If you are thinking about buying a Start a business in Dubaia Mainland company is one of the most promising options. A Mainland company in Dubai, as opposed to a Freezone Company the opportunity to interact directly with the local market and government authorities. This opens up a broad customer base and valuable business opportunities throughout the UAE.
Another advantage of a Mainland registration is the flexibility it offers. You can easily adapt your business model and start new activities by simply registering them with the competent authority. This freedom allows you to react quickly to market changes and increase your competitiveness.
The most important facts at a glance:
- Flexibility and growth potential: A company on the mainland in Dubai allows flexibility in the choice of more than 3,000 business activities as well as the ability to react flexibly to market changes and integrate new activities.
- Complete foreign ownership: Thanks to new regulations, foreign investors can now hold 100 % of the shares of a Mainland company in many sectors, which offers great advantages and control over the company.
- No trade or location restrictions: Mainland companies are allowed to operate within and outside Dubai and the entire UAE without restrictions, giving them access to a broad market. The choice of office location is also flexible and allows for strategic property decisions.
- Access to government contracts: The opportunity to participate in lucrative government projects offers Mainland companies significant business opportunities, particularly in the areas of infrastructure and education.
- Low Formation costs and requirements: Forming a Mainland company requires no minimum capital requirement and offers cost-effective options for licence fees and office rental, making it easier to enter the market.
What is a company on the Mainland?
A Mainland company in Dubai is a company registered with the Department of Economic Development (DED) that allows you to do business within the UAE and internationally without restrictions. As an owner, you can own 100 % of your company, regardless of your nationality, choose from over 3,000 business activities and freely choose your location in Dubai. You are also allowed unlimited Work visas for your employees.
With this type of company, you benefit from full flexibility in the local UAE market. You can do business directly with government authorities and local companies as well as open multiple branches in different emirates. A Mainland company is particularly suitable if you want to establish a strong presence in the dynamic UAE market and benefit from Dubai's position as a global business centre.
What are the advantages of the Mainland Company?
A Mainland company in Dubai offers numerous advantages that make it an attractive choice for entrepreneurs.
1. full ownership rights
A key advantage is that as a foreign investor you can own 100 % of the shares in a Mainland company. This gives you full control and flexibility without the need for a local sponsor.
2. diverse office options
With a Mainland company, you have the freedom to open your office anywhere in Dubai. This flexibility helps to establish multiple branches and build a strong presence in the United Arab Emirates.
3. no capital commitment
There is no minimum capital requirement for setting up a Mainland company. This makes it easier for you to start your company with a small budget and gain a foothold in the dynamic Dubai market.
4. no trade restrictions
Mainland companies can trade freely within Dubai and throughout the UAE. This gives you access to a diversified market and allows you to interact with other companies without restrictions.
5. diversity of companies
Licensing through the Department of Economic Development allows you to choose from over 3,000 approved activities. Options include retail, agriculture, hospitality and manufacturing, ensuring a variety of business opportunities.
Despite its advantages, a Mainland company in Dubai also has some disadvantages: You will be one Corporate income tax of 9 % and the Value added tax are subject to. The start-up costs are relatively high at a minimum of €10,000 and you must provide proof of a physical business location of at least 20 square metres. You will also face stricter regulations and potentially more complex administrative requirements. A local partner may still be required for certain business activities, although this is no longer mandatory in many industries since 2021.
Your decision should ultimately depend on your specific business goals and activities.
Do I need a licence for a Mainland company?
To legally operate a business on Dubai Mainland, a licence is required. This licence is obtained from the Department of Economic Development (DED) in Dubai, which ensures the registration and recognition of your business as a legal entity. There are different types of licences, depending on your planned business activity. The main types are:
- Commercial licence:
This licence is for companies involved in the trade of goods and services. It covers activities such as import, export, wholesale and retail. - Professional licence:
This licence is for companies that offer professional services, such as consulting, engineering, accounting or IT services. - Industrial licence:
This licence is required for companies that are active in the production, manufacture or processing of products.
There are also specialised licences for certain sectors, such as
- Tourism licence
- Real estate licence
- Restaurant licence
- Building licence
- Health licence
- Logistics and transport licence
- Education licence
The type of licence you need depends on your specific business activity.
Foundation of a Mainland company in Dubai
Setting up a Mainland company in Dubai involves several steps. The list shows you which steps are necessary to set up a Mainland company in Dubai. Setting up a company in Dubai:
- Select business activity:
Decide on a business activity from the available options
Choose a suitable legal form such as LLC or Sole Establishment - Reserve company name:
Choose a unique company name
Reserve it with the Department of Economic Development (DED) - Secure business location:
Rent a physical business location in Dubai
Receive the rental agreement and the Ejari certificatePreliminary - Apply for authorisation:
Submit the application to the DED
Enclose all required documents - Obtain external authorisations:
Obtain additional authorisations from relevant authorities if required - Apply for a licence:
Pay the licence fees
Receive the final trading licence from the DED - Open a company account:
After receiving the licence, open a Business account with a bank in the UAE
These steps form the core of the incorporation process of a Mainland company formation in Dubai. Careful preparation and the support of experienced advisors can make the process much easier.
Differences between a Freezone company and a Mainland company
There are significant differences between companies in free zones and Mainland companies that should be considered when setting up a company in Dubai.
Taxes
For Mainland companies, a company tax of % on profits above AED 375,000 applies. There is no personal income tax. Companies in Freezones benefit from a Tax exemptionBoth in terms of corporate and personal income taxes. They are also exempt from VAT and customs duties under certain conditions.
Labour force
The employment of staff at Mainland companies is subject to the general labour regulations of the UAE. In free zones, the labour regulations are usually less strict, but vary depending on the free zone.
Subsidiaries
Mainland companies can establish multiple branches within the UAE without any restrictions. Freezone companies also have the option of opening branches within the UAE. However, these are subject to the regulations of the respective Mainland authority.
Management
Mainland companies allow more flexibility in the management and governance of the company. In free zones, specific regulations may restrict management, depending on the respective regulations of the zone.
Business activities
Mainland companies have access to over 3,000 authorised business activities and can operate both locally and internationally without restrictions. Companies in Freezones are often limited to the activities permitted under their specific licence.
From a Freezone company to a Mainland company
The transition from a Freezone company in Dubai to a Mainland company requires careful planning and strategic implementation. Firstly, your free zone company must be properly deregistered. This includes settling all financial obligations. Once this is complete, you can begin the process of incorporating your Mainland company.
When setting up a Mainland company, you benefit from unrestricted access to the local UAE market. This enables direct interaction with government authorities, which is crucial for business expansion. Without the restrictions that exist in free zones, you can choose from over 3,000 approved business activities.
The legal and regulatory requirements must be taken into account when making a change. Early consultation with a business advisor will provide a comprehensive perspective on the benefits of switching. An important consideration is the potential benefit of 100 % foreign ownership in many sectors, which provides complete control and flexibility. Equally important is the transfer of all assets and contracts to the new Mainland organisation.
Conclusion
Establishing a Mainland company in Dubai opens up extensive business opportunities and benefits. Unrestricted business activity within the UAE and beyond provides direct access to a dynamic market. The option of 100 % foreign ownership frees you from the need for a local sponsor and gives you full control over your business.
Licensed by the Department of Economic Development (DED), you benefit from the flexibility to choose from over 3,000 approved business activities. This range, combined with the freedom to choose your location within the UAE, ensures that your business remains competitive. The lack of a minimum capital requirement and the freedom to operate without trade restrictions make it much easier to enter the market.
The structure of the Mainland company in Dubai therefore promises sustainable success and expands your strategic opportunities in international business.
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Frequently asked questions:
What is a Mainland company in Dubai?
A Mainland company in Dubai is a company that is registered directly with the Department of Economic Development and is authorised to do business throughout the emirate and the UAE. It is subject to the general corporate laws of the UAE.
What is the difference between a Mainland company and a Freezone company in Dubai?
The main differences are:
- Business area: Mainland companies can operate anywhere in the UAE, Freezone companies only in their free zone.
- Ownership: Freezone companies allow 100 % foreign ownership, for Mainland companies this is only possible in certain sectors.
- Taxes: Freezone companies often enjoy tax advantages that Mainland companies do not.
- Location: Mainland companies are free to choose their location, Freezone companies must remain in their zone.
How much does it cost to set up a Mainland company in Dubai?
The cost of setting up a Mainland company in Dubai starts at around AED 25,000 (approx. EUR 6,200). The exact costs depend on factors such as type of business, number of shareholders and office space.
What is a Mainland Business Visa in Dubai?
A Mainland business visa in Dubai is a residence permit for entrepreneurs or employees of a Mainland company. It allows the holder to live and work legally in the UAE. The validity and number of visas depends on the size of the company and the office space rented.
