Documents Required for Mainland Business Setup in Dubai, UAE.

What Is a Mainland Company in Dubai and Why Does It Matter?

Setting up a mainland company in the UAE means registering with the Department of Economic Development (DED) of an emirate (e.g. Dubai). Unlike free-zone firms, a mainland company can trade anywhere in the UAE and even internationally. For example, a mainland LLC (Limited Liability Company) can bid for government contracts and sell directly to local customers without needing a local agent or distributor. Mainland businesses also enjoy perks like unlimited visa quotas and 100% profit repatriation. Importantly, thanks to recent reforms, most Mainland companies no longer require a local partner. Foreign investors can now own 100% of their mainland company in most sectors according to the Dubai Government.

In practice, this means if you set up a Dubai mainland company, you get full access to the UAE market, government tenders, and a flexible business structure. For example, you can establish an LLC (Limited Liability Company) or a professional firm onshore and sponsor your own visas. Dubai’s official portal even highlights that mainland companies “operate locally and internationally with 100% foreign ownership”. Moreover, the UAE imposes 0% personal income tax and minimal corporate tax on such businesses. These advantages make mainland setup very attractive for entrepreneurs.

Q. Why does the Mainland have so much importance?

It’s about freedom of movement. When you setup in a Free Zone, you’re technically an "offshore" entity operating in a special zone. You often can't trade directly with customers in Dubai (like selling goods to a shop in Deira or offering services to a government office) without a local distributor. Mainland companies don't have that invisible wall. They are "onshore" entities. They are the default, recognized businesses that can bid on government contracts and trade anywhere in the UAE and internationally without restrictions.

Quick Pro Tips: When planning your mainland company, decide on the right license type (commercial, professional, industrial, etc.) and legal form (LLC, sole establishment, etc.). Reserve a unique trade name early (it must follow DED rules like avoiding religious or offensive words).

Now you can Setup your Mainland Business in Dubai with flexible pricing with businessdubai.ae

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What are the types of Mainland licenses?

1. Commercial License: For buying and selling goods (Trading).
2. Professional License: For service providers (Consultants, doctors, artisans, teachers). This relies on your skills, not your inventory.
3. Industrial License: For manufacturing and packaging products.
4. Tourism License: For travel agencies, hotels, and tour operators.

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The Big Question: Do You Need a Local Sponsor (UAE Partner)?

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This is the #1 topic of confusion on Reddit and Twitter right now because the rules changed recently.

Historically, onshore companies required a UAE national holding 51% of the shares. However, this changed in 2021: a Federal Law (Decree 26/2020) now allows 100% foreign ownership in most mainland activities. In other words, you typically do not need an Emirati sponsor to own your mainland company today as per the UAE government website. Foreign investors can hold all the shares in an LLC or other onshore entity in most sectors.

That said, there are nuances. For professional licenses (like legal, medical, engineering firms), a foreigner can still own 100%, but UAE law requires appointing a Local Service Agent (LSA) who has no equity stake. This agent handles administrative liaison with authorities but doesn’t “own” the company. And while free-of-charge 100% ownership is allowed, many business owners still choose to have a local sponsor or corporate nominee for ease of banking or local networking. For example, some entrepreneurs on Reddit noted that having an Emirati sponsor can smooth out things like government fee discounts and bank account opening.

So coming to the main question, can you own 100% of a Mainland company? Yes, for the vast majority of activities (Trading, Consultancy, Contracting), you can now be the 100% sole owner on the license. The "51% Local / 49% Expat" split is largely history for typical entrepreneurs.

Q. What benefits do I get from having an Emirati partner?

Even though you don't have to have one, some people still choose to. Why?

• "Wasta" (Connections): A well-connected local partner can open doors that are otherwise locked. They might help smooth out government interactions or resolve serious disputes.
• Specific Contracts: Some old-school government tenders still look favorably on companies with local participation, though this is fading.
• The "Service Agent" Role: For Professional Licenses (like doctors, engineers, accountants), you still need a "Local Service Agent" (LSA). They don't own your company (you own 100%), but they act as your representative for government signatures.

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What Documents Are Needed for Initial and Final Approval?

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Forming a Dubai mainland company involves two main stages: Initial Approval and final licensing. For initial approval, you generally submit basic KYC and business info to the DED. Key documents include:

1. Passport copies of all shareholders or partners.
   
   
2. Visa copy/entry permit (if any partner is already in UAE) and Emirates ID (if a resident).
   
   
3. Proposed trade name(s) following DED naming rules (usually you submit 2–3 choices in case one is rejected).
   
   
4. Chosen business activity code(s) from the official list.
   
   
5. Ownership structure details (percentage of shares for each partner). You don’t need the finalized MoA yet, but you’ll outline how ownership is split.
   
   
6. Contact details (address, phone, email) for each shareholder/manager.
   
   
7. No-objection certificates (NOCs) if any shareholder is employed elsewhere in the UAE (some employers require an NOC for outside ventures)
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8. Bank Statement for residency address Proof: This is just required for verifying that you’re actual resident of your home country.
   
   

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Documents Required for Initial Approval

These are the typical documents and details that DET/DED will ask before they grant you Initial Approval.​​

1. Passport Copy of All Shareholders / Beneficial Owners

• Every person or company that will own part of the business must share a clear passport copy. Digital image of front page, 1st page, last page and back cover. 
• This includes beneficial owners who might not appear directly on the license but own the company through another entity.
• Authorities use this to do identity and security checks.​​

2. Visa Copy / Entry Permit / Emirates ID (Only If UAE Resident)

• If a shareholder or manager is already living in the UAE, you provide:
  
  • Residence visa copy or
  • Entry permit or
  • Emirates ID (if available).
    
    
• If you’re not planning to take residency yet and only want a business license, this is often not mandatory for non‑resident owners, but many consultants submit it when available because it speeds up future processes.​​ Connect with businessdubai.ae for free documents consultancy. 

3. Proposed Trade Name (Respecting DET Naming Rules)

You must provide at least 3 name options because one or more can be rejected.​​

Key rules:

• The name must not duplicate or be too similar to an existing registered trade name.
• You cannot use religious references (e.g., “Islamic,” “Allah”), government names, or offensive terms.
• Words like “bank,” “insurance,” “university,” “international,” country names may require extra approvals or can be rejected outright.
• Names that match sanctioned persons/companies or registered trademarks can be blocked.

It’s wise to treat trade name and trademark as two separate things: trade name registration with DET doesn’t automatically give you full brand protection.​

4. Selected Business Activity Code(s) from the DED Activity List

Every business activity in Dubai has a specific activity code (for example: “Retail sale of garments,” “IT consultancy,” “Marketing management”).​​

• You must pick precise activity codes, not just a vague description.
• Different activities drive:
  
  • Whether you need external approvals (RTA, Municipality, Central Bank, etc.)
  • Whether you can have 100% foreign ownership
  • What kind of office or warehouse you must have.

Good consultants usually help here because choosing the wrong code can delay everything later.

5. Ownership Structure and Shareholder Details (MoA Drafting)

Authorities want to see:

• Who are the shareholders?
• What percentage does each person own?
• Who will be the manager of the company?

This information forms the basis of your Memorandum of Association (MoA), which will be drafted and later notarized.​​

6. Contact Details for Shareholders / Managers

• Email, mobile number, and often a physical address.
• This is used for official notifications, license renewals, and banking KYC later.​​
  
  

7. No Objection Certificate (NOC), If Shareholder is Employed in UAE (only applicable for UAE Resident)

If one of the shareholders is currently working in the UAE and holds a residence visa sponsored by an employer:

• Some authorities still ask for a NOC from the current employer, especially if:
  
  • The person is on a government visa, or
  • Company policy restricts side businesses.

Not always mandatory in practice, but when requested, you must supply it.​​

What Does Initial Approval Allow You to Do?

Once you receive the Initial Approval certificate, you can:​​

• Proceed to MoA / LSA signing and notarization
• Rent premises and register Ejari in the company’s name (or in the partner’s name, depending on emirate rules)
• Apply for any sectoral approvals from external authorities (e.g., RTA, Municipality, Health Authority)

It’s basically the green light that lets you invest in office space and final structure with confidence.

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Documents Required After Getting Initial Approval (For License Issuance)

Once Initial Approval is in hand, you move to the final license issuance stage. The typical documents are:​​

1. Initial Approval Receipt / Certificate

• The confirmation issued by DET/DED after your application is approved in principle.
• This is mandatory to proceed further.
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2. All Previously Submitted Documents

• Passport copies
• Visa / Emirates ID copies (if any)
• NOC (if it was given earlier)
• Trade name reservation certificate

Think of it as: whatever you used to get Initial Approval continues as part of the file.​​
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3. Copy of the Lease Contract for Business Premises (Ejari or Similar)

• A tenancy contract registered as Ejari (in Dubai) or equivalent system in other emirates.
• The lease must match the licensed activity (warehouse for logistics, office for consulting, etc.).​
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4. Duly Attested Memorandum of Association (MoA)

• Signed by all shareholders (and sponsor/LSA where applicable).
• Notarized by a Notary Public or approved via digital notarization (UAE Pass) where supported.
• For some structures, an Articles of Association (AoA) might also be required.​
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5. Local Service Agent (LSA) / Service Agent Contract (If Applicable)

• Required mainly for Professional Licenses and certain branch setups where the foreigner owns 100% but needs a local service agent to represent them in government matters.​

6. Approvals from Other Government Authorities (if Applicable)

Many specialized business activities in the UAE require extra permissions beyond the DED licence. These sector approvals come from relevant government bodies. Some common examples:

• Roads and Transport Authority (RTA): Required for any transport-related activity (e.g. car rental, driving school, logistics with vehicles).
  
  
• Telecommunications Regulatory Authority (TRA): Needed for telecom or IT services (e.g. internet service providers, telecom equipment).
  
  
• Dubai or Abu Dhabi Municipality: Food businesses, restaurants, engineering contracts, and anything involving municipal infrastructure (signage, mechanical work, etc.) need municipal approval. For instance, a restaurant will need a “Food Control” permit.
  
  
• Ministry of Health / DHA (Dubai Health Authority): Healthcare providers, clinics, pharmacies, medical product distributors, and physiotherapy centers must get approvals from health authorities.
  
  
• Central Bank of the UAE: Any financial services (banking, foreign exchange, payment institutions, crowdfunding, insurance) require Central Bank licenses. Even some fintech activities fall here.
  
  
• Ministry of Industry & Advanced Technology (or Ministry of Economy): Industrial manufacturing and trades sometimes need approval or NOC from these ministries. For example, a factory producing electronics might need a sanction or certificate.
  
  
• H.H. the Ruler’s Court (Presidential Court): Only very few sensitive activities (like oil exploration, some security services) need the top-level clearance.
  
  
  

Additionally, you might hear about approvals from: Civil Defense (for buildings safety certificate), Ministries of Environment, Economy, or others depending on the niche. The DED will tell you during initial approval if your chosen activity requires any external NOC. Always check early: for example, applying for a trading licence in “foodstuff” may automatically trigger a DHA and municipality review.

Pro Tip: If your business is regulated (for instance, medical, legal, or education), expect added steps. Work with us where we’ll guide you through each authority. Getting these approvals sorted before final licence application will prevent hold-ups. 
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7. Payment Voucher / License Fees

• DET/DED issues a payment voucher that summarises government fees, name reservation fees, initial and final license charges, etc.​
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8. Proof of Identity and Address for Managers / Company Signatories

• Passport copy
• Visa / Emirates ID
• In some cases, overseas proof of address or bank statements for KYC and anti‑money laundering compliance.​​
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9. Any Additional Documents Requested by DED/DET

Depending on the activity and risk level of your business, you may be asked for:

• Floor plans or safety layouts (e.g., for warehouses and factories)
• Professional certificates (for doctors, engineers, accountants)
• Previous experience letters or approvals from professional bodies.​

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What Is Ejari, and How Does Your Office Space Affect Licenses and Visas? What is The "9 SQM" Rule?

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Ejari (Arabic for “my rent”) is Dubai’s online system for registering tenancy contracts. For any mainland company in Dubai, an Ejari certificate is mandatory to prove you have a valid office address. In fact, you generally cannot get your trade licence or sponsor visas without Ejari. Dubai law requires every leased business space to be registered with Ejari; this makes your tenancy legal and visible to authorities.

The operational capacity of a Mainland company is physically linked to its real estate.

The Office-Visa Ratio: Why Office space is required for Visa Quota – how does that work?
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The Ministry of Human Resources and Emiratisation (MOHRE) allocates visa quotas based on office size. The standard calculation is 9 square meters of office space per employment visa.³⁹

• Example: A 90 sqm office would theoretically allow for 10 employment visas.
• Flexibility: For small startups, the DED and MOHRE often allow a baseline quota (e.g., 3-5 visas) on a standard "Estidama" or small office contract, but expanding beyond this requires upgrading to a larger physical space.
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Ejari Registration Fees

Registering the rent contract (Ejari) is mandatory.

• Cost: The registration fee is approximately AED 220 (including VAT and innovation fees) if done online via the Dubai REST app, or slightly higher at a trustee center.⁴¹
• Importance: Without an Ejari certificate, you cannot get a Trade License, and without a Trade License, you cannot open a bank account. It is the linchpin of the process.
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Virtual Offices

"Virtual" offices in the Mainland context are not purely address-only services like in some Western jurisdictions. They are usually physical workspaces in business centers that are leased out technically to satisfy the DED requirement. These are often called "Sustainability Centers." While cost-effective (AED 2,500/year), they carry banking risks as discussed above.

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Why do I need office space? Can I also do online business without an office space?

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• The government wants to see a real presence for Mainland entities—an address where inspections, official mail and employees can be based.​
• Even if your business is fully online (e‑commerce, online consulting), for a Mainland license you usually still need at least:
  
  • A desk in a business center, or
  • A shared or small office with Ejari.

If you truly want a business with no local office at all, a Free Zone with a flexi‑desk / shared desk model may give you more flexibility. But for Mainland, expect to show at least minimal space.​

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How much does it cost for an office space on average?

Costs vary massively by:

• Area (Business Bay vs Al Qusais vs Deira vs IMPZ)
• Building quality and facilities
• Size and whether it’s a serviced office or bare shell

From current market observations and business setup firms:​

• Very small serviced / business center offices can start from around AED 10,000–20,000 per year for the smallest packages in less prime locations.
• Standard small offices (150–250 sq ft) in mid‑range areas can typically range from AED 25,000–60,000 per year.
• Prime locations and large offices can go much higher.

It’s always best to match the office grade to your business model and budget. Over‑investing early in fancy space is one of the most common mistakes new owners regret.​
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Q: Can I change my office later?

Yes. You can relocate your office after your license is issued.

• The steps usually are:
  
  • Sign new tenancy contract
  • Register new Ejari
  • Update the address on your trade license with DET/DED
  • Update bank, immigration, and any external authorities.​

There may be amendment fees at DED and some admin time, but it’s a normal, accepted process.
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Things to Keep in Mind Before Applying (Your Checklist)

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Your document lists these as “Things to keep in mind before applying.” Let’s expand each point in plain language.​​

1. Confirm Foreign Ownership Eligibility
   
   
   
   • Check whether your chosen activity is on the 100% foreign ownership list.
   • Most trading, services, and consultancy activities now allow full foreign ownership, but a few strategic sectors do not.​
     
     
2. Choose the Correct Legal Form (LLC, Sole Establishment, Branch)
   
   
   
   • LLC – good for most trading and general businesses; liability limited to company capital.
   • Sole Establishment / Professional – suitable if the business is built around your personal expertise.
   • Branch – if you want your foreign or GCC company to have a legal presence in UAE but not a separate entity.​
     
     
3. The legal form determines:
   
   
   
   • Whether you need a Local Sponsor or LSA
   • How your liabilities are handled
   • What kind of documents and approvals are required.
     
     
4. Select the Precise Business Activity Code
   
   
   
   • Don’t guess. Use the official activity list or ask an experienced consultant.
   • A wrongly chosen code can:
     
     • Delay external approvals
     • Trigger unnecessary regulatory requirements
     • Confuse banks during compliance checks.​
       
       
5. Reserve an Acceptable Trade Name Following DED Rules
   
   
   
   
   • Avoid religious, political, or government names.
   • Have 3–5 options ready to avoid delays.
   • Remember: trade name ≠ trademark.​
     
     
6. Prepare Office Lease (Ejari) or Proof of Premises
   
   
   
   • Decide early whether you need a virtual office, standard office, warehouse, or shop.
   • Without proof of premises, you cannot move from Initial Approval to license issuance in Mainland.​
     
     
7. Identify Any External Approvals
   
   
   
   • For example:
     
     • Transport → RTA
     • Food / restaurants → Municipality & Food Safety
     • Medical → DHA or MOH
     • Finance → Central Bank
   • Planning these in advance avoids “surprise” delays later.​
     
     
     
8. Ensure Shareholders / Managers Are Not on Sanctions / Restricted Lists
   
   
   
   • Banks and authorities will check your name against international blacklists and sanctions.
   • If someone is flagged, licensing or banking can be blocked or heavily delayed.​
     
     
9. Prepare Bank KYC & Source‑of‑Funds Documentation Early
   
   
   
   • Even if your license is issued, banks will not open an account without:
     
     • Passport, visa, Emirates ID (if available)
     • Proof of address
     • 6–12 months bank statements for major shareholders (often)
     • Business plan / projected invoices for new companies.​
       
       
10. If Shareholders Are Employed in the UAE, Check Employer NOC Requirements
    
    
    
    • Some private firms are flexible.
    • Some government or semi‑government employers restrict side businesses and insist on a NOC.
    • Clarify this before you start the process to avoid legal conflict with your employer.​​
      
      
11. Check MoA / AoA and Agreements for Notarization / Attestation
    
    

• Many structures require the MoA/AoA to be notarized.
• Some emirates now allow digital notarization via UAE PASS, but not for all scenarios.​
• If you have foreign corporate shareholders, their documents may need:
  
  • Notarization in home country
  • Legalization by UAE Embassy
  • Attestation by UAE Ministry of Foreign Affairs.
    
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Who Can Start a Business in Dubai Mainland (Nationality, Visa, etc.)?

Virtually anyone can set up a mainland company. The UAE allows all nationalities to own onshore businesses (subject to the activity’s own rules). There are no nationality bans for typical activities – for instance, citizens from Europe, Asia, Africa, or the Americas can all apply. The main exception is if a country is under international sanctions (e.g. North Korea or Iran), then companies owned by those nationals would generally be blocked by UAE regulations.

Your visa status simply needs to be valid at time of application. You do not need to be a UAE resident to register a company. Dubai allows entrepreneurs to apply on a visit visa or tourist visa. In fact, Dubai’s government site explicitly states: “To start a business in Dubai, you must hold a valid tourist or visit visa before applying for a licence”. So even if you come to Dubai as a tourist, you can legally proceed with initial approval. Of course, before the license is issued, you’ll need to either secure a residence visa (through the company as an investor visa) or maintain a valid permit as required.
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Examples: An European entrepreneur on a Dubai tourist visa can reserve a trade name and apply for initial approval. A German investor living in Dubai on a work visa can incorporate immediately. A Lebanese national on a student visa usually cannot act as a primary business owner without switching visa status (students are generally not permitted to run businesses on their student visa).

In summary, foreigners with any valid UAE entry permit (tourist, employment, investor, etc.) can form a mainland company. You must ensure your passport and visa are valid through at least the application period. Some people on visitor visas even do the setup entirely and then get their residency visa after licence issuance. Just be aware that if you plan to stay in UAE long-term, you’ll typically move to an investor or employment visa under the new company. Also note that if you already hold a golden/green visa through other means, you still go through the same formation process – your visa alone doesn’t exempt you from company regulations, but it gives you the right to stay.

Insights and Strategic Recommendations for the 2026 Investor

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The "Side Agreement" is Dead: Embrace the MOA

In 2025, the legal environment has shifted decisively against side agreements. Courts now view the notarized MOA as the definitive proof of ownership. Investors relying on old-school "trust deeds" to hide beneficial ownership are exposing themselves to immense risk. The recommendation is unequivocal: Formalize the 100% ownership on the MOA. If a local partner is required for strategic reasons, their role and exit clauses should be codified within the MOA itself, not in a shadow contract. 

Banking is the Primary Risk Factor

The ease of obtaining a license is inversely proportional to the ease of banking. Investors must treat the bank application as a project in itself.

• Pre-Validation: Before spending money on a license, consult with Businessdubai.ae regarding the eligibility of your specific nationality and business activity.
• Digital Footprint: Build a professional website and LinkedIn presence before applying. Banks perform "negative media searches" and validity checks. A company with no digital trace is a red flag. 

The Golden Visa Strategy

For high-net-worth investors, the Golden Visa is not just a residency permit; it is a compliance asset. Holding a Golden Visa signals to banks and authorities that the individual has passed high-level security vetting. This can sometimes smooth the path for account opening and removes the need for annual visa renewals. It also decouples the investor's residency from the company's fate, providing personal security.

Mainland vs. Free Zone: The Gap Narrows

With the new "Permit to Operate on Mainland" for Free Zone companies (Resolution 11 of 2025), the rigid wall between the two jurisdictions is becoming porous. However, for serious traders dealing in physical goods within the UAE, the Mainland license remains the only route that offers total supply chain control without reliance on third-party distributors. The Mainland license is an asset that accrues value; a Free Zone license is often just a permission to operate. 

In conclusion, the 2026 Dubai Mainland setup landscape is defined by opportunity via compliance. The doors are open wider than ever before for foreign ownership, but the security checks at the entry (banking and approvals) are stricter. Success belongs to the investor who views the setup not as a bureaucratic hurdle, but as the foundation of a transparent, legally robust, and financially compliant entity.

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