Nothing is more fulfilling than setting up your own business and to maximize the chances of your business becoming successful you need all the advantages you can get. One major advantage is setting up your business in an economically successful and business-friendly country like the United Arab Emirates.
In UAE the emirate of choice for most people setting up their business seems to be Dubai and rightly so, as it has everything going for it. It has the largest population of all emirates, is perfectly situated in the area and there are no shortages of skilled workforce that you will need for your business.
To set up your business on mainland Dubai you will need to get a Dubai mainland License. It is the key document needed for legally running your business in the Emirate. In this guide, we will tell you what you need to get this license and how business setup on mainland Dubai works.
What is a Dubai Mainland License?
Dubai Mainland Business License is a permit that is issued by the Department of Economic Development (DED) in Dubai, allowing you to set up and run your business on the emirate mainland. It essentially allows the government to regulate the businesses running in the emirate and ensure that they follow the rules and regulations.
Types of Mainland Business License Dubai
There are four main types of licenses in Dubai and they are as follows.
- Commercial License: This license is issued to businesses involved in the commerce sector like buying, selling, and trading of goods as well as retail, etc.
- Industrial License: This license is issued to businesses that are involved in the process of manufacturing goods and other such business activities.
- Professional License: This license is issued to businesses that are mostly involved with services-oriented activities like consulting, IT, education, the hospitality sector, etc.
- Tourism License: This license is issued to businesses that are involved in the tourism and travel-related sector.
Besides these, there are other types of licenses that are issued for specific business activities that are broadly covered by these main types.
Benefits of a Dubai Mainland License
The mainland business license in Dubai is not only essential for running your business, but it also comes with plenty of benefits and they are as follows.
- Zero Trade Restrictions: By having a mainland business license, you are able to freely trade all the businesses in mainland Dubai and the wider UAE.
- Complete Ownership: With the license, you are able to fully own your business, which previously required a sponsorship and partnership with a UAE, citizenship. This is also allowed in case of foreign ownership.
- Access to the entire Market: By having a license you have access to the entire UAE market, meaning access to a larger pool of clientele.
- Access to Dubai’s Infrastructure: Dubai has first-class infrastructure for businesses and those who are running them, so with the license you also get access to it all.
- Better Standing in the Market: Having a mainland business license lends credibility to your business, as people know you comply with the rules and regulations and as such can be trusted.
What are the Dubai Mainland License Requirements?
- To get a business license in mainland Dubai you need to meet certain requirements. These requirements may vary from business to business but there are a few basic ones that almost all businesses have to meet and they are as follows.
- Selecting a Business Activity: The first step to starting any business is deciding on what kind of business it will be. You will need to decide what kind of business activity you will take part in Dubai and match it with the license type on the Department of Economic Development’s website.
- Settling on a Business Structure: Next, you need to decide what kind of structure will your business have. Will it be solely owned by you or will be in a partnership, or will it be a limited liability corporation (LLC) or other structure?
- Registering a Name: Next, you need to decide on a name and trade mark and you need to ensure that it meets the requirements set forth by the government and does not infringe on the rights of other businesses.
- Getting an Office Space: You can’t have a business without a physical space to conduct it from and employees to run it and both are necessary requirements for the license and the office space needs to be at least 100 sq ft in size.
- Submitting the Necessary Documents: To get the license you will need to submit a wide variety of documents like bank statements, NOC, etc. to the DED. A complete list of these documents is listed below.
Documentation Required for a Dubai Mainland License
This list covers the most basic documents that you will need to get the mainland business license in Dubai, however, you may be asked to produce additional documents depending on your business.
- Copies of Valid Passports (Owners & Partners etc.)
- Copies of Visas (Owners & Employees etc.)
- A Detailed Business Plan
- Financial Documents (Corporate Account info, Bank Statement, etc.)
- Lease Agreement for Office
- Other Necessary Permits (If required)
- No Objection Certificate or Memorandum of Association (If required)
Cost of a Mainland Business License Dubai
As there are different types of business licenses, the cost varies but the fees start at around AED 10,000. In addition to the business license itself, there will be other costs associated with the business, such as insurance, employee visas, and other permits, etc.
How Does Mainland Company Setup in Dubai Work?
Setting up your company in mainland Dubai essentially follows the same process as the requirements mentioned above and is as follows.
- You start by selecting the business activity you are going to take part in.
- Next, you decide on a business plan for your business.
- Open a corporate account with the necessary funds to pay for the whole process.
- Then you register a name and trademark for your business.
- Then you find an office space for your business with the help of a real estate agent.
- Lastly you fill in an application and get a business license that allows you to set up your company and run your business on the mainland.
