Dubai is a thriving business destination, attracting entrepreneurs and investors from around the world. Setting up a Dubai Mainland company provides businesses with numerous benefits, including access to the local market, the ability to bid for government contracts, and unlimited trade opportunities. This guide outlines the step-by-step process for company formation in Dubai Mainland, ensuring a smooth and hassle-free setup.
Step 1: Determine the Business Activity
The first step in setting up a business in Dubai Mainland is identifying the type of business activity. The chosen activity determines the type of trade license required and the regulatory approvals needed. Business activities generally fall into three main categories:
Commercial License – For trading and general business activities.
Professional License – For service-based businesses such as consultancy or IT services.
Industrial License – For manufacturing and industrial businesses.
Dubai's Department of Economic Development (DED) provides a comprehensive list of permitted business activities.
Step 2: Choose the Legal Structure
The business structure defines the company’s ownership, liability, and operational guidelines. The most common legal structures for Dubai Mainland companies include:
Sole Proprietorship – Suitable for single-owner businesses.
Limited Liability Company (LLC) – A widely used structure requiring at least two shareholders.
Civil Company – Designed for professionals like doctors, engineers, and consultants.
Branch of a Foreign Company – Allows international businesses to establish a presence in Dubai.
Step 3: Register the Trade Name
Choosing a trade name is an important step, as it represents your brand identity. The name must adhere to DED guidelines, meaning it should not include offensive or religious terms and should reflect the nature of your business. Once the trade name is selected, it must be registered with the DED.
Step 4: Obtain Initial Approval
Before proceeding with company formation, an initial approval must be obtained from the DED. This approval confirms that the business activity and chosen legal structure are permissible under Dubai regulations. Additional approvals may be required depending on the nature of the business.
Step 5: Draft the Memorandum of Association (MOA)
A Memorandum of Association (MOA) is required for LLCs and partnerships. This document outlines:
Business activities
Ownership structure
Profit and loss distribution
The MOA must be notarized by a UAE Notary Public before submission.
Step 6: Secure Office Space
All Dubai Mainland companies are required to lease physical office space. The tenancy contract (Ejari) must be registered with the relevant authorities before proceeding with the trade license application.
Step 7: Obtain External Approvals (if applicable)
Some business activities require additional approvals from sector-specific regulatory bodies. Examples include:
Dubai Municipality (for food and construction businesses)
Dubai Health Authority (DHA) (for healthcare services)
UAE Central Bank (for financial institutions)
Step 8: Submit Documents and Pay Fees
Once all necessary approvals are in place, the required documents must be submitted to the DED, along with applicable fees. The following documents are typically required:
Trade name registration certificate
MOA (if applicable)
Initial approval certificate
Office lease agreement (Ejari)
Passport copies of shareholders and partners
Relevant external approvals (if required)
Step 9: Obtain the Trade License
After the documents are reviewed and approved, the DED issues the trade license, officially recognizing the business. The license type (commercial, professional, or industrial) depends on the registered business activity.
Step 10: Register for Visas and Labor Compliance
Once the business is officially registered, the company can apply for:
Investor visas for business owners and partners
Employment visas for staff and employees
Emirates ID and labor card for compliance with the Ministry of Human Resources and Emiratisation (MOHRE)
Step 11: Register for VAT and Corporate Tax Compliance
Businesses must comply with UAE tax regulations, which may include:
Value Added Tax (VAT) – Required for businesses with annual revenue exceeding AED 375,000.
Corporate Tax – As of 2023, a 9% corporate tax applies to businesses earning over AED 375,000 annually.
Cost of Company Formation in Dubai Mainland
The cost of setting up a Mainland company in Dubai varies based on factors like business activity, office space, and required approvals. On average, the setup cost ranges between AED 15,000 to AED 50,000, covering:
Trade license fees
Office rent and Ejari registration
Government approvals
Visa processing fees
Why Choose Dubai Mainland for Business Setup?
Dubai Mainland offers numerous advantages, including:
100% foreign ownership (in many sectors due to recent reforms)
No currency restrictions for financial transactions
Ability to bid for government contracts
Unlimited business activities and market access
Freedom to operate anywhere in Dubai and the UAE
Final Thoughts
Establishing a business in Dubai Mainland is a strategic move for entrepreneurs and investors seeking access to the UAE market and beyond. By following the step-by-step company formation process and ensuring regulatory compliance, businesses can experience long-term success in Dubai's thriving economy.
For expert guidance on company formation in Dubai Mainland, consult professional business setup consultants to streamline the process and ensure compliance with all legal requirements.
