Guide To Getting Your Mainland License
The UAE is broadly recognized for being a global affluence and regional hub for entrepreneurship and innovation. Most foreign investors are mainly attracted to Dubai for their economic stability, low-tax regimes, dynamic infrastructure, and sustainable energy.
The UAE offers different jurisdictions for setting up a business, and these platforms are the most enticing attractions for foreign investors. Dubai Mainland is one such platform offering new investors the freedom to trade locally and internationally.
Why will your business need a mainland license?
– A Mainland company must be registered under the Department of Economic Development (DED) to get a mainland license to start the business.
– Obtaining a mainland license certifies the freedom and flexibility to grow your business.
– Proves that your business follows all the necessary local protocols.
– A legal formality is important to stay in compliance with the authorities.
– It validates to the clients that your business is legal.
Which mainland license will suit your business?
Commercial Licenses: If you are planning on performing any commercial trading, this license will fulfill your needs. This license works for any general trading or specialized traders. It is also issued for various other business activities like construction, transportation, communication, real estate, leasing, etc.
Professional Licenses: This license is for those companies like consultancy services, facility management services, tourism, etc., that use their business to share expertise as a service provider.
Industrial Licenses: Those production and manufacturing businesses that deal in transforming raw materials into finished products will require this license. Although DED issues this license, additional approvals are required from the Ministry of Finance, Ministry of Energy and Infrastructure, and other authorities.
Step-by-Step guide from Professionals
1. Selecting a business activity
Mainland company setup requires the selection of business activity as the first step. A company can operate multiple business activities, and these activities must be registered under the Department of Economic Development (DED).
2. Determine your legal structure
The legal form primarily depends on the nature of the business. The most common route to a mainland company set up in Dubai is the Limited Liability Company (LLC), an independent legal entity owned by two or more shareholders.
3. Register your trade name
Selecting a specific name for your business determines the nature and form of your trade. An investor can register the name under the Department of Economic Development (DED). This trade name should follow the legal business structure acronym (LLC, PJSC, etc.); should not adhere to any offensive language, religious references, or any government bodies; should not violate any public morals; have not been registered before.
4. Submit for initial approvals
With the help of Emirates Chartered Accountants Group (ECAG), you can get all your documents and paperwork submitted for initial approvals, attestations, and notarization from the government.
5. Apply for a Mainland license
The mainland license is a mandate registration with the DED. Several documents are required – a license application, a Memorandum of Association (MOA), and a local service agent agreement (LSA).
6. Select an office space
After obtaining a mainland license, you must secure office space. In the UAE Mainland, serviced offices are usually owned and maintained by third parties. A rental agreement must be provided to the investor and registered with EJARI. The lease agreement covers rent, usage of office equipment, and utility bills. In some Emirates, the agreement needs to be attested.
7. Submit documents and pay a mainland license fee
After submitting all the relevant documents to the DED, you must pay the license fee. The DED will then issue your mainland license. The completion of the company registration should take a week, provided all the formalities are met.
8. Open a corporate bank account
A mainland company requires to separate personal and professional funds. Hence, opening a corporate bank account is an integral part of the mainland license.
9. Obtain mainland visas for investors and employees
Mainland companies have unlimited access to visa applications, whereas, in a Freezone entity, a maximum of three visas are allowed under a Flexi-desk agreement. However, the number of mainland visas applied should be consistent with the number of office spaces required. As an owner of a mainland company, you are also eligible to sponsor dependents – families, domestic staff, etc.
Mainland Company Set-Up Cost in Dubai
In Dubai, many businesses have 100% ownership of companies, and there are no capital requirements or the need to get a local UAE sponsor. A mainland company set-up in Dubai costs around AED 12,000 to AED 15,000 (including the government fee). This cost widely varies from business to business, depending on the choices and decisions of the investor. Compared to Freezone, mainland companies can significantly reduce company setup costs.
How can INCORP help you?
Once you understand the type of mainland license available, you will need the expert advice of professional consultants to guide you. INCORP provides clients with all the licensing support to set up their business in Dubai, by providing strategic recommendations and negotiations with stakeholders along with legal formalities.