Enjoy exclusive New Year setup package. Start Your Business Now
UAE
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UAE
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India
Enjoy exclusive New Year setup package. Start Your Business Now
UAE
UAE
India
Dubai remains one of the world’s top destinations for business, offering a dynamic environment for entrepreneurs. Company formation in mainland Dubai opens the door to numerous growth opportunities, with the ability to operate throughout the UAE and internationally. With over 3,000 business activities to choose from, establishing a mainland company provides you with full access to the local market and global trade.
A Dubai mainland company is a business that is licensed by the Department of Economic Development (DED) in the relevant Emirate of the UAE. This type of company is free to operate anywhere within the UAE and internationally.
Here’s a quick overview of the benefits of registering a company on the UAE mainland and why it’s a great choice for business setup in Dubai:
Setting up a mainland company in Dubai offers numerous advantages. Here are some key benefits:
Wider Business Opportunities: Mainland companies can freely trade anywhere in Dubai and across the entire UAE, granting access to a much larger market.
Full Ownership: You can own 100% of your business, giving you full control over operations and flexibility in decision-making.
Flexible Locations: Choose from a range of locations to establish your business, ensuring you find the ideal spot for your needs.
These benefits make mainland company formation in Dubai an attractive option for entrepreneurs looking to grow their businesses.
With a Dubai mainland company, you have the freedom to trade with other businesses across the UAE, and can also sell directly to consumers. Mainland companies can operate in any location, allowing you to set up multiple branches and build a strong presence throughout the Emirates. Plus, there are no restrictions on trading internationally.
Mainland businesses in Dubai can operate across a broad range of industries. If you wish to diversify your services, all you need to do is re-register the new activity with the DED and you’re good to go.
One of the key advantages of establishing a mainland business in Dubai is the opportunity to bid for government contracts. In recent years, the UAE government has allocated billions for infrastructure and social projects. For example, the Abu Dhabi Executive Council approved AED 17.5bn for projects, including AED 4bn for infrastructure and AED 2bn for education. A mainland business in Dubai can take advantage of these high-value opportunities.
Historically, foreign ownership of a UAE company was limited to specific business structures or free zones. However, recent changes now allow 100% foreign ownership of mainland companies in Dubai. This change is especially beneficial for overseas investors, as it eliminates the need for a local sponsor or partner, simplifying the setup process.
While this is a major benefit, some strategic sectors, like oil and gas, may still require a local partner. Nevertheless, the option for full ownership unlocks a wealth of opportunities for foreign investors looking to capitalize on Dubai’s robust economy.
When setting up a mainland company in Dubai, one of the most important steps is choosing the right business license. The type of license you need depends on the nature of your business activity. The Department of Economic Development (DED) issues four main types of mainland business licenses in Dubai:
A commercial license is issued to companies engaged in trading or commercial activities. This includes buying and selling goods, import/export, real estate, retail, logistics, and more.
Examples of activities:
General trading
Auto parts trading
Electronics and equipment trading
Real estate brokerage
A professional license is for individuals or companies offering specialized services based on their expertise or intellectual skill. This license is commonly used for consultants, IT services, designers, and other professional service providers.
Examples of activities:
Legal or management consulting
Marketing agencies
Accounting and auditing
IT services
Educational and training services
An industrial license is issued to businesses involved in manufacturing or industrial activities. These companies are usually required to have a physical warehouse or production facility in the UAE.
Examples of activities:
Food production
Metal fabrication
Textile manufacturing
Packaging and bottling
A tourism license is required for businesses operating in the travel and tourism sector. This includes travel agencies, tour operators, and hospitality-related businesses.
Examples of activities:
Inbound and outbound tour operations
Travel booking services
Hotel or cruise management
Adventure tourism providers
AB Nexis is your trusted partner for company registration in Dubai. With years of experience and a deep understanding of the UAE’s business landscape, we:
Assist in selecting the right business activity based on your goals.
Guide you through the legal setup, including local sponsor arrangements and LLC formation.
Help secure the necessary permits, licenses, and visas to get your business up and running.
Provide office space solutions, from serviced offices to long-term leasing options.
Offer ongoing support to help you manage and grow your business in Dubai.
Whether you are transitioning from a free zone or starting a new business in Dubai, AB Nexis simplifies the entire process and ensures compliance with local regulations.
If you’re currently operating within a freezone and considering transitioning to a mainland company, we’re here to help. While UAE free zones, with their pre-packaged business setups, are ideal for new businesses, they come with certain limitations. Expanding and broadening your market often requires moving to a mainland business structure—which offers more flexibility and growth potential.
With the right UAE national sponsor or company formation expert, the transition from a free zone to a mainland setup can be a smooth and strategic move.
Choosing the right legal structure is a key step when setting up a mainland company in Dubai. The UAE offers several types of business entities, allowing entrepreneurs to select the one that best aligns with their business model, investment plans, and operational goals.
The most widely used structure for mainland businesses. Suitable for commercial, industrial, and most service-related activities.
1 to 50 shareholders
Liability limited to share capital
Eligible for 100% foreign ownership (for most activities)
Can operate anywhere in the UAE
Ideal for individuals offering professional services (e.g., consultants, freelancers).
100% foreign ownership allowed
Owned by one individual
Requires a Local Service Agent (LSA)
Only for professional activities, not commercial or industrial
Designed for professionals such as doctors, engineers, and accountants who wish to go into partnership.
2 or more partners
100% foreign ownership allowed
Requires a Local Service Agent
Only for professional services
Allows international businesses to operate in Dubai without forming a new company.
100% owned by the parent company
Same activity as the parent entity
Requires a Local Service Agent
No separate legal identity from the parent company
Existing UAE companies (mainland or free zone) can expand operations by opening a branch within Dubai mainland.
Fully owned by the parent UAE entity
Must match the business activity of the parent company
Can operate throughout the UAE
Also known as a Private Shareholding Company, this structure is suitable for larger businesses and investors planning future public offerings or raising capital.
Minimum of 3 shareholders
Requires a minimum share capital of AED 5 million
Shares are not publicly traded
Suitable for industrial, commercial, and large-scale projects
Ready to take your business to the next level? Here’s a checklist to guide your mainland business setup:
The first step in establishing a mainland company in Dubai is selecting your business activity. The Department of Economic Development (DED) lists over 2,000 approved activities across various sectors, including trading, hospitality, manufacturing, and more. Mainland companies have the freedom to operate in any of these activities, unlike free zone companies, which can have restrictions based on location.
Dubai mainland companies have no location restrictions, giving you flexibility when selecting your business premises. If your business depends on imports or exports, consider setting up near busy ports like Jebel Ali or Mina Zayed. Additionally, mainland businesses can open multiple branches, allowing you to grow your presence across the UAE.
The most common legal structure for mainland businesses is the Limited Liability Company (LLC), which requires two or more shareholders. If you plan to trade under a commercial or industrial license, an LLC is mandatory. However, if you're establishing a professional services company, you can own 100% of the business, without the need for a local sponsor.
Depending on your business activity, you’ll need to partner with either a local sponsor or a local service agent (LSA). For an LLC setup, a local sponsor (a UAE national or UAE-based company) will hold 51% ownership. However, for professional services companies, only an LSA is required, who acts as a representative without owning any stake in the company.
Selecting the right company name is essential. It should reflect your brand while adhering to UAE naming guidelines. Names with offensive language, religious references, or those implying associations with other organizations are prohibited. For more details, refer to our guide on Choosing a Company Name in the UAE.
The next step is to apply for a mainland trade license with the DED. The application requires several documents, such as the memorandum of sponsor arrangements, ownership details, and shareholder visas.
Once your license is approved, you’ll need to find office space. Options range from serviced offices (fully equipped and maintained) to shell and core offices that require full fit-outs. You can also consider pre-fitted office spaces, which offer a balance between flexibility and cost.
Mainland business owners are entitled to unlimited visa applications for their employees, with the number of visas linked to the office size (typically 100 sq. ft. of space per visa). Additionally, business owners can sponsor their family members and domestic staff for residency visas. Foreign entrepreneurs are also eligible for an investment visa, allowing them and their families to live and work in the UAE for up to three years.
Once your company is officially set up, it’s time to open a corporate bank account in Dubai. This will allow you to manage finances, process payments, and ensure smooth business operations. AB Nexis can assist with navigating local banking requirements.
Setting up a mainland company can be a complex process. Working with an experienced company setup consultant in Dubai ensures that you navigate the legalities and paperwork with ease. A consultant will help you align your business goals with the regulatory framework, ensuring a smooth setup.
