Set Up Right: Plan Your Dubai Mainland License Wisely

dubai mainland license

In 2025, the mainland route gives you full access to the UAE market. But many businesses rush the process… choosing the wrong activity, skipping due diligence, or relying on outdated advice. The result? Limited growth, surprise costs, or compliance issues that could’ve been avoided with proper planning.

This guide walks you through how to set up your Dubai mainland license the smart way. You’ll learn what the license really offers, how to choose the right structure, what the real approval process looks like, and how much it actually costs, not just the headline price, but the total mainland license Dubai cost.

If you’re a startup, consultant, or SME looking to operate freely across the UAE (including with government clients), this is what you need to know before you apply.

What Is a Dubai Mainland License and Why It Gives You More Freedom

A Dubai mainland license is issued by Dubai’s Department of Economy and Tourism (DET) and gives your business the legal authority to operate anywhere in the UAE. Unlike free zone licenses, which limit you to working within specific geographic areas or with certain types of clients, a Dubai mainland license gives you unrestricted commercial access across all seven emirates.

Here’s why businesses in 2025 are choosing the mainland route:

1. Full Access to the UAE Market

With a Dubai mainland license, you’re allowed to sell goods or services directly to customers anywhere in the country without needing a local distributor or intermediary.

2. Eligibility for Government Contracts

Only businesses with a Dubai mainland license can bid for and fulfill government or semi-government contracts. If that’s part of your growth plan, free zone licenses won’t cut it. If you want to go deep on the Dubai free zone vs mainland, here’s a guide that will give you more clarity.

3. 100% Foreign Ownership (in Most Activities)

As of 2025, foreign investors can own 100% of a mainland company in most approved business categories. You no longer need a UAE national sponsor unless your activity falls under the restricted list.

4. No Geographic Restrictions

You can open branches, serve clients, and operate across Dubai, Abu Dhabi, Sharjah, and beyond without needing additional permits or licenses in each emirate.

5. Unlimited Visa Quotas (Based on Office Size)

Mainland businesses can apply for an unlimited number of residency visas, subject to their office space and business activity. This flexibility is critical if you plan to hire and scale.

6. Greater Office Location Options

With a Dubai mainland license, you’re not tied to a specific business park or zone. You’re free to lease or own commercial space anywhere in the city that meets the DET’s approval.

Fact: Over 51,000 new companies registered during Q1-Q3 of 2024 in Dubai, with small and medium enterprises accounting for 95% of the total.

Choosing the Right Business Activity (Don’t Rush This)

mainland license dubai

Choosing the right activity for your Dubai mainland license isn’t a checkbox, it’s a structural decision. Get it wrong, and you risk delays, extra approvals, or restrictions on how your business operates.

Here’s what to keep in mind:

1. It Must Match What You Actually Do

The DET only licenses you for the activity listed. If your operations go beyond that, you’ll need to amend your license or risk penalties.

2. It Determines Your License Type

Your activity decides whether you’ll hold a Commercial, Professional, or Industrial license. This affects ownership options, visa rules, and required approvals.

3. Some Activities Need External Approvals

If you’re in healthcare, education, food, or logistics, expect additional permissions from authorities like DHA, KHDA, or Civil Defense. Factor in extra time and paperwork.

4. It Affects Office Size and Visa Quotas

Certain activities require larger office spaces or come with stricter hiring limits. If you’re planning to grow, check the visa capacity linked to your chosen activity.

5. You Can’t Operate Beyond It

Once approved, your Dubai mainland license restricts you to the listed activities. Expansion means formal amendments and new approvals.

6. You Can Add More Than One

You can list multiple related activities under one license, but irrelevant combinations slow things down and may trigger extra scrutiny.

Pick your activity with the same care you’d use to choose a business partner. It sets the tone for everything that follows.

Ownership Structures Under the 2025 Rules

ownership structure for mainland company

Getting a Dubai mainland license in 2025 gives you far more control than it did just a few years ago. The UAE’s legal reforms now allow most foreign investors to fully own their companies without the need for a local partner. But while ownership is simpler on paper, your legal structure still affects how your business runs, how liability is handled, and what protections you have.

Here’s what you need to know about choosing the right setup for your Dubai mainland license:

1. 100% Foreign Ownership Is Standard for Most Activities

Most sectors now allow full foreign ownership under a Dubai mainland license, meaning you can register your company without giving equity to a local partner. This applies to both individuals and corporate entities, provided your activity isn’t on the restricted list.

2. Some Sectors Still Require Local Involvement

A small group of activities, mainly those linked to national security, defense, or sensitive media still require a UAE sponsor or service agent. If your activity falls into this category, you can still hold a Dubai mainland license, but with specific structuring requirements.

3. LLC or Sole Establishment

With a Dubai mainland license, your company can be registered as either a Limited Liability Company (LLC) or a Sole Establishment.

  • LLC: Best for trading and commercial activities. It separates personal and business liability and allows for flexible ownership between multiple shareholders.
  • Sole Establishment: Ideal for solo professionals offering services. It gives you full control but doesn’t shield you from financial or legal risk.

Understanding these structures is important, especially when comparing them to freezone setups. Learn more about the difference between LLC and Freezone in UAE.

4. Corporate Shareholding Is Accepted

If you’re structuring your business through a parent company, either local or foreign, you can apply for a Dubai mainland license using corporate shareholder documents. This is common among international firms setting up regional branches.

5. Local Agents Play a Limited Role Now

Even if your activity still requires a UAE national, they’ll act only as a service agent without owning shares or interfering with business decisions. This agent is listed on your Dubai mainland license, but their role is administrative and compensated through a fixed annual fee.

6. Your MOA Defines Control

Regardless of ownership percentage, your Memorandum of Association (MOA) outlines your company’s internal governance. It dictates voting rights, profit-sharing, dispute resolution, and exit strategies. Many investors rush this step. A weak MOA can create issues later, even with a clean Dubai mainland license.

Approvals & Documentation

documentation for mainland business

When applying for a Dubai mainland license, approvals can vary depending on your business activity. Some licenses require more than just basic paperwork. You may need clearance from external government bodies.

Here are a few examples:

  • Real estate companies need approval from RERA (Real Estate Regulatory Agency).
  • Clinics and healthcare providers need a green light from the Dubai Health Authority.
  • Restaurants or food businesses must pass inspections from Dubai Municipality’s food safety department.
  • Training centers may need KHDA approval.

These are not optional. Without them, your Dubai mainland license can’t move forward.

You’ll also need to prepare core documents like:

  • Trade name reservation
  • Initial approval certificate
  • Tenancy contract (Ejari)
  • Memorandum of Association (MOA)
  • Owner and partner passport/visa copies

When all required approvals and documents are in place, the Dubai mainland license process becomes much smoother and much faster. 

We have a document checklist for business setup in Dubai that can help you avoid delays when applying for your mainland license.

Office Space Requirements for Mainland Companies

Getting a Dubai mainland license comes with a key requirement. Having a physical office space in the emirate. Unlike free zone setups, virtual offices or flexi-desks are not enough to qualify for a Dubai mainland license.

Here’s what you need to know:

  • Physical Office Is Mandatory: To maintain a valid Dubai mainland license, your company must lease or own a physical office within Dubai. This requirement applies even if your operations are primarily remote or service-based.
  • Minimum Office Size: The Dubai Department of Economy and Tourism (DET) generally requires a minimum of 200 square feet. However, the actual size may vary depending on the nature of your business activity and the number of visas you plan to sponsor.
  • Ejari Tenancy Contract: Your office lease must be registered with Ejari. Dubai’s official rental contract system. Without a valid Ejari, your application for a Dubai mainland license won’t move forward.
  • Shared Offices for Startups: Some startup-friendly business centers offer shared offices or co-working setups that meet the legal criteria for a Dubai mainland license, including an Ejari registration. These are ideal if you’re testing the waters or running a lean operation.
  • Impact on Visa Allocation: The size and type of your office space directly affect how many employee visas you can apply for under your Dubai mainland license.

Common Mistakes That Can Cost You Big Later

mistakes to avoid while opening mainland business

Getting a mainland license in Dubai opens doors to serious business opportunities, but only if you avoid the traps that catch many new investors. Here’s what to watch out for:

1. Choosing the Wrong Business Activity

Many first-time founders rush this step. If the activity listed on your license doesn’t match what you actually do, you could face penalties or even suspension. Always verify the activity options before finalizing your mainland license Dubai application.

2. Ignoring the Approval Chain

Some business types need external approvals like from the Dubai Municipality or DED. If you skip this, you’ll delay your license or get stuck midway. It’s critical to align your setup with the right authorities upfront.

3. Underestimating Office Space Requirements

Mainland companies must have a physical office. Virtual setups or shortcuts might get your license revoked. We’ll cover this in detail in the next section, but just know that if you’re applying for a mainland license in Dubai, your lease matters.

4. Not Factoring in Hidden Costs

There’s more than just the licensing fee.You’ve got immigration cards, establishment cards, attestation costs, and annual renewals. Many overlook this and go over budget.

5. Skipping Ongoing Compliance

Once licensed, you’re expected to stay compliant. Delayed renewals, missed visa updates, or not filing proper financials? Those can bring fines or blacklisting, especially for companies operating under a mainland license Dubai.

Being aware of these pitfalls helps maintain your business’s legal standing and protects you from unexpected penalties. And we’ve listed important challenges in setting up a business in Dubai. You can read this to avoid costly mistakes.

Cost Breakdown: What You’ll Really Pay in 2025

Understanding the mainland license Dubai cost is essential before you commit. While the headline fees may look attractive, the full picture includes several components that impact your budget.

Here’s what contributes to the overall mainland license Dubai cost:

1. License Fee

The base license fee depends on your business activity. As outlined in our Dubai license cost guide, commercial licenses usually start around AED 10,000, while professional or industrial licenses can be slightly higher.

2. Office Rent and Ejari

Your office lease is mandatory and can range widely based on location and size. This cost affects your mainland license Dubai cost significantly, especially since it ties directly to your visa quota.

3. Approvals and External Clearances

If your business activity requires special approvals like from health authorities or municipality departments, these fees add up.

4. Immigration and Establishment Cards

To sponsor employees, you’ll need these government-issued cards, which come with separate fees that impact your overall mainland license Dubai cost.

5. Visa Quotas and Fees

Visa costs depend on the number of employees you plan to sponsor. Mainland companies can apply for more visas than free zone entities, but each visa adds to your budget.

6. Renewal Fees

Your mainland license Dubai cost doesn’t stop at registration. Annual renewals for the license, office lease, and visas are recurring expenses you need to plan for.

Keep in mind, the cheapest license option upfront can lead to higher costs later due to limited activities or hidden fees. It’s better to plan for the full scope to avoid surprises.

For a full breakdown, here’s a step-by-step guide on starting a business in Dubai. Especially useful if you’re still mapping out your setup.

Final Checklist Before You Commit to the Mainland Path

Before you apply for your Dubai mainland license, it’s crucial to review key points to avoid costly mistakes and delays. Here’s a practical checklist to guide you:

Confirm Your Business Activity

Ensure your chosen activity fits your operations and is approved for a Dubai mainland license.

Understand Ownership Structure

Decide if you’ll have 100% foreign ownership or need a local service agent, based on your activity.

Secure Physical Office Space

Lease an office that meets the minimum size and register your tenancy with Ejari. This is essential for your license approval.

Gather All Required Approvals

Check if your activity needs additional government permissions and start that process early.

Prepare Complete Documentation

Trade name reservation, MOA, passports, and tenancy contracts must be ready and accurate.

Budget for Full Costs

Account for license fees, office rent, visa costs, and renewals. The full Dubai mainland license cost extends beyond the initial fee.

Plan for Visa Quotas

Align your office size and activity with the number of employee visas you intend to sponsor.

Keep Compliance in Mind

Mark renewal dates and maintain records to stay compliant and avoid penalties.

Following this checklist helps ensure your Dubai mainland license application proceeds smoothly and sets your business up for sustainable growth.

One last thing, we see many people ask: “Can a mainland company do business in a free zone?”

If you’re asking that too, then you might want to see this updated breakdown of whether a mainland company can do business in a free zone in 2025.

Setting Up Your Dubai Mainland License the Right Way

setting up mainland company

Obtaining a Dubai mainland license is a significant step toward establishing a successful business in one of the world’s most dynamic markets. With mainland company formation in Dubai, you gain flexibility, full market access, and unmatched growth potential, but only if you plan carefully from the start.

From selecting the right business activity to understanding ownership rules, securing approvals, and meeting office requirements, the setup process can be complex. Mistakes along the way may lead to delays, added costs, or even compliance issues that hold your business back.

With deep expertise in navigating the nuances of the Dubai mainland license, GCG Structuring helps entrepreneurs and companies design the right company formation tailored to their needs. Whether you’re a startup, SME, or consultant, GCG guides you through every step from activity selection to final approvals and beyond, ensuring your license is secured efficiently and correctly.

FAQ

1. 0 How long does it typically take to get a Dubai mainland license approved?

The approval time for a Dubai mainland license can vary depending on the business activity and whether additional external approvals are required. Generally, the process takes between 2 to 6 weeks once all documents are submitted correctly.

Yes, you can amend your business activity on your Dubai mainland license, but this involves an official procedure with the Department of Economy and Tourism. It may also require new approvals depending on the nature of the change.

Yes, converting from a free zone to a Dubai mainland license is possible, but it requires meeting mainland licensing requirements such as securing office space and obtaining relevant approvals.

Certain strategic sectors like defense, security services, and some media activities are restricted. These businesses cannot obtain a Dubai mainland license unless specific conditions or partnerships with UAE nationals are met.

Yes, a Dubai mainland license permits you to operate and open branches across all emirates without needing separate licenses for each location.

Maintaining your Dubai mainland license involves regular renewals, visa updates, and adherence to financial and operational regulations. Failure to comply can result in fines or suspension of your license.

Picture of Peter Ivantsov
Peter Ivantsov

Managing Partner of GCG Structuring

Founder of GCG Structuring, Peter Ivantsov combines years of banking and corporate services expertise to help entrepreneurs succeed in the UAE. After starting his career in HSBC’s wealth division and working with a DIFC family office, he launched GCG Structuring in 2020 to offer smarter, more transparent business setup solutions. Drawing on first-hand experience managing multinational operations for Global Capital Group, Peter Ivantsov delivers high value, time saving services backed by a client-first approach. His mission is simple: make setting up and growing a business in the UAE efficient, compliant, and profitable.

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