Types of Mainland Trade License Issued In Dubai
1. Professional Trade license
2. Commercial Trade license
3. Industrial license
4. Tourism Trade License
Mainland Business Setup in Dubai is the most lucrative and attractive investment option for investors and businessmen from all over the world. ‘Mainland business setup Dubai’ allows businesses to operate and perform business activities both within the boundaries of Emirati jurisdiction and internationally.
There are other types of economic jurisdictions in Dubai that allow business activities to be performed within those commercialized regions.
The Department of Economic Development in Dubai, also known as the DED, is responsible for handling new Dubai Mainland company formations. They provide the Dubai Mainland license which allows you to perform the business activities of your choice anywhere in Dubai.
That is why a Mainland company formation in Dubai provides the most flexibility and space for growth. The Dubai Mainland company formation cost is also easily attainable by big and small investors.
What is the Process of Mainland Business Setup in Dubai?
Mainland Business Setup Dubai is fairly easy. However, if it is your first time starting/ open a company in Dubai, then it may be a little confusing. To start and run a Mainland company, the DED mandates that you appoint a manager for your business. You can appoint a maximum of five managers.
Here are the steps for Mainland Business Setup Dubai:
- Choose your business activity
- Find your ideal location
- Determine your business legal structure
- Obtain a local sponsor or local service agent
- Name your company
- Apply for a mainland trade license
- Secure your office space
- Apply for relevant visas
- Partner with a Company Setup Consultant
Most Suitable Locations For Business Setup in Dubai Mainland
Register a Company on Sheikh Zayed Road
Start a Company in Business Bay
Company Formation in Al Qusais
Company Formation in Jumeirah
Business Setup in Bur Dubai
Company Formation in Al Karama
Benefits of Mainland Company Formation in Dubai
Compared to setting up a business in the Free Zones of Dubai, a mainland company formation has different benefits. Free Zones have a lot of benefits, but they also have certain restrictions that may hinder the profitability of the business down the line. Here are the benefits of business setup in Dubai Mainland:
FAQ about Mainland Company Formation in Dubai
To start a mainland company in Dubai, you need to follow the steps laid out by the Department of Economic Development in Dubai (DED). The DED is responsible for handling any new Mainland Company Formation in Dubai. You can either complete all the steps and deal with the officials in the Department of Economic Development by yourself or take the services of business setup experts in Dubai.
These experts can be found from various business setup consultancies in Dubai. Obtaining the business trade license from the DED is the most important step in the process of business setup in Mainland Dubai.
After some recent additions and amendments of the laws in the UAE, foreigners can now set up a Dubai Mainland business without a local sponsor. However, a few sectors that are strategically important to the government of the UAE still requires local sponsors. You can still start a business in these sectors.
However, you can only own 49% of the business, and the rest of the 51% needs to be owned by a local sponsor. But do not worry about having to split the profits in that percentage as well. Local sponsors can be found for a small annual fee. These strategically important sectors include the transportation industry, the defense industry, and the oil and gas industry.
A mainland business in Dubai is a business that is located in the area that is defined as the Mainland in the city. The Mainland economic jurisdiction is separate from the free zones and offshore companies.
Mainland businesses get more flexibility and opportunities than free zone businesses and offshore companies. This is because businesses located in the mainland can perform their business activities anywhere in the UAE or outside the UAE.
If you want to get started with a Mainland Company Formation in Dubai by yourself then you will need to follow a few steps. These steps will lead you to obtain a business trade license from the Department of Economic Development in Dubai. Since you can perform your business activities after obtaining the business trade license, it is the most important factor in starting your business in the UAE. You can follow these steps to obtain the business trade license from the DED and set up your company in the mainland:
- Select your business activities
- Select the legal form of your business
- Select the trade name of your business
- Apply for the initial approval from the DED
- Draft the Memorandum of Association (MOA)
- Select an office space
- Get the external approvals
- Collect the business trade license
A Freezone company cannot trade or perform other business activities in the Mainland through normal means. A Freezone company needs to hire a local service provider to perform the business activities in the Mainland for them.
The local service provider will require a fee that will depend on the business activities you mean to perform through them. That is why a mainland company formation in Dubai is more attractive to many investors and entrepreneurs.
A ‘Mainland Business Setup Dubai’ refers to businesses that are formed in the Mainland economic jurisdiction in Dubai. The Mainland economic jurisdiction allows businesses to set up shop anywhere in the Emirati commercial jurisdiction.
It also allows businesses to perform business activities anywhere they want. A Mainland Company can take on the lucrative government and private contracts.
Other economic jurisdictions specialize in one or two industries. However, with a Mainland company formation in Dubai, you can perform any commercial, trading, industrial, professional, or tourism activities. In other words, you can select and perform any business activities that are legal in the UAE.
All the business activities you can perform with a Mainland Company Formation in Dubai are categorized under four business trade licenses. Here are the four types of business trade licenses issued by the DED and the business that need to apply for them:
- Commercial Trade License
- Professional Trade License
- Industrial Trade License
- Tourism Trade License
Since Dubai is an international hub for businesses and businessmen from all around the world. It offers a lot of opportunities that are waiting to be grabbed. You can either start a brand-new business or expand your existing business to Dubai.
Some of the most lucrative business sectors in Dubai are the IT sector, beauty and personal hygiene sector, retail sector, manufacturing sector, healthcare sector, etc.
If you are confused about which sector you want to pursue, you can always contact our company setup professional who will help you through the process of selection.
The government of the UAE is looking to strengthen the non-oil economy of the region. As a result, they are providing a lot of incentives for entrepreneurs and investors to invest in the country. The ease of doing business in Dubai has skyrocketed in recent years.
On top of that, Dubai has excellent infrastructure and state-of-the-art facilities. Entrepreneurs can use these advantages to jump-start their business. The UAE also has a safe and secure business environment.
The cost of the trade license will depend on the specific business you have in mind. As no two business is the same, the cost of acquiring the trade license will not be the same.
It will depend on factors such as the business activities you mean to perform, the physical location of your business, and the other licensing authorities you need to deal with. You can always seek advice from the consultants to calculate the exact costs.
When it comes to small businesses in Dubai, the service industry is the main attraction. Small businesses like beauty salons, cleaning services, cafes, restaurants, delivery services, consultancy agents, translation services, property maintenance services, etc. are very profitable in Dubai.
However, keep in mind that the professional trade license will require you to have a minimum educational qualification based on the business activities you mean to perform in the service industry. So, finding a profitable small business market will not be enough, you need to have experience in the field.
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All the license registration processes are handled by the Department of Economic Development in Dubai. There are four types of trade licenses issued by the Department of Economic Development. They are commercial trade licenses, industrial trade licenses, professional trade licenses, and tourism trade licenses.
The trade license you need to apply for will depend on the business activities you mean to perform. You can contact our company setup consultants to know the detailed step-by-step process of the registration. You can also rest back and let us handle the license registration for you.
