How to Obtain a Dubai Mainland License: Step-by-Step Guide

A business license in Dubai or any other part of the world formally recognises your company as a legal entity. Specifically, a Dubai mainland license permits you to conduct business activities within the city without any restrictions. This license is issued by the Department of Economic Development (DED) and is vital for entrepreneurs aiming to establish a presence in Dubai's vibrant business environment. Holding a mainland license in Dubai allows you to operate your business throughout the city and participate in government projects. Company registration in Dubai involves several stages, with obtaining a mainland license being the most critical step. In this article, we will examine the procedure for obtaining a Dubai mainland license.

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Mainland License in Dubai

A Dubai Mainland License is a trade license issued by the Department of Economic Development (DED) in Dubai, United Arab Emirates. This license allows businesses to operate within the mainland of Dubai instead of free zones or other specific areas. Obtaining a Mainland License enables businesses to engage in a wider range of activities and operate in various locations within Dubai's jurisdiction. It grants the most extensive business scope compared to other license types in Dubai, permitting companies to trade, conduct professional services, and engage in other commercial activities throughout the UAE and internationally.

Benefits of Obtaining a Mainland License in Dubai

Obtaining a Dubai Mainland License offers many benefits, making it an attractive option for businesses looking to establish a strong presence in the UAE. Here are the key advantages:

• Freedom to Operate Anywhere: One of the most significant advantages of a Dubai Mainland License is the unrestricted ability to conduct business. Mainland companies can operate throughout the UAE in free zones and internationally, providing extensive market reach and flexibility.
• Stronger Market Presence: A DED Mainland License allows you to establish your physical presence anywhere in the UAE. This flexibility helps create a stronger market presence and allows you to expand your company's branches nationwide.
• Ability to Work with Government Bodies: Mainland companies are eligible to bid for and work on government contracts. The UAE government frequently seeks specialized contractors for high-value projects, offering opportunities to engage in lucrative, high-return ventures.
• No Currency Restrictions: Companies with a Dubai Mainland License face no currency restrictions, allowing them to fully repatriate profits to offshore or onshore bank accounts within the UAE.
• No Visa Limitations: Mainland companies can expand their visa quotas without restrictions under a business license. While additional physical space may be required as the business grows, scaling up is straightforward.
• Financial Viability: Mainland companies enjoy several financial benefits, including tax exemptions like free zone companies. Additionally, there is no minimum capital requirement for setting up a company under a Dubai Mainland License, making it financially viable for entrepreneurs.

Types of Dubai Mainland License

Businesses operating in the UAE mainland are issued one of four licenses based on their activities. Each license type has specific purposes, eligibility criteria, and regulatory requirements.

Industrial License

• Purpose: Allows businesses to engage in industrial-related activities, including production, segregation, accumulation, and packaging.
• Eligibility: Issued to businesses transforming natural materials or resources into goods. This includes factories, manufacturing units, and industries that process raw materials into finished products.
• Regulatory Requirements: Depending on the type of industrial activity, approval from external ministries and government departments may be required. Compliance with environmental regulations and safety standards is often mandatory.

Commercial License

• Purpose: Intended for companies that buy and sell goods, commodities, and other trade activities within the UAE.
• Eligibility:
  • General Traders: Businesses involved in multiple trading activities across different product categories.
  • Specialized Traders: Businesses focusing on specific products or services.
  • Retail Businesses: Stores, supermarkets, and other retail establishments.
  • Construction and Real Estate: Companies involved in construction projects, real estate development, and property management.
• Regulatory Requirements: The Department of Economic Development (DED) manages the issuance and renewal of commercial licenses. Businesses must comply with commercial regulations, consumer protection laws and trade standards.

Professional License

• Purpose: Given to individuals or corporations providing services and practices reliant on skills, talent, and ability.
• Eligibility:
  • Consulting Services: Management consultants, legal advisors, and financial consultants.
  • Creative Services: Designers, artists, and content creators.
  • Technical Services: IT professionals, engineers, and architects.
  • Other Professional Services: Accountants, auditors, educators, and trainers.
• Regulatory Requirements: Professional licenses are relatively easier to obtain and involve lower costs. The application process includes proving qualifications and expertise in the relevant field. Additional permits may be required for certain professions.

Tourism License

• Purpose: Required for businesses involved in tourism-related activities.
• Eligibility:
  • Inbound Travel Management: Enables companies to manage travel and tourism activities within the city, including guided tours, local excursions, and cultural experiences.
  • Outbound Travel Packages: This allows companies to sell tourist packages that include travel beyond Dubai's boundaries, such as regional and international tours.
  • Event Management: Enables companies to organize and conduct global meetings, conferences, exhibitions, and other large-scale events.
• Regulatory Requirements: The Department of Tourism and Commerce Marketing (DTCM) is major in issuing tourism licenses. Businesses must adhere to tourism regulations, maintain high service standards, and ensure customer satisfaction. Compliance with health and safety guidelines is also crucial.

Business Structures Under Dubai Mainland License

Businesses in Dubai Mainland can be formed under various structures, each suited to different needs and objectives. Here are the primary business structures available:

Branch Office of Local & Foreign Companies

• Purpose: Allows companies registered in the UAE or other countries to establish a branch in Dubai Mainland.
• Activities: The branch must carry out activities listed on the parent company's license and can perform more than one activity.
• Regulations: The branch office must comply with the regulations set by the Department of Economic Development (DED) and other relevant authorities.

Civil Company

• Purpose: A partnership business for conducting service-related or professional activities.
• Partners: Can include partners of any nationality.
• Local Service Agent (LSA): This is required if the partnership does not include UAE or GCC nationals. The LSA assists with licensing and government-related matters.
• Liability: Partners are jointly liable for any losses or debts arising from the partnership.

Single-Person LLC

• Purpose: A business structure set up and owned by an individual or a corporate body.
• Ownership: Can be fully owned by one person or entity.
• Regulations: The single owner has limited liability, which protects personal assets from business liabilities.

Limited Liability Company (LLC)

• Purpose: Suitable for expatriate residents and foreigners to establish a new company in the UAE.
• Shareholders: Composed of 2-50 shareholders.
• Ownership: Foreign investors are entitled to 100% ownership in selected business activities.
• Liability: Shareholders' liability is limited to their shares in the capital.

Sole Proprietorship

• Purpose: Allows individuals to retain 100% ownership of their business.
• Foreign Ownership: Foreign nationals can fully own the business.
• Local Service Agent (LSA): Required for owners who are not UAE nationals. The LSA supervises license requirements and other government-related matters.
• Activities: The company can legally practice professional services anywhere in the UAE.

Steps in Setting Up Your Business in Dubai Mainland - Procedure for Mainland License

Setting up a business in Dubai Mainland involves several key steps to ensure compliance with local regulations and successful establishment. Here's a detailed guide to help you navigate the process:

Choose Your Business Activity and Structure

• Business Activity: Select the category and nature of your business activity from over 1,500 options available in the UAE. Ensure your chosen activity aligns with the regulations set by Dubai Department of Economic Development (DED).
• Business Structure: Based on your business needs and legal requirements, decide on the appropriate business structure (e.g., LLC, Civil Company, Branch Office).

Register Your Company Name with DED

• Company Name: Choose a unique name that complies with DED guidelines and does not match any existing company names in Dubai.
• Approval and Registration: Submit the chosen name for approval and register it with the DED. The registration process typically takes around three days.

Secure a Local Service Agent (LSA) (if required)

Depending on your chosen legal structure and business activities, you might need a UAE national as a local service agent. While full ownership is allowed for many activities, securing a local sponsor is crucial for some business types. Selecting the right sponsor is critical to avoid future business complications.

Apply for a Mainland Trade License

• License Application: After registering your company name, apply for your mainland trade license. Ensure your business activities are permissible under DED law.
• Documentation: Gather and submit the required documents for the trade license application. Creative Zone can assist in navigating the documentation process.

Rent an Office

Renting an office is mandatory under certain circumstances. While options like Flexi Desk are available, some businesses may need a full office space. Ensure you meet the specific office requirements for your business type.

Get Ejari for the Office/Commercial Space

Ejari, which means "My rent" in Arabic, is an initiative by RERA to regulate the leasing sector in Dubai. Businesses must present their Ejari to the DED to obtain their business license.

Prepare the Necessary Documents

Draft the Memorandum of Association (MoA) and Article of Association (AoA), which outline the share distribution, roles, and responsibilities of partners within the company.

Pay Fees and Collect the License

Complete all required documentation and approvals, then pay the necessary fees. Collect your business license, which provides official recognition and allows legal operation in Dubai mainland.

Open Your Business Bank Account

Once you have your trade license, open a corporate bank account. Modern digital banking services have streamlined this process, often completing it in a few days.

Filings.ae experts can help you obtain a Dubai mainland license quickly and efficiently, ensuring all requirements are met seamlessly.

Cost of Obtaining a Dubai Mainland License

The cost of obtaining a mainland license in Dubai can vary based on several factors, such as the type of business activity, the number of partners, office space requirements, and additional approvals needed. Here is a general breakdown of the potential costs involved:

• Type of License: Commercial, professional, or industrial licenses have different base fees.
• Business Activities: Specific activities within each license category might have additional fees.
• Legal Structure: Sole establishments generally have lower fees compared to LLCs.
• Local Service Agent (LSA): LSA fees can add to the overall cost if required.
• Additional Approvals: Depending on your business activity, approvals from other authorities might incur additional fees.

It is advisable to consult with Filings. ae experts for personalized cost estimates and guidance tailored to your specific needs. Our experts can provide customized cost breakdowns based on your business requirements.

Conclusion

Obtaining a Dubai Mainland License is critical for any entrepreneur looking to establish a strong presence in the UAE's dynamic business environment. With the right guidance and thorough understanding of the process, you can navigate the regulatory requirements efficiently and set up your business for success. Securing a mainland license unlocks numerous benefits and opportunities, positioning your company for growth and expansion in one of the world's most vibrant business hubs.

Set up your business in the UAE mainland with expert assistance from Filings.ae. Our team ensures a smooth and hassle-free process tailored to your specific needs.