A business license in Dubai, or anywhere else in the world, is a document that confirms your company’s legal status. Companies are granted a Mainland license in Dubai to maintain accountability of business activities and ensure secure proceedings.
In this article, you will learn everything about how to get a Mainland license in Dubai. The process of registering a company in Dubai is divided into several stages. The most important step, however, is obtaining a trade license.
- An overview
- What exactly is Dubai’s Mainland?
- Do you want to know how to register a company in Dubai?
- Types of Mainland trade licenses
- How to get a Mainland license?
- What are the advantages of this permit?
- The cost of establishing a company in Dubai Mainland
- How can Connect Group help you?
1. An overview
We aim to provide you with a step-by-step guide to establishing a business in Dubai. The Dubai Economic Department can help you obtain a Mainland trade license. Every organization must follow the mandatory prerequisites and requirements of a business trade license in Dubai.
Connect Group is a leading consultancy that provides comprehensive help with UAE company registration. Hence, the formation of a new Mainland company in Dubai can be an exciting prospect. Nonetheless, equal consideration must be given to DED licenses and permits.
Hence, we assist you in starting your business in Dubai most conveniently and cost-effectively possible. We make certain that you have all of the necessary paperwork and documentation, and that you receive your license as soon as possible!
2. What exactly is Dubai’s Mainland?
A Mainland company (also known as an onshore company) is a company that is registered in Dubai. Furthermore, the Department of Economic Development regulates these businesses directly.
Therefore, onshore companies benefit from hassle-free trading in Dubai, the rest of the UAE, and internationally. Furthermore, the most recent amendments to the Companies Law have allowed expatriates to own 100% of their Mainland companies.
Previously, Mainland businesses had to work with a UAE national (known as a local sponsor) who held a 51 percent stake in the foreign company. However, the government has now approved over 1000 business activities to be eligible for 100 percent ex-pat ownership.
3. Know how to register a company in Dubai
Our goal at Connect Group is that you do not waste time seeking approval, worrying about certification from the appropriate governmental bodies; or even translating documents into Arabic. We make sure that forming an LLC in Dubai Mainland is simple and painless. We take care of the details so you can focus entirely on your business.
However, if you are wondering how to register your company with the Dubai Economic Department, we offer you this detailed information about obtaining a Mainland license in Dubai.
4. Types of Mainland trade licenses
4.1. Professional trade certification
Before providing professional services to clients, the UAE government requires businesses and entrepreneurs to obtain a professional license from the Department of Economic Development (DED).
Professional licensing establishes that a person or business is qualified to provide services in a specific profession. The issuance of these licenses generally necessitates the applicant to demonstrate specific skills or training. To start a business in Dubai, all professionals, specialists, craftsmen, and artisans must obtain a professional trade license.
Thus, a professional license allows you to form the following company structures: A Limited Liability Company in which a local sponsor owns 51% of the company; and a Civil Company and a Sole Establishment in which the foreign investor(s) owns 100% of the company.
However, to complete the legal formalities in the formation of a Civil Company or a Sole Establishment, a UAE national must be appointed as a local service agent (LSA).
4.2. License for commercial trade
To operate in the UAE, a company that buys and sells goods and commodities, or engages in any type of trade activity, must have a commercial trade license. This license can be used to establish a Limited Liability Company (LLC) or a sole establishment in the UAE; and it can be used for both specialized trading and general trading activities.
In the UAE, there are various types of commercial trade licenses. You must apply for the appropriate type of commercial trade license. This will allow you to conduct business-specific trading activities. The following companies must all apply for a commercial trade license:
- Broadcast and communications companies.
- Rental transportation companies.
- Retail companies.
- Construction companies.
- Healthcare businesses.
- Real estate businesses.
- Other general trading entities.
4.3. License for industrial trade
Businesses that want to engage in industrial or manufacturing-related activities in the UAE must obtain an industrial trade license; this allows them to engage in activities such as converting natural materials. And these materials will be final products.
This license is issued by the DED, but additional approvals from the Ministry of Finance, the Ministry of Energy and Infrastructure, and other authorities may be required, depending on the industrial activity.
5. How to get a Mainland license?
5.1. Choose a business activity
Firstly, choose a business activity that you want to carry out in Dubai or any of the other Emirates. Try to understand the feasibility of the business activity and whether you can carry out the preferred business activity in the region.
5.2. Select a sponsor or partner from the UAE
Secondly, the most important aspect of obtaining a Mainland business license in Dubai is locating a local UAE sponsor. This is primarily because if you end up with the wrong sponsor, it will not only ruin your business but will also make it difficult to regulate your company.
5.3. Decide on a legal form or a legal structure
Thirdly, every type of business established in Dubai or elsewhere in the UAE has a legal form or legal structure. The Dubai Economic Department has implied this legal structure, which must be followed by the company.
5.4. Reserve your trade name
Choose a name for your company or business that will serve as your company’s identity. Similarily, you must reserve a trading name by the DED disclosure and follow the set of procedures.
5.5. Request initial approval
After receiving your initial paperwork, apply for Initial Approval with the Dubai Economic Department. The initial approval allows you to start your business in Dubai while also applying for other certifications as specified by the DED.
5.6. Obtain external approvals
Some businesses may need permission from the Dubai municipality, ministries, and other judicial bodies. Obtaining external approvals is also critical and must be followed by the commercial entity for the company to be licensed.
5.7. Gather paperwork/Documentation
The need for additional paperwork and documentation varies from company to company. Depending on where and how they want to set up shop in Dubai, different types of businesses may necessitate additional paperwork.
5.8. Rent an office space
If you are planning to start a new business, you will need to rent office space in Dubai. In some cases, you will be required to do so. There are other less expensive options, such as Flexi Desk; but not every type of business can afford to have just a desk space and may need to rent an office in Dubai.
5.9. Obtain Ejari for the office or commercial space
Ejari, which translates to “My rent” in Arabic, is a RERA-sponsored initiative to regulate the leasing and renting sector in the emirate of Dubai. Businesses in Dubai must present their Ejari to the DED to obtain a business license from the Dubai Economic Department.
In addition to this, we can offer you excellent and outstanding real estate services.
5.10. Make the necessary payments
To license your company in Dubai, the Dubai Economic Department and the various administrative authorities involved charge a fee. You can also reach out to us to get your company licensed in Dubai at the lowest possible cost.
5.11. Obtain your Dubai business license
Did you know that you can get your Dubai Mainland license in less than an hour with Connect Group? Get your business license in Dubai in the most convenient, accessible, and trouble-free way possible.
6. What are the advantages of this permit?
Here is a list of advantages to establishing a Dubai Mainland company:
6.1. There is no minimum capital requirement
When you start a business on the Dubai Mainland, there are no minimum capital requirements. As a result, you can spend your money on other growth-related operational activities without having to worry about meeting capital demands.
6.2. Various business opportunities
A Mainland company established in Dubai offers investors a variety of business opportunities. You are free to engage in a variety of business activities (as permitted by your trading license). This distinguishes onshore business formation from free zone establishment.
For example, a company established in the DMC (Dubai Media City) free zone may only engage in media and entertainment-related activities. However, mainland companies have more leeway in this regard.
6.3. Exemptions from taxes
The benefit of establishing a company on the Mainland is that it is exempt from various taxes and charges. In the UAE, business formation is well-organized, completely transparent, and simple to understand. Similarly, taxation laws are clear and simple to understand.
When launching a Mainland venture, UK investors and other business owners are not required to pay any corporate or personal taxes. Furthermore, capital gains are not taxed, and you can repatriate 100 percent of your profits.
6.4. There are no geographical boundaries
Mainland businesses can freely trade within Dubai and throughout the UAE. Free zone companies, on the other hand, are restricted geographically because they cannot trade in the Mainland region or any other free zone.
As a result, you will be able to reach a larger target market. This, in turn, has the potential to be a game-changer for your Mainland enterprise in the UAE.
6.5. Preference for public-sector projects
Mainland companies will be able to bid on various government consignments. These initiatives shape the future of work, lifestyle, tourism, and so on in the UAE. As a result, it is a lucrative opportunity that you should seize with both hands.
Working on these prestigious projects also allows you to expand your business network. In today’s business world, we all understand the value of networking.
7. The cost of establishing a company in Dubai Mainland
Payments made for initial approvals, trading name registration, and working licenses can assist in estimating a ballpark figure for the overall cost of establishing a business in Dubai Mainland.
Hence, investors must pay AED 120 once for initial approval and AED 620 for trademark registration. The fee for a commercial license is AED 10,000, and a professional business license is around AED 6,000.
Furthermore, you must renew the business license on an annual basis, and it is critical to have a valid trading license at all times. Other fees associated with Mainland business incorporation include the cost of notarizing the Memorandum of Agreement (MoA), which is approximately AED 1,500.
Translation fees, administrative services fees (if applicable), and so on all contribute to the overall cost of establishing a business on the Dubai Mainland.
8. How can Connect Group help you?
Setting up a Mainland company in Dubai provides numerous advantages to business owners. Furthermore, establishing such a company is no longer a difficult task. However, you must obtain a Mainland license in Dubai for running a business in the city.
Hence, if you are thinking about forming a company in Dubai, you should be aware of business trade licenses in Dubai. Speak with Connect Group right away! We help you save time, lower overall costs, and ensure your company follows the Dubai Economic Department’s requirements.
Would you like to contact us to obtain more information about how to get a Mainland license in Dubai? If you have any questions, check out our FAQ or simply call us at +971 43 316 688. You can email us at contact@connectgroup.co as well. Following, you will talk to one of our representatives who will answer all your questions.
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