Service Insights - Updated 2026
What Is a Mainland Company in Dubai?
A mainland company is a business licensed to operate in Dubai outside designated free zones. Business registration and licensing in Dubai mainland are managed by the Dubai Department of Economy and Tourism (DET), with additional approvals required from other authorities for certain regulated activities.
100% foreign ownership across most activities: Mainland companies can operate within the local UAE market and may be 100% foreign owned across a wide range of activities. The appropriate ownership structure, legal form and regulatory approvals depend on the specific business activity you intend to carry out.
Key Insights
- Federal Decree-Law No. 26 of 2020 removed the general requirement for 51% Emirati ownership of mainland companies. The change was later consolidated into Federal Decree-Law No. 32 of 2021.
- Activities of strategic impact, identified under Cabinet Resolution No. 55 of 2021, remain subject to additional ownership and licensing conditions.
- Companies incorporated on or after 1 March 2024 must apply for Corporate Tax registration within three months of incorporation. Late registration carries a fixed AED 10,000 penalty.
- Corporate Tax applies at 0% on taxable income up to AED 375,000 and 9% above it. Eligible small businesses can claim Small Business Relief for tax periods ending on or before 31 December 2029.
- Under Dubai Executive Council Resolution No. 11 of 2025, Dubai free zone companies can operate on the mainland with a DET licence or permit.
Mainland formation may be suitable if you want to:
- Conduct business directly across the UAE
- Trade with customers in the local mainland market
- Operate a physical business in Dubai
- Pursue eligible government or large enterprise contracts
- Build a business with broader UAE expansion plans
- Carry out activities better suited to a mainland licence
Why Set Up a Mainland Company in Dubai?
A Dubai mainland company offers businesses the flexibility to operate across the UAE and access a broad range of commercial opportunities.
100% Foreign Ownership
Foreign investors can own 100% of companies across a wide range of mainland activities. Certain activities remain subject to specific ownership or regulatory requirements.
Access to the UAE Mainland Market
Conduct business directly with customers and companies across the UAE, subject to the activities covered by your licence.
Wide Range of Business Activities
Choose from a broad range of trading, professional, industrial, service and other permitted business activities.
Government & Enterprise Opportunities
Eligible mainland companies can pursue government and private sector contracts, subject to the requirements of the relevant tender or procurement process.
Room to Expand
Add permitted activities, establish additional branches and grow your UAE operations subject to applicable licensing requirements.
Mainland vs Free Zone: Which Should You Choose?
There is no single structure that is right for every business.
Mainland May Be Suitable When You Need
- Broad access to the UAE mainland market
- A physical operating presence in Dubai
- Access to a wide range of business activities
- Flexibility for future UAE expansion
- Eligibility to pursue relevant government and enterprise contracts
A Free Zone May Be Suitable When
- Your preferred activity fits a specific free zone ecosystem
- Your business does not require the same level of direct mainland operations
- A particular free zone’s facilities, infrastructure or regulatory environment suits your business
Let us assess your model. KGRN can assess your proposed activities and operating model before recommending a structure.
Common Mainland Business Structures
The appropriate legal form depends on the proposed activity, ownership structure and operating requirements.
01 Limited Liability Company (LLC)
A commonly used structure for trading, commercial and many service activities. An LLC provides limited liability to shareholders in accordance with the company’s legal structure and applicable UAE legislation.
02 Sole Establishment
A single-owner structure available for eligible activities, subject to the applicable licensing requirements.
03 Civil Company / Professional Structure
A structure available for certain professional activities, subject to the requirements applicable to that profession and activity.
04 Branch of a UAE or Foreign Company
An existing UAE or foreign company may establish a branch in Dubai, subject to applicable registration, licensing and regulatory requirements.
Not sure which fits? KGRN reviews the proposed business before recommending the appropriate structure.
The Stages Required for Mainland Business Setup in Dubai
The exact requirements vary depending on the activity, legal form, ownership structure and applicable approvals. A typical formation process includes:
| Step | What happens |
|---|---|
| 01 Select Your Business Activity | Identify the activities the company intends to conduct and determine the corresponding licensing requirements. |
| 02 Choose the Legal Structure | Select an appropriate structure based on ownership, liability, number of shareholders and proposed activities. |
| 03 Reserve the Trade Name | Submit the proposed business name for approval in accordance with the applicable naming requirements. |
| 04 Obtain Initial Approval | Complete the preliminary approval process required before proceeding with incorporation. |
| 05 Prepare Incorporation Documents | Prepare the Memorandum of Association and other constitutional or shareholder documents required for the chosen structure. Where required, documents are notarised or authenticated through the applicable process. |
| 06 Arrange the Business Premises | Complete the business address or premises requirements applicable to your licence. Where a tenancy contract is required, the relevant rental documentation is registered through Dubai’s Ejari system. |
| 07 Obtain Additional Approvals | Regulated activities may require approval from the relevant government or sector-specific authority. |
| 08 Complete Licensing | Submit the required documents, complete the applicable registrations and pay the prescribed government fees. |
| 09 Complete Post-Licensing Requirements | Chamber registration, immigration and establishment requirements, employment and visa procedures, Corporate Tax registration, VAT registration, UBO compliance, accounting setup and bank account facilitation. |
Frequently Asked Questions
What is a DET licence?
A DET licence is the trade licence issued by Dubai’s Department of Economy and Tourism, authorising a company to legally operate a specific business activity on the Dubai mainland. It was formerly known as the DED licence, before DED merged with Dubai’s tourism department in November 2021.
Is DET the same as DED?
Yes. DET (Department of Economy and Tourism) is the renamed and expanded version of DED (Department of Economic Development), formed when Dubai merged DED with the Department of Tourism and Commerce Marketing in 2021. The licensing authority, trade licence format, and commercial registry continued under the new name.
Can a foreigner own 100% of a mainland company in Dubai?
Yes, for most commercial, professional, and industrial activities, following Federal Decree-Law No. 32 of 2021 on Commercial Companies. Activities classified as having strategic impact under Cabinet Resolution No. 55 of 2021, such as security and defence, banking and insurance, currency printing, telecommunications, Hajj and Umrah services and fisheries, remain subject to additional ownership and approval conditions.
Do I still need a local sponsor or Local Service Agent?
Generally no, for 100% foreign-owned commercial and industrial LLCs. Some professional or civil company licences may still require a Local Service Agent, who holds an administrative role only, with no ownership or profit share.
How much does it cost to set up a mainland company in Dubai?
A realistic first-year budget ranges from approximately AED 25,000 to AED 60,000+, covering trade name reservation, initial approval, the DET licence fee, MOA/LSA notarization, Chamber of Commerce registration, office lease/Ejari, and at least one visa. The exact figure depends on your activity, number of activities, office type, and visa count.
What documents are required for mainland company formation in Dubai?
Requirements vary by activity and legal form. They typically include passport copies of shareholders and the manager, the initial approval and trade name reservation, the Memorandum of Association, an Ejari-registered tenancy contract and, for corporate shareholders, attested incorporation documents and a board resolution.
From activity selection to your first Corporate Tax filing, KGRN manages company formation as part of one connected tax, accounting and compliance service.
