A Dubai Mainland company is a business registered with the Department of Economic Development (DED) in one of the seven emirates of the UAE. If you want to operate on the mainland, you’ll need to secure a license from the DED. This setup offers significant advantages, including easy access to clients, flexibility, and a world-class infrastructure.
Mainland businesses can engage in a wide range of activities—including professional, commercial, industrial, and trading. While some activities have specific regulations, many now permit 100% foreign ownership, which is a major benefit for international investors.
Commercial License
A Commercial License is for businesses involved in trading activities. This is one of the most flexible options, as it now allows for 100% foreign ownership.
- 100% foreign ownership is permitted.
- The minimum recommended share capital is AED 300,000.
- You can include multiple business activities under a single license.
- There are no corporate or income taxes.
- You have location flexibility and no trade restrictions.
Professional License
This license is for professional and service-based activities, like consultancies. There are two primary structures under this license:
1. Sole Establishment
This is an ideal option if you are a single foreign investor seeking 100% ownership.
• 100% foreign ownership is possible.
• There is no minimum capital requirement.
• A UAE national will act as a Local Service Agent with 0% ownership.
• There are no corporate or income taxes.
2. Civil Company
A Civil Company allows for 100% foreign ownership with up to three shareholders.
• 100% foreign ownership is permitted.
• A Local Service Agent is required. This agent holds 0% of the company’s shares or profits and acts as a signatory for government-related tasks.
• The Local Service Agent has no administrative power and is paid an annual fee for their services.
Industrial License
An Industrial License is necessary for any manufacturing or processing activities. This license allows you to use raw materials (local or imported) to assemble and process goods.
- Required for industrial and manufacturing activities.
- The DED is the primary authority, but additional approvals from other government bodies (like the Ministry of Health or the Central Bank) may be needed depending on your specific activity.
- Benefits include secure revenue transactions and access to a modern industrial infrastructure.
How to Register a Dubai Mainland Company
Setting up your business is a straightforward process that can be broken down into these key steps:
1. Select Your Business Activity: Choose the type of activity that best fits your business, whether it’s commercial, professional, or industrial. You can often combine several activities under one license.
2. Select a Trade Name: Choose a name for your business. It’s best to have a few options ready, as certain names (like country, continent, or famous city names) are not allowed.
3. Get Initial Approval: Apply to the DED for initial approval. Once approved, your company name will be reserved.
4. Prepare Legal Agreements: The DED will help you prepare your Memorandum of Association (MOA) or Local Service Agent (LSA) agreement.
5. Secure a Business Location: To complete the registration, you’ll need a physical location. A lease contract (Ejari) for an office, warehouse, or showroom is required.
6. Get External Approvals (if needed): Some activities require extra approvals from other government authorities, such as the police or civil defense.
7. Finalize and Pay: After all documents are signed and approvals are in place, you can make the final payments and your license will be issued.
Instant License in Dubai
For those looking to get started quickly, the Instant License is a game-changer. It allows you to obtain a commercial or professional license in just a few minutes.
• Get your license in as little as 5-10 minutes.
• A physical office is not required for the first year.
• A trade name is not required for the first year.
Business Setup for GCC Citizens
Thanks to the United Economic Agreement, citizens of the Gulf Cooperation Council (GCC) can conduct business in the UAE. Certain conditions apply, such as the requirement for the investor to be a natural person residing in the UAE and to have a license for the same activity in their home country.
Ready to take the next step? Our team can provide support and guidance throughout the process, from finding commercial real estate to connecting you with marketing agencies and assisting with bank account setup.