Company Formation in Dubai Mainland: A Complete Guide for 2024

Introduction: Unlocking Opportunities in the Heart of the UAE

Setting up a business in Dubai has long been synonymous with ambition, innovation, and profitability. Among the many jurisdictions available,  company formation in Dubai Mainland continues to be a favored choice for entrepreneurs aiming to tap into the city’s thriving commercial landscape. With a strategic location, world-class infrastructure, and a pro-business government, Dubai Mainland offers an environment where both startups and multinational corporations can thrive.

What Is Dubai Mainland?

Dubai Mainland refers to the geographical area that falls under the jurisdiction of the Department of Economy and Tourism (DET), formerly known as the Department of Economic Development (DED). Unlike free zones, companies registered in Dubai Mainland can freely operate across the entire UAE market and beyond without any restriction.

This unrestricted operational scope is one of the major attractions for investors.

Key Advantages of Setting Up in Dubai Mainland

1. 100% Foreign Ownership
   As of 2021, the UAE government has allowed 100% foreign ownership in most sectors, removing the previous requirement for a local sponsor or partner. This has significantly boosted investor confidence and streamlined operations.

2. No Currency Restrictions
   Dubai Mainland companies enjoy complete freedom in currency exchange and fund repatriation—ideal for international business dealings.

3. Unlimited Business Activities
   Unlike free zones, companies on the mainland can perform a wide array of commercial, professional, and industrial activities under a single license.

4. Government Contracts Access
   Only mainland companies can bid for lucrative UAE government projects, making it a valuable option for firms aiming for public sector clients.

5. Strategic Business Location
   Dubai Mainland companies can choose office spaces anywhere in Dubai, offering flexibility in location and customer accessibility.

Types of Licenses Available

To start a company in Dubai Mainland, you must obtain one of the following license types:

• Commercial License: For trading businesses, general trading, and retail outlets.

• Professional License: For service-based businesses like consultancies, legal services, and IT firms.

• Industrial License: For companies involved in manufacturing or industrial activities.

• Tourism License: For businesses in the travel and tourism sector.

Each license has its own criteria, documentation, and fee structure, depending on the nature and scale of your business.

Steps to Form a Company in Dubai Mainland

1. Choose a Business Activity
   Decide on your core business activity and ensure it's aligned with the list approved by the Department of Economy and Tourism.

2. Select a Legal Structure
   The most common forms include:

   • Limited Liability Company (LLC)

   • Sole Establishment

   • Civil Company

   • Branch of a Foreign Company

3. Reserve a Trade Name
   Your company name must be unique, not violate UAE naming conventions, and should reflect your business purpose.

4. Get Initial Approval
   This step includes obtaining clearance from relevant departments, especially if the business falls under special categories like healthcare, education, or legal services.

5. Draft MOA and Local Service Agent Agreement
   The Memorandum of Association (MOA) outlines the shareholding structure, roles, and responsibilities. If your business requires a UAE national as a service agent, a separate agreement must be drafted.

6. Lease Office Space
   A physical office is mandatory for Dubai Mainland companies. Ejari (tenancy contract registration) is required during the licensing process.

7. Submit Final Documents and Obtain License
   After submitting all necessary paperwork and approvals, the final step is to pay the fees and collect your business license.

Costs Involved in Mainland Company Formation

While costs can vary depending on business type, size, and location, here’s a general breakdown:

• Trade Name Reservation: AED 600 – AED 1,000

• Initial Approval: AED 100 – AED 300

• License Fee: AED 10,000 – AED 15,000

• Office Rent: AED 15,000 and above (annually)

• MOA Attestation & Legal Fees: AED 2,000 – AED 5,000

• Government Registration Fees: AED 5,000 – AED 10,000

In total, a basic company setup in Dubai Mainland may range from AED 25,000 to AED 40,000.

Common Challenges to Be Aware Of

While the process is fairly straightforward, some potential challenges include:

• Understanding Legal Requirements
  UAE laws can be complex for newcomers, especially with constant regulatory updates.

• Navigating the Language Barrier
  Arabic is the official language for legal documents, which might require translation and legal assistance.

• Visa and Labor Quotas
  Mainland companies must adhere to visa quotas and provide proper documentation for employee sponsorships.

• Office Space Requirements
  The need for physical office space increases startup costs compared to virtual offices available in free zones.

Key Sectors for Mainland Company Setup

Some industries where mainland setup is especially advantageous:

• Construction & Real Estate
  Large-scale infrastructure projects and growing real estate opportunities make mainland licensing essential.

• Retail & E-commerce
  Operating across Dubai and the UAE without geographic restrictions is crucial for retail expansion.

• Healthcare & Education
  These sectors are highly regulated, and licensing through mainland authorities is mandatory.

• Logistics & Transportation
  Proximity to key ports, highways, and airports gives mainland businesses a strategic edge.