Mainland LLC vs. Free Zone Company
| Mainland LLC | Free Zone Company |
|---|
| Where you can trade | Anywhere in the UAE, no restrictions | Within the free zone and internationally; UAE mainland trade needs a separate arrangement |
| Government contracts | Direct eligibility | Generally not eligible without a mainland entity |
| Office requirement | Mandatory Ejari-registered physical office | Often flexible — flexi-desk options available |
| Local Service Agent | Not required for most 100%-foreign-owned activities | Not applicable |
| Typical first-year cost | ~AED 40,000 – 90,000 all-in | From ~AED 4,888 for standard commercial free zones |
See our business setup in Dubai guide and our mainland company setup in Dubai page for the fuller picture of how mainland and free zone options compare across every route, not just LLC.
Ownership & Local Service Agent Rules
Most commercial, industrial, and professional activities in Dubai now qualify for 100% foreign ownership, meaning you can own your LLC outright without a UAE national shareholder. A narrow list of strategic and regulated activities still carries additional ownership or licensing conditions — your consultant should confirm this for your specific activity before you commit to a structure.
On the Local Service Agent (LSA): it's a common claim — repeated widely online — that every mainland LLC needs one regardless of ownership. That's not accurate. An LSA is a UAE national who provides administrative liaison with government departments for a fixed annual fee, and is not a shareholder or partner. For LLC activities that already qualify for 100% foreign ownership, an LSA is generally not required. It's mainly certain professional/sole-establishment licence structures, and the narrower set of activities that remain restricted, where an LSA (or a still-required Emirati participation arrangement) applies. If you're being quoted an LSA fee for a standard 100%-foreign-owned LLC activity, it's worth asking exactly why.
Licence Types for a Dubai LLC
| Licence Type | Best For |
|---|
| Commercial Licence | Trading, import/export, general trading, retail |
| Professional Licence | Consultants, service providers, professional practitioners |
| Industrial Licence | Manufacturing, production, industrial operations |
| Tourism Licence | Tourism and hospitality-related activities |
Companies can hold multiple activities under one licence, or add licences as the business grows. Getting activity classification right at the start avoids delays and rework later.
- Business activity selection. Choose from thousands of DET-approved activities across trading, consulting, technology, and services — this determines your licence type and ownership eligibility.
- Trade name reservation. A unique name is checked against DET naming guidelines and reserved.
- Initial approval. DET confirms your proposed activity is acceptable before full licensing proceeds.
- Office space and Ejari registration. A registered office address is mandatory for a mainland LLC — the tenancy contract must be registered through the Ejari system before licensing completes.
- Memorandum of Association (MOA). This legal document sets out company structure, shareholders, ownership percentages, and activities.
- Licence application and issuance. The full application, with all approvals and supporting documents, is submitted and — once approved — your licence is issued.
- Post-incorporation setup. Corporate banking, investor and employee visas, company stamp, and operational setup follow licence issuance.
With documents and office lined up, Dubai LLC formation typically completes in 7–10 business days — timing depends mainly on activity complexity, office arrangement, and how quickly documents are ready.
- Passport copies and visa pages for individual shareholders (plus current UAE residence visa, if applicable)
- Passport-size photographs
- Educational certificates, for certain professional activities
- For corporate shareholders: certificate of incorporation, Memorandum and Articles of Association, board resolution authorising UAE company formation, shareholder register, and a good standing certificate
- Business plan, depending on activity
- No Objection Certificate, if the applicant is currently employed in the UAE
- Signed tenancy contract, registered through Ejari
Office Space, Ejari & Visa Allocation
Unlike many free zones, a mainland LLC must maintain a physical, Ejari-registered office address — dedicated office space, a shared/business-centre arrangement, or a flexi-desk solution, depending on activity and visa needs. Visa allocation is tied to office size and business activity: larger offices support more visas, and companies can expand visa capacity later by upgrading office space. Ejari registration itself is a prerequisite for both licence issuance and visa processing, not an optional add-on.
Mainland cost is driven by licence type, office arrangement, and number of visas — a licence-only quote understates what you'll actually spend in year one. Based on current 2026 DET/mainland setup data:
| Licence Type | Approximate Licence Fee |
|---|
| Professional Licence | ~AED 15,000 – 17,000 |
| Commercial Licence | ~AED 18,000 – 22,000 |
| Industrial Licence | ~AED 20,000 – 25,000 |
| Tourism Licence | ~AED 21,000 – 24,000 |
| Additional First-Year Cost | Approximate Cost |
|---|
| Ejari-registered office (small office/flexi-desk upward) | from ~AED 12,000/year |
| Local Service Agent (only where actually required) | ~AED 5,000 – 15,000/year |
| Investor/partner visa (per visa) | ~AED 4,000 – 7,000 |
Put together, a realistic all-in first-year cost typically runs AED 40,000–90,000, depending on activity, office choice, and number of visas — well above a licence-fee-only quote.
A note on pricing: these figures are indicative, cross-checked against current 2026 mainland setup data rather than a single fixed Takween Advisory package price. If you've seen a "from AED 4,888" figure elsewhere on this site, that's a standard commercial free zone starting price (for example IFZA or SPC) — it isn't a meaningful comparison for mainland at all, since UAE law requires a mainland LLC to hold a real, Ejari-registered office, which a free zone flexi-desk doesn't. Book a free consultation and we'll confirm the exact current cost for your activity and office plan.
Banking & Tax for Dubai LLCs
Mainland LLCs open UAE corporate bank accounts the same way as free zone entities — see our corporate bank account opening in Dubai guide for what banks assess. On tax: mainland LLCs fall under the standard UAE corporate tax framework — 9% on profit above AED 375,000, with no free zone qualifying-income exemption available, since that 0% treatment is specific to free zone entities. VAT registration is required once turnover crosses the mandatory threshold. See our investor visa in Dubai guide for the shareholder visa route, and our PRO services in Dubai page for ongoing government liaison support.
- Budgeting only for the licence fee. Office/Ejari and visa costs are mandatory, not optional add-ons — leaving them out of the budget is the most common planning mistake.
- Paying for a Local Service Agent you don't need. Confirm whether your specific activity actually requires one before accepting that line item.
- Comparing mainland cost directly to a free zone "starting from" price. The two cost structures aren't comparable — mainland's mandatory registered office alone changes the baseline.
- Under-classifying business activities. Choosing too narrow an activity list at formation often means costly licence amendments later as the business grows.
Takween Advisory manages Dubai LLC company formation end to end — activity classification, trade name reservation, Ejari-registered office arrangement, MOA preparation, licence application, and post-incorporation banking and visas. We also give straight answers on ownership and Local Service Agent requirements specific to your activity, rather than defaulting to a blanket fee. Where a free zone route would serve your business better and at lower cost, we say so.
