As mentioned earlier, mainland companies are business entities registered with an Emirate authority (Department of Economic Development) in the respective Emirate of the United Arab Emirates.
Here, we list a few important features and benefits of company formation in Mainland Dubai.
As mentioned, the UAE offers three different jurisdictions – Mainland, Free zone, and Offshore. Choosing the one that closely aligns with your specific business goals and opportunities is important.
Here, we discuss in detail the three major types of company setup in Dubai Mainland.
Just like any other country of the world, businesses interested in operating in mainland Dubai must obtain a trade license from the Department of Economic Development (DED) to operate legally as a company. When opting for a company set up in Dubai mainland, it is imperative to acquire the right trade license and legal structure, as the type of trade license you acquire will directly impact your tax obligations, legal liabilities, and your Dubai mainland company formation cost. Here, we mention three types of business structures available to foreign investors keen on establishing and operating a mainland business in Dubai.
Professional Trade License
As mentioned, businesses and entrepreneurs must obtain a professional business trade license from the regulatory body Department of Economic Development before providing their professional services to clients from the Dubai mainland. The main objective of this license is to ensure that the business can provide the desired services.
Commercial Trade License
Mainland companies involved in any trade activities(both general and specific), as well as selling goods and commodities, need a commercial trade license, which can be used to set up either an LLC or a sole establishment. Real estate businesses, broadcasting companies, healthcare service providers, and retail companies are a few of the types of businesses that need to apply for this license.
Industrial Trade License
Industrial trade licenses are required by businesses willing to engage in industrial or manufacturing-based activities in the UAE. DED issues this license, though additional permission may be required from the Ministry of Finance, Economy, and Energy and some other concerned authorities.
The mainland company, which is set up in Dubai, is managed by the Department of Economic Development (DED). We list here a step-by-step guide to help you establish your business in mainland Dubai.
First and foremost, you must decide on the business activity and the sector in which you wish to operate. Then, you must get your business name approved and apply for a license from the Department of Economic Development(DND). You must also buy or rent an office and complete all the visa processes for yourself, your dependents, and your staff.
The business setup cost in Dubai mainland primarily depends upon the nature of the business, visa costs, and the cost associated with renting or buying office space. An investor wishing to set up a business in mainland Dubai may expect expenditures between AED 15,000 and AED 50,000.
Mainland companies can operate freely without restrictions on restricted areas and zones. Also, mainland companies can directly trade with the UAE government and bid for lucrative government contracts. Additionally, mainland companies can operate locally and internationally, unlike companies operating in free zones.
As per the new government rules, foreigners can have 100% ownership of their mainland company in many sectors. Earlier, the laws stipulated that mainland companies must have a local owner with a 51% share in their company.
It depends upon factors like the jurisdiction and the nature of your business. With a good firm by your side, you can hope to register a mainland company in Dubai within a week. Experts can prevent delays by ensuring all your documents are in order and error-free to expedite your registration process.
Yes, you can set up a company in Dubai Mainland without residing in the UAE. Remote registration is possible through authorized agents or legal representatives. However, a visa and Emirates ID are required for certain roles. Many entrepreneurs manage operations remotely with minimal physical presence in the country.
Dubai Mainland offers three main types of licenses: commercial (for trading businesses), professional (for service-oriented businesses), and industrial (for manufacturing). Each license type permits specific business activities. Choosing the right license is essential to ensure regulatory compliance and operational alignment with the intended business model in the UAE.
Starting a business in Dubai Mainland typically costs between AED 20,000 to AED 50,000, depending on business activity, office space, and legal requirements. Costs include trade license fees, government approvals, visa processing, and office rent. Budgeting carefully is key to ensuring a smooth business setup and ongoing operations.
Dubai Mainland introduced a corporate tax rate of 9% on net profits exceeding AED 375,000, effective June 2023. This rate aligns with global standards, promoting transparency and economic stability. Small businesses below this threshold remain exempt, encouraging startups while ensuring larger firms contribute to national development.
A local sponsor is no longer mandatory for most mainland businesses. Foreign investors can now fully own their companies. However, certain regulated sectors still require a UAE national as a local service agent or equity partner. It’s best to check specific legal requirements based on business activities.