In the past years, setting up a company in Dubai has become one of the most attractive options for entrepreneurs, investors, and professionals seeking to tap into one of the world’s most dynamic economies. In fact, the UAE saw over 50,000 new business licenses issued in Dubai alone in 2023, a growth of more than 30% year-on-year, demonstrating the increasing allure of the region. While the Emirate offers various options—including Free Zones and Offshore entities—this article focuses specifically on setting up a company in Dubai Mainland, which provides unmatched advantages for business growth and flexibility.
Before diving into the specifics of setting up a company in Dubai Mainland, it’s essential to understand the major differences between a free zone and a mainland:
Dubai Mainland
- Allows businesses to operate anywhere in the UAE and beyond.
- Enables companies to engage in B2C and government contracts.
- Regulated by the Department of Economy and Tourism (DET), formerly DED.
- Access to the broadest range of business activities.
Free Zones
- Confined to specific geographical areas.
- Limited to B2B or export activities unless working through a distributor.
- Often easier to incorporate but with operational limitations.
- Can be more tax-efficient for businesses focused solely on B2B activities and international markets.
- Read our series of articles on Dubai Free Zones.
Setting up a company in Dubai Mainland is ideal for businesses that want the freedom to operate across the UAE and beyond without restrictions.
Why Choose Dubai Mainland?
1. Full Access to UAE Market
Setting up a company in Dubai Mainland allows you to trade freely across the UAE without geographical restrictions. This is particularly advantageous for B2C businesses and service providers.
2. No More Local Sponsor Required (for Most Activities)
Since 2021, most professional and commercial activities can be 100% foreign-owned. However, strategic sectors still require a local partner.
3. Eligibility for Government Projects
Mainland companies are eligible to tender for government contracts—something Free Zone companies cannot do directly.
4. Office Presence and Physical Credibility
A physical office is mandatory for setting up a company in Dubai Mainland, giving your business a professional and trustworthy appearance.
5. Unlimited Visa Eligibility
The number of visas is linked to office size (typically 9 sqm per visa), making it scalable based on your hiring needs. While most Free Zones offer limited visa quotas per license, setting up a company in Dubai Mainland allows unlimited visas as long as government space requirements are met.
6. Fewer Operational Restrictions
You can work with clients and suppliers throughout the UAE and even abroad, without the need for intermediaries.
WellTax can help you assess whether Dubai Mainland is the right fit for your business model and guide you through the setup process seamlessly.
Step-by-Step Guide to Setting up a Company in Dubai Mainland
1. Define Your Business Activity
Different licenses apply to different activities (commercial, professional, industrial). This choice determines legal form, license type, and approval process.
2. Choose the Legal Structure
Options include:
- Sole Establishment
- Civil Company
- Limited Liability Company (LLC)
- Private/Public Shareholding Company
Most opt for LLCs due to flexibility and limited liability.
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3. Trade Name Reservation
Your company’s name must comply with UAE standards and avoid religious or offensive terms. It must also reflect your activity.
4. Initial Approval from DET
This pre-approval confirms that the government has no objection to your business.
5. Draft and Notarize the Memorandum of Association (MOA)
Depending on the activity and legal form, you may also require a Local Service Agent agreement if it’s a professional license.
6. Office Space and Ejari Registration
You must rent physical office space. An Ejari (tenancy contract registration) is mandatory.
- Note: 5% of the annual office rent is added to your trade license renewal fee annually.
7. External Approvals
Certain business activities require external approvals from relevant ministries or government bodies (e.g., Health, Education, Tourism).
8. Final License Issuance
Once all documents are submitted and approvals obtained, DET will issue your business license.
WellTax can manage each of these steps for you, ensuring that your setup is smooth, compliant, and complete.
Other Important Considerations
Office Space is Mandatory
Unlike some Free Zones, setting up a company in Dubai Mainland requires a physical office. Flexi-desks or co-working spaces can sometimes be used, but for limited visas only.
Visa Quota and Employment
- Visa eligibility is tied to office space (approx. 9 sqm per visa).
- Partners can obtain investor visas.
- No need for all partners to be residents.
Corporate Bank Account Opening
Opening a bank account can take 2-8 weeks depending on:
- Business activity
- Shareholders’ profiles
- Nationalities and due diligence
WellTax can assist with bank account openings, using its strong relationships with local and international banks.
Capital Requirements
In most cases, there is no need to deposit minimum capital to the bank unless required by external authorities or specific licenses. However, MOA often states a symbolic capital (AED 10,000 to AED 300,000), which doesn’t need to be paid.
Audited Financials
Mainland companies may be required to submit audited accounts annually, depending on their activity or upon request by authorities (e.g., for visa or bank purposes).
WellTax can help manage your accounting and compliance throughout the year.
How WellTax Can Help You
Setting up a company in Dubai Mainland can be overwhelming with all the moving parts. WellTax, an FTA-registered tax agent in UAE (read Why a Tax Agent in UAE is a Game Changer), offers end-to-end assistance and strategic guidance throughout the journey:
- Business activity selection and license matching
- Trade name reservation and DET liaison
- Drafting MOAs and legal documentation
- Office location advisory and Ejari setup
- Handling external approvals and document submission
- Assistance with visa quotas and employment formalities
- Bank account setup support
- Annual compliance and audit advisory
- Ongoing tax, accounting, and restructuring assistance
Whether you’re a startup or a seasoned investor, WellTax ensures that setting up a company in Dubai Mainland is smooth, fast, and legally compliant.
Renewals and Compliance
License Renewal
Trade licenses must be renewed annually. Renewal includes:
- Valid Ejari contract
- Payment of 5% of the annual rent as license fee
- Valid tenancy, compliance certificates, and employee visas (if applicable)
Ongoing Obligations
- Maintain accounting records
- File VAT (if applicable)
- Renew visas and Emirates IDs for employees
- Ensure lease and license are valid and consistent
- Prepare Annual Accounts and file an yearly Tax Return (read our article Tax Return in UAE: Key Requirements, Deadlines, and Best Practices)
WellTax offers annual compliance packages to help businesses focus on growth while we handle renewals, filings, and deadlines.
Conclusion: Is Dubai Mainland Right for You?
If your goal is to operate flexibly across the UAE, engage with consumers, and don’t mind renting a physical office, then setting up a company in Dubai Mainland is your best option. While it involves more formalities than a Free Zone setup, the benefits far outweigh the complexity for most businesses.
WellTax is here to guide you every step of the way, providing the local know-how and support needed to make your entrepreneurial journey in Dubai a success.
With its strategic location, favourable tax regime, and modern infrastructure, Dubai continues to attract global entrepreneurs. And when it comes to setting up a company in Dubai, especially in Mainland, the process may be complex—but it is also highly rewarding.
Contact WellTax today to begin your journey into one of the most business-friendly environments in the world.
