Hi Henrik,

Setting up a mainland company in Dubai is a structured process managed by the Dubai Department of Economy and Tourism (DET). While the procedure is straightforward, understanding the regulatory requirements in advance can help you avoid unnecessary delays and ensure your application moves smoothly.

Main Steps for Mainland Company Formation

The registration process generally follows these stages:

• Select your business activity and legal structure, such as a Limited Liability Company (LLC), based on the nature of your business.
• Reserve a trade name that complies with the UAE's naming regulations.
• Obtain initial approval from the DET, confirming that your proposed business can proceed with registration.
• Lease a commercial office in Dubai and register the tenancy agreement through Ejari, as a physical business address is mandatory.
• Prepare and sign the Memorandum of Association (MOA) or, where applicable, the Local Service Agent agreement.
• Submit the final application, pay the government fees, and collect your mainland trade licence.

Important Regulations to Know

Before starting your application, keep these key regulations in mind:

• Foreign Ownership: Most commercial and professional activities now allow 100% foreign ownership, although a limited number of strategic sectors continue to have separate ownership requirements.
• Physical Office Requirement: Every mainland company must maintain a registered office address supported by a valid Ejari tenancy contract.
• Sector-Specific Approvals: Businesses operating in industries such as healthcare, food services, education, security, or construction may need approvals from authorities like Dubai Municipality, Dubai Civil Defence, or other relevant regulators before the licence is issued.
• Corporate Tax: Businesses are generally subject to 9% corporate tax on taxable profits exceeding AED 375,000, while the UAE continues to have 0% personal income tax.

Many first-time entrepreneurs focus only on getting the trade licence approved, but it's equally important to choose the correct business activities from the beginning. Your selected activity affects licensing, regulatory approvals, visa eligibility, and even the ease of opening a corporate bank account later. Spending a little extra time at this stage can save significant time and cost in the future.