Mainland company setup in Dubai

Under the general Corporate Tax regime, the rate is 0% up to AED 375,000 of taxable income then 9% beyond. A mainland company must review its registration, accounting and filing obligations, even when no tax is due.

The QFZP regime is reserved for free zone persons who meet all its conditions. It does not apply to a mainland company; the choice of structure must therefore reflect the activity and the real flows, not a general promise of a zero rate.

VAT at 5% follows the same rules: mandatory registration from AED 375,000 of taxable turnover in the UAE. For a company serving the local market, that threshold arrives quickly: plan the registration from the start.

The choice does not depend solely on where your clients are based. You must distinguish invoicing, the physical exercise of the activity and the sector authorisations. For a shop or a restaurant located outside a free zone, the mainland licence is generally the right route.

Since October 2025, a permit allows certain Dubai free zone companies to carry out eligible activities on the mainland. This scheme is subject to conditions and does not replace all licences. Compare this option with a mainland entity based on your activity and premises.

Many of our clients combine both: a free zone for the international activity, a mainland entity when local contracts come in. The two structures coexist perfectly.

The visa quota depends notably on the premises, the activity and the work and immigration authorisations. An office surface does not guarantee a number of visas: have the quota validated before signing the lease.

Employees of a mainland company fall under MOHRE (the Ministry of Labour): registered employment contract, work card and WPS system for salaries, on top of the classic immigration pathway (entry permit, medical test, biometrics, Emirates ID).

For the founder, the mainland investor visa follows the same path as its free zone counterparts: 2 years renewable, with the option to then sponsor a spouse and children. We synchronise the visas and Emirates IDs of the whole family in a single timeline.

Some mainland activities require the approval of a sector authority on top of the DET: healthcare (DHA), education (KHDA), food and beverage (Dubai Municipality and food safety), transport (RTA), financial activities (central bank or dedicated regulators).

These approvals add timelines (from a few days to several weeks) and sometimes premises or qualification requirements. It is the first source of surprises in poorly prepared mainland setups, and the first reason to work with a partner who knows the circuits.