Dubai has become one of the world’s most attractive business hubs, offering a strategic location, a tax-friendly environment, and streamlined regulations. Traditionally, Dubai mainland company formation required a UAE national to act as a local sponsor, holding 51% of shares. However, recent reforms have opened the doors to 100% foreign ownership in many sectors, eliminating the need for a local Emirati sponsor in most cases.

If you're an entrepreneur or investor looking for a mainland company setup in Dubai without local sponsorship, this guide will walk you through the new process, eligibility, steps, and benefits of doing so in 2025.

Can You Really Own 100% of a Mainland Business in Dubai?

Yes. As of 2021, under the UAE Commercial Companies Law amendments, foreign investors can now own 100% of businesses in many sectors, including commercial, industrial, and even some professional activities, without the need for a UAE national as a shareholder.

This means Dubai mainland company setup is now more flexible and investor-friendly than ever before. However, some restrictions still apply depending on the activity, industry, and legal structure.

Benefits of 100% Foreign Ownership in Dubai Mainland

• No Need for a UAE Sponsor or Local Partner

• Full Control and Profit Retention

• Access to the Entire UAE Market (Not Limited to Free Zones)

• Ability to Trade Directly with Government Entities

• No Currency Restrictions

• Visa Eligibility for Employees and Investors

• Easier Access to Office Space Anywhere in Dubai

These advantages make mainland company formation in Dubai a top choice for ambitious entrepreneurs aiming to scale their operations regionally and globally.

Eligible Business Activities for 100% Ownership

The UAE government has approved a list of over 1,000 business activities that qualify for full foreign ownership. These include:

• General trading

• Retail and eCommerce

• Information technology and consulting

• Manufacturing and production

• Education and training

• Real estate brokerage (with licensing)

• Travel and tourism services

• Marketing and management consultancies

Some activities, especially those in sectors like defense, oil and gas, or legal services, still require a local partner or service agent.

You can verify your activity’s eligibility with the Dubai Department of Economy and Tourism (DET).

Also Read: Process of Free Zone Company Registration in Dubai

Step-by-Step Guide to Dubai Mainland Company Setup Without a Local Sponsor

Here’s a simplified roadmap to start your business in Dubai mainland without a local sponsor:

Step 1: Choose a Business Activity

Select an activity from the DET-approved list for 100% foreign ownership. Be as specific as possible to avoid compliance issues later.

Step 2: Decide on a Legal Structure

Most businesses opt for an LLC (Limited Liability Company), which allows flexibility, multiple shareholders, and full repatriation of profits.

Other possible structures:

• Sole Establishment

• Civil Company (for professionals)

• Branch of a foreign company

Step 3: Register Trade Name

Choose and register a unique trade name with DET. It should reflect your business activity and comply with UAE naming guidelines.

Step 4: Apply for Initial Approval

Initial approval confirms that the UAE government has no objection to you starting a business. This is not your trade license but a preliminary go-ahead.

Step 5: Draft MOA and Lease Office Space

Prepare a Memorandum of Association (MOA) tailored for 100% ownership and rent an office in mainland Dubai. Ejari (tenancy contract registration) is required.

Coworking spaces and Flexi-desks are also accepted for many licenses if you're a startup.

Step 6: Submit Final Documents and Pay Fees

Submit the following:

• Initial approval certificate

• MOA

• Ejari

• Passport copies

• Trade name certificate

Pay the applicable license issuance fees to DET. Once approved, you’ll receive your Dubai mainland trade license.

Step 7: Open a Corporate Bank Account and Apply for Visas

After licensing, you can:

• Open a UAE corporate bank account

• Apply for investor and employee visas

• Register with VAT if your annual revenue exceeds AED 375,000

Cost of Dubai Mainland Company Formation Without a Sponsor

Costs vary depending on business type, location, and visa needs. On average:

• Trade license fee: AED 10,000–15,000

• Office space: AED 15,000–50,000 (annually)

• MOA drafting and notarization: AED 2,000–5,000

• Visa processing (per visa): AED 3,000–7,000

Some DED-approved packages offer combined deals for startups with reduced costs in the initial year.

Also Read: Steps to Obtain a Dubai Investor Visa

Tips for a Smooth Mainland Company Setup in Dubai

• Work with a licensed business consultant to avoid delays

• Confirm your activity is eligible for 100% ownership

• Use a shared workspace if you want to lower your office rental costs

• Ensure all documents are attested and translated (if required)

• Apply for a Corporate Tax Registration under the UAE's 2023 tax regime

Frequently Asked Questions

1. Can I own a Dubai mainland company 100% as a foreign national in 2025?

Yes, many business activities now allow 100% foreign ownership without a local Emirati sponsor.

2. Is it better to set up in the mainland or a free zone?

Mainland offers the flexibility to do business anywhere in the UAE and with government entities, unlike free zones, which have geographical restrictions.

3. Do I still need a local service agent for professional licenses?

For some professional services, yes—but this is a non-equity arrangement, and the agent has no control or profit rights in the company.

Conclusion

The UAE’s forward-thinking reforms have made Dubai mainland company formation much more accessible to global investors. With the elimination of mandatory local sponsorship for most activities, you can now launch a mainland company setup in Dubai with full ownership, control, and profit rights.

Whether you’re entering the UAE market for the first time or expanding your global presence, Dubai mainland company setup in 2025 is a strong strategic move.