Dubai Mainland Company Formation: The Complete Framework
Dubai mainland companies operate under the jurisdiction of the Department of Economy and Tourism (DET) and enjoy unrestricted access to the UAE domestic market, government contracts, and commercial leasing across the emirate.
Since the 2020 amendment to the Federal Commercial Companies Law, foreign investors may hold 100% ownership in mainland LLCs for the majority of commercial and industrial activities, eliminating the previous requirement for a 51% Emirati sponsor.
Legal Structures Available
| Structure | Ownership | Liability | Use Case |
|---|---|---|---|
| LLC (Limited Liability Company) | 1-75 shareholders | Limited to capital | Most commercial activities |
| Sole Establishment | Single owner (UAE/GCC national) | Unlimited | Professional services |
| Civil Company | 2+ partners | Unlimited | Consultancy, legal, medical |
| Branch Office | 100% foreign parent | Parent company | Market representation |
The LLC remains the dominant structure for foreign investors, offering limited liability protection and broad activity scope under a single trade license.
Step-by-Step Formation Process
Step 1: Initial Approval and Trade Name Reservation Submit a trade name reservation through the DET portal or Invest Dubai platform. The name must comply with UAE naming conventions and cannot duplicate existing registrations. Processing takes one to two business days.
Step 2: Activity Selection and License Type Select business activities from the DET activity list. Each activity carries a corresponding license category: commercial, professional, or industrial. Multiple activities may be grouped under a single license with additional fees per activity.
Step 3: Memorandum of Association Draft and notarise the MOA at a Dubai notary public. For single-shareholder LLCs, an establishment contract replaces the MOA. Notarisation fees range from AED 2,000 to AED 5,000 depending on share capital.
Step 4: Office Space and Ejari Registration Secure a physical office or approved Flexi-Desk arrangement. All mainland companies require an Ejari-registered tenancy contract. Minimum office space requirements vary by activity type.
Step 5: License Issuance Submit the complete application package to DET. Upon approval, the trade license is issued within three to five business days. The license is valid for one year and must be renewed annually.
Cost Breakdown
| Component | Estimated Cost (AED) |
|---|---|
| Trade Name Reservation | 620 |
| Initial Approval | 1,000-2,000 |
| DET Trade License | 10,000-15,000 |
| MOA Notarisation | 2,000-5,000 |
| Office Lease (Flexi-Desk) | 8,000-15,000/year |
| Office Lease (Physical) | 25,000-80,000/year |
| Visa Allocation (per visa) | 3,500-5,000 |
| Establishment Card | 2,000 |
| Total Estimated Range | AED 27,000-125,000 |
Costs vary significantly based on activity type, office choice, and number of visa allocations required. Professional service firms typically incur lower setup costs than commercial trading operations.
Visa Allocations
Mainland companies receive visa quotas based on office space. The standard allocation is one visa per 9 square metres of office space for commercial licenses. Flexi-Desk arrangements typically permit two to three visa allocations. Companies requiring larger teams must secure proportionally larger premises.
Timeline Summary
The end-to-end formation process typically requires four to six weeks from initial application to operational readiness, assuming all documentation is prepared and no additional regulatory approvals are required for the selected activities.