Mainland License In Dubai

A mainland license in the UAE offers key advantages for businesses aiming to access the local market. Unlike free zones, it allows full access across the country with no geographic restrictions. Businesses also benefit from flexibility in choosing  locations anywhere in the UAE and the ability to hire more staff as the company grows. This makes it ideal for expanding operations.

The mainland license supports various business structures, such as LLCs and sole proprietorships. You can get your mainland license quite quickly - in 1-3 working days in case of an instant license, and in a week time if you purchase a trade license with an office. Costs start from AED 12,000.

You can start a business on the mainland in Dubai hassle-free when you have the right expertise on your side. With Emirabiz, you can navigate the complexities of obtaining a mainland business license effortlessly.

Advantages of a business license on the mainland

1. Full access to the UAE market. You can trade and offer services directly to consumers across the entire country.
2. No geographical restrictions. A mainland license allows you to operate and open branches anywhere in the UAE, not only in Dubai.
3. Prospects for growth. Ideal if you plan to expand your  space and hire more employees as your business grows.
4. Access to government contracts. Mainland companies are eligible to bid on and secure government projects.
5. No minimum capital requirements. Easier to start your business without large upfront financial commitments.
6. Location flexibility. You can rent working spaces anywhere in the UAE mainland, providing more choice for your business operations.

Difference between mainland license and free zone license

A business license registered on the mainland offers broader access to the Emirati market and more flexibility in terms of company structure and operations, while a free zone license is tailored for international trade with easier setup and lower costs. Each option has its own set of advantages, so your choice will depend on your business goals and operations.

Business setup on the mainland

If you plan to establish a company on the mainland and obtain a mainland license in Dubai, check this to-do list.

1. Consult with a business expert.

Consider consulting with a local business advisor or a law firm specializing in mainland company formation in Dubai to navigate the process smoothly.

2. Decide on your business activity.

Choose it carefully, as this will dictate the type of license you need. The DED offers a vast list of approved activities for mainland companies, allowing for greater flexibility compared to free zones.

3. Determine a legal structure.

It can be Limited Liability Company (LLC), Sole Proprietorship, or Shareholding Company. An LLC is popular and requires at least two shareholders.

4. Decide on a company name.

Pick a unique name that adheres to DED guidelines. It’s wise to have several options ready, as naming rules can be strict.

5. Prepare documents.

Gather essential documents for registration, including passport copies, photos, and entry stamps. Depending on your structure, you may also need a Memorandum of Association or a Local Service Agent Agreement.

6. Choose a location.

Obtain a rental agreement for a facility that fits your business activities and meets DED standards. There is an option not to rent a facility in the first year (an instant license). However, you will be required to conclude a rental agreement for the second year during renewal. Unlike free zones, you have the freedom to select your location across the Emirates.

7. Apply for registration.

Submit your application and required documents to the DED. Note that depending on your business type, some additional approvals from government entities may be necessary. This might happen both before and after the license is registered.

8. Pay fees and get your license.

After approval, make the required payments to receive your mainland license.

9. Register for taxation.

Register with the Federal Tax Authority (FTA) for tax purposes. Be aware of the corporate tax introduced in 2023 and ensure compliance with tax obligations. While free zones have corporate tax incentives to reduce or not to pay taxes, on the mainland there are no such incentives.

10. Open a business bank account.

Set up a corporate bank account with a local bank, providing the necessary documentation to meet their requirements.

11. Apply for visas.

If hiring employees, obtain employment visas and labor approvals. There are no limits on employee visas, but they depend on your  size (generally one visa per 10 sq. m).

Types of business licenses

• Commercial license
  Best option for businesses involved in trading activities, including the buying, selling, importing, and distributing of goods.
• Professional license
  Required for those who offer specialized services in Dubai such as doctors, lawyers, consultants, engineers, or artists.

Read about the differences between a commercial and professional license

• Industrial license
  Choose this one if your company is engaged in manufacturing or processing of goods.
• Tourism license
  Essential for companies in the tourism sector, including travel agencies, tour operators, and hotels.

Legal structure of a mainland company

In Dubai, several legal structures are available for mainland companies, each with specific regulatory requirements and documentation needed for registration. Here’s a brief overview of the most common types:

• Limited Liability Company (LLC)
  The LLC is the most popular choice for businesses in Dubai. It requires at least two shareholders and allows up to 50 partners. Shareholder liability is limited to their capital contribution, meaning personal assets are generally protected.
• Sole proprietorship
  This structure is owned by a single individual who is personally responsible for all business liabilities and debts. It's straightforward to set up but comes with the risk of unlimited liability.
• General partnership
  In this case two or more partners share both the profits and liabilities of the business. Each partner is personally liable for the company’s obligations, which means personal assets can be at risk.
• Limited partnership
  This type consists of one or more general partners with full liability and one or more limited partners whose liability is restricted to their investment in the company.
• Private Joint-Stock Company
  This structure allows up to 200 shareholders and is divided into nominal shares. It can be owned by one entity, but shares cannot be offered to the public.
• Public Joint-Stock Company
  Similar to a private joint-stock company, this entity has negotiable shares available to the public. Founders subscribe to a portion of the shares while the remainder is offered through public offerings.
• Civil company
  Typically established by professionals like consultants, tailors, or beauty salons, a civil company is owned by two or more partners engaged in a professional service.

Rules for ownership

In Dubai, you can retain 100% foreign ownership in several legal structures, including:

• General Partnership (2-50 Partners)
• Limited Partnership (2-50 Partners)
• Limited Liability Company (Single Ownership or 2-50 Partners)
• Private Joint-Stock Company (2-50 Partners)

Most business activities allow for full foreign ownership; however, certain strategic sectors impose restrictions. Specifically, the following activities are not permitted for 100% foreign ownership:

• Security and defense activities
• Telecommunications
• Banking, exchange, financing, insurance, and the production of bank notes or coins- etc.

If you wish to engage in any of these restricted sectors, you will need to partner with an Emirati national.

For businesses registered as LLCs on the mainland, 100% foreign ownership is generally allowed without the necessity of a local shareholder. However, companies set up as sole establishments must appoint a local agent (who is not a shareholder). This structure still allows for complete foreign ownership but requires a local agent to be listed on the license.

Cost and timeframe of getting a business license

In 2024, the mainland license cost in Dubai starts from approximately AED 12,000. The price depends on several factors, including the specific business activity, the type of legal form you choose, and any additional permits or approvals required for your operation.

Also, 5% of the annual office rent is added to the cost of the license.

Additional costs may arise from obtaining extra permits, hiring employees, and paying for government fees. For instance, if your business needs specific approvals from regulatory bodies or if you intend to hire staff, you should budget for these additional expenses. Visa costs for employees and any necessary licensing for specialized activities can also contribute to the overall expense.

As for the timeframe, the process of securing a license can typically take anywhere from 1 working day to a week. If you need visas, the visa application process will take up to 2 weeks.

To ensure a smooth experience, it's advisable to prepare all necessary documentation in advance and seek professional guidance if needed. Engaging with a local consultant can help streamline the application process and minimize potential delays.

Required facilities

To open a business license on the mainland, renting a facility is not mandatory. However, in this case, the license will come with quite a number of restrictions.

You can open an instant license, which does not require renting an office, warehouse, or retail space. However, such a license will be valid for only 1 year, and to renew it, you will still need to sign a lease for a facility.

In addition, with an instant license, you can only apply for an owner visa and no more than 3 employee visas. If you require more visas during the first year, you can rent an office and notify the authority so they can get more visa allocations (10 sqm. to an employee).

Business activities allowed

A mainland license is ideal for conducting a diverse range of activities in the United Arab Emirates, particularly in sectors like hospitality, retail, and services. Here’s an overview of some key business activities you can pursue:

Hospitality (Food and Catering):

This category includes restaurants, cafes, bars, and various food-related establishments, allowing you to tap into the vibrant dining scene in Dubai.

Retail:

With a mainland license in Dubai, you can engage in the buying and selling of all physical products and commodities, making it suitable for various retail ventures.

Healthcare:

Activities in this sector encompass clinics, hospitals, and pharmacies, contributing significantly to the healthcare landscape in the UAE.

Import-Export:

A mainland license offers the freedom to trade goods without restrictions, facilitating international business opportunities and enhancing market access.

Event management:

This involves the organization and management of functions, exhibitions, and events for both public and private clients, catering to the growing demand for professional event services.

Industry:

This category covers the manufacturing of products from raw materials, along with their sales and distribution, enabling businesses to engage in production and supply chain activities.

If you're considering starting a company in Dubai, here’s a comprehensive list of business ideas to explore.

Mainland license renewal, amendments, and cancellation

A Dubai mainland license requires annual renewal, with fees depending on the type of business—commercial, professional, or industrial—and other factors such as  rent and employee count.

The renewal process involves several key steps:

1. Submission of renewal application form. You need to complete and submit the appropriate renewal application form to the Department of Economic Development (DED).
2. Payment of renewal fees. After submitting your application, you must pay the renewal fees, which will depend on your specific business activities and other relevant factors.
3. Updated lease agreement. If there have been any changes to your  location or rental agreement, you must provide an updated lease document as part of your renewal application.
4. Compliance with additional requirements. Be sure to meet any additional conditions set forth by the DED. This may include providing updated documentation or fulfilling specific business obligations.

In addition to renewal, you may need to make amendments to your license to reflect changes in your business structure or activities. This could involve updating your company name, modifying ownership details, or adding new business activities. 

To cancel your license, you must follow the formal procedure set by the DED, which usually requires settling any outstanding fees and submitting a cancellation request.

How to avoid mistakes when establishing a company on the mainland

Starting a business on the mainland can be a rewarding venture, but it's essential to navigate the process carefully to avoid common pitfalls. Here are some key tips to help you establish your company successfully:

1. Correctly determine the type of activity.
   Ensure you accurately identify the type of business activity you want to pursue. Unlike free zones, where multiple activities can be combined under one license, the mainland permits only one type of activity per license. Additionally, some activities may not be allowed on the mainland, so it’s crucial to verify this beforehand.
2. Define your long-term goals.
   Consider your future plans, such as whether you intend to expand your rental space or workforce. Having a clear vision will guide your business setup and help you choose the right structure and location.
3. Check for additional permits.
   Investigate whether your business requires extra permits from government agencies. These additional approvals can extend your opening timeline and increase costs, so it’s best to plan accordingly.
4. Don’t overlook expert support.
   Engage with experienced consultants to help you navigate the complexities of establishing a business on the mainland. For instance, Emirabiz has nearly 12 years of experience in the Middle East and UAE, and their expertise can provide valuable insights into the setup process, ensuring you avoid common mistakes.

Streamlining the mainland license registration

Navigating the process of obtaining a mainland business license in Dubai can be complex, but with the right guidance, it becomes significantly more manageable. Emirabiz specializes in streamlining the mainland license registration process, leveraging nearly 12 years of experience in the UAE market to ensure your business setup is efficient and compliant.

Our expert consultants can assist you in the following ways:

1. Determining the right business activity.
2. Determining the proper legal structure
3. Navigating permits and approvals.
4. Getting a trade license.
5. Obtaining visas for owners and employees.
6. Tax consultation, planning and optimization.
7. Opening bank accounts in Emirati banks.

By choosing Emirabiz, you gain a partner committed to making your mainland license registration seamless and efficient. Let us guide you to a successful start, ensuring your business is set up for long-term growth and success in Dubai.