UAE continues to be a global hotspot for entrepreneurs and investors who want to tap into the region’s vibrant economy, tax advantages and strategic location. One of the most sought-after options for business formation is the mainland company setup in UAE. Unlike free zones, mainland companies allow businesses to operate across the UAE and Internationally without restrictions. In this detailed guide, we will walk you through the legal and cost aspects involved in setting up a mainland company in the UAE.

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Understanding Mainland Company in UAE

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A mainland company is an onshore company licensed by the Department of Economic Development (DED) of the respective Emirate in this case, Dubai. It allows businesses to trade freely within the local market and across the UAE. With recent reforms in the UAE’s commercial laws, the rules around foreign ownership and local sponsorship have also evolved, making UAE an even more attractive hub for global entrepreneurs. This mainland company setup guide explores what it takes to legally establish your business and break down the associated costs in a transparent way.

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Legal Framework for Mainland Company Setup

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Before launching your business, understanding the legal structure UAE companies must adhere to is essential. The most common structures include:

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• Limited Liability Company (LLC): This is the most popular form and suitable for most business activities. It requires between 1 to 50 shareholders.
• Civil Company: For professionals like doctors, engineers, and consultants. It allows 100% foreign ownership for certain activities.
• Branch of a Foreign Company: This allows international businesses to expand into the UAE without setting up a new legal entity.

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Until recently, most businesses required a local sponsor UAE typically a UAE national holding 51% of shares. However, the introduction of the Commercial Companies Law in 2021 allowed 100% foreign ownership for many activities, eliminating the need for a sponsor in most cases.

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For businesses where a sponsor is still required, a professional corporate nominee can be appointed, ensuring security and transparency.

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DED Registration and Licensing

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To start the mainland company setup, you must obtain approval from the Dubai Department of Economic Development (DED). The Dubai DED registration process includes:

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1. Choosing a Business Activity: Select from over 2,000 permitted activities.

2. Trade Name Reservation: Ensure your business name complies with UAE naming conventions.

3. Initial Approval: Get approval from the DED before proceeding with documentation.

4. Office Space: Mainland businesses must have a physical office. Ejari (tenancy contract) is required for final approval.

5. Final License Issuance: Once all documents are submitted and approved, DED will issue your trade license.

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A Commercial License is required for trading activities. Other licenses include Professional, Industrial and Tourism licenses.

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Cost Breakdown for Mainland Company Setup

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One of the most frequently asked questions is about the cost of business license UAE and other associated fees. Here’s a basic breakdown:

The total cost for a mainland company setup can range between AED 15,000 to AED 35,000, depending on the type of business, location and license. It’s important to note that the UAE Mainland rules and fees may vary based on business activity and legal form. Renewal fees are also applicable annually.

Business Ownership and Sponsorship

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UAE’s new commercial law reforms have simplified UAE business ownership laws for expatriates. Today, many sectors no longer require a local sponsor and expats can fully own the business. However, regulated activities such as legal services, security and oil & gas may still need UAE national involvement. When required, a local sponsor UAE may act as a service agent without being involved in business operations offering you the freedom to run your company while fulfilling regulatory requirements.

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Benefits of Mainland Company Setup

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Here’s why many entrepreneurs are opting for mainland company setup:

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• Unlimited Business Scope: Operate anywhere in the UAE and globally.
• Access to Government Contracts: Only mainland companies can bid on UAE government projects.
• No Currency Restrictions: Freedom to repatriate capital and profits.
• Greater Flexibility: Wider range of business activities and office locations.
• 100% Foreign Ownership (In Most Sectors): Thanks to updated Dubai business ownership laws.
  
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Final Thoughts

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Setting up a business in UAE’s mainland is a powerful move for anyone looking to grow within the UAE and globally. Whether you're launching a trading company, a consultancy or a tech startup, the mainland offers flexibility, access and growth opportunities that are hard to match.

Understanding the legalities, costs and sponsorship structure can make your journey smooth and efficient. As UAE continues to evolve its business-friendly ecosystem, now is a better time than ever to consider mainland company setup in UAE as your next big step.

Frequently Asked Questions

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1. What are the legal requirements for setting up a Mainland company in the UAE?

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To legally establish a mainland company in UAE, you must:

• Select a suitable legal structure (e.g., LLC, Civil Company).
• Reserve a unique trade name.
• Get initial approval from DED.
• Prepare and notarize the Memorandum of Association.
• Secure an office space with a tenancy contract (Ejari).
• Complete all DED documentation for trade license issuance.

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2. What is the cost of obtaining a Mainland Trade License?

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The cost of obtaining a Mainland trade license in UAE ranges from AED 10,000 to AED 15,000. However, additional costs such as office rent, government approvals and administrative fees can bring the total setup cost to around AED 25,000 to AED 50,000.

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3. Do I need a UAE national sponsor for a Mainland company?

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In many sectors, recent reforms allow 100% foreign ownership in a wide range of business activities. However, if your business falls under a regulated or restricted category, you may still need a UAE national sponsor either as a partner (with 51% shareholding) or as a service agent.

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