Mainland Business Setup in Dubai
Dubai is a thriving hub for business and entrepreneurship, attracting investors from all over the world. One of the most popular options for starting a business in Dubai is obtaining a mainland license. Looking to start your Mainland Business Setup in Dubai? Discover the essential steps, types of licenses, and costs involved in forming a mainland company in Dubai. Whether you’re considering a professional, commercial, or industrial venture, understanding the requirements and expenses is crucial for a successful business setup in Dubai.
Read Post: How to Setup Business in UAE?
Types of Dubai Mainland Licenses
1. Professional License
A professional license in Dubai is ideal for businesses providing non-physical services, such as consultancy, IT services, marketing, and education.
- Activities Covered: Consultancy, IT services, marketing, education, and other professional services.
- Ownership: Allows 100% foreign ownership.
- Requirements: Proof of qualifications and experience, business plan, and necessary approvals from relevant authorities.
2. Commercial License
A commercial license is suitable for businesses involved in trading activities, including buying and selling goods and services.
- Activities Covered: General trading, retail, import/export, and other commercial activities.
- Ownership: Can be 100% foreign-owned, with the option to partner with a local sponsor for additional benefits.
- Requirements: Trade name registration, initial approval from the Department of Economic Development (DED), and rental contract for office space.
3. Industrial License
An industrial license is required for businesses involved in manufacturing, production, and industrial activities.
- Activities Covered: Manufacturing, production, assembly, and other industrial activities.
- Ownership: Requires partnership with a UAE national or a local sponsor.
- Requirements: Approval from the Ministry of Industry and Advanced Technology, environmental clearances, and detailed project plans.
Read More: Mainland Company Setup
Detailed Costs of Dubai Mainland Licenses
Trade License Cost in Dubai
The trade license is essential for any business operating in Dubai. The cost of a trade license depends on various factors, including the type of business, location, and number of visas required.
- Basic Trade License Cost: AED 10,000* to AED 15,000*.
- Additional Costs: Office space (AED 10,000* to AED 30,000* per year), visas (AED 4,000* to AED 7,000* per visa), and other administrative fees.
Cost of Company Formation in Mainland Dubai
The overall cost of forming a company in mainland Dubai includes several elements beyond the license itself.
- Registration Fees: AED 3,000* to AED 5,000*.
- Office Space Rent: AED 10,000* to AED 50,000* per year, depending on the location and size.
- Local Sponsor Fees: AED 10,000* to AED 20,000* per year (if applicable).
- Government Approvals: Varies based on business type and regulatory requirements.
Cost of Mainland License in Dubai
The cost of obtaining a mainland license in Dubai varies based on the business activities and the type of license.
- Professional License Cost: Starting from AED 10,405*.
- Commercial License Cost: Starting from AED 14,905*, typically totaling AED 20,000* to AED 30,000* with additional expenses.
- Industrial License Cost: Starting from AED 25,000*, considering all necessary approvals and environmental clearances.
Process of Mainland Company Setup in Dubai
Setting up a mainland company in Dubai can be intricate, especially for first-time entrepreneurs. However, with the right guidance, the process can be streamlined, avoiding potential pitfalls and costly delays.
1. Select Business Activities and Company Structure
Choose Your Business Activities:
The first step is to decide on the business activities you want to undertake. These activities will determine the type of trade license you need. The Dubai Department of Economic Development (DED) offers over 2,000 business activities, ranging from consultancy and trading to manufacturing and services.
Decide on Company Structure:
Your business structure impacts your legal obligations, tax liabilities, and operational scope. Options include:
- Limited Liability Company (LLC): Suitable for most business activities.
- Sole Proprietorship: Ideal for individual entrepreneurs.
- Civil Company: For professional services by licensed professionals.
- Branch Office: For foreign companies looking to expand in Dubai.
2. Register the Trade Name
Choose a Unique Trade Name:
Before applying for a business license, you must select a trade name that reflects your business activities. The name should be distinctive and not infringe on existing trademarks. You’ll need to register the trade name with the DED and publish an announcement in two local newspapers. This step is crucial for protecting your brand identity.
3. Obtain Initial Approval from the DED
Submit Application for Initial Approval:
The Department of Economic Development (DED) oversees the registration of new businesses in Dubai. Complete the application form provided by the DED and submit it along with the necessary documents. If everything is in order, you will receive initial approval, allowing you to proceed with further steps.
4. Secure Office Space and Obtain External Approvals
Find and Lease Office Space:
With initial approval in hand, you can secure office space. Whether you opt for a physical office, a virtual office, or a workshop, ensure you have a valid tenancy contract and an EJARI certificate, which is mandatory for all business premises in Dubai.
Acquire External Approvals:
Depending on your business activities, you may need additional approvals from various government departments and regulatory bodies.
5. Open a Corporate Bank Account
Set Up Your Corporate Bank Account:
Once you have your trade license, the final step is to open a corporate bank account in Dubai. Research different banks to find one that suits your business needs, whether it’s a local, international, or digital-only bank.
Calculate your business setup cost.
Conclusion
Setting up a mainland business in Dubai offers numerous advantages, including unrestricted trade within the UAE and the ability to bid on government contracts. However, understanding the types and costs of Dubai mainland licenses is crucial for a smooth and successful business setup. By carefully planning and considering the various expenses involved, you can make informed decisions that align with your business goals.
How Infibiz Can Help:
At Infibiz, we specialize in streamlining the mainland company setup process in Dubai. Our team of experts provides end-to-end support, from selecting your business activities and registering your trade name to securing office space and opening a bank account. We handle all paperwork, liaise with government authorities, and ensure compliance with local laws, allowing you to focus on growing your business.
Contact Infibiz today to get started on your journey to establishing a successful business in Dubai Mainland. Let us make your setup process hassle-free and efficient!
Book Free Consultation with Infibiz’s Experts.
*License & costs can vary depending on multiple factors including business activities, company size, and additional approvals required.
