Starting a company in another country can feel overwhelming, especially when you are thinking about your family’s future and long-term stability. Dubai has become one of the top places in the world for foreign investors who want strong growth, safety, and global opportunities.
If you are considering a foreign-owned business setup in Dubai Mainland, you likely want clear answers about ownership rules, costs, taxes, and how to get started the right way.
Dubai Mainland offers flexibility, access to the entire UAE market, and the chance to fully own your company in most sectors. Whether you are planning to move your family or simply expand your income streams, making the right decision now can create long-term benefits.
Keep reading to understand how it works and how to set your business up properly from day one.
What Is a Foreign-Owned Business Setup in Dubai Mainland?
A foreign-owned business setup in Dubai Mainland means a non-UAE national owns a company licensed by Dubai’s Department of Economy and Tourism. Mainland companies can operate anywhere in the UAE without geographic restrictions.
Why Dubai Mainland Is Attractive for Foreign Investors
Dubai Mainland offers:
- Access to the full UAE market
- Ability to work with government entities
- Freedom to open branches across the UAE
- 100 percent foreign ownership for most activities
- A stable and business-friendly legal system
For parents and families looking for security, Dubai also offers strong healthcare, quality schools, and a safe environment for children.
Can You Have a 100% Foreign-Owned Business Setup in Dubai Mainland?
Yes, in most sectors, foreigners can now own 100 percent of their mainland company. Legal reforms have removed the need for a local shareholder in many business activities.
Certain strategic impact activities, such as defense, security, and specific energy sectors, may still have special ownership requirements subject to government approval.
Understanding 100 Percent Foreign Ownership Rules
Here are the key points:
- Most commercial and professional activities allow full foreign ownership
- Certain strategic sectors may still require local participation
- Professional licenses may require a local service agent, not a shareholder
- Foreign investors retain full profit rights and management control
Always confirm your selected activity is eligible before proceeding.
Legal Structures for Foreign-Owned Business Setup in Dubai Mainland
Choosing the correct legal structure affects liability, taxation, and operational flexibility.
Common Company Types for Foreign Investors
Limited Liability Company
This is the most common option. It limits liability to the capital invested and allows multiple shareholders.
Sole Establishment
Ideal for individual professionals who want full control of the business.
Civil Company
Suitable for professional services such as consulting, engineering, or medical practices.
Branch of a Foreign Company
Allows an existing foreign company to operate in Dubai under its parent structure.
Your choice should match your long-term business and family goals.
Step by Step Process for Foreign-Owned Business Setup in Dubai Mainland
Setting up a mainland company follows a structured approval process. Proper planning reduces delays and unexpected costs.
How to Start a Foreign-Owned Company in Dubai Mainland
- Choose your business activity
- Confirm eligibility for full foreign ownership
- Select your legal structure
- Reserve a trade name
- Obtain initial approval
- Draft and sign the Memorandum of Association
- Lease office space and register Ejari
- Obtain your trade license
- Open a corporate bank account
- Apply for investor and employee visas
The timeline typically ranges from a few days to several weeks.
📌 Also read: Best Business in UAE: Top Opportunities & Ideas for 2026
Cost of Foreign-Owned Business Setup in Dubai Mainland
Understanding costs helps you plan confidently. Expenses vary depending on your activity and office requirements.
How Much Does It Cost to Set Up a Foreign-Owned Mainland Company?
Typical costs include:
- Trade license fees
- Government approvals
- Office rent and Ejari registration
- Visa processing fees
- Medical tests and Emirates ID
- Bank account setup
Costs increase if you require multiple visas or larger office space.
Ongoing Costs After Setup
After registration, you will have:
- Annual license renewal
- Office lease renewal
- Corporate tax filing
- VAT compliance, if applicable
- Accounting and bookkeeping services
Managing these expenses properly protects your profits.
Tax Rules for Foreign-Owned Business Setup in Dubai Mainland
Dubai offers a competitive tax system compared to many global business centers. However, compliance is mandatory.
Is Dubai Tax-Free for Mainland Companies?
Dubai does not charge personal income tax. However:
- Corporate tax is 0 percent on taxable income up to AED 375,000 and 9 percent on taxable income above AED 375,000.
- VAT is 5 percent. Mandatory VAT registration applies when annual taxable supplies exceed AED 375,000. Voluntary registration is available from AED 187,500.
- Accurate accounting records are legally required.
- Corporate tax returns must be filed annually.
Professional accounting support ensures you avoid penalties and maintain compliance.
Outsource Prime Accountants and Bookkeepers helps real estate firms, sports academies, and service-based businesses in Dubai streamline accounting and bookkeeping using Zoho Books, QuickBooks, and Odoo. This ensures financial clarity, compliance, and informed decision-making for sustainable growth.
📌 Also read: FTA VAT Registration in the UAE: A Guide for Business Owners
Can a Foreigner Open a Business in Dubai Without Living There?
Yes, foreigners can establish a mainland company without initially residing in the UAE. Certain processes, like visa stamping and bank account verification, may require physical presence.
Residency and Visa Options
Options include:
- Investor visa
- Partner visa
- Employment visas for staff
An investor visa allows you and your family to live in the UAE legally, giving access to quality education and healthcare.
📌 Also read: UAE Investor Visa Guide 2025: Requirements, Costs, and Process
Benefits of Foreign-Owned Business Setup in Dubai Mainland
Dubai Mainland provides long-term advantages for entrepreneurs and families.
Key Advantages
- Full access to the UAE market
- No geographic restrictions
- Strong global reputation
- Ability to secure government contracts
- Safe and family-friendly living environment
These benefits make Dubai a strong choice for building both business and personal stability.
Challenges to Consider Before Starting
Every opportunity comes with responsibilities.
Important Considerations
- Office space is mandatory
- Corporate tax compliance is required
- Bank due diligence can take time
- Annual renewals must be budgeted
OPAB allows you to focus on running your company while experts manage books, taxes, and reports. They provide affordable and transparent accounting solutions trusted by businesses across Dubai.
Common Mistakes in Foreign-Owned Business Setup in Dubai Mainland
Avoid these common errors:
- Selecting an ineligible business activity
- Underestimating full setup costs
- Ignoring VAT registration requirements
- Failing to maintain proper accounting records
Staying organized from day one protects your investment.
How OPAB Supports Foreign-Owned Business Setup in Dubai Mainland
Starting your company is only the beginning. Ongoing compliance is essential for sustainable growth.
Outsource Prime Accountants and Bookkeepers provides:
- Corporate tax filing
- FTA VAT compliance
- Accounting and bookkeeping
- Zoho Books, QuickBooks, and Odoo expertise
- Clear financial reporting
Visit OPAB for expert tax and accounting support tailored to foreign-owned businesses in Dubai Mainland.
Conclusion
A foreign-owned business setup in Dubai Mainland gives you the opportunity to fully control your company, access the entire UAE market, and build long term stability for your family.
With the right legal structure, proper licensing, and strong financial management, you can grow confidently in one of the world’s leading business hubs.
For more helpful guides about business setup, tax, VAT filing, and compliance in the UAE, explore resources from OPAB.
Outsource Prime Accountants and Bookkeepers provides trusted accounting services in Dubai built for growing businesses. If you want expert support with corporate tax filing, FTA VAT compliance, bookkeeping, or financial reporting, contact OPAB today and focus on growing your business while professionals handle the numbers.
FAQs About Foreign-Owned Business Setup in Dubai Mainland
What is the cheapest foreign-owned business setup in Dubai Mainland?
The lowest cost option is usually a professional or service-based activity with minimal visa requirements and a small office. Costs vary depending on the business activity and approvals needed. It is important to calculate both setup and renewal expenses before making a decision.
How long does foreign-owned business setup in Dubai Mainland take?
The process can take anywhere from a few days to several weeks. The timeline depends on your business activity, documentation, and external approvals. Delays often happen if paperwork is incomplete or corrections are needed.
Is it worth setting up a company in Dubai?
Dubai offers strong infrastructure, global connectivity, and a stable legal system. There is no personal income tax, and corporate tax rates are competitive compared to many countries. For many entrepreneurs, it provides long-term growth potential and a high-quality lifestyle.
Do I need to pay corporate tax for a foreign-owned business set up in Dubai Mainland?
Yes, corporate tax applies if your taxable income exceeds AED 375,000. Taxable income up to AED 375,000 is subject to 0 percent corporate tax, and taxable income above AED 375,000 is subject to 9 percent corporate tax. Businesses must maintain proper accounting records and submit annual tax returns to remain compliant.
Can I fully own a mainland company as a foreigner?
In most business activities, foreigners can own 100 percent of their mainland company. Some strategic sectors may have specific requirements. Always confirm your activity’s eligibility before registration.
