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Dubai / Dubai Company Formation

Starting a Business in Dubai Mainland

You can choose between establishing a company in one of the Free Zones or on the Dubai Mainland, both of which are well-established and attractive options.

In the following article, we have compiled the most important information about the Dubai Mainland location, its advantages and disadvantages, and the common legal forms available.

We also discuss the costs associated with setting up a Dubai Mainland company and provide a comparison between Dubai Free Zone and Dubai Mainland.

If you have further questions or suggestions, feel free to call or email us.

Table of Contents

The Advantages of a Dubai Mainland Company

The Disadvantages of a Dubai Mainland Company

The Office of a Dubai Mainland Company

Incorporation and Licensing Fees for Dubai Mainland Companies

The Annual Costs of a Company in Dubai Mainland Company

Incorporation and Licensing Fees for Dubai Mainland Companies

The Legal Forms of Dubai Mainland Companies

Establishing a Dubai Mainland Company

Applying for UAE Residence and Working Visas

Opening Bank Accounts in Dubai

Fast-Track with PMG - Privacy Management Group

Dubai Mainland Company vs. Dubai Free Zone

The Advantages of a Dubai Mainland Company

A Dubai Mainland Company is not subject to restrictions regarding location choice within the UAE. It can enter into contracts with other companies within the UAE and with the Dubai government, thus having unrestricted access to local markets.

Another advantage of the Dubai Mainland company is the easier access to UAE-based banks and their services. In simple terms, opening business accounts for a Dubai Mainland company is somewhat easier compared to a Dubai Free Zone company.

The Disadvantages of a Dubai Mainland Company

In some business sectors such as banking or oil companies, a Dubai Mainland company still requires a local sponsor. Additionally, it needs a physical office, which usually comes with higher rental and operational costs.

The processing time, costs of setting up, and bureaucratic effort for a Dubai Mainland company are significantly higher than for a Dubai Free Zone company.

A detailed comparison between Dubai Mainland and Dubai Freezone is compiled at the bottom of our article for you.

The Office of a Dubai Mainland Company

A Dubai Mainland Company must have a physical office on site. The corresponding rental contract must be certified by Ejari (authority). For annual rental and ancillary costs please contact us.

Incorporation and Licensing Fees for Dubai Mainland Companies

Incorporation and licensing fees for a Dubai Mainland company are significantly higher compared to a Dubai Free Zone company.

Depending on the business purpose of your Mainland company, the number of visas required, the incorporation and licensing fees for a Dubai Mainland company can be twice as high as those for a comparable Dubai Freezone company.

The Annual Costs of a Dubai Mainland Company

A Dubai Mainland company is required to renew the existing business license after one year. The renewal costs at least match the fees of the previous year.

Besides the annually recurring license costs, you should also budget for possible visa renewal costs, ongoing office costs and expenses.

Unlike the costs incurred by a Dubai Free Zone company, the costs of setting up and renewing a Dubai Mainland company annually are not reliably predictable. Please consider this when choosing the company location within the UAE.

Incorporation and Licensing Fees for Dubai Mainland Companies

The trade name you choose must not violate public morals and customs or be already used by another company.

The Legal Forms of Dubai Mainland Companies

The most popular legal form for companies in Dubai Mainland is the Limited Liability Company (LLC); less common are the Sole Establishment (sole proprietorship) and Civil Partnership. Certain legal forms require an agreement with a local service agent (LSA).

Sole Establishment in Dubai Mainland (Sole Establishment)

Only a natural person can own a Sole Establishment in Dubai Mainland. This natural person is personally and unlimitedly liable for all the company’s obligations. According to legal requirements, only GCC and UAE nationals can own such a Sole Establishment.
If you, as a foreigner, wish to establish such a Sole Establishment in Dubai Mainland, it requires the involvement of a “Local Service Agent”.

The Mainland Limited Liability Company

A Mainland Limited Liability Company can be established and owned by both natural and legal persons. There are no restrictions on the nationality of the shareholders. The shareholders’ liability is limited to the company’s capital. In the event of national or international legal disputes, the claimant can only assert claims against the Mainland LLC, not against its shareholders.

The Dubai Mainland One-Person Company

A Dubai Mainland One-Person Company is a legal entity with limited liability. According to legal requirements, such a company can only be owned by a GCC or UAE national.

The Civil Partnership in Dubai Mainland (Civil Partnership)

The legal form of a Civil Partnership allows for the legal association of certified professionals in the UAE. This legal form is often used by doctors and lawyers.

Establishing a Dubai Mainland Company

From the idea to implementation, your timeline for establishing a company in Dubai Mainland:

1-3 working days

Consultation and Planning:
First, a detailed discussion with our specialists takes place to clarify all open questions and plan the procedure in detail. Together, we determine the next steps with you.

2-3 working days

Documents and Certificates:
For establishing your Dubai Mainland company, you need various documents, including a detailed business plan and the CVs of all persons involved in the company. These documents are essential to advance the process.

Application for Incorporation and Business License:
As soon as all required documents are available, we submit the applications for the business license of your Dubai Mainland company to the Department of Economic Development (DED).

Office:
Parallel to the application process with DED, we begin searching for a suitable office in Dubai Mainland. Once a suitable location is found, the rental contract is signed, and the office is set up.

5-7 working days

Business License and Business Account:
After the issuance of your business license by DED, we assist you with opening your business account.

Residence and Working Visas:
Once the business license, office, and business account are available, visas for you, your family, and possibly your employees can be applied for the UAE.

It is not necessary to maintain residency in the United Arab Emirates as the owner of a Dubai Mainland company. However, in such cases, it is required to appoint a locally based director.

Applying for UAE Residence and Working Visas

5-7 working days

Application and Issuance of the Establishment Card:
The Establishment Card is issued within 5 to 7 working days after application submission.

5 working days

Application and Issuance of the Electronic Visa:
The application for the electronic visa is made online, and the visa is issued within 5 working days after application submission.

Entry with the Electronic Visa:
The electronic visa allows you to enter the UAE.

3-4 working days

Medical Test and Application for Emirates ID:
Immediately after your entry, a medical test is required. The Emirates ID application follows, usually taking 3 to 4 working days.

10 working days

Issuance of Emirates ID:
The Emirates ID is issued approximately 10 working days after successful approval by the relevant authorities.

Opening Bank Accounts in Dubai

We support you in opening your personal and business accounts in Dubai and the entire UAE. Opening a personal bank account usually takes about 7 to 14 working days if all necessary documents are available.Opening a business account takes about 7-21 days and sometimes up to 6 weeks if all necessary documents are available.

Fast-Track with PMG – Privacy Management Group

Since 2011 we have established contacts with authorities in Dubai that allow us to handle the incorporation process for Mainland companies quickly. This process is one of our core competencies.

Dubai business owners who pick PMG enjoy these and other perks. It is not always large corporations but rather committed and determined ones that assist you in establishing a company successfully.

Please note:
Unlike setting up a Dubai Free Zone company, establishing a Mainland company in Dubai requires a multi-day stay in our city, even if you do not need a permanent residence permit.Our Conclusion:
For business activities within the UAE, such as restaurants, retail stores, and B2C services, establishing a Dubai Mainland company in the form of an LLC is the preferred choice.

Dubai Mainland Company vs. Dubai Freezone

Aspect	Dubai Free Zone Company	Dubai Mainland Company
Ownership	Shares of a Dubai Free Zone company can be 100% foreign-owned. A local sponsor is not required.	Dubai Mainland companies can be 100% foreign-owned but require a local partner holding at least 51% of the shares for certain business activities.
Jurisdiction	Dubai Free Zones are special economic zones managed by independent governmental and non-governmental authorities.	Dubai Mainland is supervised by the Department of Development (DED), a governmental authority.
Legislation	Free Zone authorities are independent and set their own regulations.	Dubai Mainland companies are controlled by the state authorities of the Emirate and subject to the general laws and regulations.
Costs	Incorporation, annual, and other fees are predictable and published by the respective Free Zone. The costs are generally lower than those of a Dubai Mainland company.	The incorporation and ongoing fees for a Dubai Mainland company are not precisely predictable and can be significantly higher than those for a Free Zone company.
Office	Free Zone companies can use diverse, cost-effective office solutions within their Free Zone. Office costs are up to 90% lower than Mainland office expenses.	A Dubai Mainland company needs a physical office, which incurs relatively high costs. In return, the company has nearly unrestricted business activities within the UAE.
Licenses	Over 2,000 license types are available, comparable to Dubai Mainland.	Over 2,000 license types are available, comparable to the Free Zones.
Bank Accounts	Only selected banks in the UAE are available for Free Zone business accounts.	A Dubai Mainland company can open its business account at nearly any bank in the UAE, with a similar processing time as a Free Zone company.
Residence Visas	Available for company owners, their families, employees, and their families.	Available for company owners, their families, employees, and their families.
Accounting	Free Zone companies are legally required to maintain ongoing accounting and prepare annual financial statements. Our partner tax advisors, licensed for the entire UAE, are available at special rates.	Mainland companies are legally required to maintain ongoing accounting and prepare annual financial statements. Our partner tax advisors, licensed for the entire UAE, are available at special rates.
Taxes	Free Zone companies are subject to a 9% corporate tax on profits over AED 375,000. This tax applies regardless of whether the income is earned within the Free Zone or internationally. Certain conditions allow these companies to be recognised as "Qualifying Free Zone Persons," exempting qualifying income from taxes. Additionally, small businesses can benefit from a tax relief if their annual revenue is under AED 3 million and they are registered for corporate tax. This relief is available until the end of 2026.	Mainland companies are subject to a 9% corporate tax on profits exceeding AED 375,000 per year.
Incorporation	The incorporation duration depends on the choice of Free Zone. Typically, with Privacy Management Group, you can set up your Free Zone company within a few days.	The incorporation duration depends on the processing time of the authorities. Expect a process lasting several weeks. An exact processing time cannot be predicted. You can expedite the process by preparing a detailed business plan and CVs in advance and searching for a suitable office beforehand.
Conclusion	A Dubai Free Zone company is significantly more cost-effective compared to a Mainland company and simpler regarding incorporation and ongoing administration. Free Zones offer economical solutions for setting up offices. However, the Free Zone location is only suitable for companies whose customers are not based in the UAE.	Although the incorporation and administrative effort and costs of a Dubai Mainland company are higher, those wishing to operate locally in the UAE, such as running a restaurant, retail shop, or other services, must essentially establish a Dubai Mainland LLC.

If you have any further questions or suggestions regarding this article or other topics, we are happy to assist you. Please contact us.

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Aspect	Dubai Freezone Company*
Jurisdiction	The free trade zones are independent economic zones with their own administration. Each zone has its own procedures for formation, licensing and supervision.
Ownership	100% foreign ownership is possible. A local sponsor is not required.
Scope of activities	The freezone is ideal for internationally active companies that operate outside the United Arab Emirates or maintain business relationships with other freezones. Direct trade on the local market is generally not provided for, but can be enabled through supplementary models (e.g. distribution partners or additional license).
License / Business purpose	Each freezone offers industry-specific licenses, e.g. for trade, services, technology or production. The granting is done directly by the respective freezone authority.
Office / Establishment	Each freezone company requires an establishment – e.g. Flex-Office, Shared Desk or an own office. We offer Full-Service packages that already contain a complete solution and enable immediate operational readiness.
Visa / Employees	Entrepreneurs and employees can obtain Residency visas. The number depends on license and office size.
Corporate tax (Corporate Tax)	Profits up to AED 375,000 per year remain tax-free. Only the profit exceeding this is taxed at 9%. Companies in a freezone that meet the legal requirements can continue to apply the tax rate of 0% on qualifying income. Small businesses with an annual turnover of up to AED 3,000,000 are completely exempt from corporate tax until the end of 2026.
Profit transfer / Withholding tax	Profits and capital can be transferred abroad without restriction. No withholding tax is levied.
Costs	Formation and ongoing costs are usually cheaper and clearly calculable. After individual consultation, we determine the optimal location and, upon request, submit a tailor-made offer that includes all services.
Conclusion	A Freezone company in Dubai is the ideal structure for entrepreneurs who are internationally active or want to conduct business with partners worldwide from Dubai. It offers full ownership rights, tax advantages and a modern, business-friendly environment.

Aspect	Dubai Mainland Company*
Jurisdiction	The mainland is subject to the state authority Department of Economy & Tourism (formerly DET) and other onshore authorities. These control all economic activities within the UAE.
Ownership	In many cases, 100% foreign ownership is also possible. In individual, regulated areas, special approvals may be required.
Scope of activities	Mainland companies may conduct business without restriction within the entire UAE. They are therefore the right choice for companies that want to be locally present and offer their products or services directly on site.
License / Business purpose	Licenses are granted centrally by the state onshore authorities. The procedures are more extensive and often subject to additional requirements.
Office / Establishment	On the mainland, a fixed business location is mandatory. As a rule, stricter area requirements and rental obligations apply here.
Visa / Employees	Mainland companies can also apply for visas for owners and employees.
Corporate tax (Corporate Tax)	For mainland companies, the same principle applies: profits up to AED 375,000 remain tax-free, above that the rate of 9% applies. This regulation ensures moderate tax burden and high planning security.
Profit transfer / Withholding tax	Mainland companies can also transfer profits freely. No withholding tax is levied either.
Costs	Formation is more complex and generally more cost-intensive. State fees, rental costs and administrative requirements are higher.
Conclusion	A Mainland company is suitable for entrepreneurs who want to be locally business active in the UAE – for example in trade, gastronomy or services for customers within the emirates.