Introduction
Dubai has established itself as a global business hub, attracting entrepreneurs and investors worldwide. Setting up a business in Dubai Mainland offers numerous advantages, including 100% ownership for certain activities, access to a broader market, and a strong regulatory framework.
If you’re considering starting a business in Dubai Mainland, this guide will walk you through the registration process, costs, legal requirements, and benefits of setting up your company.
What is Dubai Mainland?
Dubai Mainland refers to the geographical area regulated by the Department of Economy and Tourism (DET). Unlike Free Zones, Mainland companies can operate anywhere in the UAE and engage in government contracts.
Benefits of Business Setup in Dubai Mainland
- No Restrictions on Trade – Mainland companies can operate across the UAE and internationally.
- Access to Government Contracts – Unlike Free Zone businesses, Mainland companies can bid for government projects.
- No Minimum Capital Requirement – Many business activities require minimal or no capital investment.
- No Currency Restrictions – Companies can transact in any currency without limitations.
- Easy Visa Processing – Mainland companies can sponsor employees and dependents.
- Multiple Business Activities – Businesses can combine different activities under one license.
- 100% Foreign Ownership – Thanks to recent reforms, many businesses no longer require a UAE national sponsor.
Steps to Setup a Business in Dubai Mainland
1. Choose a Business Activity
Select your business activity based on the Department of Economy and Tourism (DET) list. This determines the license type and regulatory requirements.
2. Select a Legal Structure
The business structure affects ownership, liability, and legal requirements. Common types include:
- Sole Proprietorship – Ideal for single-owner businesses.
- Limited Liability Company (LLC) – Most popular structure, offering limited liability.
- Branch Office – For foreign companies expanding into Dubai.
- Civil Company – For professionals like consultants and doctors.
3. Get Initial Approval from DET
Apply for name and business activity approval from DET before proceeding with registration.
4. Find a Suitable Office Space
A physical office is mandatory for a Dubai Mainland business. Options include:
- Business centers (co-working spaces)
- Traditional office rentals
- Virtual offices (only for select businesses)
5. Draft and Notarize the Memorandum of Association (MOA)
For LLCs, the MOA must outline ownership structure, capital distribution, and company operations.
6. Obtain Necessary Approvals
Depending on the activity, approvals may be required from authorities like:
- Ministry of Health (MOH) – For medical businesses
- Real Estate Regulatory Authority (RERA) – For real estate companies
- Dubai Municipality – For food and beverage businesses
7. Apply for a Trade License
Submit the final documents and apply for a Dubai Mainland Trade License from DET.
8. Register for VAT and Corporate Tax
- VAT registration is mandatory for businesses with an annual turnover above AED 375,000.
- Corporate tax (9%) applies to businesses earning more than AED 375,000 annually.
9. Obtain Visas and Labor Approvals
- Establishment Card – Issued by the Ministry of Human Resources and Emiratisation (MOHRE).
- Employee Visas – Business owners can apply for staff work permits.
Cost of Setting Up a Business in Dubai Mainland
The cost of setting up a Dubai Mainland business varies depending on factors like business activity, location, and office rent. On average, costs include:
| Expense | Estimated Cost (AED) |
|---|---|
| Trade License | 10,000 – 15,000 |
| Office Rent | 15,000 – 50,000+ |
| Visa Fees (per employee) | 3,000 – 6,000 |
| MOA Notarization | 1,500 – 3,000 |
| Government Approvals | 2,000 – 5,000 |
Total Estimated Cost: AED 30,000 – AED 60,000+
Common Business Activities for Dubai Mainland
- General Trading
- E-commerce and IT Services
- Real Estate and Construction
- Retail and Hospitality
- Consulting and Professional Services
Conclusion
Setting up a business in Dubai Mainland is a strategic investment that offers access to a dynamic economy and a global market. By following the legal steps and choosing the right business structure, entrepreneurs can establish a strong presence in Dubai and benefit from its thriving business ecosystem.
