Introduction
Setting up a mainland company in Dubai is one of the most strategic business moves for entrepreneurs looking to tap into the UAE’s thriving economy. Unlike free zone companies, mainland businesses allow full access to local and international markets, making them a preferred choice for investors seeking unlimited growth opportunities. This guide covers everything you need to know about mainland company formation, from legal structures to licensing and benefits.
What Is a Mainland Company in Dubai?
A mainland company is a business entity registered under the Department of Economic Development (DED) in Dubai. Unlike free zone companies, which operate within designated areas, mainland companies can conduct business across the UAE and internationally without restrictions.
Key Benefits of Mainland Company Setup in Dubai
- 100% Foreign Ownership – As per recent UAE regulations, foreign investors can fully own most business activities without requiring a local sponsor.
- No Trade Restrictions – Operate freely across the UAE and internationally.
- Unlimited Visa Quotas – Depending on office space, mainland companies can apply for multiple visas.
- Access to Government Contracts – Eligible to bid for lucrative government and semi-government projects.
- Wide Range of Business Activities – Mainland companies can engage in diverse sectors, including trading, consultancy, industrial, and professional services.
Steps to Set Up a Mainland Company in Dubai
1. Choose a Business Activity
Selecting the right activity is crucial as it determines licensing requirements. The DED provides a comprehensive list of permitted activities.
2. Select a Legal Structure
Mainland companies in Dubai can have various legal forms, including:
- Sole Establishment – For single-owner businesses.
- Limited Liability Company (LLC) – Ideal for small to medium enterprises.
- Civil Company – Suitable for professionals like doctors and consultants.
- Branch of a Foreign Company – Allows international companies to operate in Dubai.
3. Register a Trade Name
Your company name must comply with UAE regulations, avoiding any offensive or religious terms.
4. Obtain Initial Approvals
You must secure approvals from the DED and other relevant authorities based on your business activity.
5. Lease an Office Space
A physical office is mandatory for a mainland company. The size of the office determines your visa eligibility.
6. Apply for a Business License
Dubai offers three main types of mainland licenses:
- Commercial License – For trading businesses.
- Professional License – For service-based industries.
- Industrial License – For manufacturing and industrial businesses.
7. Register for VAT and Corporate Tax
Businesses with an annual turnover exceeding AED 375,000 must register for VAT. Depending on your profits, corporate tax may also apply.
8. Obtain Additional Approvals
Certain industries, such as healthcare, education, and finance, may require special approvals from government bodies like the DHA, KHDA, or UAE Central Bank.
9. Receive Your Business License
After submitting all documents and approvals, the DED issues the business license, allowing you to commence operations.
Cost of Mainland Company Setup in Dubai
The cost of setting up a mainland company varies depending on factors like business activity, office space, and visa quotas. On average, the setup cost ranges from AED 15,000 to AED 50,000, excluding additional approvals and office rent.
Why Choose Mainland Over Free Zone?
| Feature | Mainland Company | Free Zone Company |
|---|---|---|
| Ownership | 100% foreign ownership (most activities) | 100% foreign ownership |
| Market Access | UAE & International | Limited to free zone or export |
| Visa Limitations | No restrictions | Limited by free zone authority |
| Government Contracts | Eligible | Not eligible |
Conclusion
Setting up a mainland company in Dubai provides business owners with the flexibility to operate without trade restrictions, bid for government contracts, and scale their enterprises. With recent reforms allowing full foreign ownership, Dubai remains one of the most attractive business destinations in the world. If you’re looking to establish a successful company in the UAE, understanding the process and working with experts can ensure a seamless setup.
