Company Formation

Setting up a Mainland company in Dubai remains one of the most popular options for foreign investors seeking full access to the UAE's domestic market. Governed primarily by the Dubai Department of Economy and Tourism (DET, formerly DED), Mainland setups allow businesses to operate anywhere in the UAE without the restrictions of free zones. As of 2025, key reforms from 2020–2023 (e.g., Federal Decree-Law No. 26 of 2020) continue to enable 100% foreign ownership in over 1,000 activities, eliminating the need for a local sponsor in most sectors. However, some strategic areas like banking, insurance, or certain professional services may still require a Local Service Agent (LSA) a nominal partner who doesn't hold equity but provides oversight for an annual fee. This guide dives deep into the process, drawing from official and expert sources, including recent 2025 updates like enhanced digital portals for faster approvals and slight fee adjustments due to economic stabilization.

Mainland companies are ideal for businesses needing physical presence, local trading, government contracts, or scalability (e.g., retail, manufacturing, consultancies). Unlike free zones, there's no tax exemption on domestic income, but the 9% corporate tax (on profits over AED 375,000) applies uniformly, with potential exemptions for small businesses under AED 3 million in revenue.

Key Advantages

• Full Market Access: Trade freely across the UAE and internationally without needing distributors.
• Ownership Flexibility: 100% foreign ownership in most sectors; no profit-sharing with locals.
• Visa Quotas: Unlimited based on office size (e.g., 1 visa per 9–200 sq. m., scalable for growth).
• Government Incentives: Eligible for tenders, subsidies, and programs like the Dubai Industrial Strategy 2030.
• 2025 Perks: Digital submission via the DET portal reduces paperwork; integrated services for e-commerce and tech activities.

Key Limitations

• Physical Presence Required: Mandatory office space (no virtual options), increasing setup costs.
• Bureaucracy: More approvals needed for regulated activities (e.g., health, education), potentially delaying timelines.
• Compliance Burden: Annual audits, VAT registration (if turnover > AED 375,000), and labor law adherence via the Ministry of Human Resources and Emiratisation (MOHRE).
• Costs: Higher initial and ongoing expenses compared to free zones, especially in prime locations like Downtown Dubai.
• Sponsor in Some Cases: For professional licenses, an LSA is needed (fee: AED 5,000–15,000/year).

Types of Mainland Companies and Licenses

Mainland companies can adopt various legal structures under the UAE Commercial Companies Law (Federal Law No. 32 of 2021, updated in 2023). The license type is tied to your business activity (over 2,000 options listed on the DET portal). Common types include:

• Limited Liability Company (LLC): Most popular for 2+ shareholders; limits liability to share capital (minimum AED 0 for most, but AED 300,000 for industrial). Suitable for trading or services.
• Sole Establishment: For single owners; full control, but personal liability for debts.
• Partnerships (General or Limited): For collaborative ventures; general partners have unlimited liability.
• Branches: For foreign or GCC companies expanding to Dubai; no new entity created, but requires parent company approval.
• Public/Private Joint Stock Companies (PJSC/PJSC): For larger operations; minimum capital AED 30 million for public, with shares traded on exchanges.

License Categories:

• Commercial License: For trading, importing/exporting goods (e.g., general trading: AED 15,000–20,000 fee).
• Professional License: For services like consulting, IT, or legal (AED 10,000–18,000; often needs LSA).
• Industrial License: For manufacturing/processing (AED 15,000–25,000; requires factory space approval).
• Tourism License: For hospitality/travel (AED 10,000+; needs Ministry of Economy approvals).
• E-Commerce License: Emerging in 2025 for online sales (AED 8,000–15,000; integrated with commercial).

Choose based on activity—e.g., a tech consultancy might opt for a professional LLC.

Step-by-Step Process for Setup

The process is largely digital via the DET's e-services portal (bas portal.dubai.gov.ae), but some steps require in-person visits. Total timeline: 21–30 days for standard cases, up to 45+ for complex activities. Express services (extra fee) can shorten to 7–14 days.

1. Select Business Activity and Legal Structure (1–2 days): Review DET's activity list. Decide on LLC, sole, etc. No cost, but consult a PRO (Public Relations Officer) for AED 2,000–5,000.
2. Reserve Trade Name (1–3 days): Submit 3–5 options via DET portal. Rules: Unique, no offensive/political terms, must reflect activity (e.g., "TechSolutions LLC"). Fee: AED 620–2,000. Valid for 6 months.
3. Obtain Initial Approval (3–5 days): Submit application to DET with basic docs (passports, business plan). Foreigners need GDRFA (General Directorate of Residency and Foreigners Affairs) clearance. Fee: AED 100–1,000. This confirms viability.
4. Prepare Legal Documents (3–7 days): Draft Memorandum of Association (MOA) outlining shares, roles, profits (not needed for sole establishments). Notarize at Dubai Courts (AED 2,000–2,500). For professional licenses, sign LSA agreement (AED 5,000–15,000/year).
5. Secure Office Space (5–10 days): Rent a physical office (minimum 200 sq. ft. for 1–2 visas). Sign tenancy contract and register with Ejari (AED 220 + 5% of annual rent as market fee to government). Locations: Business Bay (premium, AED 100–200/sq. ft./year) or Deira (affordable, AED 30–50/sq. ft.). Shared/flexi-offices allowed if DET-approved.
6. Final Submissions and License Issuance (5–7 days): Submit all to DET: MOA, Ejari, passports, approvals from external bodies (e.g., Dubai Municipality for food, Ministry of Health for clinics—AED 1,000–5,000 each). Pay fees. License issued electronically.
7. Register for Taxes and Compliance (3–5 days): Enroll for VAT (if applicable) via Federal Tax Authority (FTA) portal. Get MOHRE approval for labor (free). Open corporate bank account (1–4 weeks; requires license, MOA, passports—banks like Emirates NBD charge AED 1,000–5,000 setup).
8. Apply for Visas and Emirates ID (7–14 days): Investor visa first (AED 3,000–7,000/person, including medical test AED 320, Emirates ID AED 370). Employee visas via company sponsorship. Processing at GDRFA or Amer centers.
9. Commence Operations: Start trading post-license. Annual renewal due within 1 month of expiry (similar fees).

For branches: Additional parent company docs, attested by UAE Embassy (AED 5,000–10,000 for translation/attestation).

Requirements

• Documents: Passports (all shareholders/managers), visa copies, business plan, MOA, Ejari contract, NOC from current sponsor (if applicable). Foreign docs: Attested by home country, UAE Embassy, MOFA (Ministry of Foreign Affairs), and translated to Arabic (AED 500–2,000/doc).
• Office: Physical, Ejari-registered; size determines visa quota (e.g., 200 sq. m. = up to 6 visas).
• Capital: No minimum for most LLCs (except industrial: AED 300,000), but banks may require proof for accounts.
• Approvals: Sector-specific (e.g., telecom needs TRA approval—AED 2,000+).
• Personnel: At least one manager (can be shareholder); 51% UAE national workforce quota for certain firms under Emiratisation rules.

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