Dubai's vibrant economy and strategic location make it a global hub for entrepreneurs and businesses. Among the various business setup options, Mainland Company Formation in Dubai stands out for its flexibility and access to the UAE's local market. This 2000-word guide explores what mainland company formation entails, its benefits, required documents, steps to start, costs, and the value of consulting with experts like AE Setup.

What is Mainland Company Formation in Dubai?

Definition and Overview

A mainland company in Dubai is a business entity registered with the Department of Economic Development (DED) in the UAE. Unlike free zone companies, mainland businesses can operate freely across the UAE without geographical restrictions. This setup allows entrepreneurs to trade directly with the local market and engage in government contracts.

Mainland companies are governed by the UAE Commercial Companies Law. They offer diverse business activities, including trading, professional services, and manufacturing. Since 2021, the UAE has allowed 100% foreign ownership for most mainland businesses, making it an attractive option for international investors.

Types of Mainland Companies

Mainland companies in Dubai can take various legal forms, depending on the business's nature and goals. Common structures include:

  • Limited Liability Company (LLC): Ideal for trading and commercial activities, offering limited liability to shareholders.

  • Sole Proprietorship: Suitable for individual entrepreneurs, with full control but personal liability for debts.

  • Civil Company: Designed for professional services like consulting or accounting, allowing partnerships.

  • Branch Office: Enables foreign companies to establish a presence for marketing or operational activities.

Each structure has specific requirements, so choosing the right one is crucial for success.

Benefits of Mainland Company Formation in Dubai

Unrestricted Market Access

Mainland companies can trade anywhere in the UAE and beyond without restrictions. This flexibility allows businesses to tap into Dubai's thriving local market and expand regionally. Unlike free zone companies, mainland entities face no limitations on where they can operate.

Eligibility for Government Contracts

Mainland businesses can bid for lucrative government contracts, a significant advantage in the UAE. For example, the Abu Dhabi Executive Council recently approved AED 17.5 billion for government projects, offering opportunities for mainland companies. This access enhances credibility and revenue potential.

100% Foreign Ownership

Since 2021, the UAE allows 100% foreign ownership for most mainland companies, eliminating the need for a local sponsor in many cases. This change, introduced by HH Sheikh Mohammed bin Rashid Al Maktoum, empowers foreign investors to maintain full control. However, certain strategic sectors may still require a local partner.

Diverse Business Activities

Mainland companies can choose from over 3,000 business activities listed by the DED. Whether it's trading, consulting, or manufacturing, entrepreneurs have the freedom to diversify their services. Re-registering new activities with the DED is straightforward, enabling business growth.

Tax Advantages

Dubai's tax-friendly environment is a major draw. Mainland companies enjoy no personal income tax and a low corporate tax rate of 9% for annual profits exceeding AED 375,000. Businesses earning less than this threshold pay 0% corporate tax, maximizing profitability.

Flexible Office Locations

Unlike free zone companies, mainland businesses can set up offices anywhere in Dubai. This flexibility allows entrepreneurs to choose prime locations based on accessibility, target market, or budget. A registered office is mandatory, but options range from bustling business districts to cost-effective suburbs.

Visa Benefits

Mainland companies can apply for unlimited visas, depending on office space. This facilitates hiring expatriate employees and accommodating investors or family members. The visa quota system is more flexible compared to free zones, supporting business scalability.

Documents Required for Mainland Company Formation

Essential Documentation

Setting up a mainland company requires submitting specific documents to the DED. The exact requirements vary based on the business structure and activities. Below is a list of commonly required documents:

  • Copies of passports for all shareholders and managers.

  • Residence visas (if shareholders already reside in the UAE).

  • A detailed business plan outlining activities and objectives.

  • Trade name registration certificate from the DED.

  • Initial approval certificate from the DED.

  • Tenancy contract and Ejari registration certificate for the office space.

  • Memorandum of Association (MOA) for LLCs, civil companies, or shareholding companies, attested by a notary public.

  • External approvals from relevant government bodies (e.g., Ministry of Health for medical businesses).

Additional Requirements for Specific Cases

For businesses wholly owned by non-GCC nationals, a local service agent agreement may be required, attested by a notary public. Certain activities, like oil and gas services, need approvals from bodies like the Supreme Petroleum Council. Ensuring all documents are complete and attested avoids delays in the licensing process.

Tips for Document Preparation

  • Work with a Consultant: Business setup consultants like AE Setup can streamline document preparation and attestation.

  • Verify Requirements: Check with the DED for activity-specific approvals to avoid surprises.

  • Plan Ahead: Attestation and external approvals may take time, so factor this into your timeline.

How to Start a Mainland Company in Dubai

Step 1: Choose Your Business Activity

Identify the business activity that aligns with your goals, such as trading, consulting, or manufacturing. The DED provides a list of over 3,000 activities to choose from. Ensure your chosen activity allows 100% foreign ownership or clarify if a local sponsor is needed.

Step 2: Select a Legal Structure

Decide on a legal structure, such as an LLC, sole proprietorship, or civil company. Each structure has different liability, ownership, and capital requirements. Consulting with experts can help you choose the most suitable option.

Step 3: Register a Trade Name

Choose a unique trade name that complies with UAE regulations. The name must include the business structure (e.g., LLC) and avoid inappropriate or offensive terms. Apply for name approval through the DED's website or in person.

Step 4: Obtain Initial Approval

Submit your business plan and documents to the DED for initial approval. This approval indicates the UAE government has no objection to your business setup. It does not, however, permit you to start operations until the trade license is issued.

Step 5: Secure Office Space

Rent an office or warehouse and register the tenancy contract with Dubai's Ejari portal. The office size determines your visa quota, so choose a space that supports your hiring needs. Location choice should balance cost and accessibility.

Step 6: Prepare Legal Documents

Draft and attest the MOA or local service agent agreement, if required. Ensure all shareholders sign the documents, and have them notarized by a UAE court or notary public. Submit these along with other documents to the DED.

Step 7: Apply for a Trade License

Pay the license fee and submit all documents to the DED. License types include commercial, professional, industrial, or tourism, depending on your activity. The DED typically issues the license within a week if all requirements are met.

Step 8: Apply for Visas

Once the license is issued, apply for investor and employee visas. The number of visas depends on your office space and business activity. Consultants can assist with immigration and visa processing.

Step 9: Open a Corporate Bank Account

Choose a UAE bank and open a corporate account. Required documents include the trade license, MOA, and shareholder passports. A bank account is essential for financial transactions and visa processing.

Step 10: Register for Taxes

Register with the Federal Tax Authority for corporate tax if your annual profits exceed AED 375,000. Mainland companies may also need to register for VAT if applicable. Consultants can guide you through tax compliance.

Mainland Company Formation Cost in Dubai

Breakdown of Costs

The Mainland Company Formation cost in Dubai varies based on factors like license type, business activity, office size, and visa requirements. On average, costs range from AED 15,000 to AED 50,000. Below is a detailed breakdown:

Cost Component

Estimated Cost (AED)

Notes

Trade License Fee

10,000 - 30,000

Varies by activity (e.g., commercial vs. professional).

Initial Approval

235

One-time fee paid to the DED.

Trade Name Approval

735

One-time fee for name registration.

Office Rent

50+/sq. ft./year

Depends on location and size (e.g., AED 20,000+ for a small office).

MOA Attestation

1,200

Required for LLCs and other structures.

Court Agreement Attestation

500

For drafting and signing agreements.

Ministry of Economy Registration

3,000

One-time fee for company registration.

Visa Fees

3,000 - 5,000/visa

Per person, depending on visa type and processing.

Additional Approvals

Variable

For specific activities like health or oil and gas.

Source: Adapted from and

Factors Affecting Costs

  • License Type: Professional licenses may cost less (AED 10,000), while tourism licenses require higher capital (AED 1 million).

  • Office Space: Prime locations like Sheikh Zayed Road are pricier than suburbs like Deira.

  • Visa Quotas: Larger offices allow more visas, increasing rental costs but supporting scalability.

  • Business Activity: Specialized activities (e.g., manufacturing) may require costly approvals or equipment.

Cost-Saving Strategies

  • Partner with Consultants: Firms like AE Setup offer tailored packages to minimize costs.

  • Choose Cost-Effective Locations: Opt for affordable areas like Deira for lower rent.

  • Leverage Promotions: Some consultants provide discounts or bundled services for startups.

  • Start Small: Begin with a sole proprietorship or small office to reduce initial expenses.

Consultation with AE Setup for Mainland Company Formation

Why Consult with AE Setup?

Navigating Dubai's regulatory landscape can be complex, especially for foreign investors. AE Setup, a leading business setup consultancy in Dubai, simplifies the process with expert guidance. Their services ensure compliance, reduce paperwork, and save time.

AE Setup has years of experience helping entrepreneurs establish mainland companies. Their affiliations with the DED and other government bodies expedite approvals. By understanding your business goals, they offer customized solutions that align with your budget.

Services Offered by AE Setup

AE Setup provides a comprehensive range of services, including:

  • Business Activity Selection: Guidance on choosing the right activity and structure.

  • Document Preparation: Assistance with drafting and attesting MOAs and agreements.

  • License Application: Streamlined submission to the DED for faster approval.

  • Visa Processing: Support for investor and employee visas, including immigration services.

  • Bank Account Setup: Help with opening corporate accounts in UAE banks.

  • Tax and Compliance: Advice on corporate tax, VAT, and regulatory requirements.

Benefits of Working with AE Setup

  • Time Efficiency: AE Setup's streamlined process can complete setups in as little as a week.

  • Cost Optimization: They offer flexible payment plans and cost-effective packages.

  • Expert Insights: Their consultants stay updated on UAE regulations, ensuring compliance.

  • Hassle-Free Experience: From document attestation to visa processing, AE Setup handles the complexities, letting you focus on your business.

How to Get Started with AE Setup

Booking a consultation with AE Setup is simple. Visit their website or call their team for a free initial discussion. They'll assess your business needs, provide a personalized quote, and outline the setup process.

During the consultation, share your business plan and goals. AE Setup will recommend the best structure, activity, and location. Their transparent approach ensures no hidden costs, making them a trusted partner for mainland company formation.

Conclusion

Mainland Company Formation in Dubai offers unparalleled opportunities for entrepreneurs seeking flexibility, market access, and growth. With benefits like 100% foreign ownership, tax advantages, and eligibility for government contracts, it's a strategic choice for businesses. However, the process involves navigating costs, documents, and regulations.

By following the steps outlined—choosing an activity, securing a license, and setting up an office—you can establish a successful mainland company. The Mainland Company Formation cost in Dubai ranges from AED 15,000 to AED 50,000, but consultants like AE Setup can optimize expenses and streamline the process.

Ready to start your Dubai business journey? Contact AE Setup for a free consultation and unlock the potential of mainland company formation. With their expertise, you'll be well-positioned to thrive in one of the world's most dynamic markets.