Dubai mainland company fo

Mainland Company Formation in Dubai – Costs, Benefits, Risks


Businesses of all types and sizes flourish in the UAE. Be it a Dubai mainland company formation or a free zone establishment – you’re bound to taste success if you have religiously dedicated your time and money towards your corporate glory. With the introduction of complete foreign ownership for mainland companies, it can become a bit confusing to decide which legal jurisdiction you should choose for your business since both have their advantages and limitations.

Here, we deep-dive into all the aspects of UAE mainland company formation. You’ll get to know about the various costs involved in mainland business setup, the numerous benefits you can enjoy, and the associated business risks. If you want to launch your dream venture in the mainland, all you need to do is get in touch with the legal advisors at Shuraa, and we’ll handle the rest.

How much does it Cost to open a Mainland Company in Dubai?

Business ventures belonging to diverse commercial sectors enjoy increased surplus and sustainable growth in the mainland region. It’s hard to finalize a fixed cost for Dubai mainland company formation as it varies in accordance with your business requirements, aspirants, and external approvals. 

However, payments made for initial approvals, trade name reservation, business license, can help in estimating a ballpark figure for the overall cost of business setup in the Dubai mainland. Business owners need to pay AED 120 (one time) for initial approval and AED 620 (also one time) for the trade name reservation. The business license fee is around AED 10,000 for a commercial license and around AED 6,000 for a professional business license.

The business license needs to be renewed every year, and it’s mandatory to have a valid trading license at all times. It’s recommended to go for trade license renewal at least one month prior to the expiry date. Therefore, it’s an annual fee that you need to pay during your business tenure in the UAE. Other costs involved in UAE mainland company formation include the charges for notarization of MoA that totals to around AED 1,500 (one-time fee). 

You also need to pay an additional charge for selecting a foreign trade name, and the amount for the same is AED 2,000 that you need to pay on a yearly basis. Translation charges, administrative services fee (if applicable), etc., also add up in the overall cost chart for company incorporation in the mainland region.

What are the Benefits of Mainland Company Formation?

Dubai mainland company formation has several benefits, thanks to the business-friendly laws and supportive government. Some of them are listed below:

1. Access to Dubai’s Local Marketplace

The Dubai mainland region is the land of opportunities. It offers a unique set of audience that’s willing to invest, purchase, and rebuy products and services that have high-quality standards. If you have honed your skill-set, improved your product inventory, and increased the overall quality of your offerings – you’ll have a merry time doing business in the mainland.

2. Tax-Free Business Functioning

Companies in the mainland region enjoy several tax exemptions. They don’t need to pay any corporate taxes, and you can repatriate 100% of the profits. Furthermore, there’s no minimum capital requirement, and business entities are only liable to pay a nominal VAT of 5%. You can get in touch with the legal advisors at Shuraa to know more about the taxation policies in the UAE.

3. 100% Company Ownership 

The latest amendments in the Companies Law have empowered expats to enjoy complete foreign ownership of their ventures established in the mainland. This implies you no longer need a local sponsor (UAE national) who’ll have legal participation in your company alongside 51% ownership of your business.

4. Diverse Business Opportunities

The best part about setting up your business in the mainland is the openness to diverse business sectors. The region is welcoming to all major industries and be it MNCs or budding startups – all find a home for their venture in Dubai’s mainland. The DED maintains a list of all the permissible business activities, and you are free to choose the ones that match your business requirements. Moreover, you can obtain external approvals for activities not covered by the DED.

5. Preference for Government Projects

If you aspire to handle the UAE’s prestigious government projects, you should plan to set up your venture in the mainland region. Why? Because onshore companies get a preference when government projects are allotted to service agencies and professionals. These consignments offer a lucrative learning path, and you’re able to influence the lives of so many people through your work.

6. No Currency Constraints

Dubai mainland company formation is also beneficial when it comes to the currency constraints in the UAE. No such restrictions are imposed on mainland businesses, and you’re free to trade in the currencies of your preference.

Are there any Risks Involved in the Mainland Business Setup?

Here are a few risks involved in Dubai mainland company formation that business owners must consider before launching their venture:

1. Only Collaborate with Reliable Business Consultants

It’s imperative to partner with reliable business consultants to ensure you don’t pay anything extra and get the best value for your money. Irresponsible or dodgy consultants don’t offer complete business guidance, and you’re left with too much to handle. Therefore, it’s a risk that you shouldn’t take, and the remedy for the same is simple – get in touch with the business professionals at Shuraa.

2. Know About your Local Service Agent

You no longer need a local sponsor to form an LLC (limited liability company) in the mainland region. However, you still need a reliable LSA who’ll help you with the paperwork and other business procedures like translation, banking, etc., without having any legal role in your company. Untrustworthy LSA can cause unwanted trouble by missing meeting dates, or not offering adequate help.

3. Analyze your Target Audience

UAE mainland company formation is highly lucrative. However, as is the case with any other business, it’s also prone to a few risks. The biggest one is that of a complete mismatch between your expected target audience and the one you get in the mainland region. Therefore, always perform in-depth market research to mitigate this functional risk and form your company once you’re confident about your decision.

Launch your Mainland Company with Shuraa

Mainland business setup in the UAE is the hottest trend in 2021, thanks to the amendments in the Companies Law. Expats can now enjoy 100% ownership of their businesses and if you’re looking to set up your onshore company, get in touch with the business experts at Shuraa. 

Book a free consultation with our experts to know more about UAE mainland company formation, or call +971 44081900. You can also send a WhatsApp message at +971 50 777 5554. For email assistance, mail your query at

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