Complete Guide to Mainland Company Formation in Dubai

What Is a Dubai Mainland Company

In the UAE, a “mainland” or “onshore” company is licensed by the competent economic department of an emirate. For Dubai, this authority is the Department of Economy and Tourism (DET), sometimes referred to as Dubai Economy and Tourism. DET issues economic (trade) licences for commercial, industrial and professional activities and maintains online services to search trade names, licences and activities for Dubai businesses.

While mainland companies offer wider market access, some investors still prefer setting up a company in DMCC for its streamlined free zone framework.

Nationals and foreigners who engage in commercial, industrial, professional or vocational activities in the UAE are required to hold an economic licence from the relevant emirate’s economic department before they start operations. For Dubai mainland businesses, this means obtaining and maintaining a valid DET trade licence that matches the company’s actual activity and legal form.

Legal Forms And Ownership Options For Dubai Mainland Investors

The UAE foreign direct investment policy recognises several standard legal forms that are commonly used for mainland projects. These include public joint stock companies, private joint stock companies, Limited Liability Companies (LLCs), limited partnership companies and partnership companies. The choice among these determines governance, liability and how capital can be raised.

The UAE has significantly liberalised foreign ownership rules. Federal guidance states that foreign investors of different nationalities may establish and fully own companies in the UAE in line with lists issued by local authorities, except for “Activities with Strategic Impact”. For these strategic activities, full ownership may be subject to the approval of the competent regulator and possibly additional conditions. Investors should therefore confirm, via DET or Invest in Dubai and sector regulators, whether their intended activity is open to 100% foreign ownership or falls under strategic impact rules.

Planning Your Dubai Mainland Business: Activity, Name And Channel

Before you apply for a licence, you need a clear, compliant business plan that fits into the DET’s activity framework and Dubai’s wider strategic priorities. Business activities for Dubai licences are selected from standardised activity lists maintained by the DET. These can be explored via the Invest in Dubai portal under “Explore all Business Activities”, where each activity is linked to suitable legal forms and licence packages.

Federal investment guidance and emirate-level strategies highlight several priority sectors for mainland investors, including fintech, e-commerce, agritech, healthcare, education, tourism, ICT, manufacturing and the creative industries as key areas for foreign direct investment. Dubai’s eCommerce Strategy and Creative Economy Strategy reinforce that activities linked to online trade, digital content, design, media and related services are an important part of the emirate’s economic vision. When choosing your activity, it is useful to check how your business model aligns with these recognised growth areas.

Professional licences usually apply where the principal asset is human expertise rather than trade in goods, while industrial licences cover manufacturing and processing activities. The Invest in Dubai portal’s activity search helps you identify the official description that best matches your intended operations and shows which licence category and legal forms are available. Choosing the correct activity at this stage reduces the risk of needing amendments later, especially when applying for work permits and visas that must align with your registered activity.

Reserving A Trade Name

Trade name reservation for a Dubai mainland company can be done in two main ways. The DET offers a “Search trade name – Dubai Economy and Tourism” service that lets you check whether a proposed name is available and register it. Alternatively, you can use the “New Business Name” service in Invest in Dubai, which combines search and reservation.

In all cases, your proposed name must comply with the DET’s Business Name Terms & Conditions. These rules cover issues such as the use of prohibited words, respect for public order and the requirement that the name does not infringe existing registered names. According to information displayed on Invest in Dubai, an approved trade name usually is reserved for 30 days, during which you should complete your initial approval and licensing steps.

Step‑By‑Step: Obtaining Your Dubai Mainland Trade Licence

Once your activity and trade name are defined, you can begin the formal DET licensing process. Federal and emirate‑level guidance describes a sequence that starts with initial approval, followed by finalisation of constitutional documents and premises, and ends with the issuance of the trade licence.

Step 1 – Obtain Initial Approval From the DET

Initial approval is the DET’s confirmation that, in principle, it has no objection to you establishing a company with the proposed activity, name and legal form. After choosing the activity and trade name, applicants typically obtain initial approval from the economic department before finalising the memorandum of association and other documents.

Initial approval is not yet a licence and does not authorise you to commence business. It is, however, an important checkpoint: at this stage, the DET can flag any issues with the activity scope, ownership or name, and indicate whether additional sector approvals from other regulators will be required later.

According to the DLD, registration generally requires the unified tenancy contract and identification documents such as the Emirates ID of the applicant. Ejari registration fees include an AED 100 registration fee, plus knowledge and innovation fees and a service partner fee with VAT. For business centres, the DLD specifies additional criteria such as minimum commercial area and Ejari contracts issued under the business centre’s name, and may require Dubai Municipality approval. The DLD also notes that there is no maximum number of commercial Ejari contracts per individual, allowing investors to maintain multiple commercial leases if their business model requires it.

The Dubai Land Department coordinates Ejari with the Dubai Electricity and Water Authority (DEWA). When a new Ejari lease is issued via accredited channels, the DLD indicates that customers receive automatic SMS and email instructions from DEWA, helping to link tenancy registration with activation of utilities at the premises.

Key Authorities In The Licensing Phase

The table below summarises the main government entities involved in the core licensing steps and their roles.

After Licensing: Labour Registration And Residence Visas

Once you have your DET trade licence and premises, the focus shifts to employing staff and obtaining residence visas. According to the Ministry of Human Resources and Emiratisation (MoHRE) employer awareness guide, the typical sequence is: obtain the trade licence, open an establishment card with the Federal Authority for Identity, Citizenship, Customs & Port Security (ICP), then complete establishment card procedures with the MoHRE.

MoHRE Establishment Registration And Quotas

The MoHRE’s “Issuance of Establishment Card” service requires a valid trade licence and registration of the establishment’s details and key persons. Owners, partners, service agents and authorised signatories must be recorded, and the MoHRE assigns a unified personal identification number for each of these individuals. Establishment details such as business activity and location must match your DET licence and Ejari records.

Work Permits And Labour Accommodation

Work permit applications are made through the MoHRE once quotas are available. Service descriptions note that a valid trade licence is required and that the worker’s intended profession must be compatible with the establishment’s registered activity. After work permits are approved, they form the basis for residence visa applications through the General Directorate of Residency and Foreign Affairs (GDRFA) or ICP.

For companies that provide housing to workers, the MoHRE manages obligations through its Labour Accommodation System. This service enables establishments to register and manage worker accommodation in line with regulatory standards. Whether and how this applies will depend on the size and nature of your workforce; checking the MoHRE’s current guidance is essential if you plan to provide group housing.

Investors may also seek a 10‑year Golden Residence under the GDRFA’s investor programme. Current conditions highlighted by the GDRFA include holding at least AED 2 million in public or real estate investments and, where the investment is in a company, providing a valid trade licence and certified financial reports. As with all immigration matters, investors should check the latest criteria directly on the GDRFA or ICP portals before applying.

The GDRFA guidance notes that the grace period for staying in the UAE after expiry or cancellation of a private sector residence permit is generally 60 days. For holders of specific green residence permits, the grace period is 180 days, providing additional time to regularise status. Dubai mainland investors who meet income and accommodation criteria may also sponsor family members’ entry and residence visas using the GDRFA’s family sponsorship services. Finally, potential investors can enter the UAE on a visit visa to explore business opportunities without a local sponsor if they can provide proof of investment intentions, according to the GDRFA’s business visit visa service.

FTA announcements also specify that natural persons (individuals) conducting a business in the UAE become taxable persons for Corporate Tax if their business revenue exceeds AED 1 million in a calendar year. These individuals must register for Corporate Tax by 31 March of the following year, and a fixed administrative penalty of AED 10,000 applies for non‑registration. FTA regularly publishes detailed Corporate Tax guides – for example, on the determination of taxable income and treatment of non‑resident persons – as well as virtual workshops and FAQs to help businesses understand calculations, filing obligations and deadlines.

VAT Registration And Planning

Value Added Tax (VAT) is another key consideration for Dubai mainland businesses. FTA guidance states that companies whose taxable supplies and imports exceed AED 375,000 in a 12‑month period must register for VAT. Those whose supplies and imports exceed AED 187,500 in the same period may register voluntarily. The standard VAT rate is 5% on most taxable supplies, with some supplies at 0%, such as certain exports and specific categories defined by law.

FAQ: Mainland Company Formation In Dubai

What Is The Step-By-Step Guide To Mainland Company Formation In Dubai?

The high‑level sequence reflected on u.ae and related portals is: define your business model and choose activities from the DET’s standard list; check and reserve a trade name using DET or Invest in Dubai; apply for DET initial approval for your chosen activity, name and legal form; prepare and sign the memorandum of association or local service agent agreement, as applicable; secure suitable premises and register the tenancy via the DLD’s Ejari system; submit remaining documents for final DET trade licence issuance; register your establishment with ICP and MoHRE, obtain an establishment card and work permit quotas; apply for work permits and then residence permits through GDRFA/ICP; and, once operational, register for Corporate Tax and VAT via the FTA’s EmaraTax platform when thresholds apply.

What Documents Are Required For Dubai Mainland Company Setup?

Required documents depend on legal form and activity, but typically include shareholder and manager identification documents, a proposed trade name, initial approval from the DET, the memorandum of association or partnership/investment contract, and a commercial premises lease registered in Ejari for most activities. When registering the tenancy, the DLD generally requests the unified tenancy contract and identification such as Emirates ID. For MoHRE establishment registration, MoHRE requires a valid trade licence and details of owners, partners, service agents and authorised signatories, while residence permit applications to GDRFA typically require a passport copy, personal photograph and approved medical examination for applicants aged over 18.

How Do I Get A Dubai Mainland Trade Licence?

You obtain a Dubai mainland trade licence by applying to the DET, either directly or via the Invest in Dubai portal. After choosing your business activity and trade name and receiving initial approval, you finalise constitutional documents, arrange premises and register the lease through Ejari. You then submit all required documents and any sector‑specific approvals to the DET for final review. If approved, the DET issues an economic licence that specifies your company name, legal form and authorised activities. You can later verify the licence using the DET’s online search services or federal tools such as the National Economic Register.

What Are The Dubai Mainland Licence Requirements For Office And Ejari?

For most Dubai mainland activities, authorities expect a valid commercial premises and tenancy contract as a condition for issuing or renewing a trade licence. The Dubai Land Department requires commercial leases to be registered in the Ejari system through the “Register/Renew Ejari Contract” service, which can be accessed via the Dubai REST app, the DLD website or Real Estate Services Trustee Centres. Registration typically involves submitting the unified tenancy contract and relevant identification documents; the DLD charges an AED 100 registration fee plus knowledge, innovation and service partner fees with VAT. For business centres, the DLD sets additional criteria, including minimum area and Ejari contracts under the business centre’s name, and may require Dubai Municipality approval.

How Does The MoHRE Establishment Card Process For Dubai Companies Work?

According to the MoHRE’s guidance, once you have a DET trade licence you should first open an establishment file with the Federal Authority for Identity, Citizenship, Customs & Port Security and then apply for the MoHRE’s “Issuance of Establishment Card” service. This process requires a valid trade licence and registration of owners, partners, service agents and authorised signatories, each of whom receives a unified personal identification number. After the establishment card is issued, you may request work permit quotas and then apply for individual work permits.The  MoHRE service descriptions indicate that establishment card and quota services usually take about two working days via digital or service centre channels, although you should always verify current timelines.

How Do I Register For Corporate Tax For A Dubai Mainland Company?

According to the Federal Tax Authority, Dubai mainland companies that are taxable persons must register for Corporate Tax via the EmaraTax platform. During registration, you provide company identification details, licence information and contact data to obtain a Corporate Tax registration number. The Corporate Tax regime applies a 0% rate on taxable income up to AED 375,000 and 9% on taxable income above this amount for entities that are not qualifying free zone persons. Natural persons conducting business whose revenue exceeds AED 1 million in a calendar year must also register by 31 March of the following year. FTA’s detailed Corporate Tax guides and virtual workshops explain how to calculate taxable income and submit returns once registered.

What Is The Difference Between the Dubai Mainland And Free Zone Company Scope?

A Dubai mainland company is licensed by the DET and, under federal investment guidance, may conduct business across the UAE, subject to activity‑specific approvals and sectoral regulations. Free zone companies are licensed by individual free zone authorities and operate under those zones’ specific rules; their ability to trade directly with the mainland and across the UAE depends on customs, tax and regulatory frameworks that are beyond the scope of this article. Investors who need UAE‑wide reach and who plan to participate in public tenders or serve a broad local market often consider Dubai mainland company formation, while also taking advice on whether free zone structures may suit parts of their operations.