Mainland Company Formation in Dubai

Dubai Mainland Business Setup

Dubai is a city full of business opportunities. There are three location options for anyone looking to set up a company in the Emirate: on the mainland, in a free zone, or offshore.

A mainland company in Dubai is a business entity established outside the designated Free Zones and operates within the general UAE jurisdiction, commonly referred to as the UAE mainland.

Mainland business setup in Dubai offers a lot of advantages for entrepreneurs and investors, in terms of operational flexibility and array of permissible business activities. The company formation process on the UAE mainland involves several legal and regulatory steps, and choosing the right business structure is crucial for long-term success.

Benefits of Dubai Mainland Business Setup

Company formation on the Dubai mainland offers multiple advantages to ambitious entrepreneurs and investors in terms of brand visibility, operational flexibility, and lucrative government opportunities. Here are the key benefits of Dubai mainland company formation. It is a popular choice for businesses looking to maximize their customer reach and target different sections of the local and international market.

Unrestricted Market Access

Unlike free zone companies who can only operate in their designated zone and internationally, mainland companies are allowed to trade anywhere in the country. Mainland companies enjoy the freedom to operate anywhere in Dubai and the UAE without restrictions, and have access to a broader customer base, including the local market and other businesses not restricted to Free Zones. This makes them a good choice for business owners who want access to local and international markets.

Enhanced Brand Reputation

Business setup in mainland Dubai can add to a brand’s credibility in UAE’s market. Mainland companies have enhanced credibility and are perceived as having higher prestige and regulatory trustworthiness among large local companies and government entities. A lot of people may prefer dealing with locally based companies, allowing you to build trust with your customer base. Mainland companies also have more compliance regulations, so following the rules helps strengthen your reputation.

Direct Access to Government Contracts

Only the companies based on the mainland can bid for government projects and contracts. Mainland companies can bid for government contracts and participate in public sector projects. This opens up a huge avenue for business opportunities, especially for companies interested in the public sector. No other Dubai business setup location has this advantage.

Greater Business Flexibility

Another benefit of company formation in Dubai mainland is the freedom to set up your offices anywhere in the country. Mainland companies enjoy greater flexibility in terms of business activities and geographic operations. Free zone companies are restricted to staying in their designated areas, similar to offshore companies.

Skilled Workforce Sponsorship

Mainland companies have no restrictions on the number of employees they can hire and sponsor. Hiring a skilled workforce is essential to any company’s success, and it’s a lot easier to do it on the mainland as free zones have certain limitations on the number of visas they allot per business.

Corporate Tax Friendly Structure

Mainland businesses in the UAE do have tax obligations but they are much lower than most countries. Corporate tax is levied at 9%, however, it only applies to entities with taxable income over AED 375,000. The government also offers many business-friendly tax incentives. A business setup consultant will be able to help you stay compliant with your taxes.

Features of Company Formation in Dubai Mainland

Cost of Starting a Mainland Business in Dubai

The cost for mainland company formation in Dubai ranges from AED 14,000 to 25,000, depending on your business activity and visa requirements. Momentum’s packages for mainland company formation Dubai are designed to cater to every type of business. Every package guarantees unlimited support from our consultants, tailored to streamline the set up process.

Dubai Mainland
License

AED

13,999

*T&C Applied

Dubai Mainland License
+ Visa

AED

18,999

Popular

*T&C Applied

Dubai Mainland Licenses

Types of Legal Structures for Mainland Companies

Each legal structure represents a different type of business entity and business structure, governed by UAE law. Choosing the right business structure is crucial for startup formation, expansion, and compliance with local regulations.

An LLC company can be owned by up to 50 people. The liability of each owner depends on their capital amount. This business entity is popular among foreign investors due to its flexible business structure and the ability to operate across the UAE mainland.

This type of legal structure can be owned by two or more individuals. It is commonly used for professional services such as consulting, beauty services, and tailoring, and may involve partnerships with UAE nationals.

Another type of legal structure for company formation in Dubai mainland is the sole establishment. It is only owned by one person who is responsible for all the liabilities and finances of the business.

This legal structure can have up to 200 shareholders, who all hold an equal number of shares. It can also be owned by one person.

Business setup in mainland also permits the opening of a branch of an existing company, regardless of its location. The branch has to carry out the same activities as the parent company.

Recent reforms in the UAE have allowed 100% foreign ownership in many business sectors, eliminating the need for a local partner in most cases. However, some strategic sectors, such as oil and gas, still require a local partner. Certain types of Mainland companies require a local sponsor or service agent, who assists with administrative and government-related tasks. A local service agent, who is a UAE national, facilitates foreign ownership and ensures compliance with local regulations.

Documents Required for Mainland Company Formation

To apply for mainland company formation in Dubai, all the documents required for the application must be submitted to the Department of Economic Development (DED).

For Individual Shareholders

For Corporate Shareholders

Varies based on business activity and DET regulations.

Steps For Mainland Business Setup in Dubai

Choose your business activity

Get initial approval from DED

Register Trade name

Sign MOA & obtain approvals

Choose office space with Ejari

Apply for Business license

Why Choose Momentum for
Mainland Business Setup in Dubai?

We provide expert guidance through every step of the way from getting you an office, registering your business name, applying for a license and visas, to opening a bank account. Choose us to experience a streamlined and supportive business set up process and set yourself up for success.

Seamless Process

Momentum offers an end-to-end business set up process, from license registration to opening a bank account. Our consultants will be there every step of the way, making sure that your business is set up for success.

Proven Expertise

Our consultants are seasoned professionals who are experienced in company formation in Dubai mainland, along with the entirety of the UAE. They have a comprehensive understanding of local regulations and the application process.

Comprehensive Support

Momentum also offers additional support services like corporate tax registration, VAT filing, along with helping you stay compliant with the ongoing legal business requirements.

Personalized Business Solutions

Every client wants something different. That’s why our consultants focus on accurately understanding your business needs so that they can give you the best suited business solutions to help you succeed.

FAQ

How much does it cost to set up a mainland business in Dubai?

Mainland company formation Dubai costs around AED 15,000-AED 35,000. The price will depend on your office location, number of visas required and the type of business activity.

How to set up a mainland company in Dubai?

To set up a company on the Dubai mainland, you should choose a business location, prepare the documents, apply for a license, get visas for yourself and your employees, and open a bank account. Investors can apply for a commercial license by submitting the necessary documents and paying the required fees. You can hire an expert in mainland business setup to help you with the process.

What are the benefits of setting up a company in mainland Dubai?

Mainland business setup in Dubai has a lot of advantages, including unrestricted market access, enhanced brand reputation, simplified banking, ability to bid for government tenders, and no visa quotas for employees.

What is mainland business in the UAE?

A mainland business is a company located on UAE’s mainland, subject to different rules than free zone and offshore companies. Mainland companies can engage directly with the UAE market and government entities, providing opportunities to tap into a larger client base.

Do you need an Emirati partner to open a business in Dubai?

You do not need an Emirati sponsor to open a business in Dubai. Previously, only free zone companies offered 100% foreign ownership, but now certain business activities on the mainland also allow for full foreign ownership.

What is the corporate tax rate in Dubai mainland?

Corporate tax is levied at 9% in the Dubai mainland. It is only applicable to entities with taxable income over AED 375,000. A mainland company formation Dubai expert can help you stay compliant with the regulations.

How much is a mainland license in Dubai?

Getting a mainland license will depend on the type of license you are applying for (business license, commercial license). Generally, you can expect to pay around AED 12,000 – AED 15,000 for trade licenses on the Dubai mainland.

What is the difference between mainland and free zone Dubai?

Free zone companies are easier to set up but are only allowed to operate in their designated area and internationally. Mainland businesses can trade anywhere within and outside the country. Recently, a law was passed to allow Dubai free zone companies to trade on the mainland with a license.

What are mainland companies in Dubai?

A mainland company is a business entity established outside the Free Zones and licensed by the DED (Department of Economic Development). They have a lot more options for legal structures, including LLC, sole proprietorship, partnership, civil company, and PJSC.

What is the difference between sole establishment and LLC in Dubai?

A sole establishment can only be owned by one person, who is responsible for all the debts and liabilities of the business. An LLC can be owned by up to 50 people, and offers liability to its owners to the proportion of their capital. LLCs can also be owned by a single person.

What is a mainland license?

Every business needs a trade license to legally operate on the mainland. Ensuring regulatory compliance is vital for the operation of a mainland company, involving adherence to labor laws and industry-specific standards. A mainland company formation Dubai consultant can help you with the application process, including preparing and submitting all the necessary documents and paperwork.

How many types of mainland license in Dubai?

There are many types of mainland licenses in Dubai. The most common are professional, commercial, and industrial licenses. Some other examples include e-trader, dual, SME, and Intellaq licenses.