Dubai Mainland Company Formation Cost: Complete 2026 Breakdown
Quick Answer
Setting up a mainland LLC in Dubai through the Department of Economy and Tourism (DET, formerly DED) costs between AED 22,000 and AED 45,000 in the first year, depending on your business activity, office choice, and number of visas. The core trade license fee is AED 10,000–15,000. The largest additional costs are office/Ejari (AED 6,000–15,000+), visa processing (AED 5,000–8,000 per person), and PRO/typing services (AED 2,000–5,000). Since 2020, 100% foreign ownership is permitted for most activities—no local sponsor required.
What Is a Dubai Mainland Company?
A Dubai mainland company (also called a "DED company" or "onshore company") is a business licensed by the Department of Economy and Tourism (DET)—formerly the Department of Economic Development (DED). Unlike free zone companies that are restricted to operating within their zone, a mainland company can:
- Trade anywhere in the UAE — Sell goods and services to any customer, business, or government entity across all seven emirates
- Bid on government contracts — Essential for construction, services, and supply companies targeting public sector work
- Open retail stores — Operate physical shops, restaurants, and showrooms anywhere in Dubai
- Hire unlimited employees — Visa allocation scales with your office space, with no hard cap like some free zones
- Work with any supplier or distributor — No restrictions on dealing with mainland, free zone, or international entities
A mainland LLC (Limited Liability Company) is the most common structure for foreign entrepreneurs. Since the landmark 2020 amendment to the Commercial Companies Law, foreigners can hold 100% ownership of mainland companies for most business activities, removing the old requirement for a 51% UAE national sponsor.
Line-by-Line Cost Breakdown
Here is every cost you should expect when forming a mainland LLC in Dubai. These are based on 2026 DET fee schedules and typical market rates for professional services.
| Cost Item | Amount (AED) | Notes |
|---|---|---|
| DET trade license fee | 10,000–15,000 | Varies by activity. General trading is higher than professional/consultancy |
| Initial approval | 120–1,000 | Name reservation + initial approval from DET |
| Memorandum of Association (MOA) | 500–2,000 | Legal drafting + notarization. Cost depends on complexity |
| Office space / Ejari | 6,000–25,000+ | Mandatory. Flexi-desk from AED 6,000; dedicated office AED 15,000+. Ejari registration ~AED 220 |
| MOHRE fee (per visa) | 300–500 | Ministry of Human Resources and Emiratisation permit fee |
| Employment entry permit (per visa) | 1,200–2,000 | Immigration entry permit for each employee/partner |
| Change of status (per visa) | 570–670 | If already in UAE on visit visa; not needed if entering on entry permit |
| Medical fitness test (per visa) | 300–500 | DHA-approved medical center. Blood test + chest X-ray |
| Emirates ID (per visa) | 370–570 | ICP fee for Emirates ID issuance (2-year or 3-year validity) |
| Visa stamping (per visa) | 500–700 | Final residence visa stamp |
| Health insurance (per person) | 700–3,000 | Mandatory. Basic DHA-compliant plan ~AED 700; comprehensive AED 2,000–3,000 |
| Establishment card (Tasheel) | 600–1,200 | Labour card / establishment card registration |
| PRO / typing services | 2,000–5,000 | Document preparation, government submissions, Amer center fees |
| Chamber of Commerce membership | 600–1,200 | Dubai Chamber membership (required for some activities) |
| Total Estimate (0 visas) | AED 20,000–35,000 | License + office + registration only |
| Total Estimate (1 visa) | AED 25,000–43,000 | All-inclusive with one residence visa |
| Total Estimate (3 visas) | AED 35,000–60,000 | All-inclusive with three residence visas |
Mainland LLC Package — From AED 16,000
Full-service mainland LLC setup from AED 16,000. Includes trade license (Mainland Dubai), MOA drafting, business activity registration, and government approvals. License issued in 5-10 working days. Benefits: operate anywhere in the UAE, no restriction on business activity, access to government and local contracts.
Or Consider a Free Zone Alternative
If you don't need mainland-specific benefits (local trading, government contracts), a free zone can be cheaper. RAK Innovation City from AED 13,200 with 1 visa (5-7 days). Meydan Free Zone (Dubai-based) from AED 21,000 with 1 visa (5-7 days). Both include 0% corporate tax on qualifying income. Contact our specialist to compare.
Annual Renewal Costs
Your mainland license must be renewed every year, and the renewal costs are often close to the initial setup cost (minus the one-time registration fees). Here is what to budget annually:
Annual Renewal Breakdown
Late Renewal Penalties
DET imposes a penalty of AED 200 per day for late trade license renewal (capped at a maximum). Additionally, an expired license means you cannot process any visa transactions, open new bank accounts, or sign government contracts. Renew at least 30 days before expiry to avoid disruption.
100% Foreign Ownership: What Changed in 2020
Before November 2020, most mainland companies required a 51% UAE national partner (local sponsor) who held the majority share—even if the foreign investor contributed all the capital. This was the single biggest deterrent for foreign entrepreneurs choosing mainland over free zone.
The Commercial Companies Law amendment (Federal Decree Law No. 32 of 2021, effective June 2022) changed everything:
- 100% foreign ownership is now permitted for mainland LLCs across more than 1,000 commercial and industrial activities
- The "positive list" published by the UAE Cabinet covers most activities: general trading, professional services, consulting, IT, retail, food & beverage, construction, manufacturing, and more
- Activities not on the positive list (requiring a UAE national partner) are limited to a few strategic sectors: defense, security, some oil & gas upstream, judicial services, and specific banking activities
- Existing companies with local sponsors can restructure to 100% foreign ownership by amending their MOA and updating with DET
What This Means for You
If you are starting a new mainland company in Dubai in 2026, you almost certainly do not need a local sponsor. The few exceptions are highly specialized activities that most entrepreneurs will never encounter. Your formation agent or PRO service can confirm whether your specific activity qualifies for full foreign ownership in minutes.
Visa Allocation: How Many Visas Can You Get?
One of the biggest advantages of a mainland company over most free zones is flexible visa allocation. The number of visas your company can sponsor depends on your office space:
| Office Type | Approx. Space | Visa Allocation | Typical Annual Rent |
|---|---|---|---|
| Flexi-desk / Shared workspace | No dedicated space | 1–3 visas | AED 6,000–12,000 |
| Small private office | 100–200 sq ft | 3–6 visas | AED 15,000–35,000 |
| Standard office | 200–500 sq ft | 6–15 visas | AED 30,000–80,000 |
| Large office | 500–1,000+ sq ft | 15–30+ visas | AED 60,000–200,000+ |
| Warehouse / Industrial | Varies | Based on area | AED 40,000–150,000+ |
The general rule is 1 visa per 9 square meters (approximately 100 sq ft) of office space, though this varies by building zone and MOHRE guidelines. Some business centers offer "virtual office" packages with Ejari that support 1–3 visas at the lowest cost point.
Ejari Is Mandatory
Every mainland company must have a registered tenancy contract (Ejari) for a physical office address in Dubai. You cannot register a mainland company using a home address. The Ejari contract is checked during license issuance, renewal, and visa processing. Some free zones offer "Ejari-sharing" arrangements, but for mainland companies, your Ejari must be in the company's name.
Mainland Company Setup: Step by Step
- Choose your business activity and trade name — Select one or more activities from DET's activity list. Your trade name must be unique and comply with UAE naming rules (no abbreviations, no offensive words, must not match existing companies). Submit via the DET unified portal or through a PRO service.
- Obtain initial approval — DET reviews your trade name and business activities. For standard activities, this takes 1–2 business days. Some specialized activities require additional approvals from relevant ministries (e.g., food requires Dubai Municipality approval, healthcare requires DHA, education requires KHDA).
- Draft and notarize the Memorandum of Association (MOA) — For single-shareholder LLCs, this is straightforward. Multi-partner LLCs require a detailed MOA specifying share distribution, management structure, and profit-sharing. The MOA must be notarized at a Dubai court or notary public.
- Secure office space and Ejari — Sign a tenancy contract with a commercial property owner or business center. Register the contract in the Ejari system. The Ejari certificate is required before your trade license can be issued. Budget 1–2 weeks for this step.
- Pay the license fee and collect your trade license — Once DET has your initial approval, MOA, and Ejari, you pay the trade license fee and any additional DET fees. Your physical or digital trade license is issued within 1–3 business days of payment.
- Register with the Chamber of Commerce — Most mainland companies must register with the Dubai Chamber of Commerce and Industry. This is done simultaneously with or shortly after license issuance.
- Register for corporate tax — All UAE companies must register with the Federal Tax Authority (FTA) for corporate tax and obtain a Tax Registration Number (TRN). This is free but mandatory. You may also need to register for VAT if turnover exceeds AED 375,000.
- Process visas — Open an establishment card (Tasheel) with MOHRE. Then process visas for yourself and any employees: entry permit → medical test → Emirates ID → visa stamping. Each visa takes approximately 2–4 weeks from start to finish.
Total Timeline
Expect the full process from initial application to having your license and first visa stamped to take 3–6 weeks. The main bottleneck is usually securing office space and Ejari. If you have all documents ready and use a PRO service, the license itself can be issued in under a week.
When Mainland Makes Sense vs Free Zone
Choosing between mainland and free zone is one of the most important decisions when setting up in Dubai. Here is a direct comparison to help you decide:
| Factor | Mainland (DET LLC) | Free Zone |
|---|---|---|
| Setup cost (Year 1, 1 visa) | AED 25,000–43,000 | AED 10,000–15,000 |
| Annual renewal | AED 19,000–48,000+ | AED 8,000–15,000 |
| Trade with UAE mainland clients | ✓ Unrestricted | ✗ Requires distributor or dual license |
| Government contracts | ✓ Eligible | ✗ Not eligible |
| Retail / physical store | ✓ Anywhere in Dubai | ✗ Within zone only |
| 100% foreign ownership | ✓ Most activities | ✓ All activities |
| Visa flexibility | Scales with office size | Capped by package (2–6 typical) |
| Office requirement | Mandatory (Ejari) | Virtual option available |
| Banking ease | Strong acceptance | Varies by zone |
| Setup speed | 3–6 weeks | 1–2 weeks |
Choose mainland when:
- Your primary customers are UAE-based companies or government entities
- You want to open a physical retail store, restaurant, or service center
- You need to hire more than 6 employees and want scalable visa allocation
- Your business requires face-to-face interaction with clients across Dubai
- You plan to bid on government tenders or work with semi-government entities
Choose free zone when:
- You are a freelancer, consultant, or small team serving international clients
- Cost minimization is your top priority
- You do not need to trade directly with UAE mainland customers
- Speed of setup matters (free zone is 2–3x faster)
- You want a virtual office option without committing to physical space
How Your Business Activity Affects Cost
Not all DET trade licenses cost the same. The type of activity you choose has a direct impact on both your license fee and any additional approvals needed:
- Professional license (consulting, IT, marketing): AED 10,000–12,000. Lowest cost category. Single shareholder allowed. No minimum capital requirement.
- Commercial license (general trading, retail): AED 12,000–15,000. Allows buying and selling goods. May require additional import/export permits depending on products.
- Industrial license (manufacturing): AED 13,000–20,000. Requires industrial premises (warehouse/factory). Environmental permits may apply. Higher visa allocation due to larger premises.
- Tourism license: AED 12,000–15,000. Requires approval from Dubai Department of Tourism and Commerce Marketing (DTCM). Additional fees for tourism activity permits.
- Food & beverage: AED 12,000–15,000 for the DET license, plus Dubai Municipality food permits (AED 2,000–5,000+), health and safety inspections, and potentially HACCP certification.
Multiple Activities
You can add multiple business activities to a single mainland license. Each additional activity typically costs AED 1,000–3,000 on top of the base license. This is much cheaper than obtaining separate licenses. However, if your activities span different categories (e.g., consulting + general trading), you may need a higher-cost license category.
Frequently Asked Questions
Do I still need a local sponsor for a mainland company in 2026?
No, for the vast majority of business activities. The 2020/2021 Commercial Companies Law amendment allows 100% foreign ownership for mainland LLCs across more than 1,000 activities. The exceptions are a small number of strategic activities (defense, certain banking, some oil & gas). Your formation agent can confirm in minutes whether your specific activity qualifies. If you do need a local partner for a restricted activity, the partner must hold at least 51% of shares, though profit-sharing can be structured differently.
What is the cheapest way to get a mainland license?
The cheapest mainland setup is a single-activity professional license (e.g., management consulting) with a flexi-desk office and zero visas. This would cost approximately AED 18,000–25,000 all-in for the first year. If you need at least one visa, budget AED 25,000–35,000. The biggest variable is office space—a flexi-desk at AED 6,000/year vs. a private office at AED 25,000+ makes a huge difference.
How long does it take to set up a mainland company?
With all documents ready and using a PRO service: the trade license itself can be issued in 3–5 business days. The full process including office setup, Ejari, and first visa stamping takes 3–6 weeks. The main bottleneck is usually finding and securing office space with a valid Ejari contract. If your activity requires additional ministry approvals (food, healthcare, education), add 1–3 additional weeks.
Can I convert a free zone company to a mainland company?
You cannot directly "convert" a free zone company to a mainland one. They are separate legal entities under different authorities. However, you can set up a new mainland company and either close your free zone company or keep both. Some businesses maintain both: a free zone entity for international trade and a mainland entity for local operations. Your free zone company can also act as a shareholder in your mainland company.
What ongoing compliance is required for a mainland company?
Annual requirements include: (1) Trade license renewal before expiry, (2) Ejari renewal, (3) Corporate tax filing with FTA (even if below the AED 375,000 threshold), (4) VAT returns if registered (quarterly), (5) Health insurance renewal for all visa holders, (6) Visa renewal every 2–3 years, (7) Audited financial statements (recommended for all companies, mandatory for some activities), and (8) Economic Substance Regulations (ESR) notification if applicable. Missing any of these deadlines can result in fines ranging from AED 200 to AED 50,000+.
Need a Detailed Cost Estimate?
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