensure Legal and Tax Compliance
Keep your license updated, renew on time, and follow UAE tax and VAT regulations.
Conclusion
Mainland company formation in Dubai is a smart, flexible, and future-ready way to enter the UAE market. It gives you access to a growing economy, lets you work with government clients, and offers long-term scalability. With the right knowledge and strategy, you can avoid delays and focus on building your business with confidence.
Frequently Asked Questions
How to start a mainland company in Dubai?
To start a mainland company in Dubai, first choose your business activity and legal structure (e.g., LLC or Sole Establishment). Then reserve a trade name, get initial approval from the Dubai Department of Economy and Tourism (DET), prepare the MOA and LSA agreements, lease office space, and submit all documents for your trade license. The full setup can take around 7–10 business days if done correctly.
How much does it cost to set up a mainland company in Dubai?
The average cost to set up a mainland company in Dubai ranges from AED 20,000 to AED 35,000, depending on your license type, office rent, visa quotas, and local sponsor fee. Working with a business setup consultant can help reduce unnecessary costs and streamline the process.
What are the benefits of setting up a company in mainland Dubai?
Mainland companies offer full access to the UAE market, the ability to work with government entities, and unlimited visa eligibility based on office size. You can also choose your office location anywhere in Dubai and expand freely without trade restrictions.
What is a mainland license in the UAE?
A mainland license is a business license issued by the Dubai Department of Economy and Tourism (DET) that allows a company to operate across the UAE without restriction. It’s required for companies that want to deal with the local market, government contracts, and international clients.
Can foreigners own 100% of a mainland company in Dubai?
Yes, as per the UAE’s updated Commercial Companies Law, many business activities now allow for 100% foreign ownership, eliminating the need for a UAE national partner. However, some regulated or strategic sectors still require a local sponsor.
Do I need a physical office for a mainland company in Dubai?
Yes, to register a mainland company, you must lease a physical office or coworking space and obtain an Ejari certificate. The office size can also impact how many employee visas you can apply for.
How long does it take to register a mainland company in Dubai?
On average, it takes 7 to 10 working days to complete the mainland company setup process—provided all documents are correct and approvals are timely.
What is the difference between mainland and Free Zone companies in Dubai?
Mainland companies can operate across the UAE and work with government clients, while Free Zone companies are limited to trading within the zone or internationally. Free Zones offer 100% ownership, but have location and operational restrictions.
Can I upgrade from Free Zone to mainland in Dubai?
Yes, many businesses that outgrow Free Zone limitations switch to a mainland setup to gain wider market access. This usually involves forming a new entity under DET regulations and shifting licenses, bank accounts, and operations accordingly.
What kind of business activities are allowed under a mainland license?
Dubai mainland licenses cover a wide range of activities including trading, consulting, logistics, hospitality, real estate, construction, healthcare, and professional services. Always check with DET to confirm activity availability and approval requirements.
