Step-by-Step Guide to Mainland Company Formation in Dubai

One of the most popular business establishment services offered to entrepreneurs and investors seeking to exploit the vibrant economy of the UAE is that of the Mainland Company Formation Dubai. Dubai is a global business destination with a strategic location, business-friendly policies and world-class infrastructure. Establishing a company on the mainland gives investors full access to the UAE market and greater flexibility to operate both locally and internationally.

At Go Kite Pro, we support entrepreneurs through the entire UAE company incorporation process — from business planning and documentation to trade-license issuance and ongoing compliance. Our specialists make sure your Dubai experience is streamlined, compliant and cost-effective.

Understanding Mainland Company Formation Dubai

A mainland company in Dubai is a business entity registered with the Dubai Department of Economy & Tourism (DET) / Dubai Department of Economic Development (DED). Mainland registration allows you to conduct activities across the UAE without the geographic restrictions that typically apply to free-zone only entities.

Historically the biggest difference between mainland and free-zone setups has been market access and ownership. Free-zone companies often benefit from 100% foreign ownership but are limited in their ability to trade directly into the UAE market; mainland companies traditionally needed a local sponsor or partner for some activities. Recent federal and emirate reforms, however, have expanded 100% foreign ownership eligibility for many mainland sectors — a development that makes mainland formation an increasingly attractive option for international investors.

Dubai Mainland Business Setup Steps

Establishing a business in Dubai becomes straightforward when you know the steps. Here’s the practical breakdown:

1. Select your business activity

Define the core activity you intend to perform. Activities are grouped into commercial, professional and industrial categories; your choice determines whether you need a commercial, professional or industrial licence.

2. Obtain business-activity approval

After choosing your activity, obtain activity approval from the relevant authority. Regulated sectors (healthcare, education, finance, energy, etc.) require additional clearances from specialist regulators.

3. Choose the legal structure

Common mainland structures include: Limited Liability Company (LLC), Sole Establishment, Civil Company and Branch of a Foreign Company. Your choice affects ownership, liability, and profit distribution — Go Kite Pro will advise which structure matches your goals.

4. Obtain initial approval

The DET/DED issues preliminary approval confirming there are no objections to your proposed business name and activity. This is needed before final documentation and tenancy registration.

5. Prepare and submit required documents

Typical documentation includes passports for shareholders and managers, trade-name reservation, initial approval certificate, tenancy contract (Ejari), and, where applicable, No Objection Certificates (NOCs). Under the new framework for free-zone expansion into the mainland, branch or temporary-permit applications may also require NOCs or clearances from the relevant free-zone authority.

6. Final registration with DET/DED

Once documents are approved, register the company with DET/DED to complete legal incorporation.

7. Trade license issuance, visas and bank account

After registration you receive the trade license and can commence operations. Subsequent steps include visa applications, labor registrations and opening a corporate bank account.

Many of these activities can now be completed digitally, which shortens the timeline for routine registrations. Integrated government gateways let entrepreneurs reserve trade names, submit initial approvals and in many cases receive licences online — reducing processing from multiple weeks to days for non-regulated activities.

Key Mainland Company Requirements

• Minimum capital: the amount is declared in the Memorandum of Association (MoA) rather than being a fixed statutory sum for most activities.
• Local service agent: professional licenses may still require a UAE national local service agent (no equity).
• Office space: a physical office address with Ejari tenancy is required for mainland licensing.
• Correct license type: choose commercial, industrial or professional license consistent with your declared activity.

The 2025 reforms that expand foreign-ownership options make it easier to form LLCs, many professional services companies and sole establishments without a local-equity sponsor — though restrictions remain for specific strategic or regulated activities. Always confirm eligibility for your exact activity.

New Regulatory Framework: Free Zone Companies Operating on the Mainland

Dubai’s Executive Council Resolution No. (11) of 2025 establishes a formal pathway for free-zone companies to carry out permitted activities on the mainland either by obtaining a branch licence or by holding a temporary/operating permit. Branch licences (where applicable) are typically renewable annually; temporary permits allow mainland activity for up to six months and are renewable subject to conditions set by DET and the free-zone authority. This change lets many free-zone businesses expand mainland operations without creating a separate mainland legal entity, provided they meet licensing, regulatory and financial requirements.

Permit fees and tax treatment: the temporary mainland permit is administered through the DET/Invest-in-Dubai gateways and carries an administrative fee . Revenues directly attributable to mainland activity are subject to UAE corporate tax rules, so companies operating across both regimes must attribute income correctly and maintain separate accounting where required.

Benefits of Mainland Company Formation

• Unlimited market access across the UAE.
• Ability to pursue government contracts and larger local clients.
• Enhanced credibility with local partners and customers.
• Easier physical expansion (branches, additional licences).
• Better alignment for sectors that need on-the-ground presence (B2B services, retail, construction, professional services).

With the new free-zone to mainland routes, businesses can combine the administrative advantages of free zones with the market access of the mainland — provided they comply with separate reporting and tax rules for mainland-sourced activities.

Mainland vs Free Zone: Choosing the Right Setup

Mainland setup is generally preferable when you need direct access to the UAE market, government contracts, or the ability to scale locally. Free zones remain attractive for 100% foreign ownership, simplified compliance for QFZPs (Qualifying Free Zone Persons) and tax preferences on qualifying income — but the 2025 framework reduces the binary choice by allowing permitted mainland activity through branch licences or temporary permits. Choose based on your target customers, regulatory profile and long-term growth plans.

How to Register a Mainland Company — Practical Checklist

1. Register trade name via the DET/DED portal or Basher/Bashr gateway.
2. Confirm that your chosen activity is eligible on the mainland.
3. Apply for initial approval and prepare supporting paperwork.
4. Draft and notarise the Memorandum of Association (MoA).
5. Lease office space and register tenancy with Ejari.
6. Submit final documents and complete registration.
7. Receive trade licence, apply for visas and open a corporate bank account.

Digital platforms have streamlined many of these steps; for eligible activities you can complete name reservation, approvals and some licence issuances online in a tightly compressed timeline.

Permit & Tax Specifics When Free-Zone Entities Operate on Mainland

• Temporary permit duration: up to six months (renewable).
• Branch licenses: generally valid for one year and renewable.
• Tax mainland: attributed income falls within UAE corporate-tax scope; businesses must segregate mainland revenues for correct tax treatment.

Maintain separate financial records and consult tax advisors to ensure accurate attribution and compliance.

Key Cost Considerations (Estimated for 2025)

• Trade-name reservation and initial approval fees (government portal rates vary).
• Licence issuance fees (depend on licence type and activity).
• Temporary permit or branch licence fees
• Office tenancy (Ejari) and fit-out costs.
• Visa processing fees (per visa, variable by type).
• Bank account setup requirements and related charges.
• Professional advisory and compliance fees to navigate the new rules.

There are also targeted incentives, sectoral packages and streamlined offers appearing in 2025 for priority sectors (tech, renewable energy, digital services and select SMEs); ask your advisor about sector-specific subsidies or cost reductions.

Dubai’s strategic location and rapidly digitising economy are creating demand in areas such as e-commerce and digital services, fintech and payments, renewable-energy solutions and clean-tech, software and digital transformation consulting. These are sectors where mainland formation often adds value because of improved local access and credibility with customers and government buyers. Aligning your activity with these market trends can improve uptake and unlock incentives.

Practical Compliance Tips

• Maintain separate accounting for mainland and free — zone operations to support correct tax attribution.
• Keep NOCs and relevant free — zone approvals on file for branch/permit applications.
• Track permit and license renewal dates closely — temporary permits are time-limited and require timely renewal where continuation of mainland activity is needed.
• Use Basher/Bashr and DET/Invest in Dubai — portals to accelerate filings and reduce in-person steps.
• Retain professional support for regulated activities — some sectors will still require specialist regulator approvals and additional compliance steps.

Conclusion

Mainland Company Formation Dubai continues to offer unmatched opportunities for investors seeking long-term growth, local market access and operational credibility. The 2025 regulatory changes — including the Executive Council framework for free-zone access to the mainland, expanded foreign-ownership allowances and the growing sophistication of digital government services — make this an opportune time to evaluate mainland options carefully.

Go Kite Pro will guide you through entity selection, permit route (branch, temporary permit or full mainland set-up), documentation, tax attribution and digital filings so you can scale quickly while remaining fully compliant. Consult Go Kite Pro early to map the fastest, most compliant route for your business and to capitalise on the new regulatory and digital advantages available in 2025.