Dubai Mainland Business Set Up: Everything you need to know

Dubai mainland is an economic zone in Dubai outside the free zones, which is regulated by the Department of Economic Development (DED). Dubai Mainland Jurisdiction allows businesses to sell their goods and services within the Emirates and can apply for government contracts as per the Department of Economy and Tourism. It allows business owners access to a premium market and helps them make higher profits. Dubai’s government has focused on simplifying business setup for budding startups and entrepreneurs. The business set up in the mainland requires a valid visa, Emirates ID (for nationals), passport (for foreigners), and the company’s article of association. Public and private joint stock companies must also submit a memorandum of association and feasibility report per Article 113 of Federal Law 32 of 2021.

Dubai Mainland allows businesses to sell industrial, commercial, and professional products and services to the domestic and international markets; the Invest In Dubai (IID) portal contains a comprehensive list of all business activities that can be undertaken in Dubai Mainland, including agriculture, real estate, mining, finance, construction, and more. The process for setting up a business in the Dubai mainland involves category selection, activity selection, trade name registration, initial approval, office lease rental, and document submission for final approval. For specific industries, such as telecom, aviation, and insurance, additional approvals might also be required from regulatory bodies, such as TDRA for telecom businesses and the Ministry of Economy for insurance activities. 

The official time to set up a business is stated as 4 days as per the Ministry of Economy. However, the process can take around 1-2 weeks, depending on your business’s legal structure, industry, and additional approvals required. The total cost for setting up a business in Dubai mainland will also vary depending on your legal structure and industry. The cost for setting up a sole proprietorship comes to 2000 AED per the IID portal, including an e-trader license (for one single person and home-based business) for 1070 AED and 300 AED for Dubai Chamber membership. For a limited company, including more than two partners, the license cost starts at 10,000 AED as per the IID portal and increases based on your legal form, activities, and partner’s residential status. 

While Dubai’s regulatory policy allows for a convenient business set-up, making your business successful will require remarkable market understanding, effective strategy making, an excellent network, investment in digital marketing, and a practical financial plan. You can also take assistance from investment consultants based in Dubai mainland, who can guide your investment decisions, and help you diversify your investments effectively. 

In this article, we will take you through the advantages of business set-up in Dubai mainland, the set-up requirements, the complete legal and regulatory process, and tips for making your business successful. Let’s go! 

What are the Advantages of a Business Set Up in Dubai Mainland?

The advantages of a business set-up in the Dubai mainland include high-profit repatriation, access to Emirates markets, a wide range of business activities, and an opportunity for business expansion.

• Profit repatriation: the corporate tax rate in Dubai mainland is set at 9% for profits exceeding 375000 AED, as per Article 3 of Federal Decree-Law No. 47. Hence, for profits less than the threshold mark, all profits are repatriated to the business owners. For-profits higher than the threshold, corporate tax in Dubai is significantly less than in the USA (21% as per Tax Cuts and Jobs Act of 2017) and the UK (25%).
• Market access: mainland businesses have exclusive access to provide their products and services to customers and corporations within the Emirates market and abroad, per the Department of Economy and Tourism. They can also apply for governmental contracts within the region. 
• Business Activities: mainland businesses can operate in over 1000 different commercial and industrial activities as per the Department of Economy and Tourism; it allows business owners to tap into a growing market and generate higher profits. 
• Business Expansion: Dubai leadership plans to make Dubai the safest, and most connected city in the world. The launch of D33 aims to double Dubai’s GDP by 2033 and make it an economic hub. The governmental focus on boosting economic activity assists businesses through convenient policy making, helping them expand. Dubai Department of Economic Development also allows for multiple legal structures and forms (such as private and public stock companies) to help owners raise capital for their businesses. 

These benefits make Dubai mainland an excellent region to start your business operations. With the launch of the Basher platform, the Dubai government has also eased registration for businesses.

What are the Requirements for Business Set-up in Dubai Mainland?

The requirements for a business set up in Dubai mainland vary with your business activities, legal form, and residential status. The general requirements are listed below.

• Visitors must have a valid tourist or visit visa. They cannot initiate the registration process without a legal entry permit, as per the Department of Economy and Tourism.
• For initial approval:
  • For Foreigners: A copy of the business owner’s passport.
  • For Emiratis or Residents: A copy of the Emirates ID.
  • For Non-GCC Nationals: A copy of the applicant’s valid residence visa or permit.
  • Company’s Articles of Association (if applicable): Required for businesses except for single-owner limited liability companies (LLC).
• Additional Requirements for Specific Business Types
  • Public Shareholding and Private Joint-Stock Companies: A detailed feasibility study of the proposed project is mandatory to demonstrate the project’s viability, as per Article 113 of Federal Law 32 of 2021.
• Branches of Companies from Other Emirates: If a company from any emirate other than Dubai is planning to open a branch, the following are necessary, as per Article 337 of Federal Law 32 of 2021:
  • A board resolution from the parent company formally approved the Dubai branch set-up.
  • A letter of authorization from the parent company’s managing director.
  • A copy of the parent company’s commercial registration certificate.
  • The parent company’s Memorandum of Association (MoA).
• Branches of Foreign or Free Zone Companies: Branches belonging to foreign companies or firms already operating in one of the UAE’s free zones will need:
  • A certified copy of the parent company’s license.
  • Attested and legalized corporate documents of the parent company, which must pass through the UAE Embassy and Ministry of Foreign Affairs in the country of origin. These certifications must then be counter-attested by the UAE Ministry of Foreign Affairs.
  • Legal Arabic translations of the parent company’s documents, certified by the UAE’s Ministry of Justice.

Do I need a physical presence to start a business in Mainland Dubai?

Yes, all businesses in Dubai must have a physical location to operate from, as per the Ministry of Economy. The tenancy contract must also be registered through the Ejari portal by Dubai’s land department. 

Business Set-Up Options in Dubai Mainland

DED offers different business licenses that group multiple business activities under larger sectors. The possible business set up options are listed below.

• Industrial activities: these include all kinds of manufacturing, production, and packaging of products in Dubai’s mainland
• Commercial activities: it considers buying and selling most goods and services, including imports and exports and logistics. 
• Professional Activities: it includes business activities relying on mental and artistic abilities, such as consultancy, tailors, and lawyers. 

The IID portal further expands different business activities that can be licensed within the Dubai mainland.

What are the steps to Set Up a Business in Dubai Mainland?

The steps to set up a business in Dubai mainland are listed below.

1. Select the Business Category: Identify whether your company falls under commercial, industrial, or professional categories. This choice will determine your business structure, licensing requirements, and legal obligations.
2. Choose Your Business Activity: Pick from over 1,000 permissible business activities, including agriculture, fishing, mining, real estate, manufacturing, contracting, and more.
3. Register the Trade Name: reserve a unique trade name that complies with UAE guidelines. The name must reflect your business activities and adhere to all cultural and legal restrictions as per branch 2 of section 2 of the federal decree law no 50 of 2022.
4. Choose Your Licence: Decide on the appropriate license type—commercial, industrial, e-trade, dual, or professional—based on your business needs. Each license allows for specific economic activities.
5. Check Foreign Ownership Criteria: Verify if your business allows up to 100% foreign ownership. Ownership rules vary by industry; defense, military, banking, Hajj, and Umrah services can’t have 100% foreign ownership as per the Department of Economy and Tourism.
6. Obtain Initial Approval: The Dubai Department of Economy & Tourism reviews your license application and supporting documents to grant you the initial approval necessary for leasing an office space and seeking additional approvals from relevant authorities.
7. Choose Your Business Location: Secure a physical address in Dubai Mainland. It must meet zoning requirements and be registered through the Ejari portal for official use.
8. Apply for Additional Government Approvals (If Applicable): Obtain special permits from relevant ministries or authorities depending on your business activity. The Department of Economy and Tourism specifies multiple industries that require a no-objection certification before commencing operations, including food and beverages, healthcare,  education, communication, transportation, aviation, and insurance.
9. Submit Required Documents: Provide essential documents, including a copy of initial approval, duly attested lease agreement, and memorandum of association in case of joint stock company. These are reviewed for compliance before further steps.
10. Pay Fees and Collect the License: Complete all financial obligations, including registration and licensing fees. Once approved, collect your trade license to operate your business legally.
11. Obtain Final Approval: Finalize the process by registering your company with the Dubai Chambers of Commerce and Industry. This ensures your business meets all operational and regulatory requirements, ready for launch.

Business Activity Selection

Dubai Mainland allows you to select from a list of 1000 activities available at The IID portal, including construction, real estate, contracting, logistics, trading, and more. You can choose your activity through the IID portal to initiate the process.

Jurisdiction Selection

Dubai government offers mainland and free zone jurisdictions for business owners. Dubai mainland companies are allowed to sell their goods and services within domestic markets and apply for governmental contracts. The cost of setting up in Dubai mainland is slightly higher than in other jurisdictions due to higher rentals and tax charges.

Choosing a Legal Structure

Dubai mainland businesses can take multiple legal structures depending on a business’s operations, capital requirements, and existing legal form. The following list contains the main company formation options available, per Article 9 of Federal Decree Law No. (32) of 2021 and their variations allowed in Dubai mainland.

• Sole Establishment: This is suitable for individual entrepreneurs who want to own 100% of their business. It is typically used for professional services. 
• Limited Liability Company (LLC): This is the most common form of business in Dubai Mainland. It requires a minimum of two and a maximum of 50 shareholders, where the liability of partners is limited to their contribution as capital to the company.
• Civil Company: This is used for professional partnerships, such as doctors, lawyers, and accountants. It allows for 100% foreign ownership but requires a local service agent.
• Public Joint Stock Company (PJSC): This is suitable for large businesses that want to offer shares to the public. It requires a minimum capital of AED 30 million per Article 195 of Federal Decree-Law no 32 of 2021.
• Private Joint Stock Company (PrJSC): This is similar to a PJSC but does not offer shares to the public. It requires a minimum capital of AED 5 million as per Article 258 of Federal Decree-law no 32 of 2021
• Branch of a Foreign Company: This allows a foreign company to open a branch in Dubai Mainland, enabling it to conduct business in the UAE.
• Branch of a Local Company: A company established in another emirate can open a branch in Dubai Mainland.

The above-all mainland company setup options provide unique opportunities to the investors as per their needs.

Registering a Trade Name

Every mainland company must apply for a trade name registration before applying for an initial approval of thier mainland license. The total cost of registering a trade name is 620 AED; however, if your trade name contains abbreviations numbers, or can’t be arabized, an additional 2000 AED for each factor will be charged as the DED. The trade name registration can be completed in 10 minutes through the IID portal or service centers.

Obtaining Initial Approval

Initial approval is the first step towards obtaining a license; it involves defining your legal form, business activities and confirming your legal partners. You will need the essential documents we discussed earlier, including your Emirates ID, visa, company’s article of association, and other specific requirements based on your company’s type. The initial approval enables you to secure a commercial lease for our business and seek additional approvals if required. The total cost is 120 AED for initial approval, per the Department of Economy and Tourism, and the process can be completed through the IID portal or through physical service centers. 

Specifying Office Space

All businesses in Dubai must have a physical space before business operations on the mainland. The minimum space should be at least 100 square feet, as per the Department of Economy and Tourism. The tenancy agreement and commercial lease must be registered through the Dubai Land Department’s Ejari portal, as per the Ministry Of Economy. 

Applying for Final License Approval

The final license approval involves the submission of a copy of the initial approval, a copy of the lease contract, a memorandum of association (in case of joint stock companies), and approval from other governmental entities as required, as per the Ministry of Economy. The cost of obtaining the Mainland license varies depending on your legal structure, activities, and business partner’s residential status. A sole trader with home-based businesses can get an E-trader license for 1370 AED, with 1070 as license cost and 300 for Dubai Chamber membership, per the IID portal. 

Visa Process and Immigration

Visas are required for business owners to set up their business in Dubai mainland, and it’s also required by foreign employees working for the company. There is no limit to the number of visas a mainland company can sponsor, provided they comply with regulations concerning the business activity and the premises’ size requirements as per the Department of Economy and Tourism. 

Cost and Time 

The cost of setting up a business in Dubai Mainland varies depending on the business activity, legal structure, partner’s residential status, and industry. If you are setting up a sole proprietorship, the total cost comes to around 2000 AED after opting for an E-trader license and the requirements that go with it. However, if you opt for a limited liability company in the manufacturing sector, the license costs approximately 15,500 AED as per the IID portal, with additional costs for registering the trade name and obtaining initial and final approval. The overall cost may increase for businesses requiring additional government approvals or specific permits.

Setting up a business in Dubai Mainland usually takes 3 to 5 business days after submitting the required documents and meeting all conditions. This time frame can vary depending on the type of business activity and the complexity of approvals needed.

How much Time is required to set up a business in Dubai Mainland?

The official time required to set up a business in Dubai is 4 days, per the Ministry of Economy. Nonetheless, it usually takes 1-2 weeks for businesses to obtain a trading license; the initial approval takes 3-5 business days, and the final approval can take 1-2 days. Companies also need time to obtain lease contracts, draft memorandum of association, and get additional approvals depending on the industry. 

What is the cost of a Company Set up in Dubai Mainland?

The cost of a limited liability company set up in Dubai Mainland is between 20,000 AED to 35,000 AED depending on your industry, partner’s residential status, and office annual rental. 

Do you need to have a business plan before setting up a business in Dubai Mainland?

A business plan isn’t a legal requirement for setting up a business in Dubai mainland; however, a feasibility report is required for public and private joint stock companies as per Article 113 of Federal Decree Law 32 of 2021. 

Nonetheless, a business plan is essential for the success of your business in Dubai mainland. It provides a comprehensive outlook on your goals, market, finances, and operations, helping you streamline the set-up process. The business plan also assists you in negotiations with lenders, such as banks, and partners, for raising capital to expand your business. 

Tips for scaling a Business in Dubai Mainland

Tips for scaling a business refers to the strategies and expert techniques to help you expand your business’s operations, revenues, and profits in Dubai mainland. Some tips for scaling your company are listed below.

• Focus on building strong relationships with local stakeholders, such as government authorities, suppliers, and clients, to ensure smooth operations. 
• Diversify your offerings to cater to the UAE’s multicultural market while maintaining high service standards. 
• Invest in digital marketing and e-commerce platforms to expand your reach and capture a broader audience. 
• Expanding through partnerships or franchising can also accelerate growth while minimizing risks.
• Create effective financial models to plan for the future and assess the sensitivity of your business to changing demand, industrial and economic landscape. 

When it comes to business approaches, Dubai Mainland offers ample room for creativity but comes with its challenges. A customer-focused strategy works well, given the competitive market and high expectations of the clientele. However, rapid expansion without proper planning can stretch resources and increase costs. 

The pay-as-you-grow model favors startups due to minimal overhead, while large-scale operations may struggle if they lack agility. Relying heavily on government incentives or a single revenue stream can backfire if policies change, so diversification is key. 

What is the best location for a business in the Mainland in Dubai?

The best locations for business in the Dubai mainland include Business Bay, Downtown Dubai, Dubai Marina, Jumeirah Lake Towers, and Sheikh Zayed Road. These locations have emerged as economic hubs for major corporations based in Dubai and abroad. The rentals in these locations average between 180 AED per sqft to 400 AED per sqft as per Bayut– a rental property marketplace. Therefore, businesses with lesser capital might prefer operations in cheaper locations, such as Al Karama with rentals starting at 43 AED per sqft as per bayut.

What are the Consulting Agencies for Investment in Mainland Dubai?

Consulting agencies in Dubai mainland involve professionals with vast expertise in the Dubai investment markets, who assist investors and savers in making correct investment decisions. Consulting Agencies for Investment helps investors segregate their portfolio into profitable sectors across the wide range of options available in Dubai mainland. Popular consulting agencies include Felix Happich Consulting, Creative Zone, and Shuraa. 

How can I get a Mainland visa consultant in Dubai?

Felix Happich consultancy offers Dubai mainland visa consultancy services, strategic investment consulting, company formation in the Dubai mainland, and health care licensing services for its customers. We have achieved 100% customer satisfaction, helping our clients reach their objectives. We have over 10 years of experience in the industry and have served clients from the US, UK, and other regions of the world.

What are the key differences between business on the mainland and business in a free zone?

	Free Zone	Dubai Mainland
Cost	Free zone companies benefit from tax exemptions and incentives provided by the government, as outlined in article 3.1 of the Free Zone Person guide by the Federal Tax Authority. However, they might be required to maintain a minimum capital as part of investment encouragement policies.	Businesses operating in Dubai Mainland face higher operational expenses and are subject to a 9% corporate tax on profits exceeding AED 375,000 as per Article 3 of Federal Decree-Law No. 47 of 2022.
Ownership	Dubai’s 20 free zones allow complete foreign ownership, enabling expatriates to control their businesses fully.	While Dubai mainland also allows for 100% foreign ownership, some industries, such as defense, military, and banking,  restrict the facility and will require a sponsor.
Markets	Free zone companies are designed to serve specific sectors and enjoy tailored support. However, they are not permitted to directly sell to end users in the UAE without acquiring a Mainland license, as stipulated in article 10.14.1 of the Free Zone Person guide.	Mainland businesses enjoy the flexibility to operate and sell in local and international markets.

The choice of jurisdiction for a business eventually depends on the market, investment, and industry. A Dubai mainland business is more appropriate if you want to sell to the Emirates region. It also allows for a broader range of business activities, enabling you to operate in areas of your expertise. 

Can I Switch my business from the free zone to the mainland in Dubai?

Yes, you can obtain a dual license to switch or extend your presence from the Free Zone to Dubai mainland without the hassle of a new office space. However, the license is only currently available for six free zones, including Dubai Design District (d3), Dubai International Financial Centre (DIFC), Dubai Multi Commodities Centre (DMCC), Dubai CommerCity, Dubai Airport Free Zone (DAFZA), and One Central (Dubai World Trade Centre Authority) as per the Department of Economy and Tourism.