Mainland Business Regulations in Dubai | 2025 Complete Guide for Company formation
How to Form A Mainland Company in Dubai. To form a mainland company in Dubai, you need to adhere to the laws of the UAE Federal Decree Law No. 32 of 2021, which is managed by the Department of Economic Development (DED). Select from 3,000-plus business activities, choose a legal structure (like a limited liability company, LLC), reserve a trade name, get preliminary approval, and apply for a business license. For this, you’ll need papers like passport copies, a Memorandum of Association (MOA), and a tenancy contract. In most sectors, recent reforms have permitted 100% foreign ownership, though some activities still require a local sponsor or additional approvals by bodies like the Dubai Health Authority. The prices vary from AED 12,000 to AED 30,000 depending on the license and office size.
Starting your mainland business in the UAE provides the supreme flexibility to do business in local and global markets. Whether you are a foreign investor seeking “How to start a business in UAE as a foreigner? or an SME that wants to do business with the mainland, then your grasp of mainland business regulations is absolutely crucial. This guide takes you through that process, what it means for you, and what you need to do to comply, based on my work supporting entrepreneurs making their way through Dubai’s dynamic business environment.”
Why Choose a Mainland Company in Dubai?
The strategic location, investor-friendly policies, and booming economy of Dubai make it a favorite among entrepreneurs. Establishing a mainland company in Dubai allows you to access the UAE’s local market, take part in the local government bids, and operate in the local terrain. Unlike those businesses in free zones, which are set up to facilitate international trade, mainland businesses can provide products or services directly to clients in Dubai, from restaurants to consultancies. 100% foreign ownership, such as foreign ownership, new reforms have been made in recent 2025 by the government to make the Dubai mainland company setup easier for foreigners.
Business climate – The UAE’s integrated business environment provides business growth opportunities with ease of business setup (with no minimum capital requirement, no prescribed office location, and access to a global pool of talent). If you are looking to explore Dubai mainland business activities or want to be eligible for the UAE Golden Visa, a good knowledge of mainland business regulations can help you in having a smooth setup.
What is a Mainland Company?
A mainland company is a business registered with the Department of Economic Development (DED) in Dubai or in any other emirate of the UAE. Ruled by the UAE Commercial Companies Law (Federal Decree Law No. 32 of 2021), it is allowed to do business anywhere in the UAE and abroad, unlike free zone companies with geographic limitations. What does a mainland company mean? A mainland company is an onshore company that can perform more than 3,000 licensed activities in Dubai; these cover trading, hospitality, or professional services.
Key Benefits of Mainland Business Setup
Having a mainland company in uae has its unique benefits. Here’s what makes it a good pick:
- Operational Flexibility: Conduct business in a Free Zone and trade with the whole UAE and beyond, while opening branches in many different emirates.
- Government Contracts Business Opportunities: Tender for the best government and private sector business opportunities, and protect your mainland operations with increased business.
- 100% Foreign Ownership: New laws permit full ownership in the vast majority of industries, eliminating the requirement for an Emirati business partner.
- No minimum capital: Capital is not required to initiate your business, hence reducing the financial entry barrier.
- Flexible Office Space: Pick a Dubai mainland location of your choice that fits you and your company’s needs, the size should be no less than 100-200 sq. ft.
- Repatriation of Profits: Benefit from 100% repatriation of profits and investments, great news for overseas investors.
- No Audit Mandates: Streamlined adherence with no requirement for an annual audit.
- Work Visas: Get shareholder, employee, or dependent visas with ease.
- Global Skill Base: Tap into a rich pool of talent in Dubai to support business activities.
- Pro-Business: Take advantage of fast-track permitting and online services through the IID Portal.
These advantages provide a solution for common pain points, namely compliance costs or lack of access to the market, that make mainland company formation UAE an attractive proposition for SMEs and startups.
Types of Mainland Business Licenses
It is important to pick the correct mainland license. There are more than 3,000 options on the List of licensed activities for a Dubai mainland license. Here are the main types:
- Commercial License: For businesses, such as retail, wholesale, or import/export. Ideal for general trading businesses.
- Industrial Licence: This is issued for industrial or manufacturing activities, like those utilizing factories or assembly plants.
- Professional Businesses: Business/ professional license for service provider businesses ( consultancies, IT companies, or engineering professionals)
- E-Trader Licence: For UAE individuals or home-based businesses selling online in and from the UAE.
- Dual Licence: Permits business in mainland and destination areas, subject to approvals.
- Snap & Go: A handy choice for fast deployment for certain activities.
- Small business: otherwise an SME License (usually with Dubai SME assistance) 3.
- Intelaq Licence Emirati and GCC nationals operating a home-based business with low costs.
There are different kinds of licenses that will reflect the scope of business you are performing. A professional services company is suitable for consultants, whereas retail is for retailers, for example. Keep an eye on the IID Portal for a comprehensive list of Dubai mainland activity.
Legal Structures for Mainland Companies
The choice of business structure determines exposure to liability, ownership structure, and how the business is legally operated. Here are the primary options:
| Legal Structure | Key Features | Ownership & Liability |
| Limited Liability Company (LLC) | – Common structure for commercial activities- Recent reforms allow 100% foreign ownership in most sectors | – Liability limited to invested capital- Local sponsor required in strategic sectors (e.g., banking) |
| Sole Proprietorship | – Full control by a single owner- Typically used for professional services | – 100% ownership- Unlimited personal liability |
| Civil Company | – Suitable for professionals like doctors, lawyers, engineers- Foreigners can own 100% | – Requires local service agent- Personal liability for business debts |
| General Partnership | – 2 to 50 partners- Common in freelance/professional activities | – 100% foreign ownership possible- Full liability based on ownership share |
| Limited Partnership | – Mix of general and limited partners | – Liability varies: general partners have full liability, limited partners don’t |
| Private Joint Stock Company | – Suitable for larger businesses- Up to 50 shareholders | – Shareholder liability limited to share value |
| Public Joint Stock Company | – Can offer shares to the public- Typically for large-scale ventures | – Shareholder liability limited to shares- Not suitable for startups |
| Branch of Foreign Company | – Extension of an existing foreign company | – 100% owned by parent- No separate legal identity |
Step-by-Step Guide to Mainland Company Setup
Well, here is a simple and straightforward step-by-step guide to establish a mainland business in Dubai, UAE:
Step 1: Select Business Activity:
Choose a business activity from the List of over 3,000 Dubai mainland license activities, including commercial activities, industrial activities, and professional services. This will define your licensing and restrictions.
Step 2: Choose a Trade Name:
Choose a distinctive name that reflects your categories of business activities. Make sure it meets DED criteria (e.g., no religious references) through the IID Portal.
Step 3: Decide on Legal Structure:
Decide on a structure such as a sole proprietorship or an LLC, depending on the ownership and liability requirements.
Step 4: Obtain Preliminary Approval:
Present your documents to the Department of Economic Development for preliminary approval, indicating that there’s no issue with your business.
Step 5: Get External Approvals:
For the healthcare services and education domain, especially support from the likes of the Dubai Health Authority or the Ministry of Education, etc.
Step 6: Trade Name Reservation:
You should complete a DED Trade Name Reservation Formati0n to secure the identity and brand name of your company.
Step 7: Make the Legal Papers:
Draw up and notarize the MOA with ownership details and obtain the Ejari certificate for the office.
Step 8: Hire Office Space:
Rent out at least a minimum of 100-200 sq ft and have it declared on the Land Department portal for authorization.
Step 9: Get Business License:
Hand your papers, which may be stamped with the RERA seal, to the DED to get your trade license.
Step 10: Open a Corporate Bank Account:
With your business license and MOA, you can open a corporate bank account UAE.
Step 11: Visas:
Work with the General Directorate of Residency and Foreign Affairs for employment visas or eligibility for a UAE Golden Visa.
Step 12: Post-Licensing:
Lodge labor documentation at the Ministry of Human Resources and Emiratisation(MOHRE ), obtain an E-signature card, and register with the Chamber of Commerce.
For example, we once set up a consultancy with a friend and managed to streamline initial approval as well as trade name reservation, all through the DED online portal, and avoided weeks’ worth of paperwork.
Documents Required for Mainland Business Setup
For your mainland company formation UAE, you’d need these documents entire:
- Request for registration and licensing application: On the DED or IID Portal.
- Evidence of reserved trade name: From trade name reservations.
- Shareholders’ passport copies to be submitted with the entry stamp or visa page of foreigners.
- Passport size photos- all shareholders and managers.
- MOA ( Memorandum of Association) Notarized, with shareholding pattern and company objectives clearly mentioned in the MOU.
- Tenancy contract (Ejari): With a lease agreement between the firm and a memorandum of understanding, confirming that the office space is booked with the landlord for use in the current year.
- Business plan: Required for some licenses, such as manufacturing operations.
- NOC: (No Objection Certificate) Activities for Foreign Investors.
- Residency proof: For non-GCC nationals: visa information.
- Parent company documents: Branch offices – including attested license MOAs.
Non-English documents need to be translated and legalized by the Ministry of Justice. For example, I have provided MOA translation support to a client, ensuring compliance so that the process is not held up.
Compliance and Legal Requirements
Complying with business regulations on the mainland is very important. Key requirements include:
- VAT Registration: Compulsory if the value of your supplies exceeds AED 187,500, as outlined in the UAE tax laws.
- Health and Safety Regulations: The lease of your office space must comply with the Standards of Dubai Municipality.
- Emiratization: Some employers are required to employ UAE nationals according to the MOHRE quotas.
- Ultimate Beneficial Owners (UBO) Declaration: Mandatory to comply with anti-money laundering as per UAE Federal Decree Law No. 32.
- Labour File and E-Signature Card: Open a labour file with the MOHRE to use for visa and labour procedures.
- UAE Chamber of Commerce Registration: Become a member of the UAE Chamber of Commerce for trade and networking support.
Failure to comply, such as missing VAT registration deadlines, may result in penalties. I have witnessed that firms have escaped fines with the help of business setup consultants in Dubai to adhere to the time limit.
Costs of Setting Up a Mainland Company in Dubai
The cost of a Dubai mainland license will be different depending on the type of license, activity, and office space. Here’s a breakdown:
| Cost Component | Estimated Range (AED) | Remarks |
| Trade License Fees | 12,000 – 30,000 | Varies by license type (Commercial or Professional) |
| Office Rent | 20,000 – 50,000 per annum | Based on 100–200 sq ft office; verified via Ejari certificate |
| Government Approvals | 1,000 – 5,000 | Includes initial approval and special approvals (e.g., RTA, DED) |
| Visa Fees | 3,000 – 5,000 per visa | Depends on visa type, e.g., employment visa or Golden Visa |
| Local Sponsor Fees | 10,000 – 20,000 per year | Applicable to LLCs in certain sectors requiring a local Emirati sponsor |
| PRO/Consultant Fees | 5,000 – 15,000 | Charges by PRO or business setup consultants for document handling, etc. |
For instance, a professional services firm I helped paid AED 15,000 for a trade license and AED 25,000 for a small office, which would have cost him approximately AED 45,000. Costs are different, so refer to DED for accurate costs.
Mainland vs. Free Zone vs. Offshore: Which is Right for You?
Mainland, Free Zone, or Offshore – Which is the Right Structure? It is your goals that determine which of these three structures is the most appropriate for you:
| Structure | Pros / Advantages | Cons / Limitations |
| Mainland Company | – Can do business locally and internationally- Eligible for government contracts- 100% foreign ownership (in most sectors)- Freedom to operate anywhere in Dubai | – Physical office required- Local sponsor may be needed in some sectors |
| Free Zone Company | – 100% foreign ownership- Corporate tax exemptions- No customs duties | – Cannot trade directly with UAE mainland customers- Restricted by Free Zone location |
| Offshore Company | – High privacy- No need for physical office- Ideal for international transactions | – No business activity allowed within UAE- No eligibility for UAE visas |
For example, a retailer would value a mainland company for access to the local market, but an export-oriented business would prefer a free zone. See the DED’s Business Setup Recommendation Tool for options comparison.
Frequently Asked Questions
Q1: What is a mainland company in Dubai?
A mainland company is a business registered with the Department of Economic Development (DED), allowing it to operate across the UAE and internationally, unlike free zone companies. It supports diverse business activities, like trading or professional services.
Q2: How long does it take to set up a mainland company in Dubai?
The process takes 2–8 weeks, depending on business activity categories and approval timelines. Using DED online platforms or PRO services can speed things up.
Q3: Do I need a local sponsor for a mainland company in Dubai?
Since 2021, 100% foreign ownership is allowed in most sectors. However, strategic sectors like banking or money exchange require a local sponsor owning up to 51%.
Q4: What are the costs of setting up a mainland company in Dubai in 2025?
Costs range from AED 12,000–AED 30,000 for a trade license, plus AED 20,000–AED 50,000 for an office space lease. Additional fees include visas and special approvals.
Q5: How do I choose a trade name for my mainland company?
Select a unique name reflecting your business activity and complying with DED rules (e.g., no religious terms). Reserve it via the IID Portal.
Conclusion
Starting a mainland business in the UAE in 2025 is a great chance to grow in Dubai’s strong economy. You need to follow the rules, choose the right license (like a commercial or professional license), and get approval from the Department of Economic Development (DED).
You can enjoy full foreign ownership, no need for a minimum capital, and even take part in government projects. This makes it a smart choice for startups, small businesses, and investors.
Ready to begin? Use the IID Portal or talk to business setup consultants in Dubai. With the right help, you can start your mainland business easily and grow fast.
