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Establishing a company in Dubai Mainland is an attractive option for entrepreneurs and investors who want to operate directly within the UAE market. Mainland companies are registered and licensed through the Dubai Department of Economy and Tourism (DET) and can conduct business throughout Dubai and, subject to the relevant regulations, across the wider UAE.
Setting up business on the mainland can provide several important advantages:
Access to the wider UAE market. DED Mainland License gives you the opportunity to open your physical company anywhere in the UAE.
100% foreign ownership for eligible activities.
Easier to open bank accounts, especially with local banks.
Companies with Mainland Licenses are allowed to work with government entities & govt contracts. The UAE government frequently needs specialised contractors for multi-million projects, giving you the opportunity to bid on these projects.
To get a company registered in Dubai, having a physical office space is not mandatory hence co-working space is ok to get you started.
There are no currency restrictions under the Dubai Mainland License. Companies are entitled to fully repatriate offshore or onshore bank accounts in the UAE.
UAE mainland companies do not have any restrictions when it comes to expanding their visa quotas under a business license. An additional physical space would be required after a certain point, but it is much easier to scale-up the business.
Companies with a Dubai Mainland License enjoy the benefits that Free Zone license companies like exclusion in paying taxes. In additions, there is no minimum capital requirement in setting up a company under a Dubai Mainland License.
The licence is the company's primary authorisation to conduct the approved business activities. For various business activities, Dubai Mainland licenses are:
The Industrial License allows a business to perform industrial-related activities such as production, segregation, accumulation, processing and packaging.
The Commercial License is for companies who want to engage in buying and selling of goods, commodities, and other kinds of trade activities within the UAE. Commercial License is also given to general and specialised traders and businesses who engage in retail, construction, and real estate activities.
A Professional License is given to a person or a corporation that provides services and practices that rely on skills, talent, and ability. This includes individuals working in the fields of accounting, design, tourism, and other professional services reliant on natural talent, skills, ability, or experience.
This license enables a company to manage travel within the city and also allows a company to sell tourist packages beyond the boundaries of Dubai. In addition, this license enables a company to conduct global meetings, conferences, and exhibitions.
The first step is to determine the exact business activity of the company. The activity determines the type of licence required, the appropriate legal structure and whether additional approvals are necessary.
Common categories include:
For many businesses, a Limited Liability Company (LLC) having 2-50 shareholders is the preferred structure. Other available legal forms are:
Sole Proprietorship, Civil Company (i.e. partnership for service related professional activities), Branch office of local or foreign company, Single person LLC available depending on the nature and ownership of the business. Local Service Agent (LSA) required for Sole Proprietorship n Civil Company (if no GCC partner)
The UAE has also introduced broad provisions allowing 100% foreign ownership of mainland companies for eligible activities. However, certain strategic or regulated activities remain subject to specific ownership requirements or additional government approvals.
The proposed company name must be registered with the relevant Dubai authority. The name should comply with UAE naming requirements and must not already be registered or contain prohibited or inappropriate references.
The trade name should also be consistent with the company's legal form and business activity.
After selecting the activity, legal structure and trade name, the investor can apply for initial approval.
Initial approval indicates that the authorities have no objection to establishing the business, but it does not by itself permit the company to commence commercial operations. Certain regulated activities may require additional approvals from other government authorities.
Depending on the legal structure, the company may need to prepare and execute documents such as a Memorandum of Association (MOA).
The documentation required can vary according to the shareholders, business activity and legal form. Foreign investors may also need to provide passport and corporate documents, with certain documents requiring attestation or legalisation.
A Dubai Mainland company generally needs an appropriate physical business address, with the premises complying with the requirements applicable to its activity. In Dubai, the tenancy arrangement is generally registered through Ejari where applicable.
The size and type of premises can depend on the business activity. For example, a trading company, restaurant, warehouse or manufacturing operation may have substantially different premises requirements from a consultancy.
Once the required approvals, documentation and premises requirements have been completed, the company can proceed with issuance of its Dubai Mainland trade licence through DET.
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