Dubai Mainland Company Formation: Procedures, Timelines, and Cost Structure
Everything about Dubai Mainland Company Formation!
Dubai’s reputation as a global business hub continues to attract entrepreneurs and investors from around the world. While free zones are favoured for their simplified structures and incentives, many businesses opt for Dubai Mainland registration to benefit from unrestricted trade within the UAE and the ability to work directly with government entities.
However, the procedures of Dubai Mainland Company Formation are quite unique. For example, unlike free zones where pricing is transparent and bundled, Dubai Mainland licensing – regulated by the Department of Economic Development (DED) – involves a more complex structure with variable costs and timelines.
Some websites create more confusion than clarity, unfortunately. Dubai Mainland company formation is often offered as “from 6,000 AED” for examples, disregarding the many cost items that will be added to DED’s final bill.
Below we are providing you with detailed information about procedures, timelines, and cost structure of setting up a Dubai Mainland company.
1. Dubai Mainland Company Formation Procedures and Timeframes of a typical Dubai Mainland Company Formation:
Setting up a mainland company involves several administrative steps. While the entire process can be completed in 5 to 15 working days, this depends on business activity type, documentation readiness, and whether external approvals from other authorities are needed.
Here’s a step-by-step breakdown with estimated timeframes:
| Step | Procedure | Estimated Time |
| 1. Choose Business Activity | Select the appropriate business activity from DED’s approved list. Some activities may require external approvals. | 1 day |
| 2. Trade Name Reservation | Reserve a unique trade name via DED’s online portal or your trusted service provider. | 1 – 2 working days |
| 3. Initial Approval | Apply for initial approval (No Objection Certificate) from DED. | 1 – 2 working days |
| 4. Drafting & Notarizing MoA | Draft and get notarised the Memorandum of Association (for LLCs; one standard template available from DED, otherwise engage a lawyer/notary to get your own Memorandum drafted), or sign a Local Service Agent (LSA) agreement (for sole establishments). | 1 – 7 working days |
| 5. Office Space & Ejari | Rent office space and obtain the Ejari tenancy contract. Office space is mandatory for all mainland companies. | 2 – 5 working days |
| 6. Final Submission & Payment | Submit all documents, pay government fees, and collect the trade license. | 1 – 3 working days |
| Total Timeframe (Average) | 5 – 15 working days |
Note: If external approvals are required (e.g., from DHA, KHDA, or Ministry of Economy), additional 3–10 working days may be needed.
2. Dubai Mainland License and Setup Cost Structure
One of the main differences between Mainland and Free Zone setups is the way costs are structured:
- Free zones offer more or less bundled packages with set prices.
- DED calculates the license fee based on multiple factors, and there’s no standardized price list.
DED Fee Components Include:
| Fee Category | Typical Range (AED) | Notes |
| Trade Name Reservation | 620 – 2,000 | Additional charges for foreign, premium, or non-Arabic names |
| Initial Approval | 120 | Valid for 6 months |
| License Fee (Core DED Fee) | Varies | Based on activity type, number of shareholders, number of visas needed, and license structure |
| Market Fee (5% of annual rent) | Varies | Added on top of license fee |
| Foreign Name Fee | 2,000 | If using a non-Arabic or foreign brand name |
| Chamber of Commerce Registration | 1,200 – 3,000 | Based on business activity |
| MoA Notarization | 1,000 – 2,000 | For LLCs; paid to Dubai Courts or approved notary; drafting is charged separately |
| Ejari Registration | 215 | Mandatory tenancy registration |
| Service Agent Fee (if applicable) | 5,000 – 10,000/year | For professional licenses needing a UAE national agent |
| Admin Fees / Knowledge Dirham / Innovation Dirham | 500 – 700 | Standard DED charges |
3. How the DED Calculates the Business License Fee
DED does not publish a fixed price list for business licenses. Instead, the final license cost depends on several variables:
Factors Influencing License Fee for Dubai Mainland Company Formation:
- Nature of business activity (some activities are categorized as high-value or regulated)
- Number of business activities under one license
- Number of shareholders or partners
- Number of UAE residence visas needed
- Legal structure (LLC, sole establishment, branch, etc.)
- Annual office rent, because:
- DED charges a “Market Fee” = 5% of the annual office rent
- This fee is added directly to the license fee
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Example Calculation (LLC, trading activity, but not for General Trading Licence):
| Component | Amount (AED) |
| Core License Fee (may vary, e.g.:) | 10,000 |
| Company Name Reservation | 620 |
| Market Fee (Office rent, e.g. AED 60,000/year) | 3,000 |
| MoA Attestation (+ drafting, if applicable) | 1,500 |
| Chamber of Commerce Registration | 1,500 |
| Knowledge/Innovation Fees | 600 |
| Total | 17,220 |
Note: The above fees for Dubai Mainland Company Formation are guidelines only and can vary significantly depending on the company’s circumstances. For example, the number of UAE residency permits required and any fees for sponsors or service agents have not been taken into account.
4. Free Zone vs. Dubai Mainland: Cost Structure Comparison
| Aspect | Mainland (DED) | Free Zone |
| Cost Transparency | Variable, itemized | Bundled packages |
| Office Requirement | Mandatory (Ejari) | Optional in many zones |
| Business Scope | UAE-wide + government contracts, global | Limited to within free zones, and global |
| Market Fee | 5% of rent | Not applicable |
| License Fee | Activity-based, etc. | Fixed in packages |
| Setup Time | 5 – 15 days | 3 – 10 days |
| And also relevant: | ||
| Corporate tax | 9% | 9% or 0%, exemption subject to conditions |
| Mandatory financial audit | From AED 50 million turnover | Always mandatory |
5. Dubai Mainland Company: Annual Renewal and Ongoing Costs
- Mainland licenses must be renewed annually.
- Renewal fees include the license fee + 5% of updated office rent.
- Any changes (e.g., shareholder, activity, address) incur additional modification fees.
Conclusion
Forming a Dubai Mainland company is a strategic move for entrepreneurs aiming to tap into the UAE’s full market potential, including government tenders and local business. However, the setup and licensing costs are less predictable than free zones, with multiple fees calculated based on business specifics.
Understanding the cost components and timelines is essential for accurate budgeting and planning. Entrepreneurs are encouraged to work with a business consultant or PRO service to navigate the DED’s procedures efficiently.
You may find more information about Dubai Mainland company formation here on our website.
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