Dubai Mainland
To set up a Dubai Mainland company, several requirements must be met to comply with the regulations set by the Department of Economic Development (DED) in Dubai. Below is a detailed overview of the key requirements for Dubai Mainland company formation:
The first step is to select the business activity or activities the company will engage in. Dubai Mainland allows for various types of licenses, including:
- Commercial License: For trading and commercial activities.
- Professional License: For service-oriented businesses.
- Industrial License: For manufacturing and industrial activities.
As of June 2021, 100% foreign ownership is allowed for many business activities in Dubai Mainland. However, certain activities still require a UAE national as a local service agent or partner for specific regulated sectors (e.g., oil, gas, telecommunications).
Choose the legal form of the business:
- Limited Liability Company (LLC): The most common structure, which now allows for full foreign ownership.
- Sole Establishment: Suitable for individuals engaging in professional or consultancy activities.
- Civil Company: For professionals such as doctors, lawyers, and engineers.
- Branch Office: For companies seeking to establish a presence in Dubai but remain part of a parent company.
A physical office is mandatory for Mainland companies. The company must have an Ejari (tenancy contract) in place to prove a valid office location in Dubai. The office space size and location depend on the business activity and visa requirements.
The company must select a unique trade name that complies with the DED guidelines and register it. The name should not violate public morals or resemble the name of any existing company.
Once the business activity, trade name, and legal structure are finalized, an initial approval from the DED is required. This step confirms that the government has no objections to the company being established in Dubai Mainland.
For LLCs and other types of companies, a Memorandum of Association must be drafted. The MoA outlines the company’s ownership structure, capital distribution, and the responsibilities of partners or shareholders. This document is notarized and submitted to the DED.
After obtaining initial approval, registering the trade name, and submitting the MoA, the next step is to apply for the business license. The license is issued by the DED once all required documents and approvals are in place. This license officially permits the company to conduct business in Dubai Mainland.
Once the company is registered, visas can be applied for the shareholders, employees, and any dependents. The number of visas the company can sponsor depends on the size of the office space and the nature of the business.
Depending on the business activity, additional approvals may be needed from other government bodies or ministries (e.g., Dubai Municipality, Ministry of Health, etc.).
Required Documents:
- Passport copies of shareholders and managers.
- No Objection Certificate (NOC) (if applicable) from the current employer for UAE residents.
- Ejari (tenancy contract) for the office space.
- Initial approval receipt from DED.
- Trade name reservation certificate.
- Memorandum of Association (MoA) and any other legal agreements.
Key Benefits of Dubai Mainland Company Formation:
- No restrictions on trade within Dubai and the UAE.
- Ability to trade directly with UAE government entities.
- No limitations on the number of visas, subject to office size.
- Access to lucrative government contracts and local business opportunities.
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