Company Formation

Setting Up a Mainland Company in Dubai

2025-11-14 · 4 min read · By Aureus Worldwide

A mainland company in Dubai is one licensed by the Department of Economic Development (DED) rather than a free zone authority. The key attraction is market reach: a mainland entity can generally trade directly across the UAE, contract with government, and open branches without a free-zone boundary. Following reforms to the Commercial Companies Law, full foreign ownership is now available for many activities, making the mainland more accessible than ever. This guide covers how mainland setup works, ownership, structures, licences, approvals and the steps.

Why choose the mainland

The mainland's defining advantage is unrestricted access to the local market. A mainland company can sell directly to customers anywhere in the UAE, take on government contracts, and operate from any commercial premises in the emirate. For retail, professional services, contracting and businesses whose customers are UAE-based, this reach is decisive. Reforms allowing 100% foreign ownership for many activities have removed what was once the main barrier for overseas founders.

The 100% ownership reforms

Historically, many mainland companies required a UAE national to hold a majority share. Reforms to the Commercial Companies Law opened full foreign ownership to a wide list of commercial and industrial activities. However, certain "strategic impact" activities can still carry conditions, and professional licences have their own rules. Because the position depends on your exact activity, always confirm the current ownership rules for your activity with the DED.

Legal structures

The mainland supports several legal forms, the most common being:

The right form depends on your activity, the number of owners and your liability preferences.

Licence types

The DED issues licences according to the nature of your activity:

• Commercial, trading and general commercial activity
• Professional, services, consultancy and skilled professions
• Industrial, manufacturing and processing
• Tourism, travel, tourism and related activities

Each licence maps to a classified activity list, and some activities require approvals from additional government authorities.

External approvals

Many mainland activities need sign-off from bodies beyond the DED, for example sector regulators for healthcare, education, food or financial activities. Identifying these approvals early is essential, because they can be the longest part of the timeline. A clear view of which authorities your activity touches prevents avoidable delays.

Documents you will need

Requirements vary by structure and activity, but generally include:

• Passport copies for owners and managers
• A proposed trade name and selected activities
• Tenancy contract (Ejari) for commercial premises
• Attested corporate documents where a shareholder is a company
• Approvals from any relevant sector authorities

The mainland setup process

A typical Dubai mainland setup runs as follows:

1. Determine your activity and licence type with the DED's classification.
2. Choose your legal structure and owners.
3. Reserve a trade name that complies with naming rules.
4. Obtain initial approval from the DED.
5. Secure premises and register the tenancy (Ejari).
6. Draft and notarise the company contract (e.g. memorandum) where required.
7. Obtain external approvals for the activity if needed.
8. Pay fees and receive the trade licence.
9. Process establishment card and visas, then open a bank account, see our bank account guide.

Costs and timelines

Mainland costs include the licence fee, name and approval charges, premises (a real tenancy is usually required), and any sector approval fees. Because fees vary by activity and are periodically updated, confirm current charges with the DED. Timelines depend largely on whether external approvals are needed, a straightforward commercial licence can be quick, while regulated activities take longer. Premises are often the practical bottleneck, since a physical tenancy is typically required.

Compliance after setup

A mainland company must meet the same UAE-wide obligations as any other entity: Corporate Tax registration and filing, VAT once thresholds are met, and proper accounting records. Beneficial ownership and, depending on activity, economic substance rules apply. Mainland companies engaged in regulated sectors may face additional reporting. Sound accounting and timely renewals keep the licence and visas in good standing.

Mainland or free zone?

The choice comes down to where your customers are and how you need to trade. Mainland wins for direct UAE-market access and government work; free zones often win on setup cost, sector clustering and a lighter footprint. Read our comparison in free zone vs mainland and our guide on how to choose the right UAE free zone before deciding.

How Aureus Worldwide helps

Aureus Worldwide guides founders through Dubai mainland setup, confirming activity classification and ownership rules, choosing the right structure, and coordinating premises, approvals and visas through our company formation team. We then keep you compliant with accounting, Corporate Tax and VAT obligations. We confirm changeable fees and rules with the DED before you commit. To set up on the Dubai mainland, contact us.

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