Dubai Mainland Company Setup: Constitución de una LLC fuera de las Freezones en 5 días

Dubai Mainland vs. Freezone: The crucial difference for your business

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

Most advisors sell Freezones as a cure-all. That’s marketing, not consulting.

What is a Dubai Mainland Company?

A Dubai Mainland Company is a business set up directly under Emirati law. It’s regulated by Dubai’s Department of Economic Development (DED)—not any Freezone authority.

This means: You can do business anywhere in the United Arab Emirates. No special permits required. No restrictions to certain zones.

Dubai Mainland vs. Freezone Comparison: The hard facts

The Local Partner Myth

This is the biggest misconception: Yes, you need an Emirati partner with 51% shares. But—and this is crucial—you keep complete control.

How does that work? Through a management contract. Your local partner holds 51% of the shares, but 0% of control. You make all decisions. You control all bank accounts. You run all the business operations.

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

When Mainland, when Freezone?

Dubai Mainland fits you if:

• You want to serve local clients in Dubai or the UAE
• You need flexibility in business operations
• You aim for government contracts
• You run a physical business (trade, services)
• You want to simplify banking relationships

Freezone is better if:

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

Based on my 15 years of international tax consulting experience: 70% of my clients do better with Mainland. Why? Because they underestimate the flexibility.

Dubai Mainland LLC Formation: Step-by-step in 5 days

Now it gets practical. I’ll guide you through the full process. Day by day. Step by step.

Important beforehand: This guide is based on the state of law in 2024. Laws may change. Always get up-to-date advice.

Day 1: Preparation and Document Collection

What you do today:

1. Reserve company name via DED Smart Services
2. Collect and notarize documents
3. Contact local partner and finalize agreement
4. Search for office space (minimum size: 25 sqm)

Required documents:

• Passport (valid at least 6 months)
• UAE Residence Visa (or preparation to apply)
• Proof of manager’s 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 Emirati consulates. This takes 2-3 weeks in Germany. Plan accordingly!

Day 2: Business License Application and Permits

Morning (9:00-12:00):

• Visit DED office or submit online application
• Define business license category
• Obtain Initial Approval
• Create MOA (Memorandum of Association)

Afternoon (13:00-17:00):

• Sign office lease agreement
• Apply for Ejari (lease registration)
• Apply for Municipality License (if needed)

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

Day 3: Company Formation and Registration

Morning:

1. Submit MOA to DED
2. Apply for trade license
3. Complete Chamber of Commerce membership
4. Apply for Emirates ID (if not yet existing)

Afternoon:

1. Order company stamps
2. Schedule bank appointment
3. Prepare VAT registration (if annual turnover > 375,000 AED expected)

Insider tip: Order several company stamps. You’ll need them for every authority. Cost: 150 AED per stamp.

Day 4: Banking and Final Permits

Banking Setup:

This is often the hardest part. Emirates NBD, ADCB and FAB are the most business-friendly for new Mainland Companies.

Required documents for bank account:

• Trade License (original + copy)
• MOA (certified)
• Ejari (lease registration)
• Emirates ID of all managers
• Salary Certificate or income proof
• Initial deposit: 10,000-25,000 AED depending on bank

Further steps on day 4:

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

Day 5: Finalization and First Business Activity

To-do list:

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

Ready for business:

Your Dubai Mainland LLC is now ready to operate. You can issue invoices, sign contracts, and start operations.

One important note: Although the process theoretically takes 5 days, realistically plan for 7-10 days. Authorities can be slow. You may be missing documents. Banking sometimes takes longer.

Common Pitfalls and How to Avoid Them

• Document chaos: Keep a checklist. Tick off each task as completed.
• Translation mistakes: Use only certified translators for official documents.
• Banking delays: Have a Plan B. Contact at least 2-3 banks.
• Office problems: Check beforehand if the office space suits your business needs.

Dubai Mainland Company Costs: Transparent breakdown of all fees

Now the most important question: What does a Dubai Mainland LLC really cost?

Here’s an honest breakdown. No hidden costs. No surprises.

One-time setup costs

Total setup costs: 65,000–140,000 AED (17,680–38,080 Euro)

That’s a wide range. Why? Because it greatly depends on your activity. An IT consulting firm costs much less than a trading company.

Recurring annual costs

Total annual costs: 128,000–323,000 AED (34,820–87,820 Euro)

Hidden costs others won’t tell you about

This is where it gets interesting. Many providers entice with low base prices. Extras then appear:

• PRO Services: 2,000–5,000 AED per authority procedure
• Banking support: 5,000–15,000 AED for opening a bank account
• Visa processing: 3,000–8,000 AED per person
• NOC (No Objection Certificate): 2,000 AED for changing bank
• Amendment fees: 5,000–10,000 AED for license changes

My advice: Always include 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 is more expensive. But you get more value for your money. The flexibility often justifies the additional costs.

Saving opportunities and optimizations

Where you can save:

• Office costs through shared offices (from 30,000 AED/year)
• Local partner through negotiation (15,000 instead of 25,000 AED)
• Accountant by doing it in-house
• PRO services by handling procedures yourself

Where you shouldn’t save:

• Legal counsel for MOA
• External audit
• Document certification
• Banking support

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

Dubai Mainland Business License: What activities are possible?

The business license is the heart of your Dubai Mainland Company. It determines what you’re allowed to do—and what not.

Here’s an overview of the main categories:

Commercial License (Trading)

The Commercial License allows trade and import/export. Perfect for e-commerce, distribution, or classic 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 Euro)

License costs: 25,000–50,000 AED per year

Advantage: You can trade physical and digital products. Disadvantage: Higher capital requirements.

Professional License (Services)

The Professional License is meant for services—consulting, IT services, marketing—everything without physical products.

Popular service activities:

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

Minimum capital: 50,000–100,000 AED (13,600–27,200 Euro)

License costs: 15,000–25,000 AED per year

Perfect for most international entrepreneurs. Low capital requirements, maximum flexibility.

Industrial License (Manufacturing)

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

Minimum capital: 500,000+ AED

Special points: Environmental permits, special locations required

Tourism License

For hotels, travel agencies, tourism activities.

Activities:

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

Minimum capital: 100,000–500,000 AED

Multiple activities in one license

This is interesting: You can combine several activities under one license. This saves you costs and increases flexibility.

Sample combination for IT entrepreneurs:

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

Cost: Typically just slightly higher than a single activity—about 2,000–5,000 AED per additional activity.

Restrictions and Prohibitions

Not everything is allowed. Some activities are exclusive to Emirati-owned companies:

• Prohibited for foreigners: Banks, insurers, telecom operations
• 51% Emirates ownership required: Real estate, certain oil & gas activities
• Special permits needed: Financial services, healthcare, education

Changes and expansions of activities

You can later add or change activities. The cost:

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

My tip: Plan ahead. It’s better to include one extra activity in your original license.

The optimal license for different types of entrepreneurs

For online entrepreneurs:

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

For e-commerce:

Commercial License with e-commerce operations, import/export, wholesale trade.

For consultants:

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

For agency owners:

Professional License with advertising services, event management, public relations.

The most important thing: Get advice in advance. The wrong license will cost you time and money for corrections later.

Dubai Mainland Company: Advantages and Disadvantages in Detail

Now for an honest assessment. I’ll show you every pro and con of a Dubai Mainland Company—no sales pitches.

The clear advantages

1. Unlimited business activity within the UAE

This is the biggest advantage. You can do business anywhere in the United Arab Emirates: Abu Dhabi, Sharjah, Ajman—no borders.

A Freezone business needs a special permit for every contract outside the zone. You don’t.

2. Easier banking relationships

Emirati banks prefer Mainland Companies. Why? Because they’re a “genuine” part of the UAE economy. This means:

• Faster account openings
• Better credit terms
• More banking options
• Lower minimum balances

3. Government contracts possible

Only Mainland Companies can apply for government contracts. That’s a huge advantage.

4. Prestige factor

Local clients trust Mainland Companies more. You’ll be perceived as a “local” business.

5. Tax advantages remain

0% personal income tax. 9% corporate tax only from 375,000 AED profit. That’s the same for Mainland as for Freezone.

The honest disadvantages

1. Local partner required

51% shares go to an Emirati. Even if you keep control, psychologically this is hard for many entrepreneurs.

Additionally, expect annual costs of 15,000–25,000 AED for the partner.

2. Higher setup costs

Mainland is 20–30% more expensive than most Freezones. Especially office rent weighs heavily.

3. More complex compliance

More authorities, more forms, more effort. DED, Municipality, Labour Department—all require regular updates.

4. Higher office requirements

Minimum 25 sqm of office space. In good locations, that’s 60,000–180,000 AED per year.

5. Mandatory auditing

External audit is mandatory. Cost: 8,000–15,000 AED per year.

Comparison with other structures

Who is Dubai Mainland ideal for?

Perfect candidates:

• Entrepreneurs with local UAE customers
• Service providers (IT, consulting, marketing)
• Traders of physical products
• Companies needing banking flexibility
• Entrepreneurs who plan to stay in the UAE long term

Less suitable for:

• Pure holding structures
• Entrepreneurs seeking only tax savings
• Firms with only European clients
• Budget-conscious founders
• Entrepreneurs seeking maximum anonymity

My honest assessment after 15 years of experience

Dubai Mainland is not for everyone. But if it fits, it really fits.

Most of my clients who chose Mainland are satisfied. Why? Because they value the flexibility.

Example: Thomas (online marketing agency) started with a DMCC Freezone. After two years, he switched to Mainland. Reason: He finally wanted to work directly with Dubai Tourism. The switch cost 25,000 AED. But his first government contract brought 150,000 AED in revenue.

My advice: If you’re unsure, talk to entrepreneurs who know both structures. Theory is good. Practice is better.

Dubai onshore vs offshore: Which structure fits you?

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

That’s not correct.

Dubai Onshore = Dubai Mainland

Dubai Onshore Companies are identical to Dubai Mainland Companies. Both terms describe the same structure:

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

Dubai Offshore = Special offshore zones

Dubai Offshore refers to special offshore jurisdictions like:

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

These are meant for holding structures and international investments. Not for operational business.

The key differences at a glance

When should you choose Dubai Onshore/Mainland?

Dubai Mainland fits you if:

• You run an operational business
• You have or plan clients in the UAE
• You need banking flexibility
• You want to hire employees
• You want to establish physical presence

When to prefer Dubai Offshore?

Offshore is better for:

• Pure holding structures
• Investment vehicles
• International trading structures without UAE ties
• Minimal compliance requirements
• Maximum privacy needs

Combination strategies

This gets interesting: Many of my clients use hybrid structures.

Sample 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 structure plus operational flexibility. Disadvantage: Increased complexity and cost.

Practical decision help

Ask yourself these questions:

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

In 80% of cases, this analysis leads to Dubai Mainland. Why? Because most entrepreneurs have operational businesses.

My final advice on picking a structure

Think long-term. A structure that fits today needs to work in five years as well.

I too often see entrepreneurs pick sub-optimal structures for short-term cost reasons. It backfires later.

Example: An e-commerce entrepreneur chose RAK Offshore for lower cost. Two years later, he wanted to serve UAE clients. The switch cost 40,000 AED and six months of time.

Better: Pick the right structure from the start—even if it costs a bit more.

Frequently Asked Questions about Dubai Mainland Company

Can I set up a Dubai Mainland Company as a German national?

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

How long does forming a Dubai Mainland LLC really take?

With perfect preparation: 5–7 working days. Realistically, allow 10–14 days. Banking can take another 1–2 weeks. Document preparation in Germany requires 2–3 weeks for apostilles and certifications.

What if my local partner dies or wants to end the partnership?

Reputable local partners have succession plans. Exit clauses are defined in the management contract. Changing the partner is possible but costs 10,000–15,000 AED and takes 2–4 weeks.

Do I need to be physically present in Dubai to set up my company?

Yes, your personal presence is required for banking and final authority procedures. Plan at least 5–7 days in Dubai. Some steps can be handled via authorized PRO service providers.

Can I become taxable in Germany through a Dubai Mainland Company?

It depends on management location. If you manage the company from Germany, you may become taxable there. Real on-the-ground substance in Dubai (office, staff, management on site) usually prevents this. Get 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 range from 10,000–25,000 AED. CBD and RAK Bank are further options with sometimes better terms.

Do I need a physical office or is a postal address enough?

A physical office is mandatory. Minimum 25 sqm. Shared offices are allowed and cheaper. Pure postal addresses or virtual offices are insufficient for Dubai Mainland Companies.

What is the corporate tax in Dubai 2024?

9% corporate tax on profits over 375,000 AED (approx. 102,000 Euro) per year. Below that, tax is 0%. This applies equally to Mainland and Freezone Companies since June 2023.

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

A direct conversion is not possible. But you can transfer assets, customers, 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 most common reasons for a Dubai Mainland Company to fail?

Insufficient capitalization, wrong licensing choice, banking problems, and compliance failures. Most problems stem from poor preparation and advice at the start.