A Dubai mainland company is allowed to sell its products and services in Dubai and is also eligible to apply for government contracts. A mainland company setup requires a valid visa, a copy of your passport(if foreigner) or Emirates ID (if UAE national), the company’s article of association, and the company’s feasibility study in the case of a Public/private joint stock company. The document requirements vary with the business’s legal structure, partner’s residence, and company’s country of origin. 

The process for setup starts with category selection, activity selection, and trade name registration, which allows you to get an initial approval. With initial approval, the next step is to apply for a rental lease in Dubai mainland and any additional approvals required based on your activity. Once you have the lease and other permits, you can pay the license fees and apply for the final approval. Typically, you can register a company in the Dubai mainland within 5-10 days.

The company set up in Dubai costs between 15000 AED to 25000 AED based on your legal structure, rental space, and category selection. A Dubai mainland company enables you to access the premium Emirates markets and allows higher geographical and activity flexibility compared to other jurisdictions. 

In this article, we will explain the requirements, procedures, and costs for setting up a company in the Dubai mainland. Let’s go!

What are the Requirements for a Company Set Up in Dubai Mainland?

The requirements for a company set up in Dubai mainland include application and submission of documents to comply with mainland jurisdiction and ensure the protection of all stakeholders. The documental requirements are listed below.

1. Valid Visa or Legal Entry Permit

Visitors planning to set up a business in Dubai Mainland must have a valid tourist or visit visa. The Department of Economy and Tourism (DET) prohibits initiating the registration process without a legal entry permit.

1. Initial Approval Documents

For company registration, specific documents are required depending on the applicant’s status:

• Foreigners: A copy of the business owner’s passport 
• Emirates or UAE Residents: A copy of a valid Emirates ID 
• Non-GCC Nationals with Residency: A copy of a valid residence visa or entry permit 

1. Company’s Articles of Association

A business owner must provide its Articles of Association (AoA). This document outlines the business’s internal governance structure, shareholder roles, and operational framework. Companies formed as single-owner LLCs are typically exempt from this requirement. 

1. Requirements for Public and Private Joint-Stock Companies

Public shareholding companies and private joint-stock companies must submit a detailed feasibility study as per Article 113 of Federal Law 32 of 2021. This document demonstrates the financial and operational viability of the proposed project.

1. Requirements for Branches of Companies from Other Emirates

Businesses aiming to establish a branch in Dubai from another emirate must provide the following, conforming to Article 337 of Federal Law 32 of 2021:

• A board resolution from the parent company formally approving the Dubai branch set up.
• A letter of authorization by the parent company’s managing director.
• The parent company’s commercial registration certificate.

1. Requirements for Branches of Foreign or Free Zone Companies

Branches of foreign companies or entities already operating in free zones must fulfill specific conditions:

• A certified copy of the parent company’s business license to confirm its legal operations.
• Corporate documents of the parent company must be attested and legalized at the UAE Embassy and Ministry of Foreign Affairs in the country of origin. These documents are then counter-attested by the UAE Ministry of Foreign Affairs.
• Legalized Arabic translations of the parent company’s documents certified by the UAE Ministry of Justice

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

The cost of a company set up in Dubai Mainland varies from 15000 AED to 25000 AED, depending on factors like business activity, legal structure, and industry. The cost of a company setup includes expenses incurred in getting a license, chamber of commerce membership, rental office and other operations. 

For business owners choosing a sole proprietorship or general partnership, the most affordable option is acquiring an E-trader or SME license, both of which cost 1070 AED with 300 AED for membership with the Department of Commerce. This setup is ideal for small-scale or online businesses and covers the basic licensing requirements but with unlimited liability. 

On the other hand, businesses with a more complex structure, such as a limited liability company (LLC), incur higher costs. The limited liability company license with foreign owners costs approximately 15,500 AED, with additional expenses for registering the trade name and obtaining initial and final approvals. Furthermore, some industries, such as healthcare, education, or engineering, may need specific permits or government approvals, which can significantly add to the total cost.

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

The steps of a company set-up in Dubai Mainland involve a structured process to ensure compliance with local regulations and business requirements. Below is a list of the main steps involved.

1. Select the Business Category
2. Choose Your Business Activity
3. Register the Trade Name
4. Obtain Initial Approval
5. Create LSA (Local Service Agent) or MOA (Memorandum of Association)
6. Choose Your Business Location
7. Apply for Additional Government Approvals (if applicable)
8. Submit Required Documents
9. Pay Fees and Collect the License
10. Register Your Company with the Chamber of Commerce and Industry
11. Obtain Final Approval

Select the business category.

Selecting the right business category is a crucial first step in setting up a company in Dubai Mainland. This decision shapes your licensing needs, legal framework, and operational requirements, making it essential for a seamless setup. Dubai Mainland offers multiple business categories, such as commercial, professional, and industrial, catering to a wide range of business activities. 

• Commercial Category involves businesses involved in buying, selling, importing, and exporting goods and services from or to the Dubai Mainland.
• Professional Category is suitable for service-based enterprises such as consultants, freelancers, educators, and other professions requiring mental or artistic abilities.
• The Industrial Category is intended for the manufacturing, production, and packaging of all kinds of products in Dubai, including beverages, foods, and textiles. 

Choose your business activity.

Business activity determines the type of license required for your operations and the overall setup cost. Dubai mainland allows for over 1000 business activities amongst industrial, professional, and industrial categories. Identifying your activity ensures you meet specific regulatory requirements and obtain the necessary permits. For example, a business consultancy firm requires a professional license, while a medical store in the commercial category requires more approvals, such as health permits from the Ministry of Health & Prevention, incurring higher overall costs. Alternatively, freelancing is a leaner option with minimal paperwork and costs, suitable for individual professionals looking for a straightforward set up.

Register the trade name.

Registering a trade name is a foundational step in defining your business identity in Dubai Mainland. To register, first propose a unique and appropriate name for your business. Submit your proposed name through the Invest in Dubai (IID) portal to the Department of Economy and Tourism (DET) for evaluation. After approval, you must pay the reservation fee to register the name. The cost of registering a trade name is 620 AED but increases by 2000 AED if your name contains abbreviations or numbers. 

The key considerations for trade name selection, as per the Ministry of Economy, are listed below:

• A trade name should reflect the company’s economic activities.
• It must not include names of rulers, or government agencies, or use logos and names of official government bodies.
• The inclusion of offensive or inappropriate words is strictly prohibited to maintain public decency.
• The trade name must contain the company’s legal structure as a suffix, such as LLC or PJSC.
• Approval of the trade name is required from both the Department of Economic Development and the Ministry of Economy.
• The trade name must not already be in use or registered by another business entity.
• Renewal of trade name certificates is mandatory to retain validity over time.

Obtain initial approval

The initial approval is a preliminary checkpoint in establishing your business. Initial approval verifies that your business activity, ownership structure, and overall plans align with the regulatory framework in Dubai Mainland. The cost of initial approval is 120 AED and is processed within 2 to 3 days. While initial approval allows you to proceed with tasks like selecting a business location and submitting documents, final approval legally grants the license to operate your business. 

What are the requirements for initial approval of a company in Dubai Mainland?

The requirements for initial approval of a company in Dubai mainland include legal and operational documents to ensure compliance and transparency. These requirements, as per the Department of Economy and Tourism, are listed below:

• Copy of the applicant’s residence permit or visa (for non-GCC nationals)
• Copy of the licensee’s passport or ID
• Articles of association of the company
• Feasibility study report for the proposed project
• Resolution from the parent company’s board to establish a branch in Dubai
• Authorization letter for the appointed managing director
• Copy of the parent company’s license
• Memorandum of association (MOA) of the parent company
• Commercial registration certificate of the parent company

Create LSA (Local Service Agent) or MOA (Memorandum of Association)

An LSA (Local Service Agent) is an Emirati national or a legal entity representing foreign business owners without claiming ownership stakes in professional or civil companies. A LSA  is required if the business is a sole proprietorship. However, in the case of a civil company, limited liability company, or public/private shareholding company, A memorandum of association is required. An MOA (Memorandum of Association) is a legal document required for companies like LLCs that outlines the roles, ownership percentages, and profit-sharing agreements among partners.

The primary reason for appointing an LSA or drafting an MOA is to comply with UAE regulations for foreign investors while ensuring clarity in ownership and operational responsibilities. Costs for an LSA start at 5000 AED and average around 8000 AED. The cost of drafting a memorandum of association varies with your choice of service provider, legal structure, and other complexities. The total cost for drafting, attesting, and publishing an MOA averages around 25000 AED. 

Basic requirements for either include clear identification documents for all parties, details of the business activity, and notarization of the documents before submission. These steps ensure transparency and legal protection for both foreign investors and local agents or partners.

Choose your business location.

All businesses in Dubai mainland are required to have a physical address, except in cases, where 1 year of virtual office is allowed. A business location influences operational efficiency, regulatory compliance, and customer accessibility. Dubai Mainland offers multiple prime business locations, including Business Bay, Sheikh Zayed Road, and Al Qusais.

Business Bay is ideal for firms seeking a modern corporate environment, while areas like Sheikh Zayed Road offer excellent visibility and connectivity for retail or consulting businesses. Al Qusais, being more industrial, caters well to companies in manufacturing or logistics.

To choose the best location for your business, consider factors like proximity to target customers, industry-specific zoning requirements, rental costs, and accessibility for employees. For example, if your firm relies heavily on client interaction, choosing a central location with good transport links would be beneficial. The right location supports your business goals, enhances your brand image, and fosters sustainable growth.

Apply for additional government approvals (if applicable)

Certain industries require additional approvals from specific government departments before obtaining a license. For example, healthcare businesses must obtain permission from the Ministry of Health and Prevention (MOHAP), while manufacturing firms need clearance from the Ministry of Industry and Advanced Technology. Import and export companies may also require approvals from UAE Customs or the Ministry of Economy. These additional approvals allow businesses to comply with regulations specific to their sector and will have varying costs. 

Submit required documents

Submitting the required documents is a critical legal step in setting up a company in Dubai Mainland. The document’s requirements vary for different legal structures, but will generally include Receipt of initial approval, previously approved documents, lease contracts’ copy,  Approvals from other government entities (as required), and an MOA (if required). These documents establish the legal identity of your business and its owners while ensuring compliance with governmental regulations. Accuracy and completeness of the legal documents are essential, as any discrepancies can result in delay or rejection of the registration.

Pay fees and collect the license.

1. Visit the Department of Economy and Tourism (DET) or use its online portal.
2. Provide the relevant documents required for final payment and license issuance.
3. Pay the associated fees via acceptable payment methods (cash, credit card, or online transfer).
4. Collect your trade license upon completing the payment process.

The cost of setting up a mainland limited liability company in Dubai ranges from AED 15,000 to AED 30,000 or more, depending on the chosen business activity, license, location, and additional approvals needed.

Register your company with the Chamber of Commerce and Industry.

Registering your company with the Chamber of Commerce and Industry is a mandatory step for businesses in Dubai Mainland. The Chamber of Commerce acts as a facilitator of trade, offering businesses access to resources, networking opportunities, and legal support.

A Chamber membership certificate is often required to engage in government tenders, trade agreements, or international business activities. The Chamber of Commerce also provides access to innovative programs, support for business growth, and enhanced market visibility. The requirements for registration include the trade license, initial approvals, and identification documents of stakeholders. 

Obtain final approval

Final approval is the concluding step in the company formation process. It confirms that all regulatory, legal, and operational requirements have been met, granting the company the license to operate legally within Dubai Mainland. This includes receiving all necessary clearances, ensuring tenancy contracts are attested, and submitting any industry-specific approvals. 

Once final approval is granted, the license is issued, and the company can begin its operations. This step solidifies the business’s compliance, allowing it to engage in day-to-day activities and pursue long-term growth objectives within the UAE market.

What are the Benefits of a Company Set Up in Dubai Mainland?

The benefits of a company set up in Dubai mainland include access to Local and International Markets, No Geographical Limitations, 100% foreign ownership, Eligibility for Government Contracts, Ease of Business Expansion

• Access to Local and International Markets: Setting up in Dubai Mainland allows businesses unlimited access to the Emirate markets, as well as opportunities to trade internationally without restrictions on location or client base. This is essential for companies aiming for high scalability.
• No Geographical Limitations on Office Space: Mainland companies can operate in any area of Dubai, unlike other economic zones where office location is predefined. This flexibility benefits businesses looking for prime locations or cost-effective rental options.
• 100% foreign ownership: foreign investors can retain 100% ownership in most Mainland business categories, except in strategic impact industries, allowing owners to retain 100% of their profits.
• Eligibility for Government Contracts: Only Mainland companies can apply for lucrative government tenders and contracts, opening up significant opportunities for long-term projects and partnerships.
• Ease of Business Expansion: Mainland companies face no limits on scaling, with permission to open multiple branches, hire an unlimited number of employees, and target clients worldwide at competitive rates.

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

No, a business plan isn’t a legal requirement for setting up a company in the Dubai mainland. However, it is highly recommended, as it helps determine the appropriate licensing category and activities, project costs, and define goals. For example, businesses in sectors like professional consultancy must clearly outline their operational scope to ensure correct licensing and minimal regulatory risks.

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

The official time required to set up a company in Dubai Mainland is 4 days. Moreover, The Basher platform allows UAE and GCC nationals to register their company in 15 minutes. However, the process can typically take between 5 to 10 business days, depending on the business category and additional approvals needed. 

How many shareholders can a company have on the Mainland?

A company in Dubai Mainland can have between 1 and 50 shareholders, depending on the company structure. Limited Liability Companies (LLCs), for instance, allow a maximum of 50 shareholders, while sole establishments require only one. Private and Public joint stock companies can have more than 50 shareholders.

How to scale a company in the Mainland in Dubai?

The strategies for scaling your business in Dubai mainland are listed below. 

• Expanding Your Market Reach: With the growing Emirates market, you can expand your operations across new UAE regions or GCC markets to create new revenue streams.
• Building Strategic Partnerships: Collaborations with government, complementary businesses, and other organizations can help share resources and strengthen market presence.
• Enhancing Digital Presence: Investing in digital marketing channels and e-commerce platforms can attract global and local clients.
• Focusing on Customer Satisfaction: Offering excellent customer experiences builds loyalty, leading to repeat business and recommendations.
• Tackling the Problems of Scaling: Address staffing, operational infrastructure, and regulatory compliance to ensure smooth growth, minimizing potential challenges.

Can I Switch my company from a free zone to a mainland one in Dubai?

Yes, you can extend your company from a free zone to the Dubai mainland through a dual license. A dual license allows businesses to expand their operations from free zones to the Dubai mainland without requiring them to lease additional office space in the Mainland. However, the license is currently restricted to companies located in 6 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).