Business Setup in Dubai Mainland: Key things to know before taking the first step

Business Setup in Dubai Mainland

The UAE has steadily diversified its economy over the last few decades, making business setup in Dubai Mainland a preferred choice for international entrepreneurs across sectors. Dubai Mainland is ideal for businesses that want wider access to the UAE market and the flexibility to operate under a Dubai trade licence issued by the relevant authority.

Key incentives for Business Setup in Dubai Mainland

• Foreign ownership flexibility: 100% foreign ownership is permitted for many eligible commercial and industrial activities, subject to the chosen activity and approvals (and conditions may apply for strategic-impact activities).
• Market access: Mainland companies can generally operate across Dubai and the UAE, subject to the activities permitted on the trade licence.
• Tax framework clarity: UAE Corporate Tax applies from financial years starting on or after 1 June 2023. Taxable income up to AED 375,000 is taxed at 0%; income above AED 375,000 is taxed at 9% (subject to exemptions and qualifying income rules).
• Withholding tax: The UAE Corporate Tax framework provides for 0% withholding tax in many scenarios (apply case-by-case based on payments and regulations).
• Business ecosystem: Strong infrastructure, logistics, and access to a mature banking and professional services ecosystem.

Business Jurisdictions in the UAE

• Mainland: Operate across Dubai and the UAE market with broader operational flexibility and direct access to government contracts. Access to Entire UAE market (retail, B2B, government).
• Offshore: International business operations with tax efficiency, ideal for investment structures and global operations (cannot trade within UAE). Access to International markets only (no UAE onshore trading)
• Free Zone: Designated economic zones with specialized infrastructure; good for export/import and sector-specific operations. Zone-based + international (limited mainland access without distributor)

What is Dubai Mainland Business Setup?

Dubai Mainland refers to companies licensed to operate within Dubai under the mainland licensing system. A mainland business can work with the wider UAE market subject to the activity scope mentioned on the trade licence and any additional approvals required for regulated activities.

Advantages of Business Setup in Dubai Mainland

• No minimum capital requirement for many activities/legal forms (subject to authority requirements and specific activity rules).
• Registration can be straightforward for standard activities, depending on approvals and documentation readiness.
• Flexibility to lease office space and operate across the UAE, subject to licence permissions.
• Ability to serve both private and (where eligible) public/semi-government sectors.
• Visa eligibility depends on office space/establishment card requirements and immigration approvals.
• Capital and profit repatriation is generally allowed, subject to compliance and banking procedures.
• No personal income tax in the UAE; Corporate Tax applies per UAE Corporate Tax law.
• Audit/financial statement requirements depend on legal form and regulatory/tax obligations (avoid assuming a blanket exemption).

In contrast, Free Zone companies typically follow zone-specific regulations for office location and permitted activities. Mainland company formation in the UAE is often preferred when the business model requires broader operational flexibility and wider market access.

Salient Features of Business Setup in Dubai Mainland

Licensing & approvals

• Trade licences are issued under Dubai’s mainland licensing framework by the competent authority, and the licence defines the activities your business is permitted to conduct.
• Some activities may require external approvals from relevant regulators (depending on sector).

Ownership & compliance

• 100% foreign ownership is available for many mainland activities, subject to activity classification and conditions where applicable.
• Corporate Tax compliance may apply depending on taxable income, exemptions, and rules under UAE Corporate Tax law.

Types of Business Setup in Dubai Mainland

1- Legal Type

Your mainland setup will typically fall under one of these legal structures (subject to activity and authority approvals):

• Limited Liability Company (LLC)
• Civil Company
• Sole Establishment
• Branch Office of Local Company
• Subsidiary Company
• Branch Office Setup
• Branch Office of Foreign Company

2- License Categories

• Professional License
• Commercial License
• Industrial License
• Tourism License

Timelines

Timelines depend on the business activity, document readiness, external approvals (if any), and office lease arrangements. For many straightforward cases, setup can be completed quickly once documentation and approvals are in place.

MBG Support for Business Setup in Dubai

At MBG Corporate Services, we support your journey of Mainland Company Formation in UAE. Our support typically includes activity selection, licensing coordination, documentation assistance, and guidance on compliance requirements that impact operating readiness.

MBG’s Business Setup Services for Dubai Mainland

MBG offers end-to-end services for Mainland Business Setup in Dubai/UAE. Our services include:

• Mainland business setup in Dubai/UAE
• Sponsorship/local partner support (only if required based on the selected activity and structure)
• PRO services
• Liquidation services
• Trade licensing & business registration
• Drafting support for key formation documents (as applicable)
• Support in obtaining approvals and coordinating office lease steps (as applicable)

All the above services are customizable according to the specific needs of your business.
What gives us an edge is the additional complementary services we offer post-mainland business setup in Dubai/UAE.

Post Business Setup Services in Dubai Mainland

• Strategy & Transformation
• Mergers & Acquisitions
• Technology & Legal Advisory
• Unified In-Country Value (ICV)
• Taxation
  • VAT
  • Excise Tax
  • Customs & International Taxation

Our consultants also have experience supporting mainland company incorporation in Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain. We support not only the setup stage but also post-setup compliance and growth needs.

Additional Resources:

Get in Touch With MBG

• Email id: communications@mbgcorp.com
• Contact no: +91-8860190008

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