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UAE Mainland Company Formation

Mainland Company Setup in Dubai: DET License Steps and Costs

A Dubai mainland company is licensed by the Department of Economy and Tourism (DET, formerly DED), and each other emirate has its own economic department. A mainland license gives unrestricted access to the whole UAE market. This hub covers the setup process, license types, costs and visa routes, then links to detailed guides on LLC formation and DET services.

A UAE mainland company gives unrestricted UAE-market access, is licensed by each emirate's economic department (DET in Dubai), costs from about AED 20,000 in the first year with no visa, or AED 30,000 to 50,000 with an office and two visas, and allows 100% foreign ownership on most activities since the 2021 law reform. Setup takes 1 to 3 weeks.

Mainland formations across all seven emirates
  • Unrestricted UAE market access
  • 100% foreign ownership
  • DET licensed
  • All 7 emirates covered

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    Licensed AgentDubai DET
    Licensed AgentAbu Dhabi
    Licensed AgentSharjah
    CoverageAll 7 emiratesMainland + free zone
    100%Foreign ownership
    from ~AED 20,000First year, no visa
    1–3 weeksLicense issuance
    7Emirates covered
    Definition

    What Is a Mainland Company in the UAE?

    A mainland company is a business licensed directly by an emirate's economic department that can trade anywhere in the UAE market and bid for government contracts. In Dubai it is licensed by the Department of Economy and Tourism.

    Mainland, known as onshore, suits a business whose customers are inside the UAE, such as a restaurant, a clinic, a retail shop or a contracting firm. Unlike a free zone company, a mainland company invoices UAE businesses and consumers directly, opens branches across the emirates, and bids for government work, with no distributor in between.

    According to the 2021 Commercial Companies Law reform, the historic requirement for a 51% Emirati partner has been removed for most activities, which makes mainland far more attractive to foreign founders than before. The UAE trade license types hub explains which license category each activity needs.

    Can a mainland company trade anywhere in the UAE?

    Yes. A mainland company can trade anywhere in the UAE market and across all seven emirates, which a free zone company cannot do directly.

    Cost

    How Much Does Mainland Company Setup Cost?

    Mainland company setup costs from an indicative AED 10,000 in government fees with zero visas, with a realistic all-in budget of AED 30,000 to 50,000 once an office and two visas are added. Each residence visa adds roughly AED 6,070.

    The indicative cost components for a Dubai mainland company are given below.

    Indicative Dubai (DET) figures; government fees and ranges change. Confirm current fees before you commit.
    ComponentTypical AED
    Trade name reservation600 – 1,000
    Initial approval120 – 500
    MoA typing and notarization1,200 – 2,000
    Trade license issuancefrom 10,000
    Establishment card~2,000
    Office or Ejari (from)from 6,000
    Per residence visa~6,070

    The two biggest variables are the office, where a flexi-desk and a full lease change both cost and visa quota, and the number of visas. The business setup cost in the UAE by jurisdiction guide compares mainland with every free zone, and the UAE business setup cost calculator gives a free zone estimate in seconds.

    Is mainland setup more expensive than free zone?

    Yes. Mainland setup is more expensive than free zone, mainly because of the office and Ejari requirement, though it gives direct UAE market access in return.

    Decision

    Should You Choose Mainland or a Free Zone?

    Choose mainland to sell directly to the UAE market, hold a physical shop or clinic, or win government contracts; choose a free zone for international clients, the cheapest fast start, or a consultancy and holding business.

    The core factors are given below.

    FactorMainlandFree Zone
    UAE market accessDirect, anywhereVia distributor or branch
    Government tendersYesNo
    Ownership100% on most activities100%
    OfficePhysical and Ejari usually requiredFlexi-desk often fine
    Cost and speedHigher, 1 to 3 weeksLower, 1 to 7 working days

    Read the full free zone vs mainland UAE comparison for the detailed decision.

    Is mainland better than a free zone for selling to UAE customers?

    Yes. Mainland is better for direct UAE trade and government work, while a free zone suits international business and the lowest cost.

    Mainland, free zone or offshore?Mainland, free zone or offshore?. Decision guide.Mainland, free zone or offshore?Where are your customers and do you need a physical UAE presence?MainlandDirect UAE trade,shops and clinics,government tendersfrom AED 10,000Free zoneInternational clientsand the cheapest faststartfrom AED 8,325OffshoreHolding andinternational trade,no UAE residencyfrom AED 8,000
    Indicative starting costs. Mainland is explained in full on this page; the others link out.
    Process

    How Do You Set Up a Mainland Company?

    To set up a mainland company, choose the activity and legal form, reserve a trade name, get initial approval, sign the MoA, secure an office with Ejari, then pay the fees and collect the license. Mainland licenses issue in 1 to 3 weeks.

    The steps to set up a mainland company are given below.

    1. Choose the activity and legal form and confirm 100% ownership applies.
    2. Reserve the trade name with the economic department.
    3. Get initial approval for the activity and owners.
    4. Obtain external approvals for regulated activities.
    5. Sign and notarize the MoA and shareholder documents.
    6. Secure the office and register Ejari, sized to your visa needs.
    7. Pay the fees and collect the license, then open the establishment card and apply for visas.

    The UAE company formation process guide covers each stage in detail.

    Thinking about a mainland company?

    Share the activity, and Bizstart confirms the structure, whether 100% ownership applies, and the indicative all-in cost.

    Can a mainland license be issued within 3 weeks?

    Yes. A standard mainland license issues in 1 to 3 weeks, while regulated activities needing an external approval take longer.

    How mainland setup worksHow mainland setup works. 7-step process.How mainland setup works1Choose activity& form2Reservetrade name3Initial approval4Sign MoA5Office & Ejari6Pay &collect license7Card & visas
    A standard mainland license issues in 1 to 3 weeks.
    Structures

    Which Mainland Legal Structure Should You Choose?

    Most mainland businesses register as an LLC for limited liability and flexibility; a Sole Establishment suits a single owner but carries unlimited liability; a Civil Company suits recognized professionals in partnership.

    The main mainland legal structures are given below.

    Most common
    LLC

    A Limited Liability Company with 1 to 50 shareholders, limited liability and 100% foreign ownership on most activities. The default choice for trading and most companies.

    Single owner
    Sole Establishment

    Owned by one individual, typically for professional services. Simple and cheap, but the owner carries unlimited personal liability.

    Professionals
    Civil Company

    For qualified professionals such as doctors, lawyers and engineers practising together. Allows 100% ownership, sometimes with a Local Service Agent for administration only.

    A branch of a foreign or UAE company is a fourth route; a branch is not a separate legal entity but lets an existing company operate on the mainland. The LLC company formation in Dubai guide covers the most common structure.

    Is an LLC the best structure for a mainland company?

    Yes, usually. An LLC is the best structure for most mainland companies, because it gives limited liability and 100% foreign ownership on most activities.

    Ownership

    Can Foreigners Own 100% of a Mainland Company?

    Foreigners can own 100% of a mainland company across the large majority of commercial and industrial activities, with no Emirati shareholder required. A defined list of strategic-impact activities still requires UAE ownership.

    According to the 2021 Commercial Companies Law reform, foreign investors own 100% of a mainland company across most activities, keeping full control. Before 2021, a mainland LLC needed a UAE national holding 51% of shares. Some professional and regulated activities may still involve a Local Service Agent, who holds no shares and no profit and provides administrative liaison for a fixed annual fee.

    The ownership rule depends on the exact activity code, so each activity is confirmed against the current economic-department list before setup. The Dubai DED licensing authority guide explains how DET approves activities.

    Do you still need a local sponsor for a mainland company?

    No. Most mainland activities no longer need a 51% local sponsor, following the 2021 ownership reform.

    Office and visas

    How Do Office Space, Ejari and Visa Quota Work?

    On the mainland, office space determines the visa quota: a registered tenancy (Ejari) is required, and the size of the space sets how many residence visas a company can sponsor, roughly one visa per nine square metres.

    The office-to-visa link is a crucial planning point. A company sponsoring five employees must take enough office space to support five visas. Options range from a flexi-desk or shared desk, which is cheapest and supports few visas, to a serviced office, to a full commercial lease. Ejari registration of the tenancy is part of the license and renewal process, and the Ejari registration, renewal and office leases guide covers the steps.

    Does a mainland company need a physical office?

    Yes. A mainland company needs a physical office or a flexi-desk with a registered Ejari, and the space sets the visa quota.

    Activities

    Which Business Activities Suit a Mainland Company?

    Mainland suits activities that serve the UAE market directly: retail shops, restaurants, clinics, contracting, real estate, logistics, professional services and trading with local clients. Regulated activities such as healthcare, legal and financial services need external approvals.

    The economic department lists thousands of approved activities, grouped into commercial, professional and industrial categories. A mainland company can hold multiple related activities on one license, commonly up to around ten. The activity decides three things: the license type, whether an external approval is needed, and whether 100% foreign ownership applies.

    Regulated activities carry an extra approval step before the license is issued. Healthcare needs the health authority; legal practice needs the relevant legal body; financial services need the regulator; food businesses need the municipality. Planning the activity list precisely at setup avoids the cost of amending the license later. The commercial license in the UAE guide lists the trading activities.

    Can a mainland company hold more than one activity?

    Yes. A mainland company can hold multiple activities on one license, commonly up to around ten, as long as they sit within the same category and any regulated activity has its approval.

    Banking

    How Do You Open a Bank Account for a Mainland Company?

    To open a bank account for a mainland company, submit the trade license, the Memorandum of Association, shareholder passports and Emirates IDs, and proof of business activity to a UAE bank. Approval takes two to six weeks at most banks.

    A corporate bank account is opened after the license is issued. UAE banks apply strict compliance checks under central bank rules, so a clear business activity, a resident shareholder, a physical office and documented proof of activity all speed up approval. Many banks require a minimum balance, which varies by bank and account type.

    Bank-account rejection is the most common delay founders meet after the license stage, usually because the activity looks high-risk or the documents are incomplete. Bizstart prepares the application, matches the business to the right bank, and presents the activity clearly to reduce the risk of refusal. The business bank account opening in the UAE service page covers the documents and timelines.

    Is a bank account guaranteed once the license is issued?

    No. A bank account is not guaranteed after the license; UAE banks run independent compliance checks, so a clear activity and complete documents are essential to approval.

    Tax

    How Do Corporate Tax and VAT Work for a Mainland Company?

    According to the UAE Federal Tax Authority, a mainland company pays 9% corporate tax on taxable profit above AED 375,000 and 0% below, plus 5% VAT once turnover exceeds AED 375,000. Every company registers and files regardless of the rate.

    UAE corporate tax applies from the 2023 federal law. The 9% rate is charged only on profit above AED 375,000, so a small mainland company below that threshold pays 0% but must still register with the Federal Tax Authority and file an annual return. VAT of 5% is a separate tax, charged on taxable supplies once annual turnover passes AED 375,000, with voluntary registration available from AED 187,500.

    There is no personal income tax in the UAE, so salaries and dividends to shareholders are untaxed. The main ongoing obligations are corporate tax registration and filing, VAT returns where registered, and maintaining proper accounting records. The UAE corporate tax guide covers rates, registration and filing.

    Does a small mainland company pay corporate tax?

    No, usually. A mainland company pays 0% corporate tax on profit below AED 375,000, but it must still register for corporate tax and file an annual return.

    Pitfalls

    Which Mistakes Delay a Mainland Company Setup?

    The common mistakes when setting up a mainland company are choosing the wrong activity, underestimating office and visa-quota cost, assuming 100% ownership without checking the activity, and skipping the bank-account preparation.

    The mistakes that cause the most delay and cost are given below.

    • Choosing the wrong activity, which forces a license amendment or a new license.
    • Underestimating the office cost, because the mandatory Ejari and the visa-quota link raise the total.
    • Assuming 100% ownership, without confirming the specific activity against the economic-department list.
    • Skipping bank-account preparation, which leads to rejection after the license is issued.
    • Ignoring corporate tax registration, which is required even below the profit threshold.

    Each mistake is avoidable with the right activity mapping and document preparation at the start, which is where a setup consultant earns its fee. Bizstart PRO services in Dubai and the UAE handle the government counters.

    Is choosing the wrong activity an expensive mistake?

    Yes. Choosing the wrong activity is an expensive mistake, because amending or re-issuing a mainland license costs time and fees that a correct choice at setup avoids.

    Answers

    Mainland Company Setup: Frequently Asked Questions

    Do you need an Emirati partner for a mainland company?

    You do not need an Emirati partner for most mainland activities. According to the 2021 Commercial Companies Law reform, 100% foreign ownership is permitted on the majority of commercial and industrial activities.

    Only a defined list of strategic-impact activities still requires UAE ownership, and some professional set-ups use a Local Service Agent who holds no shares. Each activity is confirmed against the current list before setup.

    How much does a mainland company cost per year?

    A mainland company costs from an indicative AED 10,000 in license fees, plus an office from AED 6,000, the establishment card at about AED 2,000 and about AED 6,070 per visa. A realistic all-in first year with an office and two visas is AED 30,000 to 50,000.

    Annual renewal is similar minus the one-off setup items such as name reservation and MoA notarization. The office and visa count remain the main recurring drivers.

    What is the difference between an LLC and a sole establishment?

    An LLC gives limited liability, so personal assets are protected, and can have multiple shareholders. A sole establishment has one owner with unlimited personal liability.

    An LLC suits most trading and growing businesses; a sole establishment suits a single professional comfortable with personal liability. The LLC is the more common and more protective choice.

    Can a mainland company sponsor employee visas?

    A mainland company can sponsor employee visas, with the quota tied to office space, roughly one visa per nine square metres. A flexi-desk supports few; a full office supports more.

    Each visa costs about AED 6,070 plus the one-off immigration card. Founders planning to hire size the office to the headcount at setup.

    Does a mainland company pay corporate tax?

    According to the UAE Federal Tax Authority, corporate tax of 9% applies to taxable profit above AED 375,000 for mainland companies, and 0% below that threshold.

    Most small businesses pay nothing below the threshold but must still register and file. VAT of 5% applies separately once turnover exceeds AED 375,000.

    Can a free zone company convert to mainland?

    A free zone company can convert to mainland. Many businesses start in a free zone and convert as they grow into the UAE market.

    Conversion involves a new mainland license and winding down or branching the free zone entity. Bizstart handles these conversions end to end.

    Can a mainland company open branches in other emirates?

    A mainland company can open branches in other emirates, which is a key advantage over free zone entities for a multi-emirate physical presence.

    Each branch registers with the relevant economic department. This suits retail chains, clinics and service firms expanding across the UAE.

    How long does it take to get a mainland license?

    A mainland license takes 1 to 3 weeks to issue for a standard activity with clean documents. Regulated activities and corporate shareholders requiring attested documents take longer.

    Preparing clean documents and a signed tenancy up front is the biggest time-saver, because the office and Ejari sit on the critical path.

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