The United Arab Emirates is one of the top business centers in the world. The country continues to grow with strong plans to improve its technology and infrastructure. Setting up a business in Dubai gives investors the option to create flexible profit-sharing agreements and contracts with a UAE national sponsor for mainland company formation. Investors can choose to pay a fixed yearly fee, a share of sales, or a share of profits. Most people prefer a fixed yearly fee because it’s simple and doesn’t require sharing financial details with the sponsor.
Dubai local sponsors can include a fee arrangement in their legal agreement. A Limited Liability Company (LLC) can have two to fifty partners, with each partner’s liability limited to their share in the company. Dubai tax-free status and strong trade position make it a great place for mainland company formation, especially with shared ownership structures.
Starting a business in Dubai can be difficult because of sponsor requirements, local rules, and document work. A licensed consultant can help with company setup, registration fees, and the full process. Dubai offers many advantages, including no customs duty, investor visas, the ability to hire staff, better bank credibility, easy branch setup, access to tenders and government projects, real estate ownership, and free trade within the UAE and GCC region.
A Dubai Mainland Company requires an Emirati Local Sponsor or a Silent partner. The percentage of Local Partners is described below.
Dubai mainland Limited Liability Company (LLC) businesses must select the appropriate license for their activities, with several main types available for business setups.
Commercial License: A Commercial License is required for companies engaged in trading activities. This license allows them to operate in major sectors such as import and export, retail, and general trading in different products.
Industrial License: An industrial license is essential for businesses in Dubai that manufacture and transform raw materials into finished products or engage in packaging and assembly processes. It is also crucial for operating factories or production units.
Professional License: A Professional License allows expatriates to own 100% of professional services, including consultancy, accountants, lawyers, and medical practitioners, with a local service agent instead of a partner.
Tourism License: To capitalise on the thriving tourism industry, a tourism license is necessary for businesses operating in the Dubai tourism sector, including travel agencies, tour operators, and hotel management.
E-commerce License: The E-commerce License allows online businesses to operate platforms for selling goods and services, making it ideal for those planning to sell in online trading and digital product marketplaces.
Agricultural License: An Agricultural License is required for businesses dealing in farming, agriculture, and related activities, including crop production, animal husbandry, and the supply of agricultural products.
Creating a limited liability company in Dubai with a local partner requires legal procedures. The local sponsor agrees in court that he has no involvement in the company and is not responsible for the company profits or losses in Dubai, the United Arab Emirates, Mainland Company Formation in Dubai, or any other country.
“Establishing an LLC in Dubai mainland requires selecting the appropriate license, assessing operations, and consulting with us to ensure compliance with local regulations.”
There are a few essential license types in Dubai Mainland areas, which differ from the licensing options of free zone areas. In the UAE (United Arab Emirates), seven categories of Business organisations can be established in Dubai, Ajman, Sharjah, and other UAE regions to start a business. It sets out the requirements for shareholders and directors, minimum capital levels, and incorporation procedures.
Choose the appropriate legal structure for the business.
| DED Type Of License Activity Annual Fee Description | Fee (Sole) | Fee (Civil) | Fee (LLC) |
|---|---|---|---|
| Trade Name Submission | AED 776 | AED 14,500 | AED 14,500 |
| Initial Submission Approval | AED 256 | AED 256 | AED 256 |
| Local Service Agent Agreement | AED 441 | AED 4410 | AED 650 |
| Virtual Office with Ejari & Tenancy for 1 year | AED 4500 | AED 4500 | AED 4500 |
| License Fee | AED 8000 | AED 9000 | AED 12,500 |
| *T & C Apply | *T & C Apply | *T & C Apply |
Dubai is one of the leading business hubs in the UAE, offering flexible and affordable options for investors. The city has several key areas for business setup, each with its own advantages.
Bur Dubai is a historic district known for its museums, heritage sites, and traditional shops. It’s a good location for businesses in residential and industrial areas, education, healthcare, shopping, and the automobile sector.
Deira Dubai is popular with startups, small businesses, and traders because of its strong cultural and commercial background. Al Karama, located near Dubai Creek Park, provides good opportunities for real estate businesses and has easy access to Downtown Dubai. Business Bay, close to Sheikh Zayed Road, is ideal for companies in consulting, finance, hospitality, and retail.
Sheikh Zayed Road, the main highway in Dubai, connects to Abu Dhabi and Ras Al Khaimah, offering great advantages for trading and logistics. Dubai also has major business centers like the World Trade Centre, Burj Khalifa, Dubai Mall, and Mall of the Emirates, which attract both local and international businesses.
Jumeirah is a coastal area with residential plots, tourism spots, and shopping centers, suitable for both small startups and large companies. Al Quoz is one of Dubai’s fastest-growing areas, known for its mix of residential and industrial zones. It includes warehouses, garages, and labor housing, making it ideal for manufacturing, production, and industrial companies.
Want to start your business in the UAE? Our PRO services in Dubai and across the UAE make the setup process easy and stress-free. Whether you choose a UAE Free Zone for tax benefits or plan to set up a business in a Dubai Free Zone, our team will guide you through every step to match your business needs.
A mainland company in Dubai is a business that can operate and trade directly within the UAE market. It is registered with the Department of Economic Development (DED) and allows companies to do business in different sectors without major restrictions.
Dubai recent regulations do not mandate a minimum share capital requirement for LLC, but banks often require a recommended AED 300,000 for corporate accounts.
Traditionally, local UAE nationals hold at least 51% of LLC shares, but certain business activities allow 100% foreign ownership under specific conditions.
A mainland company can sponsor foreign employees with a valid trade license. It meets the local labour laws and regulations of the Ministry of Human Resources and Emiratisation.
The process can take anywhere from a few days to a few weeks, depending on the type of business, the setup complexity, and the documentation completeness.
