Dubai mainland company formation.
If you plan to open a restaurant, a shop or a service business in the UAE domestic market, the suitable structure is a mainland company. Formation, licensing and accounting processes are handled by our team in Dubai.
- Since 1996
- Own office in Dubai
- 100% foreign ownership
If your activity will be carried out in the UAE domestic market, from premises leased in Dubai, the suitable structure is a mainland company.
Restaurants and cafes
Businesses that will serve consumers directly in food and beverage in Dubai.
Shops and retail
Businesses that will sell in the UAE through a shop, a showroom or a warehouse.
On-site services
Consultancy and technical service businesses that will open an office in the UAE and serve their clients on site.
Larger teams
Businesses whose headcount will grow with their leased premises and activity.
In both structures, the company can be wholly owned by foreign shareholders. The main difference between them is the market in which the activity is carried out.
| Mainland company | Free zone company | |
|---|---|---|
| Licensing authority | Mainland companyDubai Department of Economy and Tourism (DET) | Free zone companyThe free zone authority |
| UAE domestic market | Mainland companyShops, offices and direct sales within the licence | Free zone companyShops, offices and ongoing operations require a separate permit or licence |
| Physical address | Mainland companyLeased premises in Dubai, registered with Ejari | Free zone companyA shared office address is sufficient |
| Visa quota | Mainland companyBased on the size of the premises and the activity | Free zone companyBased on the licence package and office type |
| Audit | Mainland companyDepends on the activity and turnover | Free zone companyDepends on the free zone's rules |
| Total cost | Mainland companyHigher, owing to rent | Free zone companyLower |
Applications are submitted to the Dubai Department of Economy and Tourism (DET), and formation takes 5 working days on average. We prepare the documents; decisions on licences and approvals rest with the relevant authorities.
Activity and legal form
The licence type and legal form are determined according to the activity; the structure our clients form most often is a single-owner limited liability company.
Trade name and initial approval
The trade name is registered; for foreign shareholders, GDRFA approval is obtained before the initial approval.
Memorandum of Association
The Memorandum of Association and, for a professional licence, the local service agent agreement are attested.
Lease and Ejari
We support you in finding the office, shop or warehouse to lease and in registering the tenancy contract with Ejari.
Additional approvals and licence
We handle additional approvals such as the Dubai Municipality food permit; for eligible activities, DET's Instant Licence route is used.
Establishment cards
The company is registered with MoHRE and GDRFA; visa applications are made through this registration.
Review Investor, Partner and Employee VisasReview the Bank Account Process
Licence type and legal form
- Commercial licenceTrading and commercial activities
- Professional licenceServices based on knowledge and skills
- Industrial licenceProduction and manufacturing
- Limited liability companyTwo to fifty shareholders; a single-owner company is also possible
If all shareholders are foreign
- 100% foreign ownership is possible for most commercial and industrial activities
- For activities with strategic impact, the ownership structure is subject to the approval of the relevant authority
- GDRFA approval is obtained before applying for initial approval
- A local service agent is required only for a civil company or sole establishment with a professional licence
The cost depends on the activity, the office and the number of visas; we prepare a quotation tailored to you.
- Activity and licence type
- Office space and lease
- Number of visas
- Shareholding structure
Tick the documents that are ready for Dubai; we carry out the process.
Documents Required from You
Documents are collected digitally; for the formation, the company's authorised signatory must visit the official authority in person.
- Passport-style photograph on a white background
- Description of the business activity and target customers
- Three alternative company names, in order of preference
Additional documents may be requested depending on the activity code and the authority you select. If translation or notarisation is required, the relevant list is stated separately in the proposal.
A mainland company is subject to corporate tax and VAT. The rates are the same as for free zone companies; the regime specific to free zones does not apply on the mainland.
- 9%
Corporate tax
Calculated on the portion of taxable income above AED 375,000.
- 5%
VAT
Registration is mandatory once taxable supplies exceed AED 375,000 over 12 months.
- Conditional
Small Business Relief
Companies with revenue not exceeding AED 3 million may elect it for tax periods ending by the end of 2029.
- Not applicable
Free zone regime
The special regime for a Qualifying Free Zone Person does not apply to a mainland company.
Formation is only the first step; afterwards, periodic obligations arise in accounting, tax and licensing. All of them are stated up front with their amounts; no unforeseen cost arises later.After formation, accounting, tax and licence obligations recur. All are listed with amounts.
Example calculation
Total Cost of the First Year
The first 12 months of a newly formed company carrying out a standard activity. Licence fees vary with the activity and the rent stated in Ejari.
By quotationDepending on the licence renewal amount
- 4 itemsIncluded in this total
- 4 itemsOutside the total, conditional
Conditional and on-request items are outside this total; they are not included because they arise only if the conditions are met.Conditional items are outside the total; they apply only if the conditions arise.
Residence rule
The continuation of a residence permit depends on entry into the UAE.
Investor and partner residenceat least once a year
365 days
Employee residenceat least once every six months
182 days
Full rule
Once the visa has been issued, the permit remains valid as long as you enter the UAE at certain intervals. The period starts again with each entry. If this rule is not known, the permit may lapse without being noticed; it is therefore stated separately here.
- For an investor or partner residence, entry into the UAE is required at least once every 365 days.
- For an employee residence, the period is half as long: entry is required at least once every 182 days.
If the period expires without entry, the residence permit may lapse; in that case the process starts again. Following the entry calendar is the responsibility of the residence holder.
Amounts are in USD and exclude VAT unless otherwise stated; they are updated if official fees change. Periods are the timetables set by legislation; as the authorities' processing times are outside our control, we do not commit to fixed timeframes. Which items arise for your company depends on your activity, licence and transaction volume.Amounts are in USD, excluding VAT. Timelines follow the regulatory calendar; no fixed timeline is promised.
We have provided accounting and tax services since 1996. We manage mainland company formation and post-formation processes from our Dubai office.
Dubai officeSaaha Offices B - 304 Souk Al Bahar Bridge
- Since 1996in accounting and tax
- Dubaiour own office
- Three countrieswith our own offices
Formation
We manage the application process from the trade name and initial approval to the licence.
Accounting
Bookkeeping and filing are carried out by our own staff, without outsourcing.
Tax and VAT returns
Corporate tax and VAT registrations and returns are filed on time.
Licence and changes
Licence renewal, adding activities and changes in ownership.
You need to be in Dubai for the visa and Emirates ID. With the VIP service, our adviser accompanies you to the appointments and your stay in Dubai is shorter.With the VIP service, our adviser accompanies you to the appointments; your stay in Dubai is shorter.
In most cases, the cost of the extra days in Dubai in the standard process covers the VIP service fee.
Request a Quotation- Private reception at the airport
- Private car transfers throughout the process
- A dedicated adviser for official procedures
- Medical fitness test at a VIP health centre
- Emirates ID and biometrics appointments
- Appointments planned in advance
A mainland company is licensed by the Dubai Department of Economy and Tourism (DET) and operates directly in the UAE domestic market. A free zone company is licensed by its own authority; a separate permit or licence is required for a shop, an office or ongoing operations in the domestic market.
Yes. Since 2021, 100% foreign ownership has been possible for most commercial and industrial activities. For activities considered to have a strategic impact, the ownership structure is subject to the approval of the relevant authorities.
It is required only for civil companies and sole establishments with a professional licence. A limited liability company does not require a local service agent.
Yes. A mainland company must have a physical address in Dubai, and the tenancy contract is registered with Ejari. The premises can be anywhere in Dubai outside the free zones.
The visa quota is set by the Ministry of Human Resources and Emiratisation (MoHRE) according to the size of the premises and the requirements of the activity, and it can be increased as the company grows.
Corporate tax is 0% on taxable income up to AED 375,000 and 9% on the portion above it. VAT registration is mandatory once taxable supplies exceed AED 375,000 over 12 months; the standard rate is 5%.
The audit obligation depends on the company's activity and turnover; whether it applies to your company is assessed at the first meeting. Accounting records are kept for at least 5 years under company law and for 7 years under corporate tax law.
No. Moving from a free zone to the mainland means forming a new company. In Dubai, free zone companies can also operate in the domestic market with a branch licence or permit obtained from DET.
Formation takes 5 working days on average. The cost depends on the activity, the premises, the additional approvals required and the number of visas; a tailored quotation is provided at the first meeting, based on an assessment of your activity.
No. For a mainland company formation, the company's authorised signatory must visit the official authority in person. We handle the preparation of the documents and the applications.
If your clients are located outside the UAE, you can also review the free zone structure.
