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International corporate law
Business Setup and Support in the UAE (United Arab Emirates) Company registration in the Mainland zone of Dubai

Taras Miroshnychenko

Head of practice

E-mail

miroshnychenko@prikhodko.com.ua

Phone numbers

Head of Corporate Law and Fintech Practice. Expert in the creation and reorganization of companies, support of M&A transactions, as well as legal support for opening and running a business in the EU, Asia, and North America.

Company registration in the Mainland zone of Dubai

Dubai, one of the world’s most dynamic and innovative economic centers, continues to attract the attention of entrepreneurs from all over the world.

One of the most popular options for doing business in this region is registering a company in the Mainland zone. This zone offers entrepreneurs ample opportunities for business development and favorable working conditions.

In this article, we will look at the main stages and benefits of registering a company in the Mainland zone of Dubai.

What is the Mainland zone?

The mainland zone in Dubai is the territory in which companies have the right to carry out their activities without restrictions in the UAE market and beyond. Unlike free economic zones (free zones), companies in the Mainland have the opportunity to cooperate with state institutions, participate in state tenders and implement projects in various sectors of the economy.

The main advantages of registering a company in the Mainland zone

Access to the local market

Companies registered in the Mainland zone have the right to do business directly with local markets and customers, which opens up great opportunities for expansion and development.

Cooperation with state institutions

Mainland companies can participate in government tenders and cooperate with government organizations, which provides additional business opportunities.

No restrictions on sales markets

Companies can freely operate both within the UAE and beyond, which provides greater flexibility and expansion of sales markets.

The possibility of renting offices in any district

Companies can rent offices in any area of Dubai, which allows you to choose the optimal location for doing business.

Stages of company registration in the Mainland zone

Choice of type of activity

The first step is to choose the type of activity of the company. There are over 2,000 activities to do in Dubai. It is important to choose the one that best suits your business goals.

Choosing a trade name

The next step is to choose a unique trade name for your company. The name must meet Department of Economic Development (DED) requirements and not contain prohibited words or phrases.

Search for a sponsor

According to UAE law, a foreign company must have a local sponsor (a UAE national) or a local partner who owns 51% of the company’s shares. The sponsor provides legal support and assistance in conducting business.

Submission of documents to DED

After choosing a name and finding a sponsor, all necessary documents must be submitted to the Department of Economic Development. This includes the application for registration, copies of the passports of the founders and the sponsor, as well as documents confirming the lease or ownership of the company’s legal address.

Obtaining a license

After the submission of documents and their review, the company is issued a license to conduct the chosen type of activity. This license is the main document that allows the company to officially carry out its activities.

Opening a bank account

The last step is to open a corporate bank account in one of the UAE banks. This is necessary for conducting financial transactions and calculations.

Registering a company in the Mainland zone of Dubai opens up great opportunities for business development and expansion of sales markets for entrepreneurs. Despite certain requirements and formalities, this process is quite clear and accessible.

Due to favorable conditions for doing business, including access to the local market, cooperation with government institutions and the possibility of renting offices in any area, registering a company in the Mainland zone is an excellent choice for entrepreneurs who want to succeed in one of the most prosperous regions of the world.

Your reliable partner – the law firm “Prikhodko and Partners” will provide high-quality consultation, quickly and efficiently accompany the process of registration and legalization in the UAE.

Calculate the cost of services

1 question

Do you want to register a business in the Mainland zone of the UAE?

Yes

2 question

Do you want to open a branch in the Mainland zone in the UAE?

Yes

3 question

Do you need advice on the Mainland zone in the UAE for doing business?

Yes

Which is better: Mainland or Free Zone?

Mainland is generally suitable for businesses planning to operate directly in the UAE domestic market, maintain a physical location, premises or a local team. Free Zone is often chosen for international services, IT, e-commerce, consulting, trade and other models with specialised infrastructure. The choice depends on the activity, clients, office, visas, account and tax model.

Can a foreigner own 100% of a company in the UAE?

Yes, Free Zones allow 100% foreign ownership, and most Mainland activities are also available for full foreign ownership. Special restrictions, approvals or ownership structure requirements may apply to certain strategic impact activities.

Does a Free Zone company pay 0% Corporate Tax?

Not automatically. The 0% rate applies to Qualifying Income of a company that meets the requirements of a Qualifying Free Zone Person. Other taxable income may be subject to the 9% rate. The company must also register for Corporate Tax, maintain records and submit returns.

When does a company need VAT registration?

For resident businesses, mandatory registration generally arises when taxable supplies and imports exceed AED 375,000 during the previous 12 months or are expected to exceed this amount within the next 30 days. Voluntary registration is possible from AED 187,500. Different rules may apply to non-residents and certain cross-border transactions.

Is it mandatory to obtain a residence visa?

Not for every structure. A company may be registered without immediately obtaining an owner’s visa if the relevant jurisdiction allows it. At the same time, a residence visa and Emirates ID may be important for living in the UAE, banking KYC, leasing, connecting certain services and demonstrating local presence.

Successful cases on the topic: