A Mainland Company License is a good option for investors who want to start a new business that can make money and be traded easily. We’ll take a close look at the UAE’s mainland company formation process in this post, with all the pros and cons you might find.
Dubai has become a top destination for businesses and investors, thanks to its strategic geographical location, business-friendly regulations, and outstanding infrastructure. The emirate boasts a vibrant startup ecosystem, supported by numerous incubators and accelerators that foster entrepreneurial growth. In recent years, Dubai has consistently attracted substantial foreign direct investment (FDI), with figures showing a steady rise in investments across various sectors.
Dubai’s mainland is particularly attractive for company setup due to its unrestricted access to the entire UAE market and beyond.
At KGRN Business Setup, we are committed to guiding you through the process of mainland company formation in Dubai. With over 23 years of experience and a proven track record of assisting more than 50,000 businesses, our team of expert UAE business setup consultants, legal advisors, PRO executives, and company formation specialists offers comprehensive support to ensure your success.
Types of Mainland Business Setup Dubai
In Dubai, mainland licenses are crucial for businesses that wish to operate within the local market and engage in various commercial activities. These licenses, issued by the Department of Economic Development (DED), come in different categories tailored to specific business operations. Here are the primary types of mainland licenses available in Dubai:
Types of Mainland Licenses
Commercial License
This license is designed for businesses involved in trading goods and commodities. It permits wholesale, retail, and general trading activities. The typical minimum capital requirement for obtaining a commercial license is AED 100,000.
Professional License
Businesses providing professional services such as consultancy, legal, accounting, and engineering services require a professional license. This license generally has a higher minimum capital requirement of AED 300,000.
Industrial License
An industrial license is necessary for businesses engaged in manufacturing or industrial activities. The minimum capital requirement for this license is AED 500,000, reflecting the investment needed for production facilities and equipment.
Tourism License
Businesses offering tourism-related services, including hotels, travel agencies, and tour operators, must obtain a tourism license. The minimum capital requirement for this license is AED 1 million.
Branch License
This license is issued to branches of foreign companies operating in Dubai. The capital requirement is aligned with that of the parent company, ensuring consistency in business operations.
Understanding the specific requirements and benefits of each type of mainland license is essential for entrepreneurs aiming to establish a successful business in Dubai’s competitive market.
Benefits of Mainland Company Formation in Dubai
Setting up a mainland company in Dubai offers numerous advantages, making it an appealing option for entrepreneurs and investors. Here are the key benefits of forming a mainland company:
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Unrestricted Trade and Location Freedom
Mainland companies can operate freely throughout Dubai and the wider UAE without restrictions on trading activities. This unrestricted access allows businesses to engage directly with government entities and consumers, enhancing market reach and business opportunities. -
Full Ownership
Recent regulatory changes allow foreign investors to own 100% of their mainland business in many sectors. This provides complete control and flexibility over operations, eliminating the need for a local sponsor and giving investors more autonomy in decision-making. -
Diverse Business Opportunities
Mainland companies have access to a broader range of business activities compared to their free zone counterparts. With over 3,000 permissible activities listed by the Department of Economic Development (DED), businesses can diversify their services and adapt more easily to market demands. -
Access to Government Contracts
Establishing a mainland company allows businesses to bid for lucrative government contracts. This is a significant advantage, particularly given the substantial government spending on infrastructure and services in the UAE, which offers considerable opportunities for growth and expansion. -
Flexible Office Locations
Mainland companies have the flexibility to choose their office locations anywhere in Dubai, facilitating easier access to clients and markets. This flexibility also allows for the establishment of multiple branches, enhancing a business’s presence across the Emirates. -
Streamlined Company Formation Process
The process for setting up a mainland company is relatively straightforward, with minimal paperwork and no mandatory minimum capital requirement. This ease of registration encourages rapid business setup, allowing entrepreneurs to start their operations quickly. -
Visa Flexibility
Mainland companies can apply for an unlimited number of visas based on office space, making it easier to hire employees as the business grows. This visa flexibility is particularly beneficial for companies planning to scale up their operations. -
No Currency Restrictions
Businesses operating in the mainland face no currency restrictions, enabling seamless financial transactions both locally and internationally. This facilitates smooth operations and the ability to conduct business without currency-related limitations. -
Repatriation of Profits
Mainland companies can repatriate their capital and profits without any restrictions. This provides financial flexibility and security for business owners, ensuring that they can manage their earnings effectively. -
Enhanced Brand Reputation
Establishing a mainland presence can significantly enhance a company’s reputation. It demonstrates a commitment to the local market and compliance with UAE regulations, which can build trust with clients, partners, and government entities.
These benefits collectively make mainland company formation in Dubai a strategic choice for entrepreneurs looking to establish a strong foothold in one of the world’s most dynamic and business-friendly environments.
Required Documents for Mainland Business Setup
- License Application
- Attested Memorandum of Association
- Initial Approval Certificate
- Trade Name Reservation Certificate
- Tenancy Contract
- Ejari Registration Certificate
- NOC from partners (if applicable)
- Dubai Chamber of Commerce Registration
Register your business with the appropriate government agencies, such as:
While starting a firm on the mainland is straightforward, the administrative formalities are more difficult. It is not as simple as acquiring a trade licence, but it is significantly less complicated than conducting business in the Free zone. It is vital to be informed of and follow all applicable regulations and legislation while starting a business on the mainland. Aside from that, you must register your corporation with the appropriate government organisations.
To accomplish the following, you must have a DED licence:
To start a business on the mainland, you must first get a permit from the Department of Economic Development. This permit allows you to do business on the mainland. Its economic department has signed double taxation treaties with 50 other nations and has allowed private business owners to open offices on the mainland. As a consequence, having a business licence in Dubai allows you to expand your activities in the city. It is also possible to enlist the help of local specialists and apply for a DED licence.
You must build a professional relationship with a local national:
This person might be a sponsor or even a sleeping partner for your organisation. This person will not interfere with your day-to-day operations and will not be entitled to any of your profits. Following that, if you’ve acquired a sponsor, you may begin working on establishing your firm in Dubai and employing local vendors. If you have already established your firm on the mainland, you must get a professional licence.
Requirements for Starting a Company in Dubai Mainland
- Registration with the Dubai Department of Economic Development (DED): All companies in Dubai Mainland must be registered with the DED to operate legally.
- Choose a Business Category: Select a business category such as Commercial, Professional, Industrial, or Tourism based on your business activities.
- Select a Business Structure: Decide on a business structure such as Sole Proprietorship, Joint Venture, Public Shareholding, or Private Shareholding.
- Secure a Trade Name: Obtain a unique trade name that complies with UAE regulations.
- Find a Local Sponsor: Foreign investors typically require a local Emirati sponsor holding 51% ownership.
- Prepare Legal Documents: Gather necessary documents such as passport copies, NOCs, MOA, lease agreement, and approvals from external departments.
- Obtain a Business License: The DED issues business licenses for commercial, professional, and sole establishments in Dubai Mainland.
- Open a Corporate Bank Account: Separate personal and professional funds by opening a bank account with various banking options available in the UAE.
Cost of Mainland Business Setup in Dubai
The basic cost for a license generally falls between AED 12,000 and AED 30,000. However, the total cost of setting up a Dubai mainland company can vary depending on factors like business activity, office space requirements, and additional services.
For a more precise estimate of the cost to establish your mainland business in Dubai, we suggest reaching out to KGRN Business Setup for a personalized quote.
Ways to Establish a Company on the UAE Mainland
There are a number of choices for entrepreneurs in the United Arab Emirates (UAE), especially those working in the financial sector who are seeking to grow their companies. A rundown of the many mainland company registration options is provided in this Dubai business formation guide:
Section of the Embassy
You may develop your firm to new heights on the mainland of Dubai. There are several prospects for expansion and consolidation when you incorporate a mainland firm to set up a branch office. For international businesses wishing to set up shop in Dubai while keeping their primary operations overseas, this is the best solution.
Expert Businesses
Organizations like this exist to support experts in a particular sector so that they can do what they do best. With the ease of mainland business registration and renewal in Dubai, professionals can lawfully offer their services to clients in the city.
A corporation that is not a partnership
Limited Liability Companies (LLCs) rank high among UAE company structures. Two investors are needed at the very least, and as many as fifty are possible. The amount of responsibility that each partner has is determined by the distribution of their respective shares. A Memorandum of Association and the acquisition of all required approvals are part of the unique procedures involved in setting up a mainland firm in Dubai as an LLC.
Agency for Representation
Establishing a representative office in the UAE is a viable alternative for foreign financial specialists. A representative office’s primary function is to conduct research and promotional activities rather than to participate in company activities like operational offices do. Forming a mainland company in this way enables international companies to research the UAE market without really doing business there.
Conclusion
In conclusion, establishing a Mainland Company in the United Arab Emirates, and more specifically in Dubai, provides prospective investors and businesses with a multitude of benefits and commercial expansion options. Entrepreneurs who have a Mainland license have the opportunity to maximize their freedom, flexibility, and protection within the borders of the United Arab Emirates (UAE), as well as the possibility of expanding their business both domestically and worldwide. Establishing a Mainland Company in the United Arab Emirates (UAE) can pave the road for success and wealth in one of the most dynamic business landscapes in the world, provided that the appropriate approach and support are taken advantage of.
