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SA CONSULTANCY SERVICES
Dubai Mainland License Activities

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Mainland License

Dubai Mainland License Activities

The DED grants Dubai Mainland licenses under various categories like Commercial License, Professional License, Industrial License, and Tourism License, each of which has its own Dubai Mainland License Activities list. Depending on your business type, you can select from these licenses:

1.

Commercial License

Ideal for trading and commercial activities.

2.

Professional License

Suitable for service-oriented businesses, consultancy, and skilled professionals.

3.

Industrial License

Required for manufacturing, industrial, and production-related activities.

4.

Tourism License

For travel agencies, tour operators, and related services.

Benefits

Benefits of Setting Up a Mainland Company in Dubai

Setting up a Mainland company in Dubai offers numerous advantages

No restrictions on trade
Mainland companies can trade freely both inside the UAE and internationally.
No minimum capital requirements
Depending on the business activity, certain Mainland companies do not require a minimum capital investment.
100% Foreign Ownership
As of recent reforms, foreign investors can now own 100% of their business in many sectors without the need for a local Emirati sponsor.
Access to the UAE market
Mainland companies can engage directly with consumers and businesses across the UAE without geographical limitations.
Flexibility in Office Location
Mainland businesses can open offices in any location within the UAE.
Unlimited Visas
Mainland companies are allowed to sponsor visas for their employees based on the office space they hold.
Mainland License

Switching from Free Zone to Mainland Company Formation in Dubai

As your business grows and its needs evolve, you might consider switching from Free Zone to Mainland company formation in Dubai. While Free Zones offer several benefits, such as 100% foreign ownership and tax advantages, Mainland businesses provide more flexibility, particularly if you’re looking to expand your operations within the UAE market. If you’re thinking of making the switch, here’s what you need to know.

Mainland License

Why Switch from Free Zone to Mainland?

1.

Access to UAE Market

One of the biggest reasons to switch to a Mainland company is the ability to trade directly within the UAE market, which is restricted in most Free Zones.

2.

Client Contracts

Mainland companies are better positioned to win government contracts and larger local clients, which may not be accessible to Free Zone businesses.

3.

No Limitations on Business Location

Mainland companies are not limited to a particular zone or area. You can operate your business anywhere within Dubai or the UAE.

4.

Expanding Business Activities

If you’re planning to diversify your business activities beyond what Free Zones permit, the Mainland company setup in Dubai allows greater flexibility with a broader range of business categories.

5.

Visa Flexibility

Mainland companies offer more flexibility in sponsoring visas for employees compared to Free Zone companies, making it easier to grow your workforce.

Steps to Switch

Steps to Switch from Free Zone to Mainland

  1. Cancel Free Zone License: You will need to cancel your current Free Zone business license as part of the process.
  2. Apply for a Mainland License: Once your Free Zone license is cancelled, apply for a new Mainland business license through the Dubai Department of Economic Development (DED).
  3. Choose a Local Sponsor or Sole Ownership: If your business activity requires, appoint a local sponsor for 51% ownership or opt for 100% foreign ownership in specific activities.
  4. Rent an Office Space: Mainland businesses are required to have a physical office or shop. Choose a suitable location within Dubai for your company.
  5. Submit Documents: Submit the necessary documents to the DED for approval, including the Memorandum of Association (MoA), lease agreement, and more.
  6. Visa and Labour Registration: After obtaining your Mainland license, register with the Ministry of Labour and General Directorate of Residency and Foreigners Affairs for employee visas.

Switching from Free Zone to Mainland offers tremendous benefits for businesses looking to grow beyond regional constraints and tap into the entire UAE market.

All that you need to know for setting up business in Mainland

Setting up a Mainland business in Dubai is a straightforward process if you follow the right steps. To help you get started, here’s a comprehensive checklist for Mainland business setup in Dubai that will guide you through the process.

1. Choose Your Business Activity

The first step is selecting the right business activity for your company. Dubai Mainland offers a vast business activities list, including trading, professional services, and industrial activities. Your chosen activity will determine the type of Mainland license you’ll need.

2. Find a Local Sponsor (if applicable)

If your business activity falls under the categories that require local ownership, you’ll need to appoint a UAE national as a local sponsor, who will hold 51% of the shares in your company. Alternatively, with the recent reforms, certain activities allow for 100% foreign ownership, eliminating the need for a local sponsor.

3. Choose a Company Structure

Decide on the legal structure of your company, such as:

  • Limited Liability Company (LLC): The most common structure for businesses in the UAE.
  • Sole Proprietorship: Suitable for individuals wanting to establish a business in their name.
  • Civil Company: Suitable for professionals such as doctors, lawyers, and accountants.

4. Register Trade Name

Select a unique trade name for your company and get it approved by the Department of Economic Development (DED). Ensure that the name aligns with the legal requirements of Dubai, avoiding any offensive terms or names already in use.

5. Secure Office Space

Mainland businesses are required to have a physical office in Dubai. Choose a location that meets your business needs and sign a tenancy contract. The DED will require the Ejari (tenancy contract) during the registration process.

6. Obtain Initial Approval from DED

Once you’ve secured the trade name and office space, apply for the initial approval from DED. This approval will allow you to proceed with other registration processes.

7. Draft Memorandum of Association (MoA)

Prepare the Memorandum of Association (MoA) with the local sponsor or partners. This document outlines the roles, responsibilities, and ownership percentages of the business partners.

8. Submit License Application

Submit the final application, including the MoA, office lease agreement, and initial approval, to the DED for your Dubai Mainland business license.

9. Register for Visas

After obtaining your business license, register with the General Directorate of Residency and Foreigners Affairs and the Ministry of Labour to sponsor employee visas.

10. Open a Corporate Bank Account

Once your business is officially established, you’ll need to open a corporate bank account in the UAE to manage your company’s finances.

11. Complete Legal Compliance

Ensure that your business meets the ongoing legal requirements, such as VAT registration (if applicable) and timely renewals of trade licenses.

SA Consultants UAE offers comprehensive business setup services to help you establish and grow your business in one of the most dynamic and fastest-growing economies in the world.

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