Dubai has become a global hub for business and innovation, attracting entrepreneurs from all over the world. One of the most popular choices for investors is mainland business setup in Dubai, which offers flexibility, credibility, and access to the entire UAE market. Whether you’re an aspiring startup founder or an established business owner looking to expand, understanding the rules, benefits, and process of setting up on the mainland is essential.
This guide will walk you through everything you need to know—types of licenses, costs, requirements, and FAQs—so you can make an informed decision and start your business journey in Dubai with confidence.
What is Mainland Business Setup in Dubai?
A mainland company in Dubai is a business entity licensed by the Department of Economy and Tourism (DET) (previously DED). Unlike free zone companies, a mainland company allows you to operate anywhere in the UAE and even take on government contracts.
This makes it an attractive option for investors who want:
- Full access to the UAE market.
- Flexibility to expand globally.
- The opportunity to bid for lucrative government projects.
Benefits of Mainland Business Setup in Dubai
Dubai’s mainland setup comes with numerous advantages. Here are the most important ones:
1. Freedom to Trade Across the UAE
Mainland companies can conduct business without restrictions within Dubai and across all Emirates, unlike free zone companies that are limited to their specific zones.
2. Eligibility for Government Contracts
Government projects in Dubai are known for being large-scale and highly profitable. Only mainland companies are eligible to bid for these contracts.
3. No Trade Restrictions
With a mainland license, you can trade directly with the local market without needing intermediaries.
4. Multiple Visa Opportunities
Mainland companies can apply for an unlimited number of visas, depending on office space. This makes it ideal for businesses planning to grow their workforce.
5. Reputation and Credibility
Operating as a mainland company gives investors a strong reputation with local and international partners, which is often essential in building trust.
Types of Mainland Business Licenses in Dubai
When planning your mainland business setup in Dubai, choosing the right license is crucial. The three main types are:
1. Commercial License
For businesses engaged in trading goods, imports, exports, or general trading activities.
2. Professional License
For service-oriented businesses such as consultancies, IT services, marketing, or healthcare.
3. Industrial License
For companies involved in manufacturing, production, or other industrial activities.
Each license has its own requirements and approval process, so choosing the right one is the first step toward compliance.
Steps for Mainland Business Setup in Dubai
Step 1: Choose the Business Activity
Identify what kind of business you want to establish. Dubai offers more than 2,000 business activities to choose from.
Step 2: Select a Legal Structure
Decide on the legal form—such as LLC (Limited Liability Company), sole proprietorship, or civil company—depending on your business activity.
Step 3: Reserve Your Trade Name
Register a unique trade name that complies with UAE naming rules. The name should reflect your business activity and not violate cultural norms.
Step 4: Apply for Initial Approval
This is official confirmation from the authorities that you can proceed with the business setup process.
Step 5: Draft the MOA (Memorandum of Association)
For LLCs and partnerships, you need to prepare a Memorandum of Association that outlines shareholder roles and responsibilities.
Step 6: Choose a Business Location
Leasing office space is mandatory for mainland businesses. The size of your office will also determine how many visas you can apply for.
Step 7: Get Approvals from Relevant Authorities
Some business activities require additional approvals from ministries or regulatory bodies.
Step 8: Obtain Your Trade License
Once approvals are complete, you’ll receive your trade license, allowing you to officially start your business operations.
Cost of Mainland Business Setup in Dubai
The cost varies depending on business activity, license type, and office location. On average, a mainland company setup in Dubai costs between AED 15,000 to AED 30,000.
Factors that affect the cost include:
- Type of business activity.
- Number of visas required.
- Office rental costs.
- Additional approvals from government departments.
Common Business Structures for Mainland Companies
1. Limited Liability Company (LLC)
The most popular structure, allowing multiple shareholders and offering flexibility across sectors.
2. Sole Establishment
Best for professionals providing services under their own name.
3. Civil Company
Ideal for partnerships among professionals like doctors, engineers, or consultants.
4. Branch of a Foreign Company
Allows foreign companies to expand into Dubai while maintaining 100% ownership.
Why Choose Mainland Over Free Zone?
While Dubai free zones are attractive due to tax incentives and full foreign ownership, mainland business setup provides:
- Wider market access.
- Ability to trade directly within the UAE.
- Greater credibility and flexibility.
Entrepreneurs looking to grow big, work with government projects, or serve the local market often choose mainland as their first option.
Key Considerations Before Setting Up
- Ensure compliance with UAE labor laws.
- Plan your office space carefully based on growth.
- Budget for initial costs and renewal fees.
- Choose the right license that matches your business activity.
- Seek professional guidance to avoid delays.
FAQ: Mainland Business Setup in Dubai
Q1: Can foreigners own a mainland company in Dubai?
Yes. As of recent reforms, foreign investors can now hold 100% ownership in many mainland business activities, eliminating the need for a local sponsor in most cases.
Q2: How long does it take to set up a mainland company in Dubai?
The process usually takes 1 to 3 weeks, depending on approvals and documentation.
Q3: Do I need an office space for a mainland company?
Yes, leasing office space is mandatory, and the size of the office will determine how many employee visas you can apply for.
Q4: What is the difference between mainland and free zone companies?
Mainland companies can trade anywhere in the UAE and bid for government projects, while free zone companies are limited to operating within their specific free zones or internationally.
Q5: What is the renewal process for a mainland trade license?
Trade licenses must be renewed annually through the Dubai DET, and the renewal process requires updated tenancy contracts and necessary approvals.
Conclusion
Setting up a mainland business in Dubai is one of the smartest decisions for entrepreneurs who want full market access, long-term growth opportunities, and credibility in the UAE. From choosing the right license to securing approvals, every step requires careful planning.
With recent reforms allowing full foreign ownership and Dubai’s reputation as a global business hub, now is the perfect time to start your mainland company. By understanding the process, costs, and requirements, you can confidently begin your business journey in one of the world’s most dynamic markets.