11 Nov 2025
By Hitesh Bagmar
Setting up a business in the UAE has never been more exciting than it is today. With 100% foreign ownership allowed for most activities, simplified licensing rules, and a booming economy, Dubai continues to be the first choice for entrepreneurs around the world. But even with a straightforward system, one step still remains the most crucial, often underestimated, and sometimes confusing part of the entire process: choosing the correct business activity for your Mainland company.
If you’re exploring Mainland company formation in Dubai, this choice determines almost everything that follows: the type of license you get, the structure of your company, the government approvals required, your office requirements, and even how easily you can expand later. Many business owners assume choosing an activity is a simple formality, but in reality, it shapes your long-term foundation. Making the wrong choice at this stage can create unnecessary hurdles, additional fees, and limitations that show up months later. Choosing the right activity ensures your Mainland business setup in Dubai is smooth, compliant, and scalable.
This blueprint below explains everything you need to know without overwhelming you with jargon. Whether you’re starting a new venture or relocating your business to Dubai Mainland, this guide will help you understand how to select the perfect activity for your company.
Understanding Why the Activity Selection Matters
When people first think about starting a Mainland company in the UAE, they focus on the exciting parts, like the business idea, branding, finding clients, and planning growth. But before any of that happens, your business activity becomes the core of your legal identity. In Dubai Mainland, each activity is assigned an official code and falls into a specific licensing category. This code determines whether your business falls under a Commercial, Professional, Industrial, or Tourism License.
This isn’t just an administrative classification. Your selected activity decides your ownership structure, how your company operates, whether you need external approvals, and even your yearly obligations.
For example, a trading company dealing with electronics must follow rules that are completely different from those of a marketing consultancy or a software development firm. The “wrong” activity, even if it’s slightly misaligned, can lead to rejected applications, delays in licensing, or complications during visa issuance, banking, or customs registration later.
The goal is simple:
Choose an activity that represents your business today while also giving you the flexibility to expand tomorrow.
Dubai rewards clarity. The more accurately you define your business activity, the smoother the process will be, from getting your Dubai Mainland license approved to opening a corporate bank account and obtaining visas.
Decoding the DET Activity System
Dubai’s Department of Economy and Tourism (DET) manages a huge list of over 2,000 approved business activities. This is meant to help ensure that every business operating on the Mainland has a clearly defined role. But for entrepreneurs seeing this list for the first time, it can feel overwhelming. The good news is that once you understand the framework behind it, the system becomes quite simple.
Every activity belongs to one of the following categories:
1. Commercial Activities (Buying & Selling Goods)
If your business involves physical products, whether trading, storing, importing, exporting, or retailing, your activity will fall under a commercial license. For example, electronics trading, building materials trading, e-commerce selling physical goods, fashion and apparel trading, foodstuff trading, or general trading.
Commercial activities often involve the movement of goods, so office spaces, warehouses, or showrooms may be required depending on your business model. This is also why the Dubai Mainland company formation cost can vary for trading activities based on location and requirements.
One of the biggest decisions to make under this category is choosing between General Trading and Specialised Trading.
- General Trading gives you maximum flexibility by allowing you to trade almost any product category under one license.
- Specialised Trading limits you to one product type, but may reduce cost and complexity.
Both options fall under commercial licensing, but the scope of operations differs significantly.
2. Professional Activities (Service-Based Work)
If your company is built around skills, expertise, or knowledge rather than selling products, you fall under a professional activity. These include consulting firms, marketing agencies, accounting services, IT services, architecture, education and training services, web development, and more.
Professional licenses allow 100% ownership, but they require the appointment of a Local Service Agent (LSA). This isn’t a partner, it’s a UAE national whose role is limited to administrative and government coordination.
Professional licenses are ideal for freelancers, consultants, and service providers who want a simple structure with minimal operational obligations.
3. Industrial Activities (Manufacturing & Production)
Industrial activities involve transforming raw materials into finished or semi-finished products. This includes food manufacturing, printing and packaging, fabrication, assembling machinery, producing goods, or operating a factory. These activities require approvals from multiple authorities, including Dubai Municipality and Civil Defence.
They also require a warehouse or dedicated industrial premises, which influences both setup and recurring costs. Industrial businesses typically choose Dubai, Sharjah, or Ajman Mainland, depending on the nature of their operations and budget, which brings us to a crucial UAE-wide comparison later below.
4. Tourism Activities
Tourism-related businesses fall under the tourism license category. These include travel agencies, tourism operators, holiday services, and hotel-related activities. These activities are highly regulated and require additional approvals from DET’s Tourism Department.
How Your Activity Determines Your Legal Structure and Ownership
The UAE introduced one of the most transformative business reforms in 2021, allowing 100% foreign ownership for most commercial and professional activities on the Mainland. This reshaped the business landscape and made UAE Mainland company formation more attractive than ever.
But even with full ownership, your chosen activity still influences your company structure:
Commercial Activities: LLC (Limited Liability Company)
Most trading activities operate under an LLC. LLCs allow full foreign ownership for most sectors, making them perfect for entrepreneurs who want complete control of their business.
Professional Activities: Sole Establishment or Civil Company
Professional activities still require an LSA, but you retain full control and full profit ownership. Civil Companies can have multiple partners, while Sole Establishments are single-owner entities.
Industrial Activities: LLC or Industrial Company
These businesses require more approvals, and your structure depends on the scale of your operations.
Regulated Activities: Case-by-Case Licensing
Some sectors, such as finance, law, and engineering, may have stricter requirements, including specific qualifications or a UAE national involvement.
This is why ironing out your activity first ensures you choose the right structure and avoid costly changes later.
How Activity Impacts Dubai Mainland Company Formation Cost
Many entrepreneurs ask:
“How much does it cost for a Mainland company formation in Dubai?”
But the truth is: the cost depends heavily on your activity.
Here’s how your activity influences your Dubai Mainland license cost:
1. Fee Bracket of the Activity
Each activity code has its own government fee linked to the risk and complexity of the business. Commercial activities generally cost more than professional ones, and general trading is costlier than specialised trading due to its broad scope.
2. Market Fee Based on Office Rent
The “market fee” is calculated as a percentage of your office rent. Since commercial and industrial activities often need larger spaces, this can increase your annual expenses. Professional activities may need smaller spaces, keeping costs low.
3. External Approvals
Some activities require extra approvals from DHA, KHDA, Municipality, or other authorities, each adding additional cost and time.
4. Government and Municipal Charges
Depending on where you set up, like Dubai, Sharjah, Abu Dhabi, or Ajman, costs vary. For instance:
- The Sharjah Mainland license cost is usually lower for industrial operations
- The Ajman Mainland license cost is popular among small trading companies
- An Abu Dhabi Mainland license is preferred for large corporate or government-focused businesses
Choosing the right activity helps you avoid unnecessary costs and ensures your business meets all regulatory requirements.
A Practical Approach to Choosing the Right Activity
Choosing an activity is a strategic decision. Here’s how entrepreneurs can navigate this easily:
Start With What You Do Today and What You Plan Tomorrow
If your idea is to start an IT consultancy that will later expand into software trading, choose activities that accommodate both. Many people lock themselves into a narrow activity, only to realise later that it restricts their business legally.
Use the Official DET Activity Search
This ensures your activity is up-to-date and valid. Using outdated lists can lead to rejection or resubmission.
Understand Expansion Possibilities
Some activities allow easy amendments; others don’t. The right activity ensures flexibility.
Seek Expert Validation
Business setup experts can instantly identify whether an activity is suitable or if it may cause complications later.
Mainland Setup Across Dubai, Sharjah, Abu Dhabi & Ajman
Every emirate offers Mainland company formation, but they differ based on cost, market focus, and regulatory structure.
Dubai Mainland
Best for global exposure, import/export, e-commerce, retail, and premium trading.
Abu Dhabi Mainland
Ideal for government-focused businesses, oil & gas support sectors, and professional firms.
Sharjah Mainland
Popular for warehousing, logistics, and industrial activities.
Ajman Mainland
Known for being budget-friendly and suitable for small trading startups.
Choosing the right emirate supports your chosen activity and long-term scalability.
Why Choosing the Right Activity Future-Proofs Your Business
Activity selection impacts:
- Compliance
- License renewals
- Visa quotas
- Office requirements
- Banking approvals
- Ability to expand
- Import/export permissions
A single mismatch can cause delays or necessitate costly amendments. A well-chosen activity ensures your business is fully compliant, cost-optimised, and ready for long-term growth. It becomes the foundation of your entire business lifecycle.
Conclusion: Build Your Mainland Company on the Right Foundation
Choosing the right activity for your Mainland company formation in Dubai is not just a technical step; it’s a strategic business decision that defines your entire journey. It affects costs, compliance, licensing, approvals, and scalability. When done correctly, your business can grow without restrictions across the UAE.
Whether you’re planning a trading company, consultancy, e-commerce business, or manufacturing unit, choosing the right activity ensures a smooth setup and a stronger foundation.
If you’re unsure which activity fits your business best, or you want expert help with Mainland business setup in Dubai, Vista Business Setup can support you from the first decision to complete licensing. One conversation can save you weeks of confusion and help you start strong. Just reach out whenever you’re ready.
Book a Free Consultation Today
FAQs on Activities for Mainland Company Formation in Dubai
What is Mainland Company Formation in Dubai?
Mainland company formation in Dubai refers to registering your business with the Department of Economy and Tourism (DET) so you can legally operate anywhere within the UAE market. A Mainland company can trade freely across Dubai, serve local customers directly, work with government entities, and expand without geographical restrictions.
This setup is ideal for entrepreneurs who want full access to the UAE market, the freedom to scale, and the flexibility offered by the country’s business-friendly regulations. Most Mainland companies now also enjoy 100% foreign ownership, making the process even more attractive for international investors.
Which activity is best for Mainland Business Setup in Dubai?
The best activity for Mainland business setup in Dubai depends entirely on your business model, future expansion plans, and operational needs. For trading companies, general trading or specialised trading activities work well. For service-based companies, consultancy or professional activities are ideal.
Industrial companies may require manufacturing or production activities. The “best” activity is one that accurately reflects what you do today while allowing room to grow in the next 3–5 years. Choosing the right activity ensures compliance, smooth licensing, and fewer amendments later.
How do I choose the right activity for a Dubai Mainland license?
Choosing the right activity for a Dubai Mainland license involves understanding your current operations, forecasting future services or products, and checking the Department of Economy and Tourism (DET) activity list to see which activity code aligns with your plans.
You must ensure the selected activity does not require approvals you are unprepared for and can support your long-term expansion strategy. It is always recommended to validate your activity with a business setup expert to avoid compliance mistakes or costly amendments later.
Can I change my business activity after getting my license?
Yes, you can change or modify the activity of your Mainland company in the UAE after your license is issued, but it must be done through a formal amendment with the licensing authority. Depending on the new activity, you may need external approvals, updated tenancy documents, or modifications to your Memorandum of Association (MOA).
Some changes are straightforward, while others may require additional review based on the sector. Choosing the right activity at the beginning reduces the need for amendments later, but updates can be made whenever needed.
What is the cost of setting up a Mainland company in Dubai?
The Dubai Mainland company formation cost varies depending on your chosen business activity, the number of activities, office space requirements, external approvals, and whether you operate in Dubai, Sharjah, Abu Dhabi, or Ajman. Trading activities, general trading, and industrial activities generally have higher costs due to additional approvals and space requirements.
Professional activities tend to be more cost-efficient. While there is no single fixed price, factors like market fees, Ejari, activity type, and visa allocation influence overall expenses. A setup expert can give accurate estimates based on your specific activity and structure.
Disclaimer: The information in this article is for general guidance only and may not reflect the latest regulatory updates. Business setup requirements in the UAE can vary based on your chosen activity, legal structure, and governing authorities. Please consult a licensed business setup specialist or regulatory authority before making any decisions.
