Mainland Company Setup in Dubai: Process, Cost and Pros & Cons (2026)

Dubai's mainland licensing system is where the UAE's domestic economy operates. While free zones attract significant attention from international entrepreneurs, any business that wants to sell directly to UAE customers, tender for government work, or open branches across the country needs a mainland licence. This guide explains what a Dubai mainland company is, when it is the right choice, how to set one up and what it costs.

For a side-by-side comparison of all three structures, see our free zone vs mainland vs offshore guide.

What is a Dubai mainland company?

A mainland company is any business licensed by the Dubai Department of Economy and Tourism (DET), the authority historically known as the Dubai Economic Department (DED). The terms DET and DED are often used interchangeably; the authority was rebranded in 2021.

When you hold a DET licence, your company is part of the UAE's onshore economy. You can:

• Sell goods and services directly to any customer anywhere in the UAE, including government entities.
• Open branches and offices in any emirate without a separate free zone licence.
• Tender for federal and local government contracts (most government procurement requires a mainland licence).
• Operate retail shops, restaurants, clinics, schools and other customer-facing businesses.
• Import and export goods through UAE ports and customs.

This contrasts with a free zone company, which operates in a designated zone. Free zone companies can serve international clients freely, but selling into the UAE mainland market typically requires either a mainland distributor arrangement or a separate mainland presence.

When a mainland company is the right choice

Choosing between mainland and free zone is primarily a question of who you are selling to and how.

A mainland structure is generally appropriate when:

• Your customers are in the UAE. Retail, food and beverage, healthcare, education, real estate, and most consumer-facing services must operate on the mainland.
• You are bidding for government contracts. Federal and Dubai government tenders almost always require a mainland licence.
• You want physical premises open to the public. Restaurants, gyms, clinics and shops require a mainland licence and a registered physical location.
• You plan to hire a large team locally. Mainland visa quotas are tied to office size and there is no free zone authority capping your headcount.
• Your activity requires regulation by a UAE ministry or authority. Healthcare (Ministry of Health and Prevention), financial services (Central Bank or DFSA), education (KHDA) and others require mainland licences alongside their sector-specific approvals.

Conversely, if your revenue comes primarily from international clients, or you are a consultant, technology provider or creative professional billing outside the UAE, a free zone company is usually simpler and cheaper.

The 100% foreign ownership change

Until 2020, most mainland companies required a UAE national to hold at least 51% of shares, known as the local sponsor requirement. Entrepreneurs commonly worked around this through side agreements with Emirati nominees, an arrangement that carried legal and practical risks.

The UAE Commercial Companies Law was amended in 2021 to remove this requirement across the majority of commercial activities. Foreign investors can now own 100% of their mainland company outright.

A small number of activities in strategic sectors remain restricted. These include:

• Oil, gas and energy extraction
• Certain defence and security activities
• Some banking and insurance functions

For the vast majority of businesses, including trading, consulting, professional services, technology, hospitality and manufacturing, full foreign ownership on the mainland is now available. Our 100% foreign ownership guide covers the detail.

The mainland company setup process

Setting up a Dubai mainland company typically involves six stages.

Stage 1: Define your business activity

The DET has a published list of licensed activities, each with a specific code. You choose from this list when applying. Some activities are straightforward (management consulting, general trading, IT services). Others require pre-approval from a third-party regulator before the DET will issue a licence. Healthcare requires Ministry of Health clearance, financial advisory requires DFSA or SCA sign-off, and education requires Knowledge and Human Development Authority (KHDA) approval.

Choosing your activities carefully matters. Including unnecessary activities adds cost; missing a required one means you cannot legally carry out that service. If you are unsure, take advice before submitting.

Stage 2: Choose a legal structure

Most foreign-owned mainland businesses are set up as a Limited Liability Company (LLC). An LLC requires a minimum of one shareholder and one director (who can be the same person), with liability limited to the amount of share capital subscribed. Branch offices of foreign companies are also possible, as are sole proprietorships for certain professional activities.

Stage 3: Reserve a trade name

You submit your preferred company name to the DET for approval. Names must comply with UAE naming guidelines: they cannot include religious references, names of countries or rulers (without specific permission), or anything offensive or misleading. You typically need two or three alternatives ready.

Stage 4: Secure premises and register with Ejari

A mainland licence requires physical premises. You must sign a tenancy agreement and register it through Ejari, the Dubai Land Department's tenancy registration portal. The registered address forms part of your licence application, and the size of your premises influences your visa quota. Shared office spaces can meet this requirement for some activities.

Stage 5: Submit the licence application

With your activity, legal structure, trade name and premises confirmed, you submit the application to the DET through its portal or via a registered service centre. Required documents typically include:

• Passport copies of all shareholders and directors
• A memorandum and articles of association (MOA)
• Ejari-registered tenancy certificate
• NOC from relevant regulatory authority (if required for your activity)
• Initial approval certificate

The DET reviews the application and, for most straightforward activities, issues the licence within five to fifteen working days. Complex or regulated activities take longer.

Stage 6: Post-licence steps

After the licence is issued, you will typically need to:

• Open a UAE corporate bank account (see our business bank account guide)
• Register for UAE corporate tax with the Federal Tax Authority
• Register for VAT if your taxable turnover exceeds or is expected to exceed AED 375,000 in a twelve-month period
• Apply for employee and owner residence visas if required

Indicative costs

Mainland company costs have more variables than free zone packages because the DET charges by activity type and the office lease is a real market cost rather than a bundled package price.

All figures are indicative. DET fees change periodically and vary by activity. Exchange rate: AED 1 is approximately £0.22 at mid-2026 rates. Take professional advice before budgeting.

First-year all-in costs (licence, premises, one visa, professional fees) commonly fall in the range AED 35,000 to AED 80,000 (approximately £7,700 to £17,600). Annual renewal costs are lower because the formation work is done; expect to pay mainly the licence renewal fee and the lease renewal.

Mainland vs free zone: the trade-offs

For UK founders who bill primarily to international clients, a free zone company, such as IFZA, Meydan or DMCC, typically offers lower costs and a simpler setup. For founders entering the UAE domestic market, a mainland licence is usually necessary. Our free zone vs mainland vs offshore guide works through the decision framework in detail.

UAE corporate tax on mainland profits

Mainland companies are fully subject to UAE corporate tax, introduced for financial years starting on or after 1 June 2023. The rates are:

• 0% on taxable profits up to AED 375,000
• 9% on taxable profits above AED 375,000

Mainland companies cannot access the Qualifying Free Zone Person (QFZP) regime, which allows free zone entities earning qualifying income to apply a 0% rate. For a mainland company, all profits above the AED 375,000 threshold are taxed at 9%.

For comparison, UK corporation tax on profits above the lower profits limit currently stands at 25%. Even with UAE corporate tax applying, the mainland rate of 9% represents a significant reduction for businesses that have previously operated in the UK.

Is a mainland company right for you?

A mainland licence is the correct foundation for any business that plans to sell into the UAE market, operate physical premises, employ a substantial local team or pursue government work. The full foreign ownership reform has removed the most significant historic drawback. What remains is the requirement for real physical premises and a slightly higher cost base than the budget free zones.

For international-facing businesses, or those just beginning to test the UAE market, a free zone company is often the lower-cost starting point, with the option to add a mainland licence later. The right answer depends on your business model, your customers and your growth plans.

Our team of UK and UAE advisers can help you assess whether a mainland company, a free zone entity, or a combination of both fits your circumstances. Get in touch to talk through your options, or explore the company formation guides for more detail on specific aspects of setting up in Dubai.