Business Setup in Dubai Mainland: Comprehensive Guide for 2025
Looking to establish a business in Dubai Mainland? Explore the process, benefits, and costs of a Dubai Mainland business setup, and find out why its the right choice for your business.
Dubai is widely recognized as a commercial hub, offering business opportunities to entrepreneurs and corporations worldwide. The business setup in Dubai Mainland is one of the most attractive options for those looking to operate without the restrictions of Free Zones. With a Mainland business, companies can trade directly with the local UAE market and expand without limitations.
In this guide, well explore everything you need to know about establishing a business in Dubai Mainland, the benefits of this option, the setup process, and how to manage the costs effectively.
1. What is Dubai Mainland?
Dubai Mainland refers to the geographical areas designated by the UAE government where businesses can operate under the rules and regulations set by the Department of Economic Development (DED). Unlike businesses set up in Free Zones, Mainland companies are not confined to a specific area and can engage in trade both within and outside the UAE.
In recent years, Dubai Mainland has become increasingly popular for businesses looking to expand their operations beyond Free Zones due to its flexibility and accessibility to the local market.
2. Benefits of Business Setup in Dubai Mainland
Setting up a business in Dubai Mainland offers several key benefits that make it a lucrative choice for both local and international entrepreneurs. Here are some reasons why businesses are opting for Mainland:
No Trade Restrictions
A major advantage of establishing a business setup in Dubai Mainland is that companies can trade freely across the UAE and internationally. Unlike Free Zones, where businesses are restricted from conducting business within the UAE market unless through a distributor, Mainland businesses can directly interact with customers in the local market.
100% Foreign Ownership
As of June 2021, Dubai Mainland businesses can now be 100% foreign-owned, removing the requirement for a local UAE sponsor. Previously, foreign investors needed to partner with a local sponsor who held 51% ownership of the company. With this new law, foreign entrepreneurs and companies have complete control over their business.
Flexibility to Work with Government Contracts
Another significant benefit of Dubai Mainland business setup is the ability to bid for and work on government contracts. Businesses in Free Zones cannot participate in these lucrative government projects. By establishing a Mainland company, businesses open themselves up to a wealth of opportunities from government tenders, which can result in long-term contracts and substantial revenue streams.
Wide Range of Business Activities
Mainland companies are allowed to engage in a wide variety of business activities, including commercial, industrial, professional, and tourism-related sectors. This flexibility makes it easier for businesses to diversify their offerings or pivot into new industries as needed.
Prime Office Locations
When you set up a business in Dubai Mainland, you have access to some of the most prestigious office locations in the city. Dubai Mainland businesses can operate in the heart of the city, including prime areas such as Sheikh Zayed Road, Downtown Dubai, and Business Bay, enhancing your brand's visibility and accessibility.
3. Key Steps for Dubai Mainland Business Setup
Setting up a business in Dubai Mainland follows a specific process, which involves obtaining the necessary approvals and licenses from various government departments. Here is an overview of the main steps involved:
Step 1: Select a Business Activity
The first step in setting up a Dubai Mainland business is to decide on the business activity you wish to engage in. Dubai offers more than 2,000 types of business activities, including industrial, professional, and commercial sectors.
Step 2: Reserve a Trade Name
Once you have selected your business activity, the next step is to choose and reserve a trade name for your company. The trade name must be unique and comply with the DEDs guidelines for naming businesses.
Step 3: Get Initial Approval
Before proceeding with the full business setup, you will need to obtain initial approval from the DED. This ensures that the government permits the formation of your business in Dubai Mainland. Initial approval is mandatory for foreign nationals and investors.
Step 4: Rent Office Space
One of the requirements for Dubai Mainland business setup is to have a physical office space in Dubai. Your company must secure a valid tenancy contract, also known as an Ejari, to obtain the business license.
Step 5: Obtain Approvals from Relevant Authorities
Depending on the nature of your business, you may need to obtain additional approvals from specific government authorities. For example, businesses in the healthcare industry will need approval from the Dubai Health Authority (DHA), while educational businesses require approval from the Knowledge and Human Development Authority (KHDA).
Step 6: Apply for Your Business License
Once you have secured office space and received the necessary approvals, you can apply for your business license through the DED. The type of license will depend on your business activity (commercial, industrial, or professional).
4. Costs of Business Setup in Dubai Mainland
The cost of business setup in Dubai Mainland varies depending on several factors, including the type of business activity, office location, and additional services required. Here is a breakdown of typical costs:
Business License Cost
The cost of obtaining a business license through the DED typically ranges from AED 10,000 to AED 30,000. This cost can vary based on the type of license and the approvals required for your business.
Office Rental Cost
The cost of office rental depends on the size and location of your office. Renting office space in prime locations such as Downtown Dubai or Business Bay can be more expensive, with rental prices starting from AED 50,000 per year.
Additional Fees
Trade name registration: AED 620 AED 2,000
Notary fees for legal contracts: AED 300 AED 1,000
Visa costs: AED 3,000 AED 5,000 per employee
Professional fees for setup consultants (optional): AED 5,000 AED 20,000
While the overall cost of business setup in Dubai Mainland may seem higher compared to Free Zones, the benefits of trading without restrictions, full foreign ownership, and access to government contracts make it a worthwhile investment.
5. Managing the Cost of Mainland Business Setup
To manage costs effectively during your Dubai Mainland business setup, consider the following tips:
Opt for shared office space: Many businesses start with a shared office to reduce rental costs in the first year.
Hire a business setup consultant: Experienced consultants can help navigate the setup process and ensure you avoid unnecessary fees.
Take advantage of installment plans: Some consultants and government authorities offer flexible installment payment options for business setup costs, easing the financial burden.
Conclusion
Setting up a business in Dubai Mainland provides unlimited growth opportunities, flexibility, and access to the entire UAE market. While the setup process may involve various approvals and fees, the long-term benefits, including full foreign ownership and the ability to work with government contracts, make it an attractive choice for entrepreneurs looking to establish a presence in Dubai.
What's Your Reaction?
