TRW & Co · Company formation
How to Set Up a Company in Dubai Mainland: Step-by-Step Guide
Company setup in Dubai mainland is handled by the Department of Economy and Tourism and, for most activities, allows 100% foreign ownership. You choose activities and a legal form, reserve a trade name, obtain initial approval, sign the memorandum, register a lease on Ejari and collect the licence, then complete visa, tax and banking steps.
Key pointThe licence is the midpoint, not the finish line: legalising a foreign parent's documents and post-licence steps such as corporate tax registration and bank onboarding usually take longer than the DET application itself.
At a glance
Licensed by DET
Dubai mainland companies are licensed by the Department of Economy and Tourism, with most applications made online through the Invest in Dubai platform.
Foreign ownership available
Since 2021 most commercial and industrial activities can be wholly foreign-owned; strategic-impact sectors such as banking, insurance and defence remain restricted.
LLC is the default
Most foreign-owned businesses use a limited liability company, which may have a single shareholder; professionals often use civil companies instead.
Ejari lease required
A mainland company needs a physical address meeting DET and municipal rules, with the tenancy contract registered on Ejari before the licence issues.
Post-licence obligations
After licensing, register with immigration and labour authorities, register for corporate tax, assess VAT, file beneficial-ownership details and open a bank account.
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A company setup in Dubai mainland runs through the Dubai Department of Economy and Tourism (DET), and since 2021 most commercial and industrial activities can be 100% foreign-owned. The process follows a fixed sequence: choose the activity and legal form, reserve a trade name, obtain initial approval, sign the memorandum of association, secure an Ejari-registered premises, collect the licence, then complete visa, tax and banking steps.
This guide walks through each stage, flags the decisions that are hard to reverse later, and explains what happens after the licence is issued, where many founders lose time. It reflects the position as of October 2026; fees and processing times change frequently, so confirm current figures with DET before you budget.
The short answer: how company setup in Dubai mainland works
Dubai mainland companies are licensed by DET, through its Dubai Business Registration and Licensing Corporation, and most applications are made online through the Invest in Dubai platform. A mainland licence lets you trade anywhere in the Dubai market, contract directly with onshore customers and bid for government work, which is the main reason businesses choose it over a free zone.
In outline, company setup in Dubai mainland has three phases:
- Design. Pick the licensed activities, the legal form and the ownership structure. These choices drive everything that follows.
- Licensing. Reserve the trade name, obtain initial approval and any sector approvals, execute the memorandum of association, register a lease on Ejari and pay for the licence.
- Operationalisation. Obtain the establishment card, sponsor visas, register for corporate tax and, where required, VAT, file beneficial-ownership information and open a bank account.
Straightforward single-activity setups can move quickly. Regulated activities, complex shareholdings and foreign corporate shareholders add document legalisation and third-party approvals, which is where most timelines slip.
The legal framework and the regulators
Onshore companies are governed by the Commercial Companies Law, Federal Decree-Law No. 32 of 2021, which took effect in January 2022 and has since been amended. It sets out the legal forms, the rules on capital, management and shareholder rights, and the requirement for a memorandum of association. Licensing itself is an emirate-level function, so in Dubai it is handled by DET rather than a federal body.
Foreign ownership was liberalised in 2021. Most commercial and industrial activities on Dubai's list can now be 100% foreign-owned, but activities of strategic impact, such as defence, banking, insurance and certain communications activities, remain subject to restrictions and regulator approval. Professional activities are usually licensed on a different basis and may require a UAE local service agent, as the UAE government's guide to starting a mainland business explains.
Other authorities become relevant as you go: the Dubai Land Department for Ejari lease registration, the General Directorate of Identity and Foreigners Affairs and the Ministry of Human Resources and Emiratisation for immigration and employment, and the Federal Tax Authority for corporate tax and VAT. Regulated sectors need their own regulator's approval before the licence is issued.
Key decisions before you apply
Activity selection
Your licensed activities define what you may lawfully do, which legal forms are available and whether foreign ownership or extra approvals apply. Choose activities that match what you will actually invoice for. Too narrow, and you will need an amendment within months; too broad, and you may trigger approvals you do not need.
Legal form
Most foreign-owned trading and services businesses use a limited liability company (LLC), which can now have one shareholder. Other options include a sole establishment owned by an individual, a civil company for professional services, and a branch of a foreign or UAE company. Our guide to legal forms for business in the UAE compares them in detail.
| Vehicle | Separate legal personality | Typical owner | Main trade-off |
|---|---|---|---|
| Limited liability company | Yes | Individuals or corporate shareholders, one or more | Limited liability and flexibility; more constitutional formality |
| Sole establishment | No | A single individual | Simple to run; owner bears unlimited personal liability |
| Civil (professional) company | Yes, with partners' liability rules | Licensed professionals | Suits consultancies; may need a local service agent |
| Branch of a foreign company | No (extension of parent) | An overseas company | No new entity; parent is exposed to branch liabilities |
| Branch of a UAE or free zone company | No | An existing UAE entity | Quick market access; tied to the parent licence |
Ownership and governance
Decide early who will hold shares, who will be manager and how decisions will be made. If there are co-founders or investors, put a shareholders' agreement in place alongside the memorandum, because the memorandum is a public, regulator-facing document and is rarely the right place for vesting, leaver or deadlock provisions.
Step-by-step: company setup in Dubai mainland
- Confirm activities and legal form. Map your business model to DET's activity list, check whether 100% foreign ownership is available for each activity and select the vehicle.
- Reserve the trade name. The name must reflect the legal form (for example, "LLC"), must not duplicate an existing registration and must avoid prohibited references. A trade name is not a trade mark; register the brand separately.
- Obtain initial approval. Initial approval confirms the government has no objection to the proposed company. It does not allow you to trade, but it lets you proceed to the lease and constitutional documents. Some activities need security or sector approvals at this stage.
- Prepare and execute the memorandum of association. The memorandum sets out the shareholders, capital, management and objects. It is executed before a notary or through the authorised digital channel, and foreign corporate shareholders will need legalised corporate documents.
- Secure premises and register on Ejari. Mainland companies need a physical address that satisfies DET and municipal rules. In Dubai the tenancy contract must be registered on Ejari. Business centres and flexi-desk options exist but can limit visa allocation.
- Obtain any additional approvals. Regulated activities, such as healthcare, education, financial services, media and telecoms, require approval from the relevant regulator before the licence can be issued.
- Pay and collect the licence. Once documents are complete, DET issues a payment voucher; the government portal notes that unpaid applications are cancelled after a limited period. On payment, the commercial, professional or other licence is issued.
- Complete post-licence registrations. Apply for the establishment card, sponsor visas, register with MOHRE, register for corporate tax, consider VAT, file beneficial-ownership details and open the corporate bank account.
Detailed requirements for each step are published by DET's business licensing service. If you are uncertain whether your activity is regulated, resolve that before signing a lease, because a sector refusal after you have committed to premises is an expensive way to find out.
Documents you will need
Requirements vary by activity and shareholder type, but a typical mainland LLC application involves:
- Passport copies, and visa or entry-stamp details, for individual shareholders and managers.
- For corporate shareholders: certificate of incorporation, constitutional documents, a board resolution approving the investment and a power of attorney, each legalised and translated into Arabic where required.
- The trade name reservation and initial approval.
- The executed memorandum of association and any local service agent agreement for professional licences.
- The Ejari-registered tenancy contract.
- Any sector regulator approvals.
Legalisation is the most common bottleneck for overseas parents. Documents from Bangladesh, the UK, Singapore, India or China typically need notarisation and legalisation in the home country and attestation in the UAE, unless an apostille or digital route is accepted. Start this as soon as the structure is settled. Our checklist of company incorporation documents covers the detail.
After the licence: the steps founders underestimate
Issuing the licence is the midpoint, not the finish line. Mainland companies must still register with immigration and labour authorities before hiring, register for corporate tax with the Federal Tax Authority within the prescribed period, and assess whether VAT registration is mandatory or worthwhile. Beneficial-ownership records must be kept and filed with the registrar.
Bank onboarding often takes longer than licensing. Banks apply their own risk appetite and will want to understand the business model, source of funds, shareholder chain and expected transaction flows. A coherent business plan and clean ownership documents help. See our guides to opening a corporate bank account and corporate tax in the UAE.
Calendar the licence renewal, Ejari renewal, visa quotas and tax registration deadlines from day one. Most enforcement problems for new mainland companies come not from the setup itself but from missed post-licence obligations, which carry administrative penalties.
What drives the cost and timeline
We deliberately do not quote fixed prices here, because government fees, knowledge and innovation fees, Ejari charges and visa costs change and vary by activity. What we can say is which factors move the budget for company setup in Dubai mainland, so you can scope it realistically. For a fuller breakdown, see our guide to company setup costs in Dubai.
Factors that increase cost
- Number and type of activities. Additional activities, and activities in different licence categories, can add fees and approvals.
- Premises. Rent is usually the largest recurring cost, and the size of the premises influences how many employees you can sponsor.
- Visas. Each employee and investor visa carries its own government, medical and Emirates ID costs, plus any deposit or guarantee requirements.
- Regulated sectors. Sector approvals often involve separate application fees, professional qualifications, inspections or capital requirements.
- Foreign corporate shareholders. Legalisation, translation and courier costs for overseas documents add both money and weeks.
Factors that extend the timeline
The DET stages themselves are increasingly digital. Delays tend to come from outside the licensing system: a parent company waiting for notarised board minutes, a regulator requesting further information, a landlord slow to register the lease or a bank's enhanced due diligence. Mapping these dependencies at the outset is the single most effective way to shorten company setup in Dubai mainland.
Annual running costs
Budget for annual licence renewal, Ejari renewal, visa renewals, audit where required, corporate tax compliance and any regulator fees. Renewal is also the moment DET checks that the lease, activities and shareholder information are current, so unresolved changes surface then. Leaving those changes until renewal week is a common and avoidable source of delay.
Changing the company later
Adding activities, admitting a new shareholder, changing the manager or moving premises all require DET amendments and, for shareholder changes, an amended memorandum. Some changes also cascade into immigration, tax and bank records. Building flexibility into the original structure, for example by using a holding company above the operating LLC, can make later investment rounds and exits much simpler.
Illustrative scenario: an overseas group enters Dubai
This scenario is illustrative only; the parties are generic and no real matter is described.
A manufacturing group headquartered in South Asia wants a Dubai mainland entity to sell to UAE distributors and bid for facilities-management contracts. It plans an LLC wholly owned by its parent, with a regional manager on a residence visa.
The critical path is not the DET application but the parent's documents: board resolutions, constitutional documents and powers of attorney must be legalised before the memorandum can be executed. In parallel, the group confirms its activities do not require sector approval, reserves a trade name, and signs a lease only after initial approval issues.
After licensing, the group registers for corporate tax, applies for the establishment card and visas, and prepares the bank onboarding pack. Because it sells through UAE distributors, it also reviews whether its distribution agreements could be registered as commercial agencies, which would change termination rights.
Risks and common mistakes in company setup in Dubai mainland
Choosing activities that do not match the business
Founders often pick a generic activity to move quickly, then discover it does not cover what they invoice for or blocks a bank account or tender. Amendments are possible but cost time and can require fresh approvals.
Match activities to real revenue lines and check them against foreign-ownership eligibility before you apply.
Signing a lease before initial approval
A lease committed before initial approval and sector clearances can leave you paying rent on premises you cannot use. Some premises are also unsuitable for the licence category or visa allocation you need.
Sequence the lease after initial approval, and confirm the premises meet DET and municipal requirements for your activity.
Treating the memorandum as the shareholders' agreement
The memorandum of association is a regulator-facing document in a standard form. Putting complex investor terms into it rarely works and can create conflicts with UAE mandatory law.
Keep the memorandum compliant and concise, and document commercial arrangements in a separate shareholders' agreement.
Ignoring post-licence tax and UBO obligations
New companies sometimes assume corporate tax registration can wait until they are profitable. Registration obligations apply from establishment, and late registration attracts penalties. Beneficial-ownership filings are also required.
Build a compliance calendar at incorporation and assign responsibility for each filing.
Is mainland the right choice?
Mainland is usually right when you will sell directly to UAE customers, need a shopfront, want unrestricted access to government contracts or expect a large onshore team. A free zone may suit holding structures, export-led trading and businesses that want a specific regulatory ecosystem, and Dubai now offers permits allowing eligible free zone companies to carry on some mainland activity. Our comparison of mainland vs free zone companies sets out the full decision framework.
TRW & Co advises on structure, activities, constitutional documents and post-licence compliance for company setup in Dubai mainland, coordinating with registered agents and tax agents where needed. For an initial scoping call, contact our Dubai team at info@trw.co.
Frequently asked questions
01Can a foreigner own 100% of a Dubai mainland company?
In most cases, yes. Since the 2021 liberalisation of the Commercial Companies Law, most commercial and industrial activities on Dubai's list can be wholly foreign-owned. Activities of strategic impact, including banking, insurance, defence and certain communications activities, remain restricted and need regulator approval. Professional activities are licensed differently and may require a UAE local service agent who has no ownership. Check each proposed activity against DET's list before you apply.
02How long does company setup in Dubai mainland take?
It depends on the activity, the shareholders and whether regulator approvals are needed. A simple licence for an individual shareholder in a non-regulated activity can be issued quickly through the online platform. Timelines extend when a foreign corporate shareholder must legalise documents, when sector approval is required or when premises are not ready. Bank account opening often takes longer than licensing. Plan around the slowest of these, not DET processing alone.
03Do I need an office to set up a mainland company in Dubai?
Yes. A mainland company needs a physical address that meets DET and municipal requirements, and in Dubai the tenancy contract must be registered on Ejari. Business-centre and flexi-desk arrangements can satisfy the requirement for some activities, but the size and type of premises can affect how many visas you can sponsor. Confirm suitability for your activity before signing, and ideally after initial approval has been granted.
04What is the difference between a trade name and a trade mark in Dubai?
A trade name is the registered legal name of your company, reserved with DET as part of licensing, and it must reflect the legal form, such as LLC. A trade mark protects your brand, logo or product name and is registered separately with the federal Ministry of Economy and Tourism. Reserving a trade name does not give you trade mark rights, so register the brand separately if it matters commercially.
05Does a Dubai mainland company have to register for corporate tax?
Yes. Mainland companies are taxable persons under UAE corporate tax and must register with the Federal Tax Authority within the prescribed period after establishment, whether or not they expect profits in the first year. VAT registration is separate and depends on taxable supplies and imports. Late registration can attract administrative penalties, so build tax registration into your post-licence checklist and coordinate with a registered tax agent where appropriate.
06Can a Dubai mainland company work in other emirates?
A DET licence authorises activity in Dubai. Operating a permanent establishment, such as a branch office, in another emirate generally requires licensing with that emirate's economic department, for example a branch registered in Abu Dhabi or Sharjah. Supplying customers elsewhere in the UAE from a Dubai base is common, but physical operations outside Dubai should be checked against the relevant emirate's licensing rules before you start.
Sources and official materials
- Steps to start a business on the mainland — UAE government guide to the mainland licensing sequence
- DET business licensing — Dubai Department of Economy and Tourism licensing services
- Invest in Dubai — Online platform for Dubai licence applications
- Federal Decree-Law No. 32 of 2021 on Commercial Companies — Legal forms, capital and governance of onshore companies
- Federal Tax Authority — Corporate tax and VAT registration
General information only, current as at 27 October 2026. It is not legal advice and does not create a lawyer–client relationship. UAE law differs between the onshore jurisdiction, the DIFC, ADGM and the free zones, and changes frequently; check current official sources and take advice on the facts of your matter.
