Understanding Dubai Mainland Company Formation

Are You Planning for Dubai Mainland Company Formation? Well, expanding your business to an international market is a major and exciting milestone. Company formation in Dubai mainland offers entrepreneurs access to one of the most dynamic and business-friendly environments in the world. At Enterslice, we assist you at every stage of Dubai mainland company formation, ensuring a smooth and legally compliant setup process.

Our expert team guides you through the complete Dubai mainland company formation process, including regulatory requirements, eligibility criteria, documentation, licensing, procedures, advantages, and post-incorporation compliances, making the entire journey simple and stress-free.

Several factors make Dubai an ideal destination for cheapest company formation in Dubai Mainland, such as world-class infrastructure, strategic location, investor-friendly regulations, favourable tax policies, stable governance, and the availability of 100% foreign ownership for most business activities.

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What are the Different Types of Dubai Mainland Company Formation?

The different types of Dubai mainland company formation are as follows:

Limited Liability Company (LLC)

A Limited Liability Company (LLC) is a profit-oriented business structure with up to 50 shareholders. It is a preferred choice for expatriates and foreign investors setting up in the UAE mainland. It is one of the most widely chosen structures for Dubai mainland company formation.

Traditionally, a foreign investor must partner with a UAE national holding at least 51% share capital, while profit-sharing can be agreed flexibly, and the local partner may also receive a fixed annual fee. Alternatively, foreign investors may opt for a branch of an overseas company, a free zone company, a GCC national-owned company, or a representative office.

Public Joint Stock Company (PJSC)

A Public Joint Stock Company requires a minimum of ten founding members and must be managed by a Board of Directors comprising three to fifteen members. UAE nationals must form the majority of the board, including the chairman. A PJSC has a distinct share capital structure and is suitable for large-scale commercial enterprises that may raise capital through public offerings.

Private Joint Stock Company (PrJSC)

A Private Joint Stock Company is a corporate entity under the UAE Commercial Companies Law where capital is divided into equal-value shares, and shareholders’ liability is limited to their shareholding. It requires a minimum share capital of AED 5,000,000, at least three shareholders, and 51% UAE national ownership. Unlike a public JSC, its shares cannot be offered to the public. A PrJSC may undertake commercial or industrial activities, but professional services are not permitted.

Civil Company

A Civil Company is established for professionals such as doctors, lawyers, engineers, or accountants. Owners may be of any nationality. However, the company must appoint a Local Service Agent, who must be a UAE or GCC national. The agent does not hold equity but assists with regulatory formalities.

General Partnership

A General Partnership is formed when two or more individuals enter into a partnership agreement where all partners share joint and several liability for the company’s debts and obligations. This means each partner’s personal assets may be used to settle business liabilities. In the UAE, only UAE nationals are permitted to act as partners in a general partnership.

Limited Partnership

As per the Department of Economic Development (DED), Dubai, a limited partnership requires at least two partners, one general partner with unlimited liability and one limited partner whose liability is limited to their capital contribution. The firm may open multiple branches under the same license, and any changes to the Memorandum of Association require the unanimous consent of all partners.

Local Company Branch

A Local Company Branch is an extension of an existing UAE-licensed company. It allows the parent company to expand its operations within the UAE.

The branch must operate within approved zoning regulations, and its permitted activities must align with those stated on the parent company’s license. Confirmation of allowable activities can be obtained from the Department of Economic Development based on the emirate where the branch is established.

Foreign Company Branch

A Foreign Company Branch in Dubai is a legally registered extension of a foreign parent company. It does not have a separate legal identity and operates under the same business activities as its parent entity. The branch functions as a direct continuation of the foreign company in the UAE.

Sole Establishment

A Sole Establishment, also known as a Sole Proprietorship, is a Dubai mainland business owned and managed by a single individual. The trade license is issued in the owner’s name, and the individual bears full responsibility for the business’s liabilities.

Holding Company

A Holding Company does not engage in manufacturing or operational activities. Instead, it focuses on owning shares and managing subsidiary companies. This structure allows investors to benefit from Dubai’s favourable tax regime while safeguarding foreign assets and investments.

What are the Benefits of Dubai Mainland Company Formation?

The list of benefits of Dubai mainland company formation is as follows:

Strategic Location

Strategic Location

Dubai is strategically positioned between the East and the West, offering businesses easy access to major markets across Europe, Asia, the Middle East, and Africa. As a global gateway, Dubai Mainland companies benefit from seamless international connectivity supported by world-class air, sea, and land transport infrastructure.

Unrestricted Trade

Unrestricted Trade

Unlike free zone companies, mainland companies in Dubai face no restrictions on where they can trade within the UAE or who they can do business with, including local and international markets. While free zone companies are restricted to doing business within their specific free zone and with international markets, unless they use a local distributor.

Diverse Economic Sectors

Diverse Economic Sectors

The economy of Dubai is not limited to only oil but also other sectors like real estate, construction, tourism, hospitality, technology and finance. However, the mainland companies in Dubai can operate in almost every sector, thus giving business owners a wide array of opportunities for diversification and growth.

Eligibility for Government Contracts

Eligibility for Government Contracts

The mainland Dubai company can also participate in bidding for and secure lucrative government contracts, an opportunity which is not available to free zone businesses. Such contracts can be significant, especially in sectors like infrastructure development, health care and education. It is one of the merits of Dubai mainland company formation.

100% Foreign Ownership

100% Foreign Ownership

Recent amendments now allow 100% foreign ownership of mainland companies in many sectors. Earlier, mainland companies outside free zones were required to have at least 51% ownership held by a UAE national. This change makes it easier for foreign investors to establish and fully control their businesses in the UAE mainland.

Ease of doing business

Ease of doing business

Dubai has a reputation for its ease of doing business with a smooth regulatory environment that is conducive to starting and growing a company. While the government keep on working and improving business laws to attract foreign investments. It is one of the significant benefits of Dubai mainland company formation.

Less Corporate Tax

Less Corporate Tax

Dubai follows a federal corporate tax regime effective from June 2023. Mainland companies are subject to 9% corporate tax on taxable profits exceeding AED 375,000, while profits up to this threshold are taxed at 0%, making Dubai a low-tax yet business-friendly jurisdiction.

Ability to issue various visas

Ability to issue various visas

Mainland companies in Dubai can apply for an unlimited number of visas, depending on the office space size and nature of the business. This adds more advantage for businesses that require a large workforce.

Local and international banking facilities

Local and international banking facilities

Dubai also offers robust banking facilities that are beneficial for business operations, supporting both local and international banking requirements. Compared to other mainland companies, it has easy access to corporate bank accounts and loans.

Networking Options

Networking Options

Businesses operating in the mainland Dubai gain vast networking opportunities with other global businesses and access to a large pool of potential clients and partners. It is one of the key benefits of Dubai mainland company formation.

Procedure for Offshore Company Formation in Dubai Mainland

The step-by-step procedure for offshore company formation in Dubai mainland is as follows:

Recognize a Business Activity

Identify the type of business you want to operate: commercial, industrial, professional, tourism, agricultural, or occupational. Consider market trends, competition, and regulatory requirements to make an informed choice.

Select a Suitable Legal Form

Choosing the right legal structure is crucial for ownership, liability, and compliance. Options include General or Limited Partnerships with shared or limited liability, LLCs requiring a UAE partner, Joint Stock Companies (PJSC/PrJSC) with UAE majority ownership, Civil Companies for professional services, Local or Foreign Company Branches for expansions, Sole Establishments for single owners, and Holding Companies to manage other businesses. Picking the right form aligns your business goals with legal requirements.

Register the Company Name

Apply for a trade name through the Dubai Economic Department (DED). Include the legal form (e.g., LLC, EST). However, Trade name certificates are renewable.

Apply for Initial Approval

Obtain initial approval from DED and, for foreign investors, from the General Directorate of Residency and Foreigners’ Affairs (GDRFA). Certain business activities may need additional sector-specific approvals.

Obtain Approvals from Regulatory Authorities

Obtain approvals from regulatory authorities based on your business activity. Depending on the sector, you may need clearance from Dubai Municipality for construction, healthcare, or food services; Dubai Civil Defence for fire safety or hazardous operations; and the Dubai Health Authority (DHA) for clinics and pharmacies. The Dubai Economic Department (DED) ensures overall compliance. Securing these approvals is essential for legally and safely operating a Dubai mainland company.

Issuance of Certificate of Trademark Registration in UAE

In the absence of any objections, the Ministry of Economy issues a trademark registration certificate granting ownership and legal safeguards to the holder, detailing the registration number, filing date, company and owner’s name.

Draft the Memorandum of Association (MOA)

Prepare MOA (Memorandum of Association) outlining shareholder details, capital, and business objectives (mandatory for LLCs, PJSCs).

Lease Office SpaceE

Obtain a tenancy contract and Ejari registration as proof of office space for setting up the company in the mainland Dubai.

Final License Issuance

Submit all documents to DED for final approval and license issuance. After this, your Dubai mainland company can legally operate.

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What is the Timeline for Dubai Mainland Company Formation?

Setting up a mainland company in Dubai generally takes around 1 to 2 months, depending on the nature of the business and regulatory requirements. The timeline for Dubai mainland company formation may vary based on factors such as the chosen business activity, legal structure, number of shareholders, office location, and the need for external approvals.

Business Activity Selection & Legal Structure Finalization: 3 to 7 days

Identifying the business activity and selecting the appropriate legal form based on ownership, liability, and compliance requirements.

Trademark Application Submission: 10 to 12 weeks

It takes around 10 to 12 weeks to successfully file and make submission of the completed trademark registration application to the Ministry of Economy.

Trade Name Registration: 2 to 5 working days

Applying for and obtaining approval of the trade name from the Dubai Economic Department (DED).

Initial Approval from Authorities: 5 to 10 working days

Securing initial approval from DED and other relevant authorities, depending on the business activity.

External Regulatory Approvals (if applicable): 1 to 3 weeks

Additional approvals from authorities such as Dubai Municipality, Dubai Civil Defence, or DHA, based on the sector.

Office Lease, Documentation & Trade License Issuance: 1 to 2 weeks

Finalizing office space, submitting required documents, paying fees, and obtaining the mainland trade license.

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What are the Documents Required for Dubai Mainland Company Formation?

The list of documents needed for a Dubai Mainland Company formation is as follows:

MoA, Articles of Association, office lease, and landlord NOC

Trade name registration certificate

Copies of directors’ and shareholders’ passports and visas

Company application form

Address proof of directors and shareholders

DED approval

Payment proof for initial approval, trade license, and fees

Company stamp

Bank reference letters for shareholders

Share capital deposit in a UAE bank

Board resolution appointing directors and authorizing formation

Statement of Good Standing (if shareholder is an existing business)

Which are the Top Industries for Company Formation in Dubai Mainland?

The list of top industries for company formation in Dubai mainland is as follows:

Imports and Exports

Product Distribution

Foreign Company Representation

General Trading

Raw Material Processing

Consulting

Architectural & Design Services

Software Development & IT Support

Hotels & Accommodation

Restaurants & Cafes

Healthcare

Real Estate

Media & Advertising

List of Compliances for Dubai Mainland Company Formation

The list of compliances for Dubai Mainland Company Formation is as follows:

  • A VAT (Value Added Tax) registration is a must for businesses whose annual turnover exceeds AED 187,500 (Voluntary Registration) and AED 375,000 (Mandatory Registration).
  • Visa and labour card processing for employees.
  • Renewal of trade licenses and office leases annually.
  • Maintaining accounting and audit reports as per UAE commercial laws.
  • Timely renewal of business activity approvals.
  • Obtaining necessary additional permits, depending upon the business activity, from the concerned authorities.
  • Ensure the office space complies with health and safety regulations.
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Why Trust Enterslice for a Dubai Mainland Company Formation?

Looking for the cheapest offshore company formation in mainland in Dubai or the cheapest company formation in Dubai mainland? Enterslice provides reliable and cost-effective company formation services in Dubai mainland with expert guidance. Here’s why you should choose us:

  • End-to-end support for Dubai Mainland company formation, from approvals to licensing
  • Registered 500+ companies successfully in Dubai Mainland
  • Expert advice on the right legal structure to optimize cost and compliance
  • Assistance with all regulatory approvals, trade licenses, and government clearances
  • Access to an in-house team of corporate consultants and legal experts
  • Ensures compliance with UAE laws and Mainland regulations
  • Post-formation services, including visa processing, PRO services, and corporate bank account setup
  • Transparent and affordable pricing with no hidden costs, making us the cheapest company formation in Dubai mainland
  • Fast-track processing for approvals and trade license issuance
  • Tailored solutions for startups, SMEs, and multinational businesses
  • Guidance for smooth business operations and long-term growth in Dubai

FAQs on Dubai Mainland Company Formation

Dubai mainland company formation offers strategic access to global markets, no trade restrictions, and operations across diverse sectors. Companies can bid for government contracts, enjoy 100% foreign ownership in many sectors, benefit from low corporate tax, sponsor multiple visas, access robust banking, and leverage extensive networking opportunities.

Dubai mainland companies come in various forms to suit different business needs. LLCs allow up to 50 shareholders, usually with a UAE partner holding 51%. PJSCs (Public Joint Stock Company) and PrJSCs are for larger enterprises, with UAE-majority ownership, though PrJSC shares aren’t public. Civil Companies serve professionals with a local service agent.
General and Limited Partnerships differ in liability structure. Local and Foreign Branches extend existing companies, Sole Establishments are owned by one individual, and Holding Companies manage subsidiaries without operational activities.

For Dubai Mainland Company formation, essential documents include the MoA and Articles of Association, office lease with landlord NOC, trade name certificate, copies of directors’ and shareholders’ passports and visas, company application form, and address proof. Additionally, DED approval, payment receipts for fees, company stamp, bank reference letters, share capital deposit proof, board resolution, and, if applicable, a Statement of Good Standing are required.

A mainland company formation in Dubai means a business setup in the onshore region, registered after approval from the Department of Economic Development (DED).

Registering a mainland company in Dubai involves multiple procedures, detailed documentation, and approvals from various authorities to obtain the required license. Our business setup services simplify this process by managing end-to-end compliance and formalities on your behalf. With strong affiliations and working relationships with Dubai government departments and related entities, we help expedite approvals, reduce delays, and ensure a smooth and hassle-free company formation experience.

A Limited Liability Company (LLC) is a profit-oriented business structure with up to 50 shareholders and is commonly used for Dubai mainland company formation. 100% foreign ownership is permitted for most activities, subject to DED approval, while certain regulated sectors may still require a local partner or service agent. LLCs offer flexible profit-sharing arrangements, and alternative structures include a foreign branch, free zone company, GCC-owned business, or a representative office.

It takes around one to two months to set up a mainland company in Dubai. However, some of the factors that can affect the timeline are office location, number of shareholders, etc.

Yes, a business setup in mainland company can operate without a sponsor in Dubai, thus allowing 100% foreign ownership.

There are no restrictions on the number of visas for a mainland business setup, as it can issue unlimited visas; therefore, an unlimited number of foreign employees can be hired.

Yes, you can open a company in Mainland Dubai without physically visiting government offices. Enterslice assists with Dubai Mainland company formation through a fully online process, allowing you to complete the required procedures conveniently from your location.

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