How to Start a Business in Dubai Mainland: A 2025 Guide

Business in Dubai Mainland

Starting a business takes more than just a great idea and ambition. One of the most important decisions an entrepreneur will make is choosing the right location to bring their vision to life.

Over the years, Dubai has gained a reputation as a leading global destination for business setup, thanks to its pro-investment policies, strong infrastructure, ease of doing business, and international connectivity.

Setting up a company in Dubai opens the door to a world of opportunities, but it also involves a series of legal, administrative, and financial steps that must be carefully followed.

The guide below outlines the complete procedure for Dubai Mainland Company Formation, giving you the clarity to move forward with your plans.

What Are the Benefits of Mainland Business Setup in Dubai?

Setting up a mainland company in Dubai offers a host of advantages, making it an ideal choice for businesses aiming to build a strong, flexible presence in the Middle East.

1.    100% Foreign Ownership in Most Sectors

Mainland company formation now allows full foreign ownership in many business sectors, eliminating the need for a local Emirati sponsor. This gives investors total control over their operations, structure, and profits.

2.    No Currency Restrictions

There are no restrictions on the currency used for transactions. Businesses can freely trade in any currency without facing caps, barriers, or complicated conversion processes.

3.    Access to Government Projects

Only mainland companies are eligible to participate in government tenders and projects, offering access to high-value contracts and long-term growth opportunities in the public sector.

4.    Global and Local Trading Opportunities

Unlike free zone businesses, mainland companies are not confined by geographic limits. They can trade freely within the UAE and internationally, making expansion easier and more strategic.

5.    Unlimited Visa Quotas

Mainland businesses benefit from flexible visa quotas. The more office space you lease, the more visas you can apply for, making it ideal for companies planning to grow their workforce.

6.    Strategic Business Centres

Dubai Mainland is home to some of the region’s most dynamic business districts and innovation hubs. Modern infrastructure, transport links, and professional services provide an ideal base for ambitious businesses.

What Are the Steps to Open a Company in Dubai Mainland?

Setting up a business in Dubai Mainland is overseen by the Department of Economic Development (DED), and the process is surprisingly structured, once you know the steps.

Step 1: Choose Your Business Activity

Every great business starts with a clear vision. And in Dubai, that vision begins by choosing your business activity, the heartbeat of your future enterprise.

The Department of Economic Development (DED) provides an extensive list of over 2,000 permissible business activities. From tech startups and consultancy firms to real estate development and trading companies, the spectrum is wide.

Why is this step so crucial? Because your chosen activity determines your license type, legal structure, and even visa eligibility. So, whether you dream of launching a luxury salon, an architectural firm, or a food import business, make sure it’s on DED’s approved list. This clarity will shape every next step.

Step 2: Find the Ideal Location for Your Business in the UAE

The beauty of setting up a mainland business in Dubai? Location freedom. You’re not limited to specific zones, you can operate anywhere across the emirate. But with great freedom comes greater responsibility.

You must pick a location that aligns with your customer base, employee access, and operational logistics.

Imagine setting up a retail boutique. Being in a high-footfall area like Sheikh Zayed Road or Al Wasl could make or break your foot traffic.

On the other hand, industrial operations may benefit from being closer to the outskirts. Consider factors like rent, demographics, proximity to suppliers, and future expansion plans.

Step 3: Determine Your Business Legal Structure

Your legal structure defines your entire business identity. Will it be a Limited Liability Company (LLC), a sole proprietorship, or a professional services entity?

Let’s say you’re opening a boutique consulting firm. You could go for a Professional License, allowing 100% foreign ownership.

But launching a trading business? Then an LLC might be your path, and thanks to recent reforms, you might even retain full ownership depending on your sector.

Step 4: Obtain a Local Sponsor or Local Service Agent

Now, this step has seen major changes recently. Previously, foreign investors needed a UAE national sponsor (owning 51%) to set up a mainland company.

But now many business activities qualify for 100% foreign ownership, eliminating the need for a local partner.

However, if your activity still falls under restricted sectors, you’ll need a local sponsor, an Emirati who holds a minority stake but has no involvement in daily operations. For service-based companies, a Local Service Agent suffices, someone who helps with legal processes but holds zero equity.

Step 5: Name Your Company

Think of your trade name as your brand’s first impression, and in Dubai, it better be squeaky clean and regulation-friendly. You can’t use names that:

• Include offensive language
• Reference religious or political groups
• Use acronyms or initials
• Feature a partial personal name

If you’re using your name, it must be your full legal name (e.g., “Ahmed Ali Consulting”, not “Ali Tech”).

Once you’ve nailed the perfect name, submit it to DED for approval. If it’s available and meets guidelines, you’ll receive your trade name reservation certificate, your golden ticket to the next step.

Step 6: Apply for a Mainland Trade License

This is your official go-ahead for legally operating in the UAE mainland. Your application for a business license in Dubai Mainland goes to the DED and includes documentation like:

• Trade name reservation
• Initial approval certificate
• Memorandum of Association (MOA)
• Lease agreement for office space
• Passport copies of all stakeholders
• Details of ownership structure

Depending on your activity, additional approvals might be required from external bodies (e.g., RERA for real estate, DHA for healthcare). The license type will also dictate the activities you can perform, visa eligibility, and government interactions.

Step 7: Secure Your Office Space

The UAE requires mainland companies to have a physical address. This address must be supported with an Ejari-registered lease, which is a mandatory rental contract system regulated by the Dubai Land Department.

Let’s break down your office options:

• Serviced Office: Great for startups or small teams, these come fully furnished with utilities and admin support.
• Shell & Core: A blank canvas, raw, unfurnished, and customisable for those with specific operational needs.
• Pre-Fitted Office: Semi-furnished spaces, ideal for mid-sized businesses needing a plug-and-play setup with minimal overhead.

Once your lease is in place, submit your tenancy contract for Ejari registration. No Ejari = no trade license issuance or visa processing.

Step 8: Apply for Relevant Visas

Now that your business is official, it’s time to build your team, and that means visas. The UAE allows business owners to sponsor residence visas for themselves, their employees, and dependents.

The number of visas you’re eligible for depends largely on your office size (roughly 100 sq. ft. per visa). Larger office = more visas. To apply:

1. Submit your trade license and Ejari.
2. Complete medical testing and Emirates ID registration.
3. Get a labour card and residency stamping.

Want to bring in top talent from abroad? This is the time to do it, but ensure you comply with all immigration requirements.

Step 9: Open a Corporate Bank Account

You’ve got the license, the space, and the people; now you need a place to park your profits. Opening a corporate bank account in the UAE involves providing documents like:

• Trade license
• Shareholder passports
• MOA and AOA
• Lease agreement with Ejari
• A detailed business plan (in some cases)

Choose your bank based on your operational needs. Do you need international transaction support? Prefer Sharia-compliant banking? Or need fast online banking for high-volume daily transactions? Compare your options; this decision will affect your liquidity and ease of doing business.

Step 10: Register for VAT (if applicable)

If your business earns over AED 375,000 per year, VAT registration is mandatory. Here’s how to handle it:

1. Apply online via the Federal Tax Authority (FTA) portal.
2. Provide documents: financial records, trade license, and bank details.
3. Complete your VAT profile and registration form.
4. Receive your TRN (Tax Registration Number).

Once registered, you’ll need to charge 5% VAT on your taxable supplies and file quarterly VAT returns. Get this right, because the FTA doesn’t take late filings lightly. Fines and penalties await those who don’t comply.

Conclusion

If you’re planning to set up a mainland company in Dubai, G12 is here to help. As one of the best business setup services in Dubai, we guide you through the entire process step by step. From choosing your business activity and legal structure to getting your trade license and visas sorted, we do it all.

As a reliable business setup company in Dubai mainland, we also help you open a corporate bank account and register for VAT, so everything is done properly and on time.

FAQS About Setting Up a Business in Dubai Mainland

Q1: How to Choose a Professional Business Setup Company Dubai?

Look for a setup company with a strong portfolio, transparent pricing, and end-to-end services. A good Mainland Business Consultant in Dubai should help with licensing, banking, visas, and office leasing. Choose one like G12, known for personalised consultation, legal accuracy, and proven results.

Q2: How Long Does the Company Registration in Dubai Mainland Take?

The Dubai Mainland Company Registration Process usually takes 5 to 10 working days, depending on the activity and approvals.

Q3: What Is the Cost of Business Setup in Dubai Mainland?

The Cost of Business Setup in Dubai Mainland varies based on trade license type, office size, and visa needs. It typically ranges from AED 10,000 to AED 50,000.

Q4: Can Foreigners Open a Business in the Dubai Mainland?

Yes! Thanks to the UAE’s recent reforms, foreigners can own 100% of mainland companies in most sectors.

Q5: What Are the Most Common Business Licenses?

• Commercial License: For trading businesses
• Professional License: For service providers
• Industrial License: For manufacturing or industrial operations

Q6: Mainland vs Free Zone Business Setup in Dubai: which is better?