Posted by A mainland company in Dubai, registered under the Department of Economic Development (DED), offers unrestricted operational freedom throughout the UAE and internationally. Unlike free zone entities, mainland companies can directly engage with the local market, secure government contracts, and operate without geographical restrictions. This setup appeals to businesses targeting the local UAE market and international companies seeking comprehensive market access.
The total investment for establishing a mainland business typically ranges from AED 15,000 to AED 50,000, varying significantly based on business activity, location, and scale. New entrepreneurs can start with minimum requirements, while existing business owners may opt for premium locations and expanded facilities.
Core License and Registration Fees
The foundational costs of establishing a mainland company in Dubai center around licensing and registration requirements. Business license fees vary by category, with commercial licenses for trading and retail operations ranging from AED 10,000 to AED 50,000 depending on the number of activities included. Professional licenses for service-based businesses and consultancies typically cost between AED 10,000 and AED 25,000, with lower ranges applying to single-activity licenses. Industrial licenses for manufacturing and production activities start from AED 15,000, with additional fees based on facility requirements.
Registration requirements include trade name registration (AED 2,000-3,000), which covers name availability checks and Arabic translations, and initial approval fees (AED 1,000-1,200) for business activity validation and preliminary DED processing. Legal documentation costs include Memorandum of Association preparation and notarization (approximately AED 2,500) and additional authentication fees ranging from AED 500-1,000 for document attestation and government processing.
For businesses planning multiple activities, budget for additional activity fees at approximately AED 1,000 per activity, plus potential amendment charges of AED 800-2,000 if modifications are needed later. Specialized business categories may require special approvals with variable costs based on the specific business type.
Location and Office Space Costs
Office space represents one of the most significant ongoing costs when establishing a mainland company in Dubai. Current rental rates vary substantially based on location, with annual costs ranging from AED 50,000-70,000 in established business districts like Business Bay and Sheikh Zayed Road to over AED 80,000 in premium areas such as Dubai Downtown.
Budget-conscious entrepreneurs can consider more cost-effective areas like Deira or Al Qusais, where annual rents start from AED 15,000-30,000. The minimum space requirement for most mainland companies is 20 square meters, though specific requirements may vary by business activity.
Setup costs include mandatory Ejari registration (AED 220), DEWA utility deposits (approximately AED 2,000), and initial furnishing expenses. For new businesses seeking to minimize upfront costs, serviced offices and co-working spaces offer viable alternatives, providing fully furnished spaces with flexible terms and included utilities.
Location choice significantly impacts both costs and business potential. Premium locations offer prestige and accessibility but command higher rents, while emerging business districts provide cost advantages while still maintaining good infrastructure and connectivity.
For established businesses requiring dedicated spaces, long-term leases typically offer better rates, though they require larger upfront payments. Most commercial leases require quarterly or bi-annual payments in advance, along with security deposits equivalent to 1-2 months’ rent.
Entrepreneurs may also consider free zone options for tech startups as an alternative.
Visa and Employment Costs
The visa structure for mainland companies encompasses several mandatory components and varies based on the number of employees. Investment visa costs range from AED 5,000-7,000 for a three-year validity period, including medical fitness tests, Emirates ID, and visa stamping. For company employees, visa expenses typically amount to AED 3,000-5,000 per person, covering entry permits, change of status, medical examinations, and Emirates ID cards.
Labor cards, mandatory for all employees including investors, cost AED 500-1,000 depending on skill level and qualification. Companies must also factor in bank guarantee deposits of AED 3,000 per employee, refundable upon visa cancellation. Sponsorship fees vary by company size, ranging from AED 5,000 annually for small businesses to AED 25,000 for larger operations.
Visa renewal costs mirror initial application fees and must be processed every three years for investors and two years for employees. Early renewal applications are recommended, typically starting 30 days before expiration. Companies should also budget for mandatory health insurance coverage, ranging from AED 800-2,500 per person annually.
For skilled professionals, additional attestation fees for educational certificates may apply, ranging from AED 2,000-3,000 per document. Employment visa quotas depend on office space size and company activity, with minimum space requirements directly impacting the number of visas available.
Additional Administrative Expenses
Operating a mainland company in Dubai requires careful consideration of various administrative costs beyond the core licensing fees. Bank account establishment for mainland companies typically requires initial deposits ranging from AED 5,000 to 10,000, varying by bank and account type. Premium banks may require higher minimum balances, often between AED 25,000 to 50,000 for corporate accounts.
For businesses requiring local partnership, service fees for UAE national partners typically range from AED 5,000 to 25,000 annually, depending on the business activity and revenue scale. These arrangements should be professionally documented with clear terms regarding profit sharing and operational involvement.
Government processing fees include various regulatory approvals and registrations, typically totaling AED 3,000 to 5,000. These cover municipality permits, chamber of commerce membership, and other mandatory registrations specific to your business activity.
Professional consultancy services, while optional, can streamline the setup process significantly. Reputable business setup consultants charge between AED 5,000 to 20,000 for comprehensive assistance, including document preparation, government liaison, and legal advisory services.
Annual renewal costs must be factored into long-term planning. License renewal fees start at AED 10,000, with additional costs for visa renewals, local partner fees, and various permits. The total annual renewal budget typically ranges from AED 15,000 to 35,000, depending on business size and activity type.
Be sure to understand UAE corporate tax laws that may affect your mainland business.
Planning Your Budget: Practical Considerations
Effective budget planning for your Dubai mainland company requires careful consideration of both immediate and long-term costs. Plan for a minimum 20% contingency fund beyond your initial calculations to cover unexpected expenses and market fluctuations. For a standard commercial setup, maintain a working capital reserve of at least AED 100,000 for the first six months of operations.
Hidden costs often catch new entrepreneurs off guard. These include document authentication fees (AED 2,000-3,000), mandatory insurance deposits, sector-specific regulatory approvals, and marketing expenses. Additional unexpected expenses may include fit-out deposits for leased spaces, municipality inspection fees, and specialized software licensing.
To optimize costs, consider choosing multi-year licenses for discounted rates, utilizing serviced offices in emerging business districts, bundling visa services for volume discounts, and scheduling license renewals during promotional periods offered by the DED.
The typical setup timeline spans 15-30 business days, broken down as follows: initial approval (3-5 days), license processing (7-10 days), location approval (5-7 days), and visa processing (7-14 days). For optimal financial planning, structure your budget in phases from pre-setup through growth, allocating resources appropriately for each stage of business development.
For significant investors, the UAE Golden Visa program offers additional benefits for entrepreneurs.
Cost Summary Table
| Cost Component | One-Time (AED) | Annual/Recurring (AED) | Variables Affecting Cost |
|---|---|---|---|
| Core Licensing | |||
| Trade License | – | 10,000 – 50,000 | Business activity type, sector, scale |
| Trade Name Registration | 2,000 – 3,000 | – | Name category, language |
| Initial Approval | 1,000 – 1,200 | – | Business activity complexity |
| Office Space | |||
| Rent (Standard Office) | – | 50,000 – 80,000 | Location, size, building grade |
| Flexi-Desk/Shared | – | 15,000 – 30,000 | Location, facility type |
| DEWA Deposit | 2,000 | – | Property size |
| Ejari Registration | 220 | – | Property type |
| Visas | |||
| Investor Visa | 3,000 – 7,000 | – | Validity period (2-3 years) |
| Employee Visas (per person) | 3,000 – 5,000 | – | Number of employees, position level |
| Labor Cards | 500 – 1,000 | – | Employee category |
| Administrative | |||
| Local Partner Fees | – | 5,000 – 25,000 | Business type, agreement terms |
| Bank Account Setup | 5,000 – 10,000 | – | Bank choice, account type |
| MOA Notarization | 2,500 | – | Document complexity |
| Professional Services | |||
| Consultancy Fees | 5,000 – 20,000 | – | Service scope, provider |
| Total Estimated Range | 24,220 – 52,820 | 80,000 – 185,000 | Combined factors above |
Note: All costs are in AED and based on 2024 market rates. Additional sector-specific fees may apply.Compare these costs with company capital requirements when planning your total investment.
Next Steps and Resources
To move forward with your Dubai mainland company setup, schedule consultations with multiple licensed business setup consultants to receive detailed cost breakdowns and service proposals. Verify consultant credentials with the Dubai DED to ensure you’re working with authorized professionals.
For current fees and requirements, directly consult the Dubai Department of Economic Development website, Dubai Chamber of Commerce, or the UAE Ministry of Economy portal. Remember that all fees mentioned are subject to change, so verify current costs directly with authorities and request written quotes from service providers.
Government fees typically update annually, licensing requirements may change quarterly, and visa regulations revise periodically, so maintaining awareness of regulatory updates is crucial. Create a detailed setup budget with appropriate contingencies and prepare all required documentation before beginning the formal application process.
Contact the Dubai Department of Economic Development or visit www.economy.ae for the most current information and requirements.
Note: Cost structures and requirements are regularly updated. Always verify current fees with official sources before proceeding.