Dubai Mainland (DED)
Legal Forms, Requirements & Advantages
Dubai Mainland companies offer unmatched local market access, but the legal structure you choose determines your ownership level, capital requirements, and operational flexibility. Here’s everything you need to know to make the right choice.
Why Choose Mainland Over Free Zone?
Mainland companies offer unmatched local market access and operational flexibility.
Unrestricted Trading
Sell directly to UAE consumers and businesses without restrictions or distributors.
- Direct B2C and B2B sales
- Government contract eligibility
- Open branches anywhere in UAE
- No distributor requirements
Flexible Office Options
Physical office spaces across Dubai and other Emirates with high visa quotas.
- Ejari-registered office spaces
- 10-50+ visa capacity
- Commercial and retail locations
- Scalable as you grow
Legal Structures
Multiple company types to match your business needs and ownership preferences.
- LLC (Limited Liability Company)
- Sole Proprietorship
- Civil Company (Professionals)
- Branch Office
Professional Licenses: 100% foreign ownership with Local Service Agent (LSA)
Commercial/Trading Licenses: 51% UAE National partner required (100% control via Investor Protection Agreement)
Mainland Setup Process
Activity Selection
Choose your business activity and secure trade name approval from DED.
Legal Documentation
Prepare MOA, shareholder agreements, and notarize all required documents.
Sponsor Arrangement
Secure trusted LSA or local partner with full investor protection.
License Issuance
Obtain DED license, Chamber membership, and initial approvals.
Office & Visas
Secure Ejari-registered office and process investor/employee visas.
Mainland Setup Investment
Ready to Access the Full UAE Market?
Launch your Mainland company with MSL’s expert guidance and guaranteed sponsorship.
6 Legal Forms Available for Mainland Companies
Limited Liability Company (LLC)
MOST COMMON STRUCTUREThe most popular structure for small to medium enterprises. Shareholders’ liability is limited to their capital contribution.
- 2-50 shareholders allowed
- Minimum capital: AED 300,000 (not required to be deposited)
- Professional licenses: 100% foreign ownership with LSA
- Commercial licenses: Requires 51% UAE national partner
- Full legal protection for shareholders
- Suitable for most business activities
Ideal for: Trading companies, consultancies, tech firms, agencies
Sole Proprietorship (Sole Establishment)
SINGLE OWNER STRUCTUREOwned and operated by a single individual. Simplest structure but offers no separation between personal and business liability.
- One owner only (individual, not corporate)
- Owner has unlimited personal liability
- 100% foreign ownership allowed with LSA (professional license)
- Cannot engage in large-scale commercial trading
- Lower setup and renewal costs
- Faster approval process
Ideal for: Freelancers, consultants, doctors, engineers, designers
Civil Company
PROFESSIONAL PARTNERSHIPSA partnership between licensed professionals practicing the same or related profession. Common in medical, legal, and engineering fields.
- 2+ partners, all must be licensed professionals
- Partners share unlimited joint liability
- 100% foreign ownership with LSA
- Restricted to specific professional activities
- All partners must actively participate
- Cannot engage in commercial trading
Ideal for: Law firms, medical clinics, engineering consultancies
Branch Office (Foreign Company Extension)
CORPORATE EXPANSIONA direct extension of a foreign parent company operating in Dubai. Not a separate legal entity—activities and liability flow to parent.
- Not a separate legal entity (no limited liability)
- Must have parent company registered abroad
- Requires UAE national service agent (LSA)
- Parent company fully liable for branch activities
- Can only perform activities specified in license
- Cannot engage in activities parent doesn’t perform
Ideal for: Multinational corporations, large enterprises expanding to UAE
Public Joint Stock Company (PJSC)
PUBLICLY TRADED STRUCTURELarge corporate structure for companies intending to list shares publicly. Subject to stringent regulatory oversight.
- Minimum 10 shareholders required
- Minimum capital: AED 10,000,000 (must be deposited)
- Can offer shares to public via stock exchange
- Strict governance and reporting requirements
- Board of Directors mandatory
- Securities & Commodities Authority oversight
Ideal for: Large corporations, IPO-bound companies, institutional ventures
Private Joint Stock Company
PRIVATE SHAREHOLDINGSimilar to PJSC but shares cannot be offered publicly. More flexibility with less regulatory burden.
- Minimum 3 shareholders required
- Minimum capital: AED 2,000,000 (must be deposited)
- Shares cannot be publicly traded
- Moderate governance requirements
- Suitable for mid-to-large scale operations
- Can later convert to PJSC if needed
Ideal for: Family businesses, private equity ventures, large partnerships
Understanding Local Sponsorship: LSA vs. Local Partner
One of the most misunderstood aspects of Mainland company formation is the local sponsorship requirement. Let’s clarify the two distinct roles and how MSL protects your interests.
Local Service Agent (LSA)
FOR PROFESSIONAL & SERVICE LICENSES📋 REQUIRED FOR:
- Professional service licenses
- Consultancy firms
- Legal & accounting firms
- Technology & IT services
- Marketing & advertising agencies
- Design & creative studios
💰 YOUR OWNERSHIP:
100% Foreign Ownership
You retain complete ownership—the LSA has ZERO equity stake.
🛡️ LSA’S ROLE:
- Government liaison only
- Signs documents on your behalf (with your authorization)
- Facilitates government department interactions
- NO operational involvement
- NO claim to profits or assets
- NO decision-making authority
💵 COMPENSATION:
Fixed Annual Fee (typically AED 5,000 – 15,000)
Transparent, contractually agreed fee. No profit sharing.
Local Partner (51% Shareholder)
FOR COMMERCIAL & TRADING LICENSES📋 REQUIRED FOR:
- General trading companies
- Import/export businesses
- Wholesale & distribution
- Retail operations (some categories)
- Industrial & manufacturing
- Construction companies
💰 LEGAL OWNERSHIP:
51% UAE National / 49% Foreign
The local partner holds majority shares on paper.
🛡️ YOUR PROTECTION (IPA):
Investor Protection Agreement (IPA) is a legally binding contract that:
- Grants 100% operational control to foreign investor
- Guarantees 100% profit entitlement to foreign investor
- Waives local partner’s claim to dividends
- Assigns Power of Attorney (POA) to foreign investor
- Protects against interference or unauthorized actions
💵 COMPENSATION:
Fixed Annual Fee (typically AED 15,000 – 40,000)
Predetermined sponsorship fee. Partner receives NO profits.
- Notarized Investor Protection Agreement
- Comprehensive Power of Attorney
- Bank signatory authorization for foreign investor
- Annual audit rights
- Exit clause protection
Concerned About Local Partnership Risks?
MSL’s 9+ years of experience means we only work with trusted, legally compliant sponsors. Our IPA contracts have been stress-tested through hundreds of successful partnerships—zero disputes.
Schedule Confidential Sponsorship Consultation →