Cost of Company Formation in Mainland Dubai

Cost of Company Formation in Mainland Dubai

Dubai has become one of the most attractive business hubs in the world, and it’s easy to see why. With zero income tax, strategic location, world-class infrastructure, and a business-friendly environment, setting up a company here is a dream for many entrepreneurs. But one common question that every new business owner has is – “What is the cost of forming a company in Mainland Dubai?”

If you're planning to start your business in Dubai Mainland, this guide will give you a clear and straightforward breakdown of the costs involved and help you understand what to expect.


What is a Mainland Company in Dubai?

Before we dive into the costs, let’s quickly understand what a Mainland company is.

A Mainland company is a business that is licensed by the Department of Economy and Tourism (DET), formerly known as DED (Department of Economic Development). Mainland companies are allowed to operate anywhere in Dubai and across the UAE without any restrictions, unlike Free Zone companies that are limited to operating within their specific Free Zone.

Mainland companies are also eligible to bid for government projects, which is a big advantage.


Why Choose a Mainland Company?

Here are a few solid reasons to go for a Mainland company:

  • Freedom to operate across the UAE

  • No restrictions on office location

  • Opportunity to do business with the UAE government

  • Ability to apply for unlimited visas (depending on office space)

  • Access to wider customer base


How Much Does It Cost to Form a Mainland Company in Dubai?

The total cost of forming a Mainland company in Dubai can vary depending on several factors such as business activity, number of partners, visa requirements, office space, and more. However, to give you a rough idea, the starting cost is around AED 15,000 to AED 30,000.

Let’s break down the major components of this cost:


1. Trade Name Reservation – AED 620 to AED 1,000

Before you can register your company, you need to reserve a trade name. This is the official name of your business.

  • Standard name reservation: AED 620

  • If you want a foreign name or one with special terms (like "Middle East", "International", etc.), the cost may increase.


2. Initial Approval – AED 120 to AED 350

This is the permission from the DET to start your business setup process. It’s a basic clearance that says your business activity is acceptable.


3. MoA (Memorandum of Association) – AED 2,000 to AED 4,000

This document outlines your company’s structure and ownership. It is mandatory for most legal structures like LLCs (Limited Liability Companies).

The cost can vary depending on:

  • Number of shareholders

  • Type of business activity

  • Legal drafting service used


4. Office Rent – AED 15,000 and above per year

This is a big part of your setup cost. Mainland companies must rent a physical office space (virtual offices are not allowed in Mainland).

The cost depends on the size and location of the office. For example:

  • Small office/shared desk: AED 15,000–20,000/year

  • Dedicated office in business area: AED 25,000–50,000/year

  • Premium locations like Downtown Dubai can cost even more

Note: The bigger your office, the more visas you can apply for.


5. Commercial License Fee – AED 8,000 to AED 12,000

This is the fee you pay to get your official trade license from the DET. The type of license (commercial, industrial, or professional) will impact the cost.

Some business activities also require external approvals from other authorities (like Dubai Municipality or Dubai Health Authority), which may add to the cost.


6. Local Sponsor or Local Service Agent (if needed) – AED 5,000 to AED 15,000/year

If you are a foreign national, some legal structures (like LLC) require a local Emirati partner owning 51% shares. However, with the latest laws, many business activities allow 100% foreign ownership, so this cost may not apply to you depending on your activity.

If you choose a professional license (like consultancy), you may need a Local Service Agent (LSA) instead of a sponsor.

Fees for sponsors or agents are usually paid yearly and vary depending on the agreement.


7. Company Stamp, Signboard & Other Administrative Costs – AED 1,000 to AED 2,000

These are basic costs involved in setting up the company like:

  • Company stamp (official seal)

  • Signboard (required for office)

  • Printing company documents

  • Initial supplies


8. Visa Cost (Optional) – AED 3,500 to AED 7,000 per visa

If you’re applying for a visa for yourself or your employees, each visa will cost extra. Visa costs include:

  • Entry permit

  • Medical test

  • Emirates ID

  • Residency stamping

The exact visa cost depends on the applicant’s nationality, medical results, and other factors.


9. Business Setup Consultant Fee (Optional but Recommended) – AED 3,000 to AED 10,000

Starting a business in Dubai can involve a lot of paperwork and coordination with various government departments. Many entrepreneurs prefer hiring a business setup consultant who takes care of everything from A to Z.

If you want peace of mind and quick setup, this fee is well worth it.


Approximate Total Cost for Mainland Company Formation

Here’s a rough breakdown of the cost if you’re starting a basic LLC with one visa:

Expense Item Estimated Cost (AED)
Trade Name Reservation 620 – 1,000
Initial Approval 120 – 350
MoA Drafting 2,000 – 4,000
Office Rent 15,000+
Commercial License Fee 8,000 – 12,000
Local Sponsor (if needed) 5,000 – 15,000
Stamp, Signboard, etc. 1,000 – 2,000
Visa (1) 3,500 – 7,000
Business Consultant (optional) 3,000 – 10,000
Total AED 35,000–60,000

Tips to Reduce Mainland Company Setup Costs

  1. Choose the right business activity – Some activities require additional approvals, which can increase cost.

  2. Start with a shared or small office space – Upgrade as you grow.

  3. Check if 100% foreign ownership is allowed for your business activity – this saves on sponsor costs.

  4. Work with a trusted business setup consultant – They often have package deals and good relationships with authorities.


Final Thoughts

Setting up a company in Mainland Dubai is an exciting opportunity. While the costs may seem high at first, remember that you're investing in one of the most vibrant business markets in the world. With the right planning and guidance, you can start your business smoothly and legally in just a few days.

If you’re an Indian entrepreneur or international investor looking to form a Mainland company in Dubai, it’s a smart move to consult with a reliable business setup expert who can help you save time, reduce costs, and avoid legal hassles.

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