What is a Dubai mainland company, and why should UK investors have one?
A Dubai mainland company is a company licensed by the Department of Economy and Tourism (DET) in Dubai, enabling companies to operate anywhere in the UAE. To UK investors, it is a compelling option as it offers full access to the local market, unlike free zone companies, which have restricted access to designated areas or international trade.
Establishing a mainland company in Dubai also provides local suppliers, government tenders, and banks with credibility, as well as easier recruitment of employees in accordance with UAE labor legislation.
Additionally, the strategic placement of the UAE as a business hub of the world, highly favorable tax setup, and well-developed infrastructure place it as an attractive location for foreign investors seeking to expand within the Middle East.
What is the difference between Dubai mainland and free zone companies?
Among the initial queries UK investors pose is regarding the distinction between mainland and free zone establishments. A Dubai mainland company enables business operations throughout the UAE with no limitations, while free zone businesses are mainly export and international trading firms, typically limiting direct access to mainland business across the country.
Mainland businesses are governed by UAE commercial laws and must be signed up with DED, while free zone businesses are governed by the laws of their individual free zone authorities.
As far as ownership is concerned, recent legal reforms now offer 100% foreign ownership in many mainland businesses, just like in free zones, but mainland businesses tend to offer more leeway when negotiating contracts and expanding business.
Can UK citizens legally establish a mainland business in Dubai?
Yes, UK citizens can legally set up a Dubai mainland company. Recent reforms in UAE business laws allow full foreign ownership of many business activities, eliminating the need for a local partner in most cases.
However, some restricted sectors may still require a UAE national as a partner or sponsor. UK investors may set up a company remotely from the UK or travel to Dubai for initial approvals. The process is legitimate and accepted under UAE law, granting investors the right to carry out business, hire employees, and open bank accounts as any domestic company.
What documents do I need to set up a Dubai mainland company from the UK?
To open a Dubai mainland company from the UK, investors usually require the following documents:
- Shareholder and director passport copies
- Documentation of residential address in the UK
- Bank reference letters or statements
- Business plan (for specific activities)
- Documentation of professional qualifications for certain business licenses
- Signed Memorandum of Association (MOA)
All papers might be required to be notarized and attested prior to their submission. It is advisable to work through a local consultant or PRO (Public Relations Officer) to facilitate the process, so that all documents are correctly compliant with Dubai’s laws.
Do I need a local sponsor or partner for a Dubai mainland company in 2025?
For most commercial activities, the response is no. UAE reforms currently permit 100% foreign ownership for many sectors. Earlier, a UAE national needed to own at least 51% of the company, but this is no longer mandatory for several commercial and professional activities.
Nevertheless, a few business sectors with restricted activity, including oil, aviation, and some investment-linked operations, remain subject to a local partner. Prior to applying, investors ought to double-check the ownership regulations of their desired activity with the DET or with a reliable business consultant.
How do I select the proper business activity and legal structure?
Choosing the appropriate business activity is vital, as the activity chosen determines which type of license is needed. Activities are commercial, professional, or industrial with distinct legal regulations.
In regard to legal structure, choices include:
Limited Liability Company (LLC): Best suited for trading and commercial operations
Sole Establishment: Best suited for professional services
Branch of a foreign company: Enables expansion of a UK business to Dubai
UK investors must consider their long-term objectives, investment amount, and who they are planning to serve when deciding on both the activity and structure.
How do I begin a Dubai mainland company setup from the UK?
Initiating the setup process online is a multi-step process. To begin with:
1. Investors need to decide on their business activity and legal form
2. They should then reserve a company name with DET
3. Request initial approvals
4. Have the MOA ready
5. Sign an office lease agreement
6. Sign off on the MOA
7. Submit documents
8. Pay for the license
It is strongly advised to hire a UAE-based consultant or PRO service that can deal with local formalities, document attestation, and government submission.
Which Dubai government authority deals with mainland company licensing?
The primary government agency for mainland license issuance is the Department of Economic Development (DET), as mentioned above. The DET handles company signup, name approval, license issuance, and renewal.
Some business activities can also demand clearances from other government agencies. For instance, healthcare, education, and construction companies can demand additional clearances. A consultant with knowledge of DET processes can handle such requirements efficiently and ensure timely approvals.
How do I book a company name in Dubai?
Selecting a company name is part of the initial stages of registration. The DET has some guidelines:
- Names should be distinctive and not be trademarked
- Refrain from the usage of offensive or political words
- Should reflect the type of business
Following online or consultancy submission of name suggestions, the DET will endorse one company name, usually within 2–3 working days. Name reservation is done within a short period, so the remaining signup processes need to be completed quickly.
What is the procedure to obtain initial approval for my Dubai mainland company?
Initial approval is an official confirmation by the DET to enable the company to function lawfully. The procedure consists of:
1. Submittal of shareholder documents and photocopies of passports
2. Notifying business activities
3. Payment of initial approval charges
After approval, the investors are issued an approval certificate that enables them to proceed with leasing of offices, preparation of MOA, and issuance of final licenses. This is important for legal compliance and forms the basis of the business set-up process.
Do I need a physical office in Dubai, and what are my options?
Yes, mainland company setup does need a physical office. Choices are:
Traditional office lease: Appropriate for enterprises requiring space for staff and operations.
Flexi-desk: Shared office solution recognized by DET, affordable for small startups
Virtual offices: Can be permitted for certain professional licenses with limited staff
The office facility needs to comply with DET regulations and be recorded in the submitted lease agreement for license approval.
How do I prepare an MOA for my company?
The MOA preparation includes:
- Shareholder roles
- Percentage of ownership
- Company goals.
For LLCs, the MOA should be in line with UAE commercial laws and must be notarized. Expert consultants usually prepare MOAs to avoid future conflicts and compliance issues. After signing, the MOA is filed with the DET along with other licensing papers.
What is the procedure for final license issuance for a mainland company?
Once initial approvals are obtained, office space is leased, and the MOA is prepared, investors lodge the final documents with DET. Upon examination, the license is issued, enabling the company to lawfully commence operations in Dubai.
The procedure is normally completed within 1–2 weeks after the submission of documents. After the issuance, the company can open bank accounts, recruit employees, and begin operations.
Can I open a Dubai mainland business bank account from the UK?
Yes, most UAE banks permit international investors to initiate the bank account process remotely. Documents that must be provided include:
Trade license
MOA
Copies of passports
Proof of residence
Some banks might need a personal visit for verification. Remote banking services are becoming increasingly prevalent, allowing UK investors to take control of their finances without the need to move immediately.
Which banks accept international company clients in Dubai?
Major UAE banks such as Emirates NBD, Dubai Islamic Bank, Mashreq, and ADCB, along with multinational banks like Standard Chartered, Citi, and others, have a strong understanding of international clients.
Conditions differ, but well-established banks provide corporate accounts specifically designed for mainland companies owned by foreigners.
Using a PRO or banking consultant makes it easier, ensuring investors achieve documentation and compliance requirements.
How many visas can a Dubai mainland company sponsor?
Visa numbers vary with office size and business activity. The average DET-approved office may sponsor multiple employee visas, and larger offices may be eligible for more.
UK investors are also eligible to get a residency visa under company ownership. This allows for long-term residence in Dubai, access to banking facilities, and the ability to sponsor dependents.
Can UK owners obtain a UAE residency visa via a mainland company?
Yes, investors may apply for UAE residency visas after the company is fully licensed. Residency visa options generally are:
- 3-year or 5-year investor visa
- Employee visas for company personnel
- Family visas for spouse and children
Residency not only gives the right to reside in Dubai but also local benefits like healthcare, banking, and education.
What are the annual compliance requirements for a Dubai mainland company?
Mainland companies are required to comply with:
Annual renewal of license by DET
VAT filing (if turnover is above limit)
Audit and financial statements (if necessary for certain types of businesses)
Renewals of employee visas
Non-compliance will incur penalties or suspension, so keeping records and staying on top of deadlines is important.
Are Dubai mainland companies subject to corporate tax or VAT?
As of 2023, the UAE has implemented a 9% corporate tax on eligible profits over AED 375,000. UK investors need to take care of proper accounting and reporting.
5% VAT is applicable on goods and services in the UAE. Proper filing and invoicing are necessary to comply with the law. Professional accounting assistance facilitates smooth tax compliance.
Do I require a business setup consultant to set up a Dubai mainland company from the UK?
Though it is possible to manage the setup on your own, utilizing a consultant is advantageous in many ways:
In-depth local knowledge of DET requirements
Rapid processing and reduced errors
Support with office leasing, MOA preparation, and approvals
Guidance on bank account opening and visa application
Consultants facilitate smooth sailing for investors remotely from the UK.
How can UK investors minimize costs when establishing a Dubai mainland business?
Cost-saving advice is to:
Employ flexi-desk or shared office options in place of full office rents
Opt for the most appropriate license type for business operations
Utilize multiple services from one consultant to minimize PRO fees
Taking careful consideration when planning visa sponsorship amounts to preventing excess expense. Having a decent budget ensures the company runs efficiently without breaking the bank in setup.
What are some common mistakes I should avoid when setting up a mainland company?
Common mistakes include:
- Selecting wrong business activity or license type
- Violating DET documentation protocols
- Disregarding visa and labour legislation requirements
- Omitting expert consultancy for specialized industries
Avoiding all these errors ensures seamless setup and successful long-term operations.
Will I be able to effectively establish a Dubai mainland company without traveling to the UK?
Yes, British investors are able to fully establish a Dubai mainland company remotely with proper guidance and planning. With knowledge of legal requirements, the right business activity selection, and the use of a reputable consultant, the process can be finished effectively from the UK.
Dubai mainland companies open doors to regional and global markets, offering a credible, flexible, and legally compliant business structure for international investors. With proper planning and professional support, UK investors can take full advantage of Dubai’s strategic location and business-friendly environment.
Seek our professional on-the-ground guidance, contact us via mail at info@radiantbiz.com or WhatsApp & call us at +44 7398 573313!
