For decades, investors choosing Dubai faced a critical trade-off: market access (mainland) versus 100% ownership (Free Zone). This structural compromise is now obsolete. The biggest shift in the UAE’s corporate environment is the sweeping change to foreign ownership rules, making business setup in Dubai mainland the definitive choice for serious, scaling enterprises in 2025.
A mainland company, registered with the DED/DET, is an onshore path. It acts as the “golden ticket,” granting unrestricted access to conduct business across the entire UAE, from securing high-value government contracts to opening retail stores in major malls. Critically, the removal of the mandatory 51% national shareholder means 100% foreign ownership is now widely available on the mainland. This positions the mainland business setup in Dubai as a primary, strategic platform for global companies seeking full market penetration and corporate governance control.
This guide is built for founders and executives whose ambitions push beyond Free Zone limits. While ownership is simplified, the process still requires precision. Investors struggle with predicting the DED company’s setup process costs, securing clear visas, and mastering stringent new compliance rules like Corporate Tax. Our promise is a transparent, experienced roadmap that converts the theoretical Dubai mainland license steps into predictable, informed executive decisions.
A business setup in mainland Dubai operates under the direct supervision of the DED/DET, meaning it adheres to the civil laws and commercial codes of the UAE Federal Government and the Emirate of Dubai. Unlike Free Zone entities, the mainland provides a license to trade without geographical limitation across all seven Emirates.
The primary benefit of a Dubai mainland company setup is unrestricted access to the local market, including opening retail spaces, engaging B2C sales, and bidding on government tenders. The structure now widely permits 100% foreign ownership.
The DED classifies activities into three main license types, which dictate the legal structure and fee components:
Selecting the correct license type and activity code is the foundation of a successful setup and determines the DED license cost for 2025 and the regulatory framework.
Choosing the correct jurisdiction is the single most important strategic decision an investor makes. The choice must align precisely with the company’s intended market access, physical needs, and risk profile.
A critical point of differentiation in 2025 is corporate taxation. While Free Zones historically offered 0% tax, this rate is now conditional: it applies only to “Qualifying Income” and requires maintaining substantial economic presence. Conversely, the mainland offers a simple, tiered structure (0% up to AED 375,000 in taxable income, 9% above). For SMEs focused on local revenue, the predictable mainland tax structure, often with its lower threshold, can offer greater fiscal clarity than navigating the complex “Qualifying Income” definitions of a Free Zone.
| Feature | Mainland (DED) | Free Zone | Offshore |
|---|---|---|---|
| Market Access | Direct trade across the entire UAE | Restricted to the free zone and international trade | Cannot conduct business within the UAE |
| Foreign Ownership | 100% (for most activities) | 100% | 100% |
| Physical Office | Mandatory (Ejari required, approx. 9m² per visa) | Flexible (Flexi/co-working allowed) | Not required in the UAE |
| Corporate Tax (CT) | 0% up to AED 375k, 9% above | 0% on Qualifying Income (substance required) | Exempt from UAE CT |
A European software firm was choosing between a Free Zone setup and a Dubai mainland company. They assumed the Free Zone’s 0% tax was better, but most of their revenue came from UAE mainland clients, meaning it would be taxed at 9% as non-qualifying income. We modelled their numbers and showed that the mainland structure, with 0% tax up to AED 375,000 and 9% only above that, offered a simpler and more predictable tax outcome.
“DBTA’s financial modelling showed that once we factored in the 9% corporate tax on our projected local revenue, the simplicity of a tiered Dubai mainland company setup was the obvious choice.” —Mr. Liam O’Connell, CFO, TechStream Solutions.
The DED classifies activities into several license categories, which dictate the legal structure, mandatory approvals, and eventual fees. Founders must accurately choose their activity first, as this selection influences nearly every subsequent requirement.
Understanding which category your primary and secondary activities fall under is essential for calculating the true Mainland LLC setup cost and avoiding costly licensing amendments later.
A high-net-worth media consultant needed a Professional License and was concerned the Local Service Agent (LSA) might seek a percentage of the company’s revenue, impact his long-term profitability, and increase the effective Mainland LLC setup cost. We structured a comprehensive LSA agreement that clearly defined the LSA’s role as non-executive and non-equity-holding, and secured a fixed, annual retainer fee that was factored into the operating budget.
While the official DED turnaround time for the license issuance itself is rapid (sometimes less than 60 minutes for instant licenses or 5–10 working days for regular licenses), the total timeline for market readiness is governed by sequential, external bureaucratic steps like notarization and securing a physical office (Ejari). Executing these Dubai Economic Department steps accurately is vital for efficiency.
The first step is identifying the exact activity codes the business will undertake. This choice dictates the legal form (e.g., LLC, Civil Company) and confirms eligibility for 100% foreign ownership.
This decision follows the activity choice. For example, trading activities require an LLC, while consultancy services typically use a Civil Company.
Submit three suggested names to the DED. The names must comply with stringent Dubai naming rules, avoiding religious references, abbreviations, or names already in use. Timeline: 1–2 days.
This non-renewable certificate grants the DED’s permission to proceed with the legal formation. It is mandatory before drafting legal agreements. Cost: Approximately AED 150–500. Timeline: 2–3 business days.
The MOA of an LLC or the LSA Agreement in case of a professional firm has to be executed. These are important legal documents that determine who can and cannot represent inside the movement.
The drafted agreements must be officially signed and attested by the Dubai Notary Public or relevant judicial body. This step requires the physical presence of all shareholders or their legally appointed Power of Attorney (POA) holder. Common Error: Failure to account for signatory travel or delays in obtaining valid POA documents. Timeline: This stage can take 1–2 weeks due to scheduling appointments and judicial queues.
A valid, physical commercial office space is a non-negotiable Dubai mainland requirement. The tenancy agreement needs to be registered with RERA, and you must get the Ejari certificate. Office size is directly connected to the quota of visas (about 9 m²/visa).
All Final Establishment Documents are submitted for mainland setup, including Initial Approval, notarized MOA/LSA, and Ejari certificate (If one is required), and any external approvals according to activity (health or transport).
Upon successful final review, a payment voucher for the DED license cost 2025 is issued. Payment of this voucher within the designated 30-day window results in immediate issuance of the digital trade license.
The employer has to be registered with the Ministry of Human Resources and Emiratization (MOHRE) in order to establish a card, which is required for employee/investor visa stamping. The final stage is to apply for a two-year investor visa (for shareholders) and employment visas for employees.
Understanding the total Mainland business setup cost requires moving beyond the basic trade license fee and accounting for mandatory variable expenses, particularly property and professional fees. The estimated initial investment for a standard license range from AED 25,000 to AED 50,000+, excluding rent deposits and initial visa fees.
If you are seeking to reduce these startup costs significantly, you can review our guide for Low-Cost Business Setup in Dubai.
The actual Cost to open LLC in Dubai is heavily influenced by the nature of the activity and the mandatory office space. For example, professional licenses incur an annual Local Service Agent fee, adding to the recurring cost.
| Cost Component | Type | Estimated Range (AED) | Notes |
|---|---|---|---|
| A. Government/DED Costs | |||
| Initial Approval & Name Reservation | Govt. Fee | 1,000 – 3,000 | Includes Trade Name and Initial Approval fees. |
| License Issuance Fee (Base) | Govt. Fee | 10,000 – 15,000 | Varies based on license type and activities. |
| Mandatory Fees (Chamber, Knowledge, Innovation) | Govt. Fee | 1,000 – 3,000 | Knowledge (AED 10) and Innovation (AED 10) are mandatory. |
| B. Office/Ejari Costs | |||
| Annual Office Rent (Small/Start-up) | Fixed/Recurring | 15,000 – 50,000+ | Minimum physical space is a DED license requirement. |
| Ejari Registration Fee & Housing Fee | Govt. Fee | Variable | Housing fee is 5% of annual rent. |
| C. Registration/Legal Fees | |||
| MOA Notarization/Attestation | Legal Fee | 1,500 – 5,000 | Judicial costs for signing. |
| Local Service Agent (LSA) Fee (Annual) | Agent Fee | 5,000 – 15,000 | Mandatory for most Professional Licenses. |
| D. Visa Costs | |||
| Investor Visa (per 2 years) | Immigration Cost | 3,500 – 5,000 | Total Dubai mainland visa cost (entry, status change, medical, EID). |
| Establishment Card | Govt. Fee | ~750 | Required to process visas. |
| E. Hidden Costs | |||
| External Department Approvals | Govt. Fee | 1,000 – 20,000+ | Specific sectors like F&B, Health, and Transport. |
The base DED license cost 2025 is usually between AED 10,000 and AED 15,000, but when mandatory variable fees, LSA retainers, and initial government charges are added, the total initial payment for a new business often exceeds AED 25,000 before the first rent instalment and visa applications.
A New Retail Startup budgeted accurately for the DED fees but failed to factor in the high upfront cost of securing a commercial lease. In Dubai, commercial leases often require 1-3 months’ rent as a security deposit plus the first quarterly payment, placing immediate strain on working capital. We intervened early in the planning phase, integrating the required 12-month property commitment (including the deposit and agency fees) into their financial model before they began the steps to obtain the Dubai mainland license.
“DBTA’s detailed breakdown showed the true Mainland business setup cost, allowing us to accurately budget for the initial 12-month property commitment and avoid cash flow issues.” —Muna Al Ali, CEO, HomeGoods Retail.
Document preparation is an area where initial mistakes lead to exponential delays in the DED company setup process. The DED operates with zero tolerance for incomplete or non-compliant paperwork.
This is significantly more complex and often delayed due to international requirements:
The requirement for legalized documents, meaning they must be certified by the UAE Embassy in the home country and then by the Ministry of Foreign Affairs (MoFA) in the UAE, is a common pitfall. Generic notarization is often insufficient.
A US-based Tech Firm attempted to submit its parent company’s Certificate of Incorporation, which had been notarized in New York. The DED submission was immediately halted because the document lacked the required legalization of stamps from the UAE Embassy and the MoFA. We deployed a fast-track legalization service, collecting documents from the US, and managing the complex attestation chain in parallel with other Dubai economic department steps.
In the mainland, the Ministry of Human Resources and Emiratisation (MOHRE) manages the visa quota system. While Cabinet Resolution No. 203 (2022) introduced clearer guidelines based on priority sectors, the ability to hire remains fundamentally tied to physical presence.
The critical rule in Dubai mainland company formation is the spatial requirement: licensing departments routinely apply a guideline of 9 square meters of physical office space per visa allocation.
The two-year investor and employment visas carry a high cost. The total Dubai mainland visa cost is composed of several fixed government fees: entry permit, status change (if applying inside the country), medical testing, Emirates ID issuance, and final visa stamping. The total cost for a two-year visa typically ranges from AED 3,500 to AED 5,000 per individual.
Setting a realistic Mainland license timeline UAE requires distinguishing between the speed of digital government services and the necessary external, sequential steps.
The total process, from initial submission to being market-ready (with visas and a bank account), realistically spans 4 to 8 weeks.
The primary risk to the DED company setup process timeline is not DED inefficiency but delays in securing external approvals (if required for specific activities) or bureaucratic bottlenecks like banking compliance and MOA notarization.
An E-learning Platform secured its license quickly (7 working days via a quick license process) but was immediately frustrated by bank application queues and due diligence, which took over five weeks. We prepared the client for this common delay, integrating the banking phase into the overall project plan from the outset and advising them to use existing international invoicing channels temporarily while awaiting local account finalization.
Securing a corporate bank account is frequently the most challenging phase after obtaining the business setup in a mainland license, primarily due to heightened compliance and Anti-Money Laundering (AML) requirements under Federal Decree Law No. 10 of 2025.
Banks conduct intense due diligence, and rejections are common if the company file is not robust.
Most banks require new corporate accounts to maintain an average minimum balance, often ranging from AED 50,000 to AED 500,000, depending on the chosen package.
Certain financial institutions, such as the Commercial Bank of Dubai (CBD) through their Starter accounts, offer packages specifically designed for newly established SMEs and startups, often with ZERO balance requirements and simplified documentation.
An IT Consultancy with a complex ownership chain (a subsidiary of a holding company that was owned by a trust in Europe) was rejected twice by major UAE banks due to an inability to clearly evidence the ultimate beneficial ownership. We intervened, prepared bank-specific UBO flowcharts, acquired legal attestations verifying the trust structure, and confirmed identity documentation for all parties in the chain.
The era of simple licensing is over. Today, post-setup compliance is mandatory, sophisticated, and applicable to nearly all mainland entities.
Case Study: Delayed CT Registration
A Small to Medium Enterprise (SME Founder) assumed that since their initial profit margins were low, they did not need to prioritize Corporate Tax registration until they hit the AED 375,000 threshold. This was incorrect; registration is mandatory for all businesses. We identified the critical timeline and fast-tracked their registration with the FTA, ensuring compliance and avoiding potential penalties associated with missing the first filing deadline of September 2025.
The annual renewal process confirms that setting up a business in Dubai is a recurring annual investment, not a one-time fee. For guidance on the recurring costs and processes, see our notes on license costs and renewal. The DED license renewal cost is generally comparable to, or slightly lower than, the initial setup cost, depending on municipal fee changes and administrative costs.
Typical renewal expenses range from AED 10,000 to AED 25,000 annually, influenced by the type of license, the number of activities, and, most importantly, the value of the leased property.
This checklist provides an easy-level summary of the sequential Dubai economic department steps required for a successful launch.
| Step | Action Item | DBTA Notes | Status |
|---|---|---|---|
| 1 | Define Activity & Legal Form | Ensure 100% ownership eligibility is confirmed. | ☐ |
| 2 | Reserve Trade Name | Submit 3 options; ensure compliance with naming rules. | ☐ |
| 3 | Initial Approval (DED) | Obtain confirmation to proceed with legal steps (2–3 days). | ☐ |
| 4 | Draft & Notarise MOA/LSA | Sign MOA/LSA agreement. Must be done by shareholders or POA. | ☐ |
| 5 | Secure Office & Ejari | Office size dictates visa quota (9m²/visa). | ☐ |
| 6 | Final Submission & License Fee Payment | Pay the DED license cost 2025 vouchers within 30 days. | ☐ |
| 7 | Establishment Card | Register company with immigration and labour for visas. | ☐ |
| 8 | Corporate Banking | Apply immediately post-license; prepare UBO and substance documentation. | ☐ |
| 9 | Compliance Registration | Register for Corporate Tax with FTA (if applicable). | ☐ |
The transition to the mainland is layered with complexities that extend far beyond initial paperwork, especially when dealing with international holding structures, judicial deadlines, and stringent banking compliance. Our role is to act as your local corporate shield, converting uncertainty into predictability.
The regulatory landscape in Dubai has matured significantly. 2025 presents an era of unparalleled opportunity for investors, driven by the freedom of 100% foreign ownership on the mainland. The business setup in Dubai mainland is no longer a compromise; it is the strategic choice for global players seeking genuine local dominance and scalability in the UAE market.
However, the path to a fully compliant, bank-ready mainland company is paved with procedural requirements. Success is measured not merely in securing the license quickly but in expertly navigating the crucial downstream requirements: flawless documentation, securing adequate visa quotas linked to physical substance, and, most critically, mastering the rigorous new compliance regime covering Corporate Tax and AML/UBO requirements.
Do not allow the intricate DED license steps and cost variables to introduce uncertainty into your launch plan. Ready to launch your 100%-owned Dubai venture without bureaucratic uncertainty? Our team at Dubai Business and Tax Advisors specializes in converting this complexity into a single, predictable strategy. Contact us today for a bespoke 2025 Mainland Setup Roadmap, ensuring your market entry is strategic, predictable, and stress-free.
The total process, including licensing, visa, and banking, realistically spans 4–8 weeks.
Initial costs range from AED 25,000 to AED 50,000+, heavily dependent on office rent and license type.
Yes, securing a physical, RERA-certified office (Ejari) is a non-negotiable DED license requirement for nearly all mainland licenses.
The DED Instant License can be issued in one day, but the whole process (including Ejari, visas, and banking) will still require 4+ weeks.
Documents for mainland setup include Initial Approval, Notarized MOA, Ejari certificate, and passport copies of all partners/managers.
Quota is primarily based on the size of the physical office, with a guideline of 9m² per visa.
No, banking, defense, and oil & gas are examples of sectors that are still restricted by the Negative List.
The Cost is slightly higher than commercial due to the fixed, recurring annual LSA fee component.
Registration with the FTA is mandatory immediately upon incorporation, regardless of whether taxable income is earned.
Banks require proof of economic substance, clarity on the UBO chain, and documents where names and addresses match perfectly.
Unrestricted local market access is the key difference.
The DED mandates the Knowledge Fee (AED 10) and Innovation Fee (AED 10) on every government transaction.
Yes, but it incurs fees and requires DED approval for amendments.
No, VAT and Corporate Tax registration are separate procedures managed by the FTA.
Once the Establishment Card is issued, typically post-license issuance; you can begin the visa application process.
They are based on the selected activity codes, the number of partners, and the specific municipal charges associated with the license type.


As CEO of DBTA, Aurangzaib Chawla advises globally mobile businesses and individuals on cross-border tax planning and structuring. With expertise spanning the UK, UAE, and wider GCC, Zaib helps clients minimise double taxation, protect assets, and achieve long-term financial efficiency while staying fully compliant.
Let’s talk about how to structure your business for growth the smart, compliant, and tax-efficient way
As CEO of DBTA, Aurangzaib Chawla advises globally mobile businesses
and individuals on cross-border tax planning and structuring. With expertise spanning the UK, UAE, and wider GCC, Zaib helps clients minimise double taxation, protect assets, and achieve long-term financial efficiency while staying fully compliant.
Let’s talk about how to structure your business for growth the smart, compliant, and tax-efficient way.
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