Cost Analysis of Setting Up a Mainland Company in Dubai: Fees, Breakdown & Key Factors

Key Takeaways

• Dubai Mainland offers unparalleled advantages for entrepreneurs, from 100% foreign ownership and unrestricted market access to eligibility for government contracts, making it a long-term investment hub for sustainable business growth.
  
  
• While initial Dubai Mainland business setup costs generally start around AED 50,000 ($13,614.70), and annual operational expenses may reach AED 100,000 ($27,229.41), smart financial planning through cost-effective office locations, fixed sponsorship fees, and outsourced compliance services can significantly reduce overall expenses.
  
  
• A mainland setup delivers strong long-term returns, offering operational flexibility, full access to the UAE market, and the credibility needed to build partnerships with both private and government sectors.

Why Dubai Mainland Attracts Global Entrepreneurs

Dubai continues to be a top destination for global investors and entrepreneurs. Its appeal lies in its strategic location, world-class infrastructure, business-friendly policies, and attractive tax advantages.

While both free zones and offshore jurisdictions offer their own benefits, including tax incentives and full foreign ownership for every business activity, a growing number of business owners are now drawn to the flexibility and long-term potential of mainland companies.

However, entering Dubai’s mainland business market requires more than enthusiasm, it demands careful budgeting and a solid understanding of the associated costs. From trade licenses and office rentals to visa issuance and recurring operational expenses, every factor contributes to the overall investment.

This article serves as a comprehensive guide, providing a realistic breakdown of the Dubai Mainland company formation costs and financial requirements in 2025.

Understanding the Scope of a Mainland Company in Dubai

A mainland company in Dubai operates under the authority of the Department of Economy & Tourism (DET). Unlike free zone entities, which are limited to conducting business within their designated zones unless they work through a local distributor, mainland companies enjoy unrestricted access to the UAE market.

They can trade directly with the local market, bid for government contracts, and operate anywhere across the UAE. This flexibility makes mainland companies a preferred choice for investors seeking to expand beyond regional boundaries and build long-term, sustainable businesses.

Key Advantages that Justify the Investment

Unrestricted Market Access 

Mainland companies can operate anywhere in Dubai and across the UAE, without geographic limitations.

Ideal for Various Sectors

Particularly beneficial for retail, logistics, construction, and consultancy businesses.

Eligibility for Government Contracts

Only mainland companies can directly compete for government projects.

No Currency Restrictions

Businesses can freely manage transactions in any currency.

100% Foreign Ownership

Recent reforms to the Commercial Companies Law allow full foreign ownership in most industries, removing the previous 51% local shareholder requirement for LLCs.

Long-Term Profitability

Despite higher initial costs, the operational flexibility and market access make mainland companies a strong investment for sustainable growth.

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Cost Breakdown of Setting Up a Mainland Company in Dubai

1. Mainland License Application Fees

• Trade name reservation: Around AED 620 ($168.82), with higher charges for premium names.
• Initial approval: Approximately AED 120 ($32.68), depending on business activity.
• License issuance: Starts from AED 7,000 ($1,906.06) for most commercial or professional licenses.
• Additional permits: Required for specific industries such as healthcare, food, or education, with separate fees charged by authorities like Dubai Municipality or the Ministry of Health.

2. Office Space and Rental Fees

• Office rent: Starts from AED 15,000 to AED 30,000 ($4,084.41 to $8,168.82) per year, depending on location and size.
  
  
• Ejari application: Approximately AED 200 to 250 ($54.46 to $68.07), required to validate your lease with the Dubai Land Department.
  
  
• Flexi desk options: Available in business centers starting from AED 5,000 to 10,000 ($1,361.47 to $2,722.94) annually for smaller setups.

3. Sponsorship or Local Service Agent Fees

• MOA notarization: Around AED 1,500 to 2,000 ($408.44 to $544.59), depending on the company’s share capital.
  
  
• Court or service center typing charges: Range from AED 300 to 500 ($81.69 to $136.15).
  
  
• DED service fees: May apply for document processing and approvals, typically starting from AED 500 to 1,000 ($136.15 to $272.29).

4. Visa and Immigration-Related Costs

• Establishment card (Immigration): Around AED 750 to 1,000 ($204.22 to $272.29).
  
  
• Investor visa: Costs approximately AED 3,500 to 4,000 ($953.03 to $1,089.18), including medical tests and an Emirates ID.
  
  
• Employee visa: Around AED 4,000 to 5,000 ($1,089.18 to $1,361.47) per person, depending on job role and insurance requirements.

5. Corporate Bank Account Establishment and Financial Services

• Account opening: No government fee, but banks often require a minimum balance of AED 25,000 to 100,000 ($6,807.35 to $27,229.41), depending on the bank and business type.
  
  
• Optional account maintenance fees: Some banks charge AED 100 to 250 ($27.23 to $68.07) per month for business bank accounts if the balance falls below the required minimum.

6. Operating and Compliance Costs

Employee Salaries & Benefits

• Minimum salary: Depends on the role and industry, typically starting from AED 3,000 to 7,000 ($816.88 to $1,906.06) for general positions and higher for specialized roles.
  
  
• Mandatory health insurance: Starts from AED 800 to 1,500 ($217.84 to $408.44) per employee annually, depending on coverage and emirate.
  
  
• End-of-service benefits (gratuity): 21 days of basic salary per year for the first five years of service (as per UAE Labour Law).

Insurance (Medical and Business)

• Medical insurance: Typically starting from AED 1,000 to 3,000 ($272.29 to $816.88) per person annually, depending on plan coverage and insurer.
  
  
• Business insurance:
  
  
  • Public liability insurance: Starting from AED 2,000 to 5,000 ($544.59 to $1,361.47) per year, depending on the nature of your business.
    
    
  • Professional indemnity insurance (for consultants, doctors, etc.): Starting from AED 2,500 to 4,000 ($680.74 to $1,089.18) per year.

License Renewal & PRO Services

• Trade license renewal: Usually starting from AED 8,000 to 15,000 ($2,178.35 to $4,084.41) per annum, depending on the business activity and license type.
  
  
• PRO services: Starting from AED 5,000 to 10,000 ($1,361.47 to $2,722.94) annually, based on the number of employees and document requirements.
  
  
• Professional consultancy and additional PRO support: Starting from AED 2,000 to 5,000 ($544.59 to $1,361.47), depending on the service scope and government liaison requirements.

Auditing & Accounting

• Annual audit or accounting setup: Starting from AED 3,000 ($816.88) per year for small companies; costs rise with company size and reporting complexity.

Strategies to Minimize Setup and Operational Costs

Though the Dubai Mainland business setup costs are relatively high, various cost-cutting strategies can be implemented to minimize the expense without affecting business operations.

First, choose a cost-effective office location: 

Prime areas like Business Bay are popular but come with high rents. Consider equally accessible and reputable areas such as Al Barsha, Deira, or Al Qusais for more affordable leasing options.

Second, negotiate fixed sponsorship fees: 

If you require a local sponsor or service agent, opt for an annual fixed fee instead of a profit-sharing model. Many business consultants offer shared or split sponsorship packages that significantly lower costs.

Third, outsource non-core functions:

Delegate services like PRO, accounting, and VAT filing to third-party specialists. This approach keeps your team lean, reduces payroll expenses, and ensures regulatory compliance for mainland businesses.

Lastly, leverage installment payment plans: 

Many government departments and consultancy firms allow payments for Dubai Mainland license costs, visas, and office rent in installments, helping maintain smoother cash flow during the early stages of business.

Cost Analysis of Setting Up a Mainland Company in Dubai with RadiantBiz

Our mainland business setup consultants begin by assessing your business plan and operating model, taking into account your suppliers, target customers, and key activities. 

Leveraging their expertise, they identify the core functions of your business and recommend suitable locations that align with your operational needs, budget, and long-term sustainability.

FAQs

1. How much does it cost to set up a mainland company in Dubai?

Dubai Mainland company formation costs typically range from AED 15,000 to AED 50,000 ($4,084.41 to $1,3614.70), depending on the business activity, number of visas, and office location. 

Costs may increase if you require larger office spaces, multiple trade licenses, or professional approvals from specific government departments.

2. What are the main cost components of a Dubai Mainland business setup?

Key cost components include:

• Trade name reservation and initial approval fees
  
• Dubai Mainland business license cost
  
• Office rent or Ejari application
  
• Immigration and visa processing fees
  
• Local sponsor or corporate service agent fees (if applicable)
  
• DET administrative charges
  
• Corporate bank account opening charges
  
• Operating and compliance costs

3. Is there a minimum capital requirement for a mainland company in Dubai?

In most cases, there’s no mandatory minimum capital deposit for mainland companies. However, you must declare a share capital amount (commonly AED 300,000 ($81,688.22) for LLCs) in your Memorandum of Association, though you don’t have to deposit it unless your business activity requires it.

Long-Term Payoff of a Dubai Mainland Business Setup

Starting a mainland business in Dubai may not be the cheapest option, but it offers unmatched business freedom, scalability, and long-term growth potential. 

Companies benefit from unrestricted market access, operational flexibility, and eligibility for government contracts, advantages that free zone and offshore entities cannot offer.

While initial Dubai Mainland business setup costs generally start around AED 50,000 ($13,614.70), and annual operational expenses may reach AED 100,000 ($27,229.41), these investments deliver substantial value for entrepreneurs aiming to build a sustainable, future-ready enterprise in one of the world’s most dynamic business hubs.

To ensure a smooth setup and avoid unnecessary costs, it’s wise to partner with a professional Dubai Mainland business setup consultancy. 

Experienced local expert consultants can help identify the most cost-effective structure, ensure full compliance, and manage key tasks such as visa processing, banking, and PRO services efficiently.

Seek our professional on-the-ground guidance, contact us via mail at info@radiantbiz.com, WhatsApp‬, or call us at +971521322895‬! 

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