Starting a business in Dubai’s mainland offers entrepreneurs vast potential: access to the UAE market, flexible ownership rules, robust infrastructure, and regulatory clarity. But to take full advantage, you need to follow the correct steps, understand costs, legal forms, and comply with all regulatory requirements. This guide walks you through how to start a business in Dubai Mainland—drawing on real expertise, solid information, and guidance you can trust.
What is “Dubai Mainland” & Why Choose It?
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Definition: Mainland (also called “onshore”) refers to companies licensed by the Department of Economy & Tourism (DET) in Dubai (formerly Department of Economic Development, DED) to operate anywhere in the UAE. Unlike free zones, mainland businesses can trade with any UAE entity, bid for government contracts, and have no restrictions on the location of business operations.
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Recent ownership reforms: Many business activities now allow 100% foreign ownership in the Dubai mainland, depending on the business activity. This has improved the attractiveness of mainland setups.
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Benefits:
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Full access to the entire UAE market without geographic restrictions.
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Better visa allocations (number of visas correlates to office size).
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Ability to take up government tenders, work with private & public sectors without “free zone” limitations.
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Easier expansion, ability to scale up operations locally.
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Alhind BC, with its services, can help you navigate these advantages efficiently because we’ve helped many clients set up on the mainland with minimal friction.
Step-By-Step Process to Start a Mainland Business in Dubai
Here is a practical, real-experience-based flow you should follow:
| Step | What to Do | |
|---|---|---|
| 1. Define Your Business Activity & Legal Form | You begin by selecting exactly what your business will do (trading, professional services, industrial/manufacturing, etc.). Then choose a legal form: LLC, sole proprietorship, corporation, branch etc. The legal form influences liability, ownership, and required approvals. | |
| 2. Reservation of Trade Name | Choose a business name that follows naming rules (no profanity or religious sensitivities, no names needing special approvals unless applicable, etc.). Then check availability and reserve via the DET portal. | |
| 3. Initial Approval | Get a “no objection” approval from the government that your proposed business is acceptable. If your activity requires external approvals (e.g. healthcare, education, food, transport), you’ll need those too. | |
| 4. Memorandum of Association (MOA) or Local Service Agent (LSA) Agreement | Depending on your business structure, you’ll need an MOA (for LLCs, etc.) or an LSA for entities needing a local service agent. These documents must be legally drafted and often notarized. | |
| 5. Physical Office & Tenancy Contract | You need a physical address in the Dubai mainland. Tenant agreement must often be registered via Ejari (Dubai’s tenancy registration system). The size & location of the office affect the number of visas you can get. | |
| 6. Obtain External / Special Approvals (if required) | Some industries (food & beverage, health, education, transport, etc.) need additional clearances from relevant authorities (e.g. Dubai Municipality, DHA, KHDA, etc.). Factor in extra time for these. | |
| 7. Pay Fees & Submit Required Documents | These include licence application, trade name certificate, tenancy contract (Ejari), MOA/LSA, passport copies, approvals. Submit to DET. After verification, you’ll get issued your trade licence. | |
| 8. Visa Processing & Other Registrations | Once licence is issued, you can apply for visas (owner, employee, family), open a corporate bank account, register with taxation authorities if required (corporate tax, VAT etc.). | |
| 9. Renewal & Compliance | Licences are annual. You must renew on time, maintain physical office, comply with labor regulations, economic substance rules, submit UBO declarations, etc. Non-compliance can result in penalties. |
Key Costs to Plan For
Setting up in mainland Dubai will involve several cost components. These vary depending on business type, legal form, location, office size, number of visas etc. Below are typical costs as of 2025-2026:
| Cost Component | Typical Range (AED) | Notes |
|---|---|---|
| Trade licence issuance fee (commercial / professional) | ~ AED 10,000 to AED 30,000+ | Depends on activity and legal form. |
| Trade name reservation | AED 600-1,200 | Depends on uniqueness etc. |
| Initial approvals, special government approvals | AED 1,000-5,000+ | For external approvals / Department approvals. |
| Physical office & Ejari registration | AED approx. 15,000-50,000+ per year | Depends on office size and location. Prime locations cost more. |
| Local service agent / local sponsor fees (if applicable) | ~ AED 5,000-25,000+ / annual | Depends on the business activity and whether local sponsor is required. |
| Visa costs (per person, investor or employee) | AED 3,000-7,000+ | Includes medical test, Emirates ID etc. |
| Miscellaneous fees (notary, MOA drafting, translation, legal consultancy) | AED ~1,000-5,000+ | Based on complexity. |
Estimated total first-year cost (for a small professional or trading company with few visas) can fall somewhere between AED 25,000 to AED 70,000+, depending on scale.
Common Mistakes & Pitfalls (How Alhind BC Can Help)
| Mistake | Consequence | How Alhind BC’s Experience Helps You Avoid It |
|---|---|---|
| Choosing the wrong legal form or business activity | Delays, legal penalties, and unexpected additional approvals | We guide you on the correct legal structure and applicable regulations from day one |
| Underestimating office size or visa quota requirements | Insufficient visas, or paying too much for excess office space | We help select a location & office setup that matches your visa needs at optimal cost |
| Missing external approvals early | Delays in licence issuance, rejections | We map all regulatory bodies that apply to your activity and pre-arrange approvals |
| Non-compliance with UBO, economic substance, renewals etc. | Fines, legal troubles, business closure risks | We track deadlines & maintain compliance so you stay safe & trusted |
| Overpaying on costs or legal fees due to lack of transparency | Higher setup cost, budget overruns | We provide clear cost breakdowns, negotiate with landlords / service agents, and bundle services |
Laws, Regulations & Compliance
To build trust and authority, you must understand the regulatory framework, compliance requirements, and what your legal obligations are:
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Corporate Tax: Mainland companies must register for UAE corporate tax. As of 1 June 2023, profits above certain thresholds are taxed at 9%.
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Economic Substance Regulations (ESR): If your business is in certain activities (e.g. banking, insurance, fund management etc.), you’ll need to maintain substance in the UAE and report accordingly.
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Ultimate Beneficial Owner (UBO) Declaration: UAE requires a declaration of UBO for mainland companies.
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Labor laws, visas, Emiratisation requirements: If you have 20+ employees, there may be quotas to employ UAE nationals, depending on roles.
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Renewals: License renews annually; tenancy, Ejari, office can impact renewal. Ensure you keep documentation current.
Before You Start: Checklist
Here’s what to have ready before engaging the process to make the setup smoother:
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Clear business plan: business activity, projected revenues, cost structure.
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Passport copies of all owners/shareholders.
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Proof of identity for local service agent/sponsor (if applicable).
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Desired company name(s), backup options.
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Budget estimates: licence fee + office rent + visa(s).
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Documents for external approvals (if your activity is regulated).
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Tenancy contract/proof of physical location.
Conclusion
Starting a business in Dubai Mainland is a powerful move — offering market access, regulatory flexibility, and opportunities to scale. It takes careful planning, the right legal framework, accurate budgeting, and efficient execution. With experienced guidance (like what Alhind BC provides), you can avoid common pitfalls, speed up paperwork, control costs, and stay compliant.
If you’re ready to get started or want a customized roadmap for your specific business idea, reach out to Alhind Business Center. We offer full services: from business registration, obtaining approvals, tenancy & office sourcing, visa processing, through to annual renewals and compliance. Make your vision a business reality with confidence.
