Dubai has become one of the most sought-after business destinations in the world, thanks to its strategic location, investor-friendly policies, and dynamic economy. For entrepreneurs and businesses looking to establish a presence in the UAE, setting up a mainland company in Dubai offers numerous advantages, including full access to the local market and no restrictions on business activities. This comprehensive guide explores everything you need to know about mainland company formation in Dubai, including its benefits, requirements, costs, and processes.
What is a Mainland Company in Dubai?
A mainland company is a business entity registered with the Dubai Department of Economy and Tourism (DET), formerly known as the Department of Economic Development (DED). Unlike free zone companies, which are restricted to operating within specific zones or outside the UAE, a mainland company can conduct business anywhere in the UAE and internationally. Mainland businesses can engage in a wide range of commercial activities and secure government contracts.
Benefits of Setting Up a Mainland Company in Dubai
- 100% Foreign Ownership: Recent regulatory changes allow foreign investors to own 100% of their business in most commercial and industrial sectors without requiring a local sponsor.
- No Trade Restrictions: Unlike free zone companies, mainland businesses can trade directly within the UAE market and internationally.
- Access to Government Contracts: Mainland companies are eligible to bid for government and semi-government projects, which are often lucrative opportunities.
- No Currency Restrictions: Businesses can operate in multiple currencies without any foreign exchange limitations.
- Flexibility in Business Location: Mainland companies can set up offices anywhere in Dubai, offering greater accessibility to customers and business partners.
- No Minimum Capital Requirement: There is no mandatory minimum capital requirement for most business activities.
- Visa Eligibility: Mainland companies can apply for an unlimited number of employee visas, subject to office space and business activity.
Types of Business Structures in Dubai Mainland
Entrepreneurs can choose from several business structures when setting up a mainland company in Dubai. The most common types include:
- Sole Proprietorship – Owned and managed by a single individual who has full control over the business.
- Limited Liability Company (LLC) – The most popular structure, allowing multiple shareholders with limited liability protection.
- Civil Company – Designed for professionals such as doctors, consultants, and accountants.
- Branch of a Foreign Company – Allows international businesses to set up a branch office in Dubai.
- Representative Office – A non-trading entity that promotes the parent company’s business in the UAE.
- Public and Private Joint Stock Companies – Suitable for large-scale businesses and public investments.
Steps to Set Up a Mainland Company in Dubai
The process of mainland company formation in Dubai involves several steps, which are outlined below:
1. Select a Business Activity
The first step is to determine the type of business activity you intend to engage in. The DET provides a comprehensive list of approved activities.
2. Choose a Business Structure
Based on your business objectives, select a suitable legal structure, such as an LLC, sole proprietorship, or branch office.
3. Register a Trade Name
Choose a unique trade name for your company and get it approved by the DET. The name should comply with UAE naming guidelines and should not include offensive or religious terms.
4. Obtain Initial Approval
An initial approval from the DET allows you to proceed with the company setup process. This approval indicates that the government has no objections to your business activities.
5. Draft and Notarize the Memorandum of Association (MOA)
For LLCs and certain other business structures, you need to draft and notarize an MOA outlining the ownership structure and operational framework of the company.
6. Secure a Business Location
Mainland companies must lease an office space in Dubai. The tenancy contract and Ejari registration certificate are mandatory for business licensing.
7. Apply for a Business License
Submit all required documents to the DET and apply for a business license. The type of license depends on your business activity:
- Commercial License – For trading businesses.
- Industrial License – For manufacturing and production companies.
- Professional License – For service-based businesses and consultancies.
8. Obtain Additional Approvals (if required)
Certain business activities require additional approvals from relevant government authorities. For example, healthcare businesses need approval from the Dubai Health Authority (DHA).
9. Process Visa Applications
After obtaining your business license, you can apply for residence visas for yourself, employees, and family members.
10. Open a Corporate Bank Account
Once your company is legally established, open a corporate bank account with a UAE-based bank to facilitate business transactions.
Cost of Mainland Company Formation in Dubai
The cost of setting up a mainland company in Dubai varies based on factors such as business activity, office location, and visa requirements. Below is a general cost breakdown:
- Trade Name Registration: AED 600 - AED 2,000
- Initial Approval Fees: AED 1,000 - AED 3,000
- Business License Fees: AED 10,000 - AED 20,000
- MOA Notarization Fees: AED 2,000 - AED 5,000
- Office Space Rent: AED 15,000 - AED 50,000 per year (varies by location and size)
- Visa Fees (Per Employee): AED 3,000 - AED 7,000
- Local Service Agent Fees (if applicable): AED 5,000 - AED 15,000 per year
Required Documents for Mainland Company Formation
To register a mainland company, the following documents are required:
- copyright copies of shareholders and managers
- Visa copies of shareholders and managers
- Trade name approval certificate
- Initial approval certificate from DET
- Memorandum of Association (MOA)
- Tenancy contract (Ejari certificate)
- Approvals from relevant authorities (if applicable)
Timeline for Company Formation
The time required to set up a mainland company in Dubai typically ranges from 1 to 4 weeks, depending on the business activity and approvals needed.
Conclusion
Setting up a mainland company in Dubai provides unparalleled benefits, including unrestricted business operations, government contract eligibility, and unlimited visa issuance. While the process requires careful planning and compliance with regulatory requirements, the long-term benefits make it a worthwhile investment. Entrepreneurs looking to establish their presence in the UAE should consider working with business setup consultants to ensure a smooth and hassle-free process.