Out of all the jurisdictions in the UAE, Dubai Mainland is the best for business. With businesses and companies from all around the globe there, it contributes to majorly to the Dubai’s GDP of several hundred billion AEDs.
If you’re exploring the option of starting a business in Dubai Mainland, this guide walks you through the highlights of Dubai Mainland, its advantages, and most importantly Dubai Mainland company formation cost structure.
Understanding Dubai Mainland Company Formation
Understanding Dubai Mainland business formation is important. Since there are several other jurisdictions too that you can go with, it is important to be sure that this is the option that suits your preferences and goals most. Here’s the details you need to know and consider about Dubai Mainland:
What is a Mainland Company?
The companies that are registered with Dubai’s Department of Economic Development (DED) are known as mainland businesses in Dubai. Unlike free zone companies, they have no territorial restrictions, allowing them to operate all around the UAE and internationally as well. Since the markets in the mainland are more diverse, businesses have better chances of thriving here.
Key Features of a Company in Mainland:
No Trade Restrictions: You can do business anywhere in the UAE and internationally.
Government Contracts Eligibility: You are allowed to bid for government projects.
No Capital Restrictions: Investors can repatriate 100% of their profits.
Local Office Requirement: You need to have a physical office space in the UAE.
Compliance with UAE Labor Laws: You are required to register with the Ministry of Labor for employee visas.
Difference Between Mainland, Free Zone, and Offshore Companies
| Feature | Mainland | Free Zone | Offshore |
|---|---|---|---|
| Regulatory Body | DED (Dubai Department of Economic Development) | Free Zone Authority | Offshore Jurisdiction (e.g., JAFZA, RAK ICC) |
| Business Scope | Can operate anywhere in UAE & internationally | Limited to Free Zone & International Trade | Only allowed to do business internationally |
| Office Requirement | Physical office required | Office inside Free Zone required | No physical office needed |
| Ownership | 100% foreign ownership allowed (for most activities) | 100% foreign ownership | 100% foreign ownership |
| Visa Eligibility | No limit on visas (depends on office space) | Limited visa quotas (depends on package) | No residency visas |
| Corporate Tax | Subject to UAE corporate tax policies | Varies by Freezone (some have tax incentives) | 0% tax but restricted from UAE market |
| Trading with Mainland | Unrestricted | Requires a local distributor | Not allowed |
Summary:
- Mainland businesses have full market access but require an office.
- Free Zone businesses benefit from tax incentives but face trading limitations.
- Offshore companies are ideal for international trade but cannot operate within the UAE.
Advantages of a Mainland Business Setup in Dubai
1. No Trade Limitations
There are no restrictions for mainland businesses to operate anywhere in the UAE and globally, meanwhile, if you are registered in a free zone, you can only operate in the designated area.
2. Full Foreign Ownership
Previously, a local Emirati sponsor (holding 51% ownership) was required for mainland businesses. However, under the UAE Foreign Direct Investment (FDI) Law, many sectors now allow 100% foreign ownership without the need for a local partner.
3. Access to Government Contracts
Government projects and tenders are often only available to mainland businesses. If your business intends to work with UAE government entities, mainland registration is the best option.
4. Unlimited Visa Quota
Unlike free zone companies, which have visa limitations based on office space, mainland enterprises can apply for unlimited visas as long as they lease sufficient office space.
5. No Currency Restrictions
For businesses that operate globally or individuals sending funds to another country, there are no restrictions on foreign currency exchange. This makes the experience seamless for businesses operating globally.
6. Strategic Growth
Mainland setups can expand. They can open branch offices anywhere in the UAE, and collaborate freely with other businesses and investors without restrictions.
7. Business Credibility & Flexibility
Operating a DED-registered mainland startup increases credibility with banks, investors, and clients, making it easier to secure financing and partnerships.
Cost Breakdown for Company Formation in Dubai
While you can get a trade license somewhere between 15,000 to 30,000 AED depending on your license type and given activities, there are several other underlying costs involved as well to run a successful business. Depending on your operations and scale, the whole startup can cost around 30,000 to 100,000.
Cost Breakdown for Mainland Company Setup
| Expense Category | Estimated Cost (AED) | Details |
|---|---|---|
| Trade License Fee | 15,000 – 30,000 | Varies based on business activity & category |
| Office Rent & Location Costs | 15,000 – 50,000+ | Depends on area, office size, and leasing options |
| Visa & Immigration Fees | 3,000 – 7,000 per visa | Includes medical tests, Emirates ID, and visa processing |
| Legal Documentation & Registration | 5,000 – 10,000 | Includes MOA (Memorandum of Association) and court attestations |
| Government Approvals (if required) | 2,000 – 10,000 | For specific business activities like healthcare, trading, etc. |
| Sponsorship Fees (if applicable) | 8,000 – 15,000 | Only for businesses requiring a local sponsor |
| Additional Administrative Costs | 3,000 – 5,000 | Includes name reservation, notary fees, and external approvals |
Cost Factors for Mainland Company Formation in Dubai
There are a number of factors that can either add to or subtract from the overall cost of establishing a setup in Dubai:
Type of Business Activity: Certain sectors (healthcare, education, financial services) necessitate extra licensing and approvals.
Office Space Needs: Office lease size, location, and type affect overall costs. Some companies might use virtual offices to minimize costs.
Number of Visas Needed: Every extra employee visa ranges from AED 3,000 – AED 7,000, influencing operational expenses.
Special Permits: Companies operating in sectors under regulation (real estate, tourism, food, etc.) can require additional permits from applicable UAE authorities.
Government Rules & Amendments: Foreign ownership policies, taxation, and licensing fees might alter over time, influencing expenses.
Common Mistakes to Avoid While Starting a Business in Dubai
Here are the most common mistakes that people make while starting a new business or brand in Dubai, costing them extra money and time. Be sure to avoid them:
- Unexpected costs like office rent, visa fees, and approvals can increase expenses.
- Picking the wrong company type can limit operations or increase setup costs.
- Delaying license or visa renewals leads to heavy fines.
- Not reviewing sponsor agreements can cause legal issues.
- Choosing the wrong business location may affect growth and expenses.
- Ignoring government regulations can result in penalties.
- Skipping professional advice may lead to costly mistakes.
- Not planning visa requirements can increase future costs.
- Overlooking industry-specific approvals can delay operations.
- Failing to track renewal deadlines can disrupt business activities.
Frequently Asked Questions (FAQs)
1. How much does a business license cost in Dubai?
The cost of a Dubai mainland license depends on the nature of the business and typically ranges between AED 12,000 – AED 40,000. The total company set-up cost in the Emirate of Dubai may also include visa fees, office rent, and government approvals.
2. What is the business setup process in Dubai?
To set up your business, you need to follow these steps:
- Choose the type of company and business structure.
- Get initial approval from DED for business registration.
- Secure office space in Dubai and sign the tenancy contract.
- Apply for a business license in Dubai and necessary approvals.
- Complete legal formalities and obtain a business license.
The setup process varies depending on commercial activities and industry requirements.
3. What is the difference between a mainland and a freezone company set-up?
A company in Dubai mainland allows businesses to operate anywhere in the UAE market, while a Dubai freezone company is limited to freezone areas and requires local distributors to trade within the UAE. A mainland business setup in Dubai is ideal for those who want to work with government entities and have unlimited visa eligibility.
4. What are the set-up costs involved in establishing a company in Dubai?
The company formation expense in Dubai and license varies based on the business setup services you choose. Some key set up costs include:
✅ Dubai mainland license cost (AED 12,000 – AED 40,000)
✅ Cost of office space in Dubai (AED 15,000 – AED 50,000+)
✅ Visa and immigration fees (AED 3,500 – AED 7,500 per visa)
✅ Legal and documentation fees (AED 4,000 – AED 10,000)
5. Can I start a company in Dubai with 100% foreign ownership?
Yes! Many sectors now allow full foreign ownership for a company in Dubai, especially under the Dubai mainland and Dubai freezone regulations. However, some businesses may still require a local sponsor. If you want to set up a business in the UAE without restrictions and get your license, consult expert business setup consultants like those in leading business setup consultancy firms.
6. How does office space impact company setup cost in Dubai?
The cost of a Dubai business setup depends on office space requirements. Renting a physical office is mandatory for a company in the Emirate of Dubai. The cost of office space depends on location, with areas like Business Bay and Downtown Dubai being more expensive. Some businesses use shared office space in Dubai or virtual offices to reduce costs.
7. What type of company should I choose when setting up a company in Dubai?
The best type of setup depends on your business in Dubai. Common options include:
- Sole Proprietorship – Best for freelancers.
- Limited Liability Company (LLC) – Most common structure for a company in Dubai.
- Branch of a Foreign Company – Ideal for companies outside the UAE expanding to Dubai.
Different companies types have different company setup expense in Dubai depending on their industry.
8. Can I change my business location after registering my company?
Yes, you can move your business in Dubai mainland to a new business location, but you must update your business license and company registration with the DED. This process may require approvals, especially if your commercial activities change.
9. What is the cost-effective way to start a company in Dubai?
To reduce business setup costs, consider:
✅ Choosing cost-effective business setup services.
✅ Opting for a mainland’s license in Dubai with a shared office space.
✅ Working with business setup consultants in Dubai to reduce company formation expense in Dubai.
✅ Exploring mainland and freezone options to find the best fit.
10. Can I operate a business in the UAE without a Dubai mainland license?
A Dubai’s mainland license is required for any business on the mainland. Without it, you can only operate within freezones or outside the UAE. Some companies in the UAE choose a freezone company setup, but this limits access to the UAE market. For unrestricted operations, a business in mainland Dubai is the best option.
