Dubai Mainland Company Setup: Establishing an LLC outside the Freezones in 5 Days

Dubai Mainland vs. Freezone: The Crucial Difference for Your Business

Before we get into the setup process, you need to understand: Dubai Mainland and Freezone are two completely different worlds.

Most consultants pitch Freezones as a cure-all. That’s marketing, not actual advice.

What is a Dubai Mainland Company?

A Dubai Mainland Company is a business established directly under Emirati law, governed by the Department of Economic Development (DED) in Dubai—not any Freezone authority.

This means you can do business anywhere in the United Arab Emirates. No special permits. No limitations on where you operate.

Dubai Mainland vs. Freezone: The Hard Facts

The Myth of the Local Partner

Here’s the biggest misunderstanding. Yes, you do need an Emirati partner holding 51% of shares. But—and this is crucial—you retain full operational control.

How does this work? Through a management agreement. Your local partner holds 51% of the shares, but 0% control. You make all decisions, control all bank accounts, and manage all business activities.

Cost for a reputable local partner: 15,000 to 25,000 AED per year (4,000 to 6,800 EUR). A fair price for full operational freedom in the UAE.

Mainland or Freezone—When to Choose What?

Dubai Mainland is right for you if:

• You want to serve local clients in Dubai or the UAE
• You need flexibility in your business activities
• You’re targeting government contracts
• You have a physical business (trade, services)
• You want to simplify banking relationships

Freezone is better if:

• You only have international clients
• You want 100% ownership without a local partner
• You want to use specific Freezone advantages
• You plan minimal physical presence

In my 15 years of international tax advisory experience, 70% of my clients are better off with Mainland. Why? Because they underestimate the flexibility.

Dubai Mainland LLC Setup: A Step-by-Step 5-Day Guide

Let’s get practical. I’ll take you through the entire process, day by day, step by step.

Important in advance: This guide is based on 2024 regulations. Laws can change—always seek up-to-date advice.

Day 1: Preparation and Document Collection

What you need to do today:

1. Reserve company name via DED Smart Services
2. Collect and notarize all documents
3. Contact a local partner and make an agreement
4. Research office space (minimum size: 25 sqm/≈ 269 sq ft)

Required Documents:

• Passport (at least 6 months validity)
• UAE Residence Visa (or start application process)
• Proof of managerial qualification (university degree or work experience)
• Bank reference from home country
• Clean Criminal Record Certificate
• Medical certificate

All documents must be apostilled or certified by UAE consulates. In Germany, this takes 2–3 weeks—so plan accordingly!

Day 2: Business License Application and Approvals

Morning (9:00–12:00):

• Visit DED office or apply online
• Define business license category
• Obtain initial approval
• Have MOA (Memorandum of Association) prepared

Afternoon (13:00–17:00):

• Sign office rental agreement
• Apply for Ejari (tenancy registration)
• Apply for Municipality License (if required)

The business license costs between 15,000 and 50,000 AED, depending on business activity. Consulting and IT services are the cheapest; trading licenses are the most expensive.

Day 3: Company Formation and Registration

Morning:

1. Submit MOA to the DED
2. Apply for Trade License
3. Register with Chamber of Commerce
4. Apply for Emirates ID (if not already obtained)

Afternoon:

1. Order company stamps
2. Book an appointment for bank account opening
3. Prepare VAT registration (if annual revenue > 375,000 AED expected)

Insider tip: Order several company stamps—you’ll need them for every government procedure. Cost: 150 AED per stamp.

Day 4: Banking and Final Approvals

Banking Setup:

This is often the trickiest step. Emirates NBD, ADCB, and FAB are the most mainland-company friendly banks.

Required documents for bank account:

• Trade License (original + copy)
• MOA (notarized)
• Ejari (tenancy registration)
• Emirates ID of all directors
• Salary Certificate or Income Proof
• Initial deposit: 10,000–25,000 AED (depending on the bank)

Other Day 4 Steps:

• Apply for Labour Card
• Start employment visa process
• Set up office internet/phone

Day 5: Finalization and First Business

Final steps:

1. Collect all licenses
2. Activate bank account
3. Set up online banking
4. Test first transfers
5. Appoint an accountant

Ready for Business:

Your Dubai Mainland LLC is now ready for operations. You can issue invoices, sign contracts, and conduct business.

Important note: While theoretically possible to set up in 5 days, realistically plan for 7–10 days. Government processes can be slow, documents may be missing, banking may take longer.

Common Pitfalls and How to Avoid Them

• Document chaos: Use a checklist. Tick off every completed item.
• Translation errors: Only use certified translators for official documents.
• Banking delays: Have a backup plan. Approach at least 2–3 banks.
• Office issues: Check in advance if the office space suits your business needs.

Dubai Mainland Company Costs: Transparent Breakdown of All Fees

Now the question that matters most: How much does a Dubai Mainland LLC actually cost?

I’ll give you an honest breakdown—no hidden fees, no surprises.

One-Time Setup Costs

Total Setup Costs: 65,000–140,000 AED (17,680–38,080 EUR)

That’s a wide range. Why? Because it depends heavily on your business activity. An IT consulting firm is significantly cheaper than a trading company.

Recurring Annual Costs

Total Annual Costs: 128,000–323,000 AED (34,820–87,820 EUR)

Hidden Costs That Others Don’t Tell You About

Here’s where it gets interesting. Many providers lure you in with low base prices, then tack on extras:

• PRO Services: 2,000–5,000 AED per government process
• Banking Support: 5,000–15,000 AED for bank account opening
• Visa Processing: 3,000–8,000 AED per person
• NOC (No Objection Certificate): 2,000 AED when changing banks
• Amendment Fees: 5,000–10,000 AED for license changes

My advice: Always budget a 20–30% buffer for unexpected costs.

Cost Comparison: Mainland vs. Freezone

Is Mainland really more expensive? Let’s look at the numbers:

Yes, Mainland costs more. But you get more value for your money. The flexibility often justifies the extra cost.

Savings Potential and Optimizations

Where you can save:

• Shared offices lower office costs (from 30,000 AED/year)
• Negotiate with local partner (15,000 instead of 25,000 AED)
• In-house accounting
• Handle PRO services yourself

Where you shouldn’t cut corners:

• Legal advice for the MOA
• External auditing
• Document attestation
• Banking support

My rule of thumb: Plan for 200,000 AED (54,400 EUR) in your first year. From the second year onwards, budget 150,000–250,000 AED (40,800–68,000 EUR) annually.

Dubai Mainland Business License: What Activities Are Possible?

The business license is at the heart of your Dubai Mainland Company. It defines what you can—and cannot—do.

Here’s an overview of the key categories:

Commercial License (Trading)

The Commercial License allows for trading and import/export. Perfect for ecommerce, distribution, or traditional trading.

Typical Activities:

• Trading of Computer Hardware and Software
• Trading of Electronic Equipment
• Import and Export of Consumer Goods
• E-commerce Platform Operations
• Wholesale and Retail Trade

Minimum Capital: 300,000 AED (81,600 EUR)

License Fees: 25,000–50,000 AED annually

The advantage: You can trade both physical and digital products. The downside: Higher capital requirements.

Professional License (Services)

The Professional License is for services—consulting, IT, marketing—anything without physical goods.

Popular Service Activities:

• Management Consulting Services
• Information Technology Services
• Digital Marketing and Advertising
• Business Process Outsourcing
• Financial Advisory Services
• Legal Consulting (for attorneys)
• Engineering Consulting

Minimum Capital: 50,000–100,000 AED (13,600–27,200 EUR)

License Fees: 15,000–25,000 AED annually

Perfect for most international entrepreneurs: low capital requirements, maximum flexibility.

Industrial License (Manufacturing)

For manufacturing and production activities. Less relevant for most international entrepreneurs.

Minimum Capital: 500,000+ AED

Special Requirements: Environmental permits, specific locations needed

Tourism License

For hotels, travel agencies, and tourism operations.

Activities:

• Travel and Tourism Services
• Hotel and Accommodation Services
• Event Management
• Tour Operations

Minimum Capital: 100,000–500,000 AED

Multiple Activities on One License

This gets interesting: you can combine several activities under a single license. Saves costs, increases flexibility.

Example Combination for IT Entrepreneurs:

• Information Technology Services
• Management Consulting Services
• Digital Marketing and Advertising
• Business Process Outsourcing
• Trading of Computer Software

Cost: Usually only slightly more than a single activity. Surcharge is about 2,000–5,000 AED per additional activity.

Restrictions and Prohibitions

Not everything is permitted. Some activities are reserved for Emirati nationals:

• Prohibited for foreigners: Banking, insurance, telecom operations
• 51% Emirati ownership required: Real estate, certain oil & gas activities
• Special permits required: Financial services, healthcare, education

Changing or Adding Activities

You can add or change activities later. Costs are:

• Add activity: 5,000–10,000 AED
• Change activity: 3,000–7,000 AED
• Switch license category: 15,000–25,000 AED

Tip: Think ahead. It’s better to include one extra activity in the initial license than have to add it later.

The Best License for Your Entrepreneur Type

For online entrepreneurs:

Professional License with IT services, digital marketing, business consulting—plus trading of computer software for extra flexibility.

For ecommerce:

Commercial License with ecommerce operations, import/export, wholesale trade.

For consultants:

Professional License with management consulting, business advisory, training services.

For agency owners:

Professional License with advertising, event management, public relations.

The key: Get professional advice upfront. The wrong license leads to time and money lost on changes later.

Dubai Mainland Company Advantages and Disadvantages in Detail

Here’s an honest review. No sales fluff—just a clear-eyed look at all the pros and cons of a Dubai Mainland Company.

The Clear Advantages

1. Full business freedom across the UAE

This is the biggest advantage. You can operate anywhere in the United Arab Emirates—Abu Dhabi, Sharjah, Ajman—no limits.

A Freezone company needs special permissions for every deal outside its zone. You don’t.

2. Easier banking relationships

UAE banks prefer mainland companies. Why? They’re a “truer” part of the UAE’s economy. That means:

• Faster account opening
• Better loan conditions
• More banking options
• Lower minimum balances

3. Eligible for government contracts

Only mainland companies can bid for UAE government contracts—a major advantage.

4. Prestige factor

Local clients trust mainland companies more. They’re seen as “native” firms.

5. Tax benefits remain intact

0% personal income tax. 9% corporate tax only after 375,000 AED profit. The same applies to both mainland and Freezone by law since June 2023.

The Disadvantages, Honestly

1. Local partner required

51% of shares go to an Emirati. While you keep control, for many this feels uncomfortable.

There are also annual partner costs of 15,000–25,000 AED.

2. Higher setup costs

Mainland is 20–30% more expensive than most Freezones—especially with regards to office expenses.

3. More complex compliance

More authorities, more paperwork, more effort. DED, Municipality, Labour Department—the list goes on.

4. Higher office requirements

Minimum 25 sqm office. In a good location, that’s 60,000–180,000 AED per year.

5. Mandatory audits

External audits are obligatory. Cost: 8,000–15,000 AED per year.

Comparison with Other Structures

Who Is Dubai Mainland Ideal For?

Perfect candidates:

• Entrepreneurs with local UAE clients
• Service providers (IT, consulting, marketing)
• Traders of physical products
• Companies needing banking flexibility
• Entrepreneurs planning for the long term in the UAE

Less suitable for:

• Pure holding structures
• Entrepreneurs just seeking tax savings
• Companies with only European clients
• Entrepreneurs on a tight budget
• Those seeking maximum anonymity

My Honest Assessment After 15 Years in Practice

Dubai Mainland won’t be right for everyone. But if it fits your needs, it really delivers.

Most of my clients who chose mainland are happy. Why? They appreciate the flexibility.

Example: Thomas (online marketing agency) started in the DMCC Freezone. Two years later, he switched to mainland so he could work directly with Dubai Tourism. The move cost him 25,000 AED—but his first government contract brought in 150,000 AED in revenue.

My advice: If you’re unsure, speak with entrepreneurs who’ve used both structures. Theory is good; practice is better.

Dubai Onshore vs Offshore: Which Structure Suits You?

Before we wrap up, let’s clarify some terminology. Many confuse onshore/offshore with Mainland/Freezone.

That’s incorrect.

Dubai Onshore = Dubai Mainland

Dubai Onshore Companies are identical to Dubai Mainland Companies. Both terms mean:

• Direct registration under Emirati law
• Regulated by DED Dubai
• 51% local partner required
• Business activities allowed UAE-wide

Dubai Offshore = Special Offshore Zones

Dubai Offshore refers to specific offshore jurisdictions like:

• Dubai International Financial Centre (DIFC)
• Jebel Ali Freezone (JAFZA) – Offshore Division
• RAK Offshore (Ras Al Khaimah)

These are designed for holding structures and international investments, not for operational businesses.

The Most Important Differences at a Glance

When to Choose Dubai Onshore/Mainland?

Dubai Mainland is right for you if:

• You run an operational business
• You have or plan to have UAE-based clients
• You need banking flexibility
• You plan to hire employees
• You want a physical presence

When Is Dubai Offshore Preferable?

Offshore is better if you:

• Need pure holding structures
• Want investment vehicles
• Have international trading not related to the UAE
• Want minimal compliance requirements
• Require maximum privacy

Hybrid Structures

Here’s where it gets interesting: Many of my clients use hybrid structures.

Example structure:

• Dubai Mainland LLC: Operating subsidiary for UAE business
• DIFC Offshore Company: Holding structure for international investments
• Cyprus Holding: EU structure for European dividends

Advantage: Optimal tax structuring plus operational flexibility. Downside: Increased complexity and costs.

Practical Decision Aid

Ask yourself these questions:

1. Do you have clients/partners in the UAE? → Mainland
2. Are you only planning international business? → Consider Offshore
3. Is easy banking important? → Mainland
4. Is anonymity important? → Offshore
5. Do you want to hire employees? → Mainland
6. Is it purely an investment structure? → Offshore

In 80% of cases, this analysis leads to Dubai Mainland—why? Most entrepreneurs are running operational businesses.

My Final Advice on Choosing a Structure

Think long-term. The structure that works today needs to be future-proofed for five years down the line.

Far too often, I see entrepreneurs picking the cheapest setup for short-term savings, only for it to become costly later.

Example: An ecommerce entrepreneur chose RAK Offshore for low cost. Two years later, he wanted to serve UAE clients. Changing the structure cost 40,000 AED and six months of time.

Better to choose the right structure from the outset—even if it costs a little more.

Frequently Asked Questions About Dubai Mainland Companies

Can I establish a Dubai Mainland Company as a German citizen?

Yes, absolutely. Germans can set up Dubai Mainland Companies without issues. You simply need a local Emirati partner with 51% shares, but you keep full operational control via management agreements.

How long does it really take to set up a Dubai Mainland LLC?

With optimal preparation, 5–7 working days. Realistically, plan for 10–14 days. Banking may add another 1–2 weeks. Collecting and attesting documents in Germany takes 2–3 weeks.

What happens if my local partner dies or wants to terminate the cooperation?

Reputable local partners have succession policies in place. Exit clauses are set in management agreements. Changing partners is possible, but costs 10,000–15,000 AED and takes 2–4 weeks.

Do I need to be physically present in Dubai for the company setup?

Yes, for banking and the final government steps, your presence is required. Plan to stay at least 5–7 days in Dubai. Some steps can be handled through authorized PRO services.

Could I become taxable in Germany with a Dubai Mainland Company?

It depends where management is based. If you run the company from Germany, German tax liability may arise. Genuine substance in Dubai (office, employees, management on-site) usually prevents this. Seek tax advice.

Which banks are best for Dubai Mainland Companies?

Emirates NBD, Abu Dhabi Commercial Bank (ADCB) and First Abu Dhabi Bank (FAB) are experienced with Mainland Companies. Minimum deposits are 10,000–25,000 AED. CBD and RAK Bank are other options with sometimes better rates.

Do I need a physical office, or is a mailing address enough?

A physical office is mandatory. Minimum space is 25 sqm (≈ 269 sq ft). Shared offices are allowed and more affordable. PO boxes or virtual offices alone are not sufficient for Dubai Mainland Companies.

What is the corporate tax rate in Dubai for 2024?

9% corporate tax on profits above 375,000 AED (ca. 102,000 EUR) per year. Below that is 0%. This applies equally to both Mainland and Freezone companies since June 2023.

Can I convert my existing German company into a Dubai Mainland Company?

A direct conversion isn’t possible. But you can transfer assets, clients, and business to the Dubai company. The German company can be liquidated or continue as a subsidiary. Tax planning is essential here.

What are the main reasons Dubai Mainland Companies fail?

Underfunding, choosing the wrong license, banking problems, and compliance failures. Most issues arise from poor preparation and lack of early-stage consulting.