Business setup in Dubai Mainland
Start your journey in Dubai today and unlock the future of your business.
From its beginnings as a modest trading hub, Dubai has grown into a leading global economic center, skillfully balancing its deep-rooted traditions with modern innovation. The city’s rich Emirati heritage is still evident today in historic sites such as the Al Fahidi Historical District, Dubai Creek, and the vibrant souks that once buzzed with pearl traders, spice merchants, and textile dealers.
With pearl diving as its most traditional business, just look around where Dubai has reached. With 3.28M visitors crossing the immigration channel in Dubai, one can imagine the resilience and grit of Dubai in placing it as the most business friendly emirate to the world.
As H.H Sheik Mohammed in his book ‘My Story’ puts it: A country’s nature is known from its airports, because that is the first point the passenger crosses into this country.
It is evident that Dubai is not just a city of luxury and skyscrapers — it is a symbol of perfect planning, study and implementation of plans, tapping the opportunities, and strategic foresight. The emirate consistently ranks among the top global destinations for business and investment:
- #1 in the MENA region for ease of doing business (World Bank)
- Ranks 17th globally in the Global Financial Centers Index (2024)
- Home to over 400,000 active businesses.
- Expected GDP growth of 4.1% in 2025, driven by non-oil sectors (Dubai Statistics Center)
- Major infrastructure investments with AED 128 billion allocated under the Dubai Urban Master Plan 2040
Dubai’s forward-thinking business environment makes setting up a business in Dubai Mainland an appealing choice for entrepreneurs looking to tap into a dynamic local market while maintaining access to global opportunities. Backed by a supportive government, a strategic geographic location, and state-of-the-art infrastructure, Dubai provides a solid platform for startups, small and medium-sized enterprises (SMEs), and international corporations to grow and succeed.
Steps to Set Up a Business in Dubai
Setting up a business in Dubai is a streamlined process, thanks to the government’s commitment to ease of doing business as it offers the platter of Smart Services.
Here is a step-by-step guide to help you get started:
❖ Determine the Business Activity
The first step in the process of business setup in Dubai Mainland is selecting your desired business activity or activities. This decision will shape the type of trade license you need (commercial, professional, or industrial) and influence your company’s legal structure.
Dubai Mainland offers entrepreneurs the flexibility to operate in a wide range of sectors — from trading and consultancy to industrial services, hospitality, and more. Choosing the right activity ensures regulatory compliance and sets the foundation for long-term business success.
❖ Choose the Legal Structure
Decide on the most suitable legal form for your company — such as:
- Sole Establishment
- Limited Liability Company (LLC)
- Civil Company
- Branch of a Foreign Company
Your business activity and the number of shareholders will impact this choice.
❖ Select a Trade Name
Reserve a unique trade name that reflects your business. The name must comply with the naming conventions set by Dubai’s Department of Economy and Tourism (DET), avoiding prohibited terms and duplications.
❖ Apply for Initial Approval
This is a no-objection certificate from the government that allows you to proceed with the rest of the registration steps. It shows that the UAE has no objection to your business activity.
❖ Draft the MOA & Local Service Agent Agreement (if required)
For LLCs and other corporate structures, you’ll need to draft a Memorandum of Association (MOA). If your business requires a Local Service Agent (LSA) (e.g., for certain professional licenses), an agreement must be signed and notarized.
❖ Secure a Business Location
Obtain a tenancy contract (Ejari) for your physical office space. This is a mandatory requirement for issuing a mainland trade license. The office can be in a business center or a dedicated workspace, depending on your budget and operational needs.
❖ Get Approvals from Relevant Authorities
Some business activities require special approvals from regulatory authorities, such as:
- Dubai Municipality
- KHDA (for education)
- DHA (for healthcare)
- DED or Ministry of Economy
❖ Pay Fees and Collect the Trade License
Once all documents are approved and fees paid, the Dubai Economic Department (DED) will issue your official business license. This marks the legal start of your operations
- Start Operating
With your license, office, bank account, and visa arrangements in place, you’re ready to begin operations in Dubai!
Dubai Business Laws and Regulatory Structure
Dubai’s legal and regulatory framework is designed to foster a secure, transparent, and investor-friendly environment. The emirate operates under the broader UAE federal laws, while also implementing local regulations that support business innovation and growth.
Here’s what entrepreneurs should know when pursuing business setup in Dubai Mainland:
Legal System Overview
Dubai follows a civil law system, with commercial laws largely derived from international legal standards. The Dubai Department of Economy and Tourism (DET) oversees company licensing and regulation for mainland businesses.
Key Regulatory Authorities
- Department of Economy and Tourism (DET) – Main authority for business licensing and approvals in Dubai Mainland.
- Dubai Municipality – Regulates health, safety, and environmental compliance for commercial spaces.
- Ministry of Human Resources and Emiratization (MOHRE) – Handles labor law compliance and employee sponsorships.
- Dubai Chamber of Commerce – Offers business support, dispute resolution, and certification services.
- Federal Tax Authority (FTA) – Regulates VAT, corporate tax, and excise tax compliance.
ACQUAINT WITH THE BUSINESS LAWS IN DUBAI
- Commercial Companies Law – Defines legal structures (e.g., LLC, sole establishment, branch office) and ownership regulations.
- Foreign Direct Investment Law – Enables 100% foreign ownership in many mainland business activities.
- Labour Law (Federal Decree-Law No. 33 of 2021) – Covers employment contracts, working hours, leave entitlements, and dispute resolution.
- UAE Tax Laws – VAT is levied at 5%, while corporate tax applies only to profits above certain thresholds, with exemptions for qualifying small businesses.
- Civil Transactions Law (Federal Law No: 5 of 1985) a comprehensive approach from the base to the complexities in various arenas.
How Legal Maxims Can Help You
We specialize in guiding clients through the process of setting up your business in Dubai Mainland, offering end-to-end support with expert legal precision and strategic insight.
Our Comprehensive Services Include:
✅ Business Incorporation & Licensing
- Assistance in selecting the right business activity and legal structure
- Trade name reservation and initial approvals
- Full support for obtaining your Dubai Mainland trade license
✅ Legal Documentation & Structuring
- Drafting Memorandum of Association (MOA)
- Local Service Agent (LSA) agreements, if applicable
- Corporate governance, shareholder agreements and internal operations and management agreements that will secure your business from foreign elements.
✅ PRO & Government Liaison Services
- Efficient handling of all government formalities and approvals
- Coordination with DED, Dubai Municipality, MOHRE, FTA, and other key authorities
✅ Office Space & Ejari Assistance
- Support in finding a suitable office location
- Ejari registration for tenancy contracts (a legal requirement for mainland licensing)
✅ Visa & Immigration Services
- Investor visas, partner visas, and employee sponsorship
- Establishment card issuance and immigration file processing
✅ Tax & Regulatory Compliance
- VAT registration and filing support
- Guidance on UAE Corporate Tax, Economic Substance Regulations (ESR), and AML compliance
✅ Post-Incorporation Legal Support
- Ongoing legal consultancy for contracts, dispute resolution, and compliance
- IP protection and trademark registration services
CONCLUSION
Dubai stands as a beacon of opportunity — a city where visionary leadership, strategic location, world-class infrastructure, and a progressive legal framework converge to create one of the most business-friendly environments in the world. Whether you’re a startup founder, seasoned entrepreneur, or global corporation, business setup in Dubai Mainland offers the flexibility, credibility, and market access needed for sustained growth and success.
With the support of trusted legal advisors like Legal Maxims, navigating the setup process becomes seamless and secure. From regulatory compliance to strategic structuring, we ensure that your business is built on a solid legal foundation.
Start your journey in Dubai today — and unlock the future of your business.
