Dubai Mainland License: All You Need to Know
Dubai’s stable economy and strategic location make it a global hub for Business. Obtaining a Dubai Mainland License is one of the most suitable options for entrepreneurs looking to establish a presence in the UAE. This license allows businesses to operate freely within the local market and expand internationally, making it the ideal choice for those seeking growth in a competitive environment.
Key Benefits of a Dubai Mainland License!
- Freedom to Trade Across the UAE and Internationally: A Dubai Mainland License allows businesses to operate without restrictions across all emirates. This provides the flexibility to expand and target a broader customer base within the UAE.
- 100% Foreign Ownership in Key Sectors – Recent reforms allow 100% foreign ownership in many sectors without needing a local sponsor, making it more attractive for global entrepreneurs.
- Eligibility for Government Contracts: Mainland companies can bid for government and public sector contracts, meeting the requirements and guidelines
- No Minimum Capital Requirement – There is no minimum capital requirement, making it easier for startups and SMEs to set up without significant upfront financial commitments.
- Office Location Flexibility: Companies with a Mainland License can open offices anywhere in Dubai, providing greater flexibility in choosing a location that best suits your business needs. Prime Global Consultants can facilitate Individual Office space, Retail space, warehouses, Coworking spaces and premium virtual addresses at an affordable cost.
- No Currency Restrictions: Mainland businesses enjoy the freedom to deal in any currency, which is crucial for companies engaged in international trade.
- Unlimited Employment Visa Quotas: Mainland companies can apply for unlimited visas depending on the nature of their business, quota requirements, and facility size.
- Easier Bank Account Setup: One significant advantage of having a Dubai Mainland License is the ease of setting up a corporate bank account. Banks in the UAE are generally more inclined to open accounts for mainland companies than those in free zones due to their broader scope of operations and government affiliation.
What is a Dubai Mainland License?
A Dubai Mainland License enables businesses to operate within the mainland, referring to onshore areas under the jurisdiction of the DED. Unlike free zone licenses, a Mainland License allows companies to trade directly within the UAE market and undertake government projects, offering broader access to both local and international markets. While considering options to start a business in UAE, it’s essential to compare the benefits of a Mainland License with the Dubai company setup cost to determine the best fit for your business needs. As a Company Formation Specialist, we can guide you through the process of acquiring a Commercial trading license, which allows you to conduct various types of business in Dubai, except for activities involving gold, petroleum, and medicine, which require special approvals.
Types of Mainland Licenses
Companies that offer products or services both within and outside the UAE must get a business license in Dubai. Any entrepreneur wishing to perform economic activity in Dubai must apply for a commercial license.
- Limited Liability Company: A Limited Liability Company (LLC) is one of the most popular forms of legal structures in Dubai mainland. Foreign investors can set up an LLC in Dubai mainland with 2 to 50 shareholders.
A professional license allows an individual or a group of people to practice any business activity that requires intellectual or creative talent, such as carpentry, consultancy, or beauty salons.
- Sole Proprietorship: In the UAE, a sole proprietorship is a legal entity owned or run by a single individual who has a trade license granted in his/her name. The Sole Proprietor can control 100% of the business and all its operations.
- Civil Proprietorship: A civil company or a civil establishment is a partnership between two or more individuals to provide professional services.
This license is provided to enterprises in Dubai that convert raw materials or natural resources into finished items. The transformation can be performed manually or mechanically, and it can start with raw or semi-manufactured materials.
Required for businesses in the tourism sector, including travel agencies, tour operators, and hospitality services.
Steps to Obtain a Dubai Mainland License
Apply for Initial Approval: Submit the below necessary documents to the DED for initial approval, including passport copies, business activity details, and Emirates ID copies.
- Determine Business Activity: Define your business nature, as it influences the license type required. Each activity requires a separate license and approval. For instance, starting a restaurant or cafeteria requires a restaurant license, a physical Ejari, and approval from the Food and Safety Department of Dubai Municipality.
- Number of Shareholders: Once the activity is finalized we need to know the number of shareholders, share percentage of shareholders, how the profit is been divided among the shareholders, Manager of the company, the bank signing authority.
- Choose a Legal Structure: Decide on your business’s legal form, such as a sole proprietorship, Limited Liability Company (LLC), or civil company. Note that any legal structure without a local sponsor will be converted to a Limited Liability Company (LLC). The legal shape can be determined as per the business activity as per number of shareholders.
(Note) Find a Local Sponsor: A local sponsor is required for Sole establishment and civil company formations. However, an individual can establish a company with professional activity without a Local Sponsor as a Limited Liability Company.
- Reserve a Trade Name: Select and register a unique trade name with the DED. Registration costs vary depending on whether the name is in English, includes numeric values, or uses of a royal name.
- Rent Office Space: Secure office space as per the DED’s requirements. Required documents include the initial approval and trade name certificates. Prime Global Consultants also provide virtual Ejari. This also includes the company PO Box number and the company Telephone number.
- Memorandum of Association (MOA): It is an agreement between partners and the firm about the sharing structure and capital of the company. If any partner is not accessible in the UAE, we will request a court MOA through a Botim call, which will be notarized by the court.
- Submit for Final Approval (Final Submission): Submit all the documents to the DED for final approval and they will issue the payment voucher for the Trade License.
- Receive the License: Once the payment is completed, you’ll receive your Dubai Mainland License, allowing you to commence business operations.
- External Approval: Some regulated business activities like Restaurant, Sim trading, Real Estate requires external approval from various departments like For Restaurant- Municipality Approval , Sim Trading- Telecommunication and Digital Government Regulatory Authority (TDRA) and Real estate – Real Estate Regulatory Authority(RERA). Prime Global Consultants will help you to secure the specified authority approval without any rejection or delay.
Conclusion
Obtaining a Dubai Mainland License provides access to a dynamic business environment connecting local and global markets. With its strategic location, robust infrastructure, and business regulations, Dubai Mainland is an ideal destination for entrepreneurs seeking growth opportunities in the UAE. Whether you’re a startup or an established business, understanding the requirements and benefits of this license can pave the way for long-term success. By partnering with Prime Global Consultants, you will constantly be updated about UAE rules and TAX regulations, and you can ensure a hassle-free setup and position your business for future expansion in one of the world’s most dynamic economies.
