October 4, 2026

Setting Up an LLC in Dubai: An Overview of Mainland Company Costs

A mainland LLC in Dubai is the structure for anyone who wants to sell within the country – to consumers, to local businesses, to government entities. It costs more than a free zone company, but it can do something no free zone can.

What defines a mainland LLC

Unrestricted sales within the UAE, without a distributor
Since 2021, 100 percent foreign ownership in most sectors
Access to public tenders and contracts
Visas linked to office space, not to a package quota
Registration with the Department of Economy and Tourism

The cost items at a glance

Item	Range (AED)	Note
Trade licence	12,000–20,000	depending on activity
Name reservation and initial approval	1,000–2,000	one-off
Office with Ejari registration	15,000–40,000	largest recurring item
Memorandum of association and attestations	2,000–5,000	depending on the structure
Establishment card	approx. 2,000	required for visas
Visa per person	3,500–7,000	renewed every two years

Realistically, a mainland formation therefore costs between AED 30,000 and 80,000 in the first year, depending mainly on the office space and the number of visas.

Our support for a mainland formation starts at EUR 6,000. Licence fees and Ejari are not included; they are paid directly to the authority and the landlord.

The mainland formation process

Define the activity and check whether additional approvals are required
Reserve the company name and obtain initial approval from the Department of Economy and Tourism
Rent office space and have the lease registered via Ejari
Draw up the memorandum of association and have it notarised
Have the licence issued and apply for the establishment card
Visas, Emirates ID and business bank account – handled in this order

The process typically takes two to six weeks. The bottleneck is almost never the authority but the office search: without a registered lease, the entire procedure comes to a halt.

Why the office determines the price

Unlike in many free zones, a virtual office is not sufficient on the mainland. A real space with a lease registered via the Ejari system is required.

The space determines how many visas can be issued
Shared offices are possible but subject to conditions
The lease must be renewed and re-registered every year
Location and fit-out have a direct impact on total costs

What drives the price up

Activities requiring approval, for example in healthcare, education or finance
Several activities on one licence, each additional one incurring fees
An office location in Downtown or DIFC instead of an outlying district
Companies as shareholders, because apostille and translation are added
A larger visa quota, which requires a larger space

If you want to reduce costs, start with the office space – not the licence. The licence fee is largely fixed, whereas rent is the item with the most room for manoeuvre.

Ongoing costs from year two

Licence renewal, usually at a similar level to the first year
Rent and renewed Ejari registration
Visa renewals every two years per person
Health insurance for every person holding a visa
Accounting and tax return, from AED 8,000 upwards

The renewal is the item most often underestimated. If you only budget for formation costs, you will face a bill of a similar amount in the second year.

Tax classification

A mainland LLC is subject to corporate tax: 0% on taxable income up to AED 375,000 (a tax-free allowance), 9% on the portion above that. The 0% rate for free zone companies is not available to it.

Corporate tax registration within three months of incorporation, otherwise a penalty of AED 10,000
VAT registration mandatory from AED 375,000 in annual taxable turnover
Bookkeeping obligation from day one
Small Business Relief on application with revenue of no more than AED 3 million, for tax periods ending on or before 31 December 2029 (Ministerial Decision No. 131 of 2026)

Staff and local requirements

The general UAE labour regulations apply on the mainland. Companies above a certain number of skilled employees are also subject to requirements on employing Emirati nationals.

The applicable thresholds and deadlines change and depend on the industry and company size. If you plan to build up staff, have the current position checked before hiring – failures are subject to contributions.

Mainland or free zone

Criterion	Mainland	Free zone
Sales within the UAE	unrestricted	only via a distributor
Costs in year 1	AED 30,000–80,000	AED 16,000–50,000
Office	mandatory, with Ejari	a flexi-desk is often sufficient
Corporate tax	9% above AED 375,000	0% possible with QFZP status

How we assess the choice

A mainland LLC pays off if the local market is the goal. If you supply restaurants, provide construction services, run a retail business or aim for public contracts, you need one – any other structure would be a detour.

If, on the other hand, you serve international clients and have no need for the domestic market, with a mainland company you pay for something you don't use. The premium over a free zone lies mainly in the office and is considerable over the years.

What we therefore advise clients: assess honestly how large the share of local customers will be in two years. If it is below ten percent, a free zone company with a distributor for individual cases is usually the cheaper solution.

Clarify before you decide

What share of your customers do you expect within the UAE?
What office space do you need for the planned number of visas?
Is your activity approval-free on the mainland, or does it need additional approvals?
Have you budgeted for the renewal costs in year two?
Is the CT registration deadline in your calendar?

What it takes in detail to set up a company in Dubai is explained on our dedicated page.