By Tasawar Ulhaq, Founder, Incorporated. 12+ years of GCC market entry, on the ground in Dubai and Riyadh. · Last updated: June 2026
What is mainland company formation in Dubai?
Mainland company formation in Dubai creates an onshore company registered with the Department of Economy and Tourism (DET, historically referred to as DED). Unlike free zone companies, a mainland licence lets you trade directly with customers and businesses anywhere in Dubai and the wider UAE without appointing a local distributor.
Mainland setup suits businesses that need retail presence, local contracting, government tenders, or unrestricted UAE operations. With 12+ years of GCC experience, we guide founders through activity selection, document preparation, and post-licence compliance from our Dubai office.
Full UAE market access
Sell to consumers and businesses across Dubai and the UAE without free zone trading restrictions.
Government contracting
Mainland entities are typically required to bid on federal and emirate-level government tenders.
Scalable visa quota
Visa allocation is tied to office size, allowing growth as your team expands.
At a Glance
- Licensing body: Dubai DET (DED)
- Ownership: 100% foreign ownership*
- Physical office: Required (Ejari)
- Audit: Not mandatory for renewal
- Typical timeline: 2 to 4 weeks
Dubai mainland licence and activity selection
Your Dubai mainland licence defines what your company can legally do. DET maintains an activity list covering commercial, professional, industrial, and tourism categories. Choosing the wrong activity is one of the most common setup mistakes because it affects approvals, visa types, and banking.
Commercial licence
Trading, retail, and general commercial activities. Often the default for import/export and local sales.
Professional licence
Consultancy, advisory, and service-based activities. May require proof of qualifications for regulated professions.
Industrial licence
Manufacturing and light industrial work. Usually requires warehouse or industrial premises.
Tourism licence
Travel agencies, tour operators, and hospitality-related activities with DET and tourism department coordination.
Some activities need external approvals from sector regulators before DET issues the licence. Map your actual operations to the activity code before you file.
DET/DED business setup process steps
DED business setup follows a defined sequence through DET portals and partner channels. Timelines depend on activity type, shareholder structure, and whether external approvals are needed.
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1
Reserve trade name and define activities
Submit proposed company name and select activity codes on the DET portal. Confirm 100% foreign ownership eligibility for your chosen activities.
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2
Initial approval and external clearances
Obtain initial approval from DET. Regulated sectors may need additional sign-off from bodies such as Dubai Municipality, DHA, or DIFC-adjacent regulators before proceeding.
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3
Draft and notarise Memorandum of Association
Prepare the MOA reflecting shareholding, management structure, and activity scope. Notarisation requirements vary by legal form and shareholder residency.
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4
Secure office and Ejari registration
Sign a tenancy contract and register Ejari. Office size determines your visa quota (approximately 9 sq. m per visa).
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5
Collect trade licence and establish identity
Pay government fees, collect the trade licence, register with Dubai Chamber, and open corporate bank accounts. Register for corporate tax and VAT with the Federal Tax Authority.
Visas, office, and Ejari requirements
Mainland companies sponsor Investor Visas (2 years) and Employment Visas (2 years) for shareholders and staff. Visa quota is calculated from registered office area. A flexi-desk or shared office may suit early-stage setups, but confirm quota limits before committing.
Ejari is the official tenancy registration system. DET will not issue or renew a mainland licence without a valid Ejari linked to your registered address. Renew Ejari before each licence renewal cycle.
Visa checklist
- Entry permit and status change (if applicable)
- Medical fitness test and Emirates ID
- Labour contract registration with MOHRE
- WPS payroll setup for employees
- Dependant visas processed separately
Corporate tax, VAT, and banking
Corporate tax
UAE corporate tax applies at 9% on taxable profits above AED 375,000. All mainland entities must register with the Federal Tax Authority regardless of profit level. Small business relief may apply below the threshold.
VAT registration
Mandatory once taxable supplies exceed AED 375,000 per year. Voluntary registration is available above AED 187,500. Standard VAT rate is 5%. File returns on time to avoid penalties.
Corporate banking
Mainland entities generally find banking more straightforward than some offshore structures. Banks typically require a valid licence, Ejari, MOA, passport copies, and a business plan. Allow several weeks for KYC and account activation.
Common Dubai mainland setup mistakes
Wrong activity code
Selecting a generic activity that does not match actual operations leads to banking blocks, amendment costs, and compliance risk.
Ejari gaps at renewal
Letting Ejari lapse before licence renewal blocks DET processing and can freeze visa services.
Ignoring UBO registration
Ultimate Beneficial Owner data must be maintained and submitted to DET. Missing UBO filings attract penalties.
WPS non-compliance
Failing to pay salaries through the Wage Protection System can block licence renewals and visa processing.
Maintaining a compliant Dubai mainland licence
Compliance continues after setup. Annual licence renewal, tax filings, and employee administration must stay current to avoid blocks on your company file.
Annual renewals
Renew Ejari first, then the trade licence. Dubai Chamber membership renews in parallel.
WPS compliance
Process salaries through approved banks via WPS for all MOHRE-registered employees.
UBO register
Keep beneficial ownership records current and file updates with DET when ownership changes.
Frequently asked questions
What is Dubai mainland company setup? +
Dubai mainland company setup means registering an onshore entity licensed by DET (DED). The company can trade across the UAE without free zone restrictions and may qualify for government contracts.
Can foreigners own 100% of a Dubai mainland company? +
Yes, for most commercial and professional activities. Some regulated sectors still require local participation or additional approvals. Your Dubai mainland licence activity list determines what is permitted.
Do I need a physical office for a Dubai mainland licence? +
Yes. A registered office with a valid Ejari tenancy contract is required for most mainland licences. Visa quotas are linked to office size.
How long does DED business setup take? +
Straightforward commercial activities often complete in two to four weeks once documents and Ejari are ready. Regulated activities, external approvals, or banking delays can extend the timeline.
Is corporate tax mandatory for Dubai mainland companies? +
Yes. All UAE mainland entities must register with the Federal Tax Authority. A 9% corporate tax applies to taxable profits above AED 375,000. VAT registration is required once taxable supplies exceed the mandatory threshold.