Starting a business in the UAE? Mainland company formation in Dubai offers investors the freedom to operate across the UAE and internationally, with access to lucrative government contracts and a robust local market. With recent legal reforms, foreign entrepreneurs can now enjoy 100% ownership in several sectors. This guide will walk you through each stage of setting up a mainland company in Dubai, ensuring you’re fully compliant and strategically positioned for growth.

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What Is Mainland Company Formation in Dubai?

A mainland company is a legal entity registered under the Department of Economic Development (DED) of Dubai. Unlike free zone or offshore companies, a mainland business setup in Dubai allows you to:

• Trade anywhere within the UAE and internationally
• Bid for government and semi-government projects
• Choose office space anywhere in the emirate
• Sponsor dependents and employees easily
• Enjoy 100% ownership in most sectors (as per recent reforms)

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Step-by-Step Process for Mainland Company Formation in Dubai

1. Choose Your Business Activity

The first step is selecting the right business activity. Dubai’s DED offers a wide list of permitted activities under commercial, industrial, and professional licenses.

Popular business activities in Dubai mainland include:

• General trading
• Consulting
• Real estate
• IT services
• Restaurants and cafes
• E-commerce

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2. Choose a Legal Structure

Your business structure depends on the nature of your activity. The most common legal types include:

• Sole Establishment (ideal for freelancers and professionals)
• Limited Liability Company (LLC)
• Civil Company
• Branch of Foreign Company

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3. Reserve a Trade Name

Your trade name must reflect your business nature and comply with UAE naming conventions. It must be unique and not violate public morals or religious beliefs.

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4. Apply for Initial Approval

The DED issues an Initial Approval Certificate, which confirms that the UAE government has no objection to your business setup in principle.

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5. Draft the MOA and Local Service Agent Agreement

For LLCs, the Memorandum of Association (MOA) is required. If your business is in a professional category, a Local Service Agent (LSA) agreement is also mandatory.

Note: While 100% ownership is allowed in many sectors, some still require a local UAE national as an LSA or partner.

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6. Choose Your Office Space

Leasing physical office space is mandatory for mainland licenses. Options include:

• Co-working spaces
• Shared offices
• Virtual offices (in some cases, temporarily)
• Private office rentals

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7. Finalize License Issuance

Submit all documents to the DED, pay the necessary license and registration fees, and obtain your trade license.

You can now:

• Open a corporate bank account
• Apply for employee visas
• Register for VAT (if required)

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Documents Required for Dubai Mainland Business Setup

• Passport copies of shareholders
• Entry stamp or visa copy
• NOC from current sponsor (if applicable)
• Trade name reservation certificate
• Initial approval certificate
• Ejari (tenancy contract)
• MOA/LSA agreement

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Costs of Mainland Company Formation in Dubai

The cost of mainland company formation in Dubai depends on several factors:

• Type of business activity
• Number of visas required
• Office space rented
• Legal structure
• Additional government approvals (if applicable)

On average, costs range between AED 15,000 to AED 30,000 or more.

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Benefits of Mainland Company Setup in Dubai

• 100% foreign ownership (in many sectors)
• Access to both UAE and international markets
• No currency restrictions
• Ability to trade freely within the UAE
• Access to government contracts
• Eligibility for multiple employee visas
• Long-term business growth opportunities

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Final Thoughts

Choosing mainland company formation in Dubai is a strategic step for entrepreneurs who want flexibility, scalability, and access to the broader UAE economy. With the right business structure and professional support, the process can be smooth and rewarding.

If you’re ready to start your mainland company in Dubai, our business setup consultants are here to help you with every step—from licensing to visa processing and beyond.