Mainland Company Formation in Dubai: A Complete Guide

Mainland company formation in dubai has become one of the most business-friendly cities in the world, thanks to its strategic location, government incentives, and modern infrastructure. Setting up a mainland company in Dubai provides unparalleled opportunities, including full access to local and international markets and eligibility to engage in government contracts.

If you are planning to establish a mainland company, it’s essential to understand the legal structure, licensing procedures, and associated costs. This guide walks you through the process of mainland company formation and explains how you can take advantage of Dubai’s booming economy.

Table of Contents

What is a Mainland Company?

A mainland company is an onshore entity licensed by the Dubai Department of Economic Development (DED), allowing it to operate freely across the UAE and internationally. Unlike Free Zone companies, mainland companies are not restricted to a specific area and can engage in government contracts and local business activities without limitations.

Key Features of a Mainland Company:

Operate freely across the UAE without restrictions.
Participate in government contracts and tenders.
No limit on hiring employees—both local and expatriate staff.
Eligible for local and international trade.
Some sectors now allow 100% foreign ownership.

Why Set Up a Mainland Company in Dubai?

Unlimited Market Access: Mainland companies can trade both within the local UAE market and internationally.
Government Contracts: Only mainland companies are eligible to bid for government projects and contracts.
Strategic Location: Dubai serves as a global hub connecting Asia, Europe, and Africa.
100% Foreign Ownership: Recent reforms allow full foreign ownership in many sectors.
Flexible Office Locations: Mainland companies are not confined to a specific Free Zone and can establish offices anywhere in Dubai.

Types of Mainland Business Activities

Mainland companies in Dubai can engage in a variety of business activities, grouped into several categories:

Commercial Activities:

General trading
Import-export businesses
Real estate and retail
Professional Activities:

Legal consultancy
IT services and management consultancy
Marketing agencies
Industrial Activities:

Manufacturing and production
Food processing
Textile factories
Tourism and Hospitality:

Hotels and restaurants
Travel and tourism agencies

Types of Mainland Business Structures

Limited Liability Company (LLC)

Most popular business structure in Dubai.
Requires a minimum of one shareholder, but no upper limit.
Ideal for businesses involved in trading or services.
Sole Establishment

Owned by a single individual.
Suitable for professional services, such as consultants and freelancers.
Branch of a Foreign Company

A foreign company can establish a branch office in Dubai to conduct the same business activity as the parent company.
No need for local ownership.
Civil Company

For professionals like doctors, lawyers, and accountants.
Can be fully owned by foreigners.

Step-by-Step Process for Mainland Company Formation in Dubai

Step 1: Choose the Business Activity

Select from the approved business activities listed by the Dubai DED. Certain activities (e.g., healthcare or education) may require additional approvals from regulatory bodies.

Step 2: Select a Trade Name

You must register a unique trade name that complies with government rules:

The name should not contain offensive or religious terms.
It must reflect the nature of your business.
Ensure the trade name is not already in use.

Step 3: Apply for Initial Approval

Submit your application to the DED to get initial approval, indicating that your business activity and trade name are approved.

Step 4: Prepare Legal Documents

Memorandum of Association (MOA): Outlines the ownership and management structure.
Articles of Association (AOA): Defines operational rules and procedures.
Lease Agreement (Ejari): If you need a physical office, you must register your lease agreement through Ejari.

Step 5: Obtain Special Approvals (if required)

Some businesses—such as medical clinics, legal consultancies, or educational institutions—must get approvals from relevant authorities like:

Dubai Health Authority (DHA)
Knowledge and Human Development Authority (KHDA)

Step 6: Register with the DED and Obtain the Business License

Once all documents are submitted and approved, the DED will issue the trade license. You will receive your mainland license, which legally allows your business to operate.

Step 7: Apply for Visas

Mainland companies are eligible to apply for investor, employee, and dependent visas. Each visa involves medical tests, Emirates ID registration, and approval from the immigration department.

Step 8: Open a Corporate Bank Account

With your trade license in hand, you can now open a corporate bank account in Dubai. Banks require documentation such as the trade license, MOA, and shareholder details.

Costs Involved in Mainland Company Formation

The total cost of mainland company formation depends on factors such as the business activity, office location, and number of visas required.

Trade License Fees: AED 15,000 – AED 30,000
Office Rent (Ejari Registration): AED 15,000 – AED 50,000 annually
Visa Fees: AED 3,000 – AED 5,000 per visa
MOA and Legal Documentation: AED 2,500 – AED 5,000
Local Sponsor/Agent Fees (if required): AED 10,000 – AED 20,000 per year

Benefits of Mainland Company Formation in Dubai

Full UAE Market Access: Mainland companies can freely trade across the UAE.
Unlimited Employee Visas: Mainland businesses can employ as many workers as needed.
Government Contracts: Access to government tenders and projects is exclusive to mainland companies.
Flexible Office Locations: You can choose any office location across Dubai.
Opportunity for Growth: Mainland companies have access to local and international clients, making them highly scalable.

Challenges of Mainland Company Formation

Office Space Requirement: A physical office is mandatory for all mainland companies.
Compliance with UAE Laws: Businesses must adhere to local regulations, including tax filing and labor laws.
Bank Account Opening: Meeting banking compliance requirements can be challenging.

How Business Setup Consultants Can Help

Navigating the process of mainland company formation can be complex. Engaging a business setup consultant offers several benefits:

PRO Services: Handle visa applications, trade license renewals, and other government processes.
Legal Support: Assistance with drafting MOA, AOA, and other legal documents.
Bank Account Opening: Support in meeting bank requirements and managing compliance.
Office Space Solutions: Help with finding and registering office spaces.
Ongoing Compliance: Ensure your company complies with local tax, VAT, and labor laws.

Conclusion

Setting up a mainland company in Dubai offers unmatched business opportunities, including access to the local market and government contracts. However, the process involves several steps, including trade name registration, licensing, and visa applications. With recent reforms allowing 100% foreign ownership, mainland company formation in Dubai has become even more attractive for entrepreneurs and investors.

To ensure a smooth setup process, many businesses choose to engage professional consultants who can guide them through every step, from legal compliance to office registration. With Dubai’s pro-business environment, modern infrastructure, and tax benefits, establishing a mainland company is a great step toward business success.