Business setup in dubai mainland is a good opportunity for foreigners and existing residents of Dubai. One of the best cities in the world, Dubai offers outstanding opportunities for enterprises from all over the world. Dubai is one of the best locations to establish and launch a business, according to various economists and business experts.

This is as a result of the numerous services offered by the government, such as top-notch infrastructure, dependable connection, a skilled workforce, cosmopolitan workspaces, and incentives to increase investment. The favorable business climate greatly aids in the expansion and development of the company.

What is the mainland license for Dubai?

An onshore license, commonly known as a mainland license, allows individuals to conduct unrestricted business operations within the UAE and globally. These licenses are issued in the UAE by the Department of Economic Development (DED). UAE company law mandates the presence of a local service agent for all mainland businesses with headquarters in Dubai or the rest of the UAE.

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A local service agent, who is not a shareholder, represents the company in all regulatory dealings with the government. You can enter into a contract with the LSA to offer his or her help with company incorporation in exchange for a certain annual fee.

Benefits of choosing setting up business in Dubai mainland:

  • A Mainland Company is not subject to corporation tax in Dubai.
  • Enterprises from the mainland can conduct business with other mainland enterprises in Dubai or the UAE. They have the ability to conduct business in the UAE and beyond. As they are only permitted to operate in their designated free zone, this sets them apart from other free zone enterprises.
  • Businesses on the mainland have greater possibilities for conducting business than those in free zones. For instance, businesses in Dubai Media City must be engaged in the media or closely connected industries. However, there are no such limitations for mainland enterprises, and they may access the larger UAE economy, which has a wide range of opportunities.
  • Any location in Dubai is available to mainland businesses for their office space. With the use of this feature, they are able to expand their business operations throughout the UAE in addition to trading with the local market.
  • Companies in the mainland are permitted to work for the government, but those in free zones are only permitted to perform private commercial activity.

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How is starting a business in the mainland of Dubai such a profitable option?

Dubai Economic development (DED) allows the private commercial organizations to carry out their operations in the region of Dubai Mainland. The mainland is where these private enterprises conduct all of their business. Also, these are excellent places for international business owners to begin and run operations. International food chains, stores for upscale goods, the manufacturing of automobiles, export and import companies, and several other industries are examples of these types of enterprises. According to the most recent revisions to United Arab Emirates’ business incorporation laws, a foreigner planning to launch a sole proprietorship or an LLC can only own up to 49% of the company if it is established in the country’s mainland, and a UAE national must hold 51% of the company’s total equity.

Trading, manufacturing, contracting, and packaging businesses would all be available for 100% foreign ownership. The locations that offer opportunities for business setup in dubai mainland:

Sheikh Zayed Road

In the United Arab Emirates, this highway links Abu Dhabi and Dubai, the two largest cities. The Sheikh Zayed Road, also known as E 11 Road, is a vital infrastructure that is home to the majority of skyscrapers and has a stunning skyline. Some of the biggest ventures, international businesses, and venture capital firms are located close by.

Al Karama, Bur Dubai, and Deira

The older, more ancient areas of Dubai are these three. Together, they make up one of Dubai’s largest residential centers. They have a solid reputation for their historical landmarks, tourist location of interest, apartment complexes, properties, gold souks, and wholesale business.

Business Bay

Business Bay is the place to go if you need infrastructure support for businesses in the financial sector, professional consultants, the retail industry, or hotel operations. It is the primary commercial district and is in charge of establishing several business establishments. Also, the business bay holds about 240 buildings with both commercial and residential infrastructure.

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Al Quoz

It is one of Dubai’s future commercial centers and offers the advantage of offering industrial and warehouse alternatives close to the city. There are four sections to this area: warehouses, industrial installations, factories, and other places. Additionally, it includes workforce accommodation zones, malls, and shopping complexes.

Al Qusais

Both residential and industrial areas are included in this zone. There are also some educational and medical institutes in this area. It is one of the best locations for establishing a business because there are so many conveniences close by.

Jumeirah

It is the coastline part of the city and a center for lavish commercial development modules. This region lends Dubai’s lodging, real estate, and hospitality industries an opulent feel. This location is suitable for establishing a business.

Types of licenses needed for business setup in dubai mainland

Set up a business in Dubai mainland you are able to select any one of the three license types based on the type of commercial operations you intend to perform.

  • Professional License: All experts, specialists, artisans, and craftspeople who want to start a business in Dubai must get a professional license. To confirm that a person or organization is qualified to offer services in a certain field, professional licensing is used. The applicant normally needs to provide proof of specific abilities or education in order for these licenses to be issued.
  • Commercial License: A company that intends to engage in trading activities, such as the buying and selling of products and commodities, is granted this license. Various types of commercial trade licenses are available in the United Arab Emirates. To engage in trade activities unique to your organization, you must apply for the proper kind. A commercial trade license is also required to launch the operations of broadcast and communications businesses, rental transportation services, retail businesses, construction firms, healthcare organizations, real estate firms, and other general trading entities.
  • Industrial License: This license is given to businesspeople that want to carry out industrial or manufacturing-based activities in the UAE, like processing natural resources or incorporating them into their final products. The DED issues the license, however depending on the industrial activity, further permissions may be needed from the Ministry of Finance, the Ministry of Energy and Infrastructure, and other agencies.

The cost of obtaining a professional license for business setup in dubai mainland is approximately AED 15,310. This includes expenses such as professional license fees, service agent fees, trade name fees, market fees (based on tenancy amount), administrative service fees, government cultural fees, and local fees.

For a commercial license in Dubai, the cost can range from AED 15,000 to AED 50,000. The exact amount depends on various factors, including the nature of the business activities the applicant intends to engage in. The cost of a DED trade license is AED 1070, excluding Dubai Chamber fees, which amount to AED 300.

When it comes to an industrial license in Dubai, the expenses can exceed AED 35,000. This accounts for additional permits and registrations, as well as the cost of leasing office space, in addition to the trade license fee.

Dubai Mainland: 100% Foreign Ownership Opportunities

Recent amendments to the Commercial Companies Law (CCL) in Dubai have paved the way for 100% foreign ownership in a vast range of commercial and industrial activities across the UAE. These changes came into effect on 1st June 2021, offering expatriate mainland businesses the opportunity to have complete control over their enterprises in any emirate of the UAE. However, it’s important to note that these changes do not apply to “professional licenses” in the UAE, meaning full foreign ownership is not permitted in this category.

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The Federal Decree-Law No. (26) of 2020 introduced these amendments, modifying certain provisions of the Federal Law No. (2) of 2015 on commercial companies. As a result, mainland companies in the UAE can now enjoy complete foreign ownership. In addition, foreign companies operating in the UAE are not obligated to appoint a “National Service Agent” (NSA). However, in specific activities, the entity may still need to appoint a local service agent (LSA), even if the company is owned by foreign investors. The necessity of a national service agent will depend on the type of business being established in the UAE. It’s important to note that an LSA does not hold any shareholding authority but rather serves as the company representative for administrative dealings with government departments.

Both Abu Dhabi and Dubai have recently released lists comprising 1,000+ approved activities each, spanning various sectors, that are eligible for 100% foreign ownership. These activity categories may differ between the two Emirates but include a wide range of options for foreign investors.

  • Contracting
  • Hospitality
  • Transportation
  • Manufacturing/production
  • Maintenance & repair (Abu Dhabi only)
  • Hospitals (Abu Dhabi only), and
  • Investment & trade (Dubai only)

Numerous businesses are included in the lists provided by the authorities responsible for the process of company registration, however in the two largest emirates, obligatory Emirati partner/shareholding will still apply to some areas, including finance, banking, and insurance, at least in part. To determine whether your business activity meets the requirements for 100% ownership before forming the firm, you can always look for professional assistance in Dubai.

Business Setup Process in Dubai Mainland:

  • Determine the Business Activity: Identify the specific commercial or industrial activity you wish to undertake, as this will impact the licensing requirements and legal structure of your business.
  • Choose a Local Sponsor/Service Agent: In most cases, Dubai Mainland businesses require a local sponsor or service agent who holds 51% ownership of the company. The sponsor’s role is primarily legal, providing support in terms of licenses, visas, and local regulations.
  • Legal Structure: Select the appropriate legal structure for your business, such as a sole proprietorship, partnership, or limited liability company (LLC). An LLC is the most common choice for foreign investors due to its flexibility and protection of personal assets.
  1. General partnership
  2. Limited partnership
  3. Limited liability company (LLC)
  4. Public joint stock company (PJSC)
  5. Private joint-stock company (Pr JSC)
  6. Civil company
  7. Local company branch
  8. GCC company branch
  9. Foreign company branch
  10. Free zone company branch
  11. Sole establishment
  12. Holding companies
  • Trade Name Registration: Choose a unique trade name for your business and register it with the DED. Ensure it aligns with the guidelines and regulations set by the authorities.
  • Obtain Approvals and Licenses: Depending on your business activity, you may need specific approvals and licenses from relevant government authorities, such as the DED, Dubai Municipality, Dubai Chamber, and others. Compliance with regulations is essential for smooth operations.
  • Office Space and Tenancy Contract: Secure an appropriate office space that complies with the requirements of your business activity. A tenancy contract is necessary for business registration and obtaining the necessary approvals.

Post-Setup Considerations:

  • Employment Visas: Once your business setup in dubai mainland is done, you can apply for employment visas to sponsor and bring in foreign employees. The number of visas granted will depend on the size and type of your business.
  • Banking and Finance: Open a corporate bank account to facilitate financial transactions and manage business operations effectively. Dubai hosts a wide range of local and international banks catering to the needs of businesses.
  • Compliance and Regulations: Ensure ongoing compliance with local regulations, tax obligations, and any industry-specific requirements. Engage professional services or consultants to stay updated and navigate the regulatory landscape.
  • Networking and Market Expansion: Leverage Dubai’s vibrant business community by attending networking events, trade shows, and industry conferences. Expanding your network and building strategic partnerships can unlock growth opportunities.

Documents required to establish a mainland corporation in Dubai:

The following is a list of the documentation needed to obtain a license for any legal form:

  • Initial approval acknowledgement as well as any previously submitted paperwork.
  • A certified copy of the leasing agreement from Dubai’s Real Estate Regulatory Agency (RERA).
  • Memorandum of Association properly attested (for all sorts of corporations).
  • Approvals from other relevant governmental bodies, if necessary.
  • Contract with a local service agency that has been duly attested and is valid in the UAE (for civil enterprises and businesses that are 100% owned by non-GCC nationals).

Conclusion –

Business setup in dubai mainland presents a gateway to success in one of the world’s most dynamic economies. The city’s strategic location, supportive business environment, and recent amendments allowing for increased foreign ownership make it an attractive destination for entrepreneurs and investors. By navigating the business setup process effectively, entrepreneurs can unlock a world of opportunities and position their ventures for long-term success in Dubai.