How to Start a Dubai Mainland Company

Dubai ranks among the world’s best cities for business growth. Why not make it yours?

The city’s strategic location, tax benefits, and business-friendly regulations make it an ideal place to launch your company. But with so many opportunities comes a series of steps to get started.

Don’t worry, we’re here to simplify the process. In this guide, we’ll walk you through how to start your mainland company in Dubai, from choosing the right business activity to setting up your corporate bank account.

11 Steps to Starting Your Dubai Mainland Company

Step 1: Choose Your Business Activity

Your first task is to decide what type of business you want to set up. Dubai’s Department of Economy and Tourism (DET) has over 2,000 government-approved business activities that you can choose from, covering almost every industry imaginable.

You will need a trade license that matches the type of work or business activity you plan to do. If you are starting a retail business, you will need a commercial license. If your business provides services like consulting or legal advice, you will need a professional license.

The type of business activity you choose also influences the level of foreign ownership allowed. While most sectors allow 100% foreign ownership, some may require you to partner with a local sponsor or service agent.

In Dubai, some business activities are more regulated than others, so it’s essential to choose one that aligns with your goals and ensures you can operate freely. Be sure to check the complete list of approved activities on the official DET portal.

Step 2: Choose Your Business Structure

Dubai offers different types of company setups, each with its own rules and advantages. The most common structures for mainland businesses are:

• Limited Liability Company (LLC): The preferred option for most foreign investors. It allows 100% foreign ownership in most sectors (although certain activities may still require a local partner). An LLC is easy to set up and offers flexibility for business owners.
• Sole Proprietorship: This structure is best for individual entrepreneurs providing professional services.
• Civil Company: If you are offering a professional service (like law, accounting, or consulting), this could be a good choice. In most cases, you are required to have a UAE national as a partner.
• Branch of a Foreign Company: If you already have an established company abroad, you can set up a branch office in Dubai to operate under the same name.

Choosing the right structure is vital because it impacts ownership, responsibilities, and taxes. For most new businesses, an LLC is often the best choice because of its flexibility and ease of setup.

Step 3: Reserve Your Trade Name

The next step is picking a name that meets Dubai’s requirements and clearly shows what your business is about. For example, the name cannot include offensive language or references to religion or politics.

You can reserve your company name through the DET/DED portal, and the fee is AED 735 (one-time). It's crucial to check that the name you choose matches your business activity and that it adheres to naming rules. This is an easy process, but getting it right the first time will save you time later.

Step 4: Obtain Initial Approval from DET/DED

Once your trade name is reserved, you need to obtain initial approval from the Department of Economy and Tourism (DET). You can complete the simple process online or by visiting in person.

You’ll need to provide details about your business activity and structure during this phase. The application fee for initial approval is AED 235, and this is also a one-time charge. This approval is an important step because it confirms that your business activity and structure align with the legal requirements of Dubai.

Step 5: Lease Office Space and Get Ejari Certificate

One of the unique requirements for mainland companies in Dubai is that you must have a physical office space. Dubai’s regulations stipulate that the office must be registered through the Ejari system, which authenticates tenancy contracts.

The cost of office space in Dubai can vary based on factors such as location and size. On average, you can expect to pay about AED 50 per square foot annually.

For example, a 1,000 square foot office can cost between AED 50,000 and AED 70,000 per year.

Of course, this will depend on the area in which you set up your business. The more central and prime the location, the higher the cost. This office space needs to be used solely for business purposes. You can’t operate your mainland business from a home office, and it’s important to have a legitimate office to comply with the regulations.

Step 6: Prepare and Notarize Legal Documents

At this point, you need to prepare essential legal documents for your company, such as the Memorandum of Association (MoA). The MoA outlines the company's operations, ownership structure, and the relationship between partners.

If you are collaborating with a local partner, include a Local Service Agent agreement. All legal documents must be notarized at the DET, which typically costs around AED 1,200 for MoA attestation.

Court attestation and typing fees usually add up to around AED 500. Notarization is required to make the documents legally binding.

Step 7: Register with the Relevant Authorities

With all your legal documents in place, you’ll need to submit them to the DET. This registration is a necessary step before you can receive your trade license. For certain types of businesses, you may need additional permits.

For example, a healthcare or food-related business requires extra approvals from relevant authorities such as the Dubai Health Authority or Dubai Municipality. The registration process ensures that your business complies with local laws and is authorized to operate in Dubai.

Step 8: Pay the Fees and Get Your Trade License

After submitting your documents and getting approval, the next step is to pay the required fees. The amount will depend on the type of license you choose:

• Commercial or General Trading License: AED 10,000 to AED 20,000 per year
• Professional License: AED 5,600 to AED 12,000 per year

You will also need to pay AED 3,000 for registration with the Ministry of Economy. This cost may change based on your business activity and the number of partners.

Once the fees are paid, your trade license will be issued, and you will be able to legally operate your business in Dubai.

Step 9: Register for Work Visas

If you plan to hire employees, you will need to register with the Ministry of Human Resources and Emiratisation (MOHRE) and the General Directorate of Residency and Foreigners Affairs (GDRFA) for employee visas.

Visa costs range from AED 3,000 to AED 7,000 per person, depending on the type of visa and employee qualifications.

Remember, visas are required annually for all employees, so plan for this ongoing cost. Keep in mind that the number of visas you can apply for depends on the size of your office space and business activity.

Step 10: Open a Corporate Bank Account

Now that your business is officially registered, you’ll need to open a corporate bank account to manage your finances. The required documents typically include your trade license, the MoA, and passports of the company owners.

Dubai offers a wide range of banking options. Look for a bank that offers services tailored to businesses, such as multi-currency accounts, online banking, and competitive fees.

Step 11: Register for VAT (If Applicable)

If your company’s annual turnover exceeds AED 375,000, you must register for VAT with the Federal Tax Authority (FTA). It is a key step to ensure you meet local tax requirements.

If your turnover is under this threshold, VAT registration is not mandatory, but it may still be useful to register for VAT voluntarily, especially if you plan to do business with other VAT-registered entities.

Ready to Launch Your Dubai Mainland Company? Let’s Make It Simple

Setting up in Dubai’s mainland means direct access to the local market, flexibility to trade across the UAE, and the ability to work with government clients. But without the right setup, you could face unnecessary costs, delays, or compliance issues.

At 10xM, we guide you through every step from choosing the right business activity and legal structure to securing approvals and licenses. Our experts ensure you start right, stay compliant, and avoid costly mistakes.

Book your free consultation today and turn your Dubai business idea into a fully licensed reality.