Dubai Mainland is a key onshore jurisdiction governed by the Department of Economic Development (DED). This area is pivotal for businesses aiming to operate within Dubai’s thriving economy, which contributes approximately 30% to the UAE’s GDP. The Dubai Mainland is home to a diverse range of industries, from retail and hospitality to real estate and technology, offering businesses the flexibility to operate across different sectors.
As of 2023, over 30,000 new businesses were established in Dubai Mainland, reflecting a 43% increase compared to previous years. This surge in company formations is driven by Dubai’s business-friendly environment, extensive infrastructure, and a focus on attracting foreign direct investment (FDI). In fact, the UAE as a whole has become a competitive global business hub, drawing interest from countries such as India, China, and Pakistan, which lead the way in setting up businesses in Dubai.
One of the key advantages of setting up a business in Dubai Mainland is the unrestricted access to the local market. Unlike free zones, which may limit operations to specific regions or sectors, companies in Dubai Mainland can trade freely within the UAE and internationally. This makes it an attractive option for entrepreneurs and businesses looking to build a local presence and expand globally.
Dubai’s economic diversification strategy has played a crucial role in reducing reliance on oil revenues, with the wholesale and retail trade sector being a significant contributor to the economy. In 2018, this sector alone contributed 26% to Dubai’s GDP, emphasizing its importance in the city’s economic framework. Other key sectors in Dubai Mainland include construction, real estate, financial services, and tourism, all of which offer abundant growth opportunities for businesses.
The DED plays a vital role in regulating businesses in Dubai Mainland, ensuring that companies comply with local laws and industry standards. It offers a range of services, including business registration, licensing, and economic planning. By continuously enhancing business policies and regulations, the DED fosters an environment conducive to innovation and sustainable growth.
International businesses do not require a local Emirati sponsor to be a partner to operate, maintaining 100% ownership. Unless operating in certain strategic industries.
Operate all across the UAE as well as in other GCC countries.
Easy access to neighboring and global markets by land, sea and air.
Unlike other business jurisdictions, there is no limit on the amount of visas issued by businesses.
Tax exemption for personal income tax and tax relief of up to $100,000 for corporate tax, especially for SMEs.
Businesses can apply for UAE government contracts permitting work on government projects.
Select the business activity that aligns with your intended operations.
Decide on the legal structure of your business. Common legal structures in Dubai Mainland include
Choose a unique name for your business that complies with the DED regulations and get it approved by the DED.
Obtain initial approval from the DED, which indicates that the government has no objection to your business activity and legal structure.
Draft the MOA for your business, particularly for an LLC, outlining ownership and company structure.
Secure a commercial office space in Dubai Mainland and obtain the Ejari (tenancy contract registration), which is a mandatory requirement for licensing.
For certain business activities, you may need approvals from specific government authorities (e.g., Dubai Municipality, Dubai Health Authority, Ministry of Education).
After securing initial approval, MOA, and Ejari, submit the final application for a trade license to the DED.
Pay the required fees for the trade license and other administrative costs, including DED registration, commercial licensing, and municipality fees.
Once the final submission and payment are completed, you will receive your Dubai Mainland trade license.
With your trade license, apply for residence visas for shareholders, employees, and yourself.
There are various things that a person should keep in mind while they are opting for their Business setup in Dubai mainland. Since the company decides the future of your business and even yours in the emirates, keeping in mind a few factors would be beneficial.
Selecting the legal form your company can be challenging and demanding. Owning the sole proprietorship is a necessity that can help the business setup in the long run.
Required documents vary based on the legal structure of the business: Limited Liability Company, Sole Proprietorship, General Partnership, Private Joint Stock Company (PrJSC), Public Joint Stock Company (PJSC) and Branch of a Foreign Company
The cost of setting up a business in Dubai Mainland varies depending on the type of license you require, the starting price of all licenses is AED 10,000.
In addition to the license fees, other potential costs include office space, which can vary significantly based on location and size. Local sponsor fees if applicable and visa and permit costs also add to the overall expenses.
*Note the price is an estimate and will vary in reality. For an accurate cost breakdown, get in touch with our consultants.
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