Thinking of launching a business in Dubai? Mainland company formation in Dubai offers full access to the UAE market, the flexibility to operate across sectors, and the credibility of being directly licensed by Dubai’s Department of Economic Development (DED). With ICB expertise, we help entrepreneurs, startups, and foreign investors establish legally sound businesses in the heart of the UAE quickly, compliantly, and with confidence. Whether you're setting up a new venture or expanding from abroad, our tailored support ensures you're positioned for long-term success.
Choosing the mainland route comes with strategic advantages especially for those aiming to scale, bid for government contracts, or serve clients across the Emirates.
Unlike free zones, mainland companies can freely trade within Dubai and throughout the UAE without restrictions. They also enjoy greater operational flexibility, broader licensing options, and direct engagement with public and private sectors.
Key Benefits:
Full access to the UAE market with no trade restrictions
Ability to conduct business internationally and locally
Eligibility for government tenders and public sector work
A wider range of licensed business activities
Flexible office location and unlimited visa quotas (based on office size)
Clear regulatory structure and world-class infrastructure
100% foreign ownership in approved sectors
Whether you're a solo entrepreneur or a growing enterprise, mainland company formation in Dubai offers the legal freedom and business ecosystem to grow confidently.
The business activity you choose determines your license type commercial, industrial, professional, tourism, agricultural, or occupational. You may include more than one activity under a single license, depending on compatibility. The UAE offers over 2,000 approved business activities across various sectors. Your selected activity will ultimately determine the type of license you receive.
Your company’s legal structure depends on your business requirements. It also defines the rules and regulations your business must follow. It must be noted that your legal form must align with your chosen business activity.
In the UAE, available legal forms include:
A trade name serves to distinguish your business and should represent the company’s activity and structure. You can register a trade name through the economic department of the respective emirate via its website or mobile app.
Requirements for trade names include:
It must be followed by the legal structure abbreviation (e.g., LLC, EST, PJSC, PrJSC)
It must not violate public morals or order
It must be compatible with the company’s legal status and activity
It cannot contain religious names, names of authorities, or logos of external entities
It must be unique and not previously registered
When applying, a payment voucher or transaction number will be issued for reference during payment.
Note: Trade names are registered with the Department of Economic Development, while trademarks are registered with the Ministry of Economy. Trade name certificates can be renewed.
Initial approval indicates that the UAE government has no objection to the establishment of your business. This approval allows you to move on to the following steps, but it does not authorize you to start business operations yet.
Foreign investors are required to obtain clearance from the General Directorate of Residency and Foreigners’ Affairs prior to receiving initial approval.
Some activities may also need prior clearance from relevant authorities before you can apply for initial approval. These include business activities related to legal, security, and financial sectors.
Based on your legal structure, you’ll need a signed and completed Memorandum of Association (MOA) or Local Service Agent (LSA) agreement. MOAs are necessary for the following legal forms:
MoAs and other legal agreements must be prepared and notarized through UAE-based law firms, courts, or public notaries. Businesses that are 100% foreign-owned (non-GCC nationals) must appoint a Local Service Agent from the UAE. The LSA agreement must be notarized by the court or notary.
Every business in the UAE must have a physical office address. The location and premises must comply with the requirements of the respective emirate’s Department of Economic Development, along with local land-use planning regulations. A rental agreement for office or warehouse space is mandatory. In some emirates, this contract must be attested. In Dubai, it must be registered through the Ejari system.
In specific cases, additional approvals from related government bodies are needed based on the nature of your business activity. For example:
Once all prior steps are completed, you can obtain your trade license either through the DED’s service centers or via their online platforms.
Required documents for license issuance (all legal forms):
Note: The trade license fee must be paid within 30 days of receiving the payment voucher. Failure to pay within this period will result in application cancellation.
Choosing between mainland and free zone company formation depends on your business goals, operational flexibility, and target market. Here's a detailed comparison to help you make an informed decision:
| Factor | Mainland Company | Free Zone Company |
|---|---|---|
| Scope of Business | Can operate anywhere in the UAE and internationally | Limited to within the free zone and international markets; local UAE operations require a distributor or agent |
| Ownership | 100% foreign ownership permitted in specific sectors; otherwise, requires a local sponsor | 100% foreign ownership across all zones |
| Corporate Tax | 9% on profits above AED 375,000 | Often exempt from corporate tax |
| VAT | Standard 5% VAT applies | Generally 5%; some zones may offer 0% VAT benefits |
| Customs Duties | Subject to UAE customs duties on imports | Exempt from customs duties within the free zone |
| Physical Office Requirement | Mandatory; must have a physical office based on business type and license | Office space may be physical or virtual, depending on the zone |
| Visa Eligibility | No cap on visas (depends on office size) | Limited number of visas allowed, based on office size and zone regulations |
| Annual Audit | Mandatory for most business types | Depends on the zone; some require, others don’t |
| Regulatory Authority | Department of Economic Development (DED) | Governed by the respective Free Zone Authority (FZA) |
| Legal Entity Types | LLC, Joint Stock Company, Sole Establishment, Partnership, Branch of foreign company | FZE, FZCO, or branch of foreign company |
Selecting the right legal structure is a critical step in mainland company formation in Dubai. It affects ownership, liability, regulatory compliance, and day-to-day operations.
A business formed by two or more partners who are jointly and personally liable for the company’s debts and obligations. This structure is usually limited to UAE nationals due to liability laws.
Consists of at least one general partner (fully liable) and one or more limited partners whose liability is restricted to their capital investment. Only general partners may manage the company.
One of the most common structures in Dubai mainland. An LLC allows for 2 to 50 shareholders, with each partner’s liability limited to their share in the capital. A variation of this is the LLC - Single Ownership, where one person owns 100% of the business, but it remains subject to standard LLC regulations.
A company with up to 200 shareholders, each owning nominal-value shares. Shares are not publicly traded. The structure allows ownership by a single corporate entity and is suitable for large-scale private investments. In single-owner cases, the name must include “One-Person Private Joint-Stock Company.”
This entity has a capital divided into publicly tradable shares. A portion of shares is held by the founders, while the rest is offered to the public. This structure is ideal for businesses seeking to raise capital through public markets.
Ideal for professionals such as consultants, engineers, artists, and service providers. Civil companies are owned by two or more individuals offering specialized services and are personally liable for the firm’s obligations.
Owned and managed by a single individual, this structure gives the owner full control but also full personal liability for the business's financial obligations.
ICB aims at simplifying the complexities of mainland company formation in Dubai. From complying to DED procedures to ensuring full legal compliance, our experts handle every step with precision and transparency.
We offer solutions that are tailored to your business goals, activity type, and regulatory needs. With us, you're not just registering a company, you're laying a strong legal and strategic foundation for growth.
Some frequently asked questions here.
Contact ICB Tax Consultancy for expert assistance in mainland company formation. Our tailored services ensure a smooth and efficient business setup process. Let's start building our success in the UAE today!
