Guide to Mainland Company Formation in Dubai

Table of Contents


Establishing a business in Dubai is a favorable option for entrepreneurs and investors because of its geographical position, stable economy, and business-friendly environment, Dubai remains a hub of international business. Among numerous business setup options, Dubai’s mainland company setup is particularly notable for its flexibility and proximity to the market. This is a realistic and latest guide to the setup of a mainland company in Dubai in 2025, so you can be certain that the information is accurate and up-to-date.

Mainland Company Formation

The Advantages of Mainland Company Formation in Dubai

Dubai mainland businesses provide numerous benefits making them the ideal choice for entrepreneurs:

  • Full Market Access: Mainland-based companies can establish their businesses anywhere in Dubai and across the UAE without any restrictions, enabling them to access both local and international customers.
  • 100% Foreign Ownership: Under recent reforms, many business activities now allow for 100% foreign ownership, eliminating the need for a local sponsor.
  • Flexibility in Business Activities: There are fewer restrictions on the types of business activities the companies in the Mainland can undertake, and therefore they are suitable for a wide range of industries.
  • Government and Private Sector Collaboration: Companies in the Mainland can collaborate freely with government agencies and private companies, which is a tremendous advantage in securing contracts and collaborations.
  • Global Growth Potential: Dubai’s infrastructure of world-class ports, airports, and trading networks offers seamless connectivity to the international markets.

Steps For Mainland Company Formation In Dubai

To set up a mainland company in Dubai follow these steps: 

  1. Choose a Business Activity:
    Select the DET-approved list of business activity from the Department of Economy and Tourism. This will determine the type of trade license required and specific regulatory requirements.
  2. Determine Ownership Structure:
    Most business activities today allow for 100% foreign ownership. However, some regulated activities may still require individual approvals or partnerships.
  3. Register with the DET:
    Seek initial approval, reserve a trade name, and register your company in Dubai with DET, the authority that oversees mainland company operations.
  4. Obtain Approvals:
    Certain business activities, such as healthcare or education, require additional approvals from relevant authorities like the Dubai Health Authority (DHA) or the Knowledge and Human Development Authority (KHDA).
  5. Secure Office Space:
    Ownership or leasing of a physical office space is a prerequisite for mainland company registration. The size and location of the office should suit the nature of your business.
  6. Get a Trade License:
    Once all the approvals are obtained, submit your documents to the DET to receive your trade license. This legally allows you to commence operations.

Cost For Mainland Company Formation In Dubai

Setting up a mainland company involves various costs depending on the nature and location of the business. The breakdown is as follows:

  • Trade License Fee: It depends on the nature of the business activity and the type of license (commercial, industrial, or professional).
  • Office Rent: Mandatory office space rent varies according to size and location. Attractive locations like Downtown Dubai are expensive but offer strategic benefits.
  • Government Fees: These include company registration, visa processing, and administrative fees.
  • Additional Approvals: Businesses in some sectors are liable for extra permits, which can contribute to setup costs. Use our Business setup cost calculator for cost estimation.
  • Other Expenses: These include utility bills, PRO services, and legal documentation fees.

Comparison of Mainland, Free Zone, and Offshore Business Setups

FeatureMainland CompanyFree Zone CompanyOffshore Company
Market ReachCan operate anywhere in the UAE and internationallyRestricted to specific free zonesNo direct market access in the UAE
Ownership100% foreign ownership in most sectors100% foreign ownership100% foreign ownership
Government ContractsEligible to bid for government projectsNot eligibleNot eligible
Office RequirementsPhysical office requiredFlexi-desk options availableNo office required
RegulationsGoverned by the Department of Economy & Tourism (DET)Regulated by respective free zone authoritiesSubject to international regulations

Legal and Regulatory Requirements for Mainland Companies in 2025

Compliance with Dubai’s legal and regulatory framework is crucial. The key requirements are as follows:

  • Trade License Renewal: Mainland companies need to renew their trade licenses annually from DET. Timely renewal avoids penalty or business suspension.
  • VAT Compliance: Businesses exceeding the mandatory revenue threshold must register for VAT and submit periodical filings.
  • Employment Laws: Adhere to UAE labor laws, including ensuring valid work permits and visas for workers and observing compliance with employee rights.
  • Approvals for Special Activities: Businesses that function in industries like healthcare, education, and food require regulatory approvals from relevant authorities.

Advice for a Smooth Formation Process

Use the following expert advice to make mainland company setup in Dubai easier:

  • Employ Business Setup Consultants: At Profound Business Services, we specialize in simplifying the business setup process. Our expert team ensures full compliance with regulations, saves you valuable time, and provides tailored solutions to meet your business needs. Let us handle the complexities while you focus on growing your business.
  • Research Industry-Specific Requirements: Acquaint yourself with the regulations and requirements specific to your industry to avoid delays.
  • Use Digital Platforms: Use DET’s digital platforms for booking of trade names, status tracking of applications, and document filing.
  • Plan Finances Properly: Budget all the setup costs, including trade license fees, office rent, and permits. Maintain a contingency fund for unexpected expenditures.
  • Stay Updated on Regulations: Monitor regulatory changes to maintain compliance and smooth operations.

Choose Profound For Mainland Company Formation In Dubai

Mainland company formation in Dubai offers unmatched advantages, from market entry to global expansion opportunities. Now that you know the updated process, legalities, and fees required for 2025, you can confidently establish your company and enjoy the rewards of Dubai’s flourishing economy. Whether you’re a startup or a multinational firm, the flexibility and benefits of a mainland setup can pave the way for long-term success.

To make the process even easier, we recommend seeking expert guidance from Profound Business Services. Our team is here to ensure a smooth setup, compliance, and ongoing support. Contact us today to get started and unlock your business potential in Dubai!

Frequently Asked Questions

A mainland company is a company that is registered under the Dubai Department of Economy and Tourism (DET), which allows companies to do business anywhere in Dubai and all over the UAE.

Yes, 100% foreign ownership is now permitted in most business activities. There are  some activities that are still subject to regulatory approvals.

The major license types are commercial, industrial, and professional licenses, which cater to different business needs.

The process typically takes place within 2 to 4 weeks, depending on approvals and the nature of the business.

 

Yes, from a global perspective, Dubai mainland companies still enjoy tax advantages, as the 9% corporate tax rate is significantly lower than the corporate tax rates in many other countries.

Yes, you require a physical office. The size and location have to be suitable according to your business activity.

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