How to Start a Dubai Mainland Company in 2025 with 100% Foreign Ownership (No Local Sponsor Needed)

Dubai is one of the world's most sought-after places for investors and entrepreneurs alike. The city's strong infrastructure, strategic location, and business-friendly policies have established it as a worldwide business hub.  

Among the most important developments in recent years has been the UAE government's shift to approve 100% foreign ownership in Dubai Mainland, which presents fresh opportunities for foreign entrepreneurs.

If you're looking for a step-by-step guide on how to set up a business in Dubai Mainland, specifically as a foreigner, this article guides you through each and every step.  

From learning about the law on ownership through getting a license and opening a corporate bank account, this is what you need to do for a successful Dubai Mainland company setup in 2025.

1. Understand the 100% Foreign Ownership in Dubai Mainland

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In the past, foreign investors who wanted to set up shop in Dubai Mainland needed to have a UAE national partner, who was 51% owner of the business. This was  not a welcome feature for most entrepreneurs wanting full control of their business.  

But with amendments to the UAE Commercial Companies Law, foreign expatriates can now establish a 100% ownership company in Dubai for the majority of business industries—more so in consultancies, trading, IT, and services.

This amendment is a gamechanger for expatriates who would like to establish a business in Dubai without having to deal with the inconvenience of a local business partner. It gives them outright ownership rights, profit control, and decision-making freedom while leaving the door open for access to the UAE market.

2. Compare the Dubai Mainland to Free Zones

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Selecting the Dubai Mainland over a free zone is a decision with numerous advantages. To start with, mainland-licensed companies are not restricted as to where they can trade in the UAE and have the option of selling directly to the domestic market.  

They also qualify to be awarded government contracts and spread their business across the Emirates. A company formation in Dubai Mainland also gives you freedom to rent office space in the city, and hence you have greater options based on the budget and size of your firm.  

If your business requires a physical presence or to go face-to-face with customers in the city, this is a significant advantage.

In addition, the credibility of having a mainland license is generally enhanced when interacting with government organizations and major local clients. If long-term business development and integration into the UAE economy are your objectives, then the mainland is the way to go.

3. Select the Appropriate Business Activity

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The very first practical action is to select your business activity. This must be in accordance with the approved list laid down by the Dubai Department of Economy and Tourism (DET).  

Your business activity will determine the kind of license you need—commercial, professional, or industrial. It is important to know that not all business activities come under the umbrella of 100% foreign ownership, and therefore it is very important to reconfirm the recent DET guidelines or consult a professional expert.  

Extremely popular activities that qualify include marketing services, management consultancy, general trading, software development, and e-commerce.

4. Choose a Suitable Legal Structure

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The corporate legal structure of your company outlines how it will operate and how liability is distributed. For most foreign-owned businesses, the easiest option is to form a Limited Liability Company (LLC).  

An LLC may have more than a single shareholder and may engage in many different commercial pursuits. Other options are sole establishments, suitable for sole professionals, and civil companies, suitable for professional partnerships like doctors or consultants.  

When planning to open a business within the Dubai Mainland, having the right legal structure is important in terms of compliance, taxation, and ownership clarity.

5. Reserve Your Trade Name with DET

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Next, you’ll need to choose and reserve a trade name with the DET. Your business name should reflect the nature of your activity and comply with DET naming guidelines.  

This includes avoiding offensive language, references to religion or politics, and names already reserved by other businesses.

Reserving a name is quick and typically carried out online. Once approved, you are issued with a trade name certificate which has an expiry date, giving authority to go ahead with further action.

6. Receive Initial Approval and Prepare Documentation

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After the selection of a trade name, the next step is obtaining advance clearance from the DET. This approval means the UAE government does not object to your company being established in Dubai.  

Documents that are typically needed are photocopies of all shareholder passports, business activity details, and visa status.  

Although initial approval does not imply that you have been granted the license, it is a significant step in the setup process.

7. Draft the Memorandum of Association (MOA)

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With 100% ownership in Dubai Mainland, the traditional requirement for a local Emirati sponsor is eliminated. However, you’ll still need to draft a Memorandum of Association (MOA).  

This document outlines the company’s structure, ownership of shares, capital contributions, and general business activities.

The MOA must be notarized by a Dubai notary public. Getting this step right ensures legal clarity and protects your ownership rights.

8. Rent Office Space and Apply for Ejari

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Another mandatory requirement for a Dubai Mainland license is a physical office address. There are several office types to consider, such as conventional leased offices, co-working spaces, and flexi-desk solutions.  

The office needs to be recorded under Ejari—a government database that authenticates and records tenancy contracts.

Ejari is not just a licensing requirement but also a visa processing and corporate bank account opening requirement.

9. Submit Documents and Receive Issued Trade License

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Once your documents are ready—initial approval, MOA, trade name certificate, and Ejari—you may now submit these to the DET for final evaluation.  

After paying the license fees, your Dubai Mainland trade license will then be issued, so you can legally operate a business in the UAE.

You are now a 100% foreign owner of a Dubai Mainland company.

10. Open a Corporate Bank Account

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With your trade license issued, the next step is the opening of a corporate bank account. This is important for operating business finances, receiving payments, and maintaining compliance.

Banks will typically ask for your trade license, MOA, Ejari, shareholder passport copies, and sometimes a business plan. Due to strict compliance rules, banking might be tricky for new entrepreneurs—especially if they are unfamiliar with local regulations.  

This is where Dubai Mainland company formation consultants can come handy by recommending the proper banks and guiding you through the process.

10. Consider Post-License Requirements

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Starting a business in Dubai does not end with a trade license. You must also complete some procedures after the license is granted.  

These include applying for an establishment card from the Ministry of Human Resources & Emiratisation, getting residence visas for yourself and your employees, and filing for VAT if turnover is over AED 375,000 and corporate tax.

You will also be required to comply with Economic Substance Regulations (ESR) and submit Ultimate Beneficial Owner (UBO) details to the authorities.

Cost Breakdown for Dubai Mainland Company Formation (2025)

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Although the prices will be based on your business activity and location, here is a simple breakdown:

• Trade Name Reservation: Starts from AED 620

• Initial Approval: Starts from AED 120

• License Fees: Starts from AED 10,000

• MOA Drafting & Notarization: Starts from AED 1,000

• Office Rent & Ejari: Starts from AED 10,000(location-dependent)

• Visa Processing: Starts from AED 4,000 per visa  

It is possible that hiring Dubai Mainland company formation specialists can help reduce these fees and get everything going smoothly from day one.

Steer Clear of Typical Mistakes
Entrepreneurs underestimate legal and compliance complications of starting a business activity in Dubai Mainland.  

Some typical mistakes include choosing restricted activities, using personal account bank accounts for business reasons, ignoring compliance requirements, and rushing paperwork.

Avoiding these landmines can save money, time, and legal headaches.

Why Choose Dubai Mainland Company Formation Consultants

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Setting up an enterprise in Dubai can be hassle-free with expert guidance, especially for expats who lack UAE regulation experience. Dubai Mainland company formation consultants guide you through the hurdles of DET procedures, choosing the right business structure, drafting legal documents, and communication with government officials and banks.

They not only reduce the setup time horizon but also rule out the risk of expensive errors.  

Final Advice for Foreign Entrepreneur

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To succeed in Dubai, conduct thorough market research, understand your company's financial requirements, and abide by local regulations.  

Networking with local chambers of commerce, being properly documented, and having an online presence can help you grow quicker in the UAE.

Whether you're an independent consultant or a multinational brand, the UAE offers unprecedented opportunity for expansion.

Now that there has been a recent reform, it has never been easier to open a company in Dubai Mainland with 100% foreign ownership. A 100% owned company in Dubai offers flexibility, scalability, and total control—without a sponsor.

If business growth in the Middle East is on your agenda, Dubai Mainland is where you have to begin. And with the assistance of competent Dubai Mainland company formation specialists, it can be quick, in accordance with the law, and trouble-free.

Seek our professional on-the-ground guidance, contact us via mail at info@radiantbiz.com or WhatsApp & call us at  +971 55 234 7124!

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