Dubai is a city that offers endless opportunities for entrepreneurs and investors looking to establish their presence in the region. One of the key factors to consider when setting up a business in Dubai is whether to obtain a Dubai Mainland License or a Free Zone License. The mainland Dubai license is a trade license provided by DED, that allows businesses to operate and trade within the local and international markets.
This type of license gives businesses the flexibility to conduct business with both government entities and private companies in the UAE. With a Mainland License, businesses can take advantage of the diverse opportunities available in Dubai and establish a strong presence in the local market.
It is crucial for entrepreneurs to understand the difference between a Mainland License and a Free Zone License in Dubai to make an informed decision based on their business needs and goals.
At Shuraa we will help you explore the process of obtaining a Mainland License in Dubai and highlight the benefits of choosing this type of license for your business venture.
Who Requires a Mainland License in Dubai?
The Dubai mainland license is a trade license provided by the Department of Economic Development (DED) that allows businesses to operate within Dubai's geographical borders. Having a Mainland License offers several advantages over other types of business licenses in Dubai, including the ability to:
- Conduct business activities anywhere in Dubai
- Operate throughout the UAE
- Engage in government contracts
- Have a stronger market presence
Here are the key sectors and activities that require a Mainland License in Dubai:
1. Trading
This includes buying and selling goods, commodities, and any other related activities. Mainland companies can deal in wholesale, retail, or both.
2. Professional Services
This covers a wide range of activities such as consultancy, accounting, auditing, legal services, engineering services, medical practices, and IT services.
3. Import & Export
This allows companies to import goods from other countries and export goods manufactured or produced in Dubai to other countries.4. Tourism
Companies offering services related to tourism such as travel agencies, tour operators, and hotels need a Mainland License to operate.
5. Manufacturing
Mainland licenses are required for businesses that manufacture goods in Dubai.
It's essential to note that while a Mainland License allows full business ownership for most of the business activities, you may require a local service agent (LSA) for certain activities, who is a UAE citizen or company.
Essential Requirements to Obtain Mainland License in Dubai
There are the main aspects to consider for eligibility to obtain a Dubai Mainland License:
1. Business Structure
Decide on the legal form of your business. Options include Limited Liability Company (LLC), Sole Establishment, Civil Company, or Branch of a Foreign Company.
LLC is the most common structure. In some cases, an LLC requires at least 51% ownership by UAE nationals. However, 100% foreign ownership is allowed in most business activities and sectors.
2. Business Activity
Ensure that your business activity is approved by the Dubai Department of Economic Development (DED). Some activities may require additional approvals from relevant authorities.
3. Physical Office Space
You'll need to secure a physical office space in Dubai and obtain an Ejari certificate, which is proof of tenancy agreement.
4. Investment
There is no minimum investment requirement for obtaining a Mainland License. However, depending on your business activity and visa needs, there might be specific capital requirements.
How to Obtain a Dubai Mainland License? Step-by-step Process
Below are the main steps that need to be followed to attain a mainland license in Dubai:
Step 1: Choose a Business Activity
Choose a business activity that you wish to do in the Dubai mainland. Ensure that the activity is permissible for a mainland company.
Step 2: Choose a Legal Structure or Legal Form
Having a legal form or structure is a must for all businesses in Dubai. Further, a legal form is inferred by the DED (Dubai Economic Development) body and must be followed by the business organization.
Some of the popular options include a Limited Liability Company (LLC), Sole Establishment, Civil Company, or Branch of a Foreign Company.
Step 3: Reserve Your Company Name
Select your business or company name that will be the identity of your business. After finalizing the trade name, get it reserved as per the DED and obey the processes according to their disclosure.
Step 4: Secure a Business Location
Lease an office space that meets the DED requirements. Obtain a tenancy contract and an Ejari certificate (registered lease agreement).
Step 5: Register Your Business to DED
Submit an application to DED for initial approval, specifying your chosen business activity and legal structure.
Step 6: Prepare Legal Documents
Submit the following documents to the DED for final approval:- Initial approval receipt
- Trade name reservation certificate
- Notarized MOA
- Ejari certificate and tenancy contract
- Passport copies of shareholders and managers
- Passport-size photograph.
- Additional regulatory approvals (if applicable)
Please note, certain business activities may require additional permits from other government departments. The DED will advise you if this applies.
Step 6: Pay License Fees
Settle the license fees associated with your chosen business activity and legal structure. DED will provide the fee structure.
Step 7: Receive the Trade License
Once the DED processes and approves your application, you will receive the Dubai mainland trade license. This license allows you to start operating your business in Dubai.
Step 8: Register for Immigration and Labor
Register your company with the Ministry of Human Resources and Emiratisation (MOHRE) and the General Directorate of Residency and Foreigners Affairs (GDRFA) to enable the hiring of employees and issuance of work visas.
Step 9: Open a Corporate Bank Account
Open a corporate bank account for your business. Submit your trade license, passport copies, and other required documents to the bank.
Consider consulting a business setup specialist in Dubai at Shuraa for guidance and assistance throughout the process.
How Much Is a Mainland License Cost in Dubai?
The Dubai Mainland license cost for an Indian or any foreign businessman typically starts from 10,000 AED to 30,000 AED for an LLC business with one investor visa. The good news is, now there is no need for a UAE partner of the company, the Indian investors get complete ownership of the LLC business.
Well, additional costs may apply while applying for a license or setting up a business in Dubai Mainland (Extra expenses include rent and official charges, etc.). Moreover, to avail of a valid mainland license at the minimal price possible, you may get in touch with our business consultancy specialist.
Benefits of Having a Dubai Mainland License
Mainland business licenses offer you the freedom to trade with customers directly and provide services to the government. Here are some key benefits that Indian investors and entrepreneurs enjoy on availing of a mainland business license in Dubai:
1. Opportunity to Trade with Other Mainland Businesses
Having a mainland license allows you to do trade activities with other companies in the mainland area. On the other hand, free zone businesses limit the trading options within the same zone; And if they like to do trade with mainland businesses, a lot of legal requirements are needed. Mainland businesses have access to the UAE and beyond without any limitations.
2. Good Market Presence
One of the biggest benefits of having a mainland business license is to open a shop/office anywhere in Dubai, UAE. Furthermore, this is the best way to do business in the local market as well as permits you to set up offices in any location within the UAE. This moreover increases the presence of your company countrywide.
So, if you are an Indian investor wishing for a good market presence and long-lasting growth in the Dubai market, getting a mainland business license is a preferable option.
3. Government Contracts
Companies with a Mainland License are eligible to bid on and win government tenders and projects, which can be a lucrative source of revenue and establish your credibility.
4. Wider Business Activity Options
Compared to free zones with limitations on specific industries, a Dubai Mainland License offers a broader spectrum of permissible business activities. You'll have more options to choose from depending on your business goals.
5. Enhanced Credibility
A Mainland License signifies that your business is registered with the Department of Economic Development (DED) and adheres to UAE regulations. This can boost your company's reputation and attract potential clients and investors who value legitimacy.
6. Full Business Ownership
A sudden alteration in economic policy has made the Dubai mainland business license more appealing to Indian investors and business owners. Before, the mainland certificate only offered complete ownership to the Emiratis. However, now it extends the same ownership to Indian investors in many sectors, including e-commerce, logistics, IT, storage, transport, manufacturing, communication, etc.
Get Your Mainland License Today!
Dubai's economy is booming, and having a mainland license gives you the freedom to trade across the UAE and internationally. You can choose from a wide range of business activities, collaborate with government bodies, and enjoy the flexibility of operating without location restrictions. Plus, Dubai’s top-notch infrastructure and business-friendly policies make it a perfect place to start and grow your business.
The process of getting a mainland license can be complicated, but you don’t have to go through it alone. Shuraa Business Setup is here to help. Our experienced consultants know all the ins and outs of getting a mainland license in the UAE. We handle everything from the initial approval to the final issuance of your license, ensuring everything runs smoothly and meets all the local requirements.
Don’t miss out on the chance to be part of Dubai’s exciting business scene. Contact Shuraa Business Setup today!
