Mainland Business Licence is Essential to Start Business in Dubai, UAE

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Mainland Business Licence in Dubai

Company formation in Dubai is a very simple and straight forward process. However, to start and run a business in Dubai, you will need a licence, without which you will not be able to operate your business smoothly. Dubai and other emirates of UAE have two prominent business jurisdictions – mainland and free trade zones. In whichever jurisdiction you choose to start your business, you will require a licence in the very first place if you are planning to start your business in Dubai Mainland then you required a mainland business licence in Dubai. The Department of Economic Development (DED) is responsible for issuing a mainland business license in Dubai.

The company registration in Dubai process includes selecting the suitable business activity, drafting necessary documents, applying for the appropriate business licence, obtaining business licenses, finding the right location, etc.

After you obtain your business license, the very next is processing residence visas and corporate bank account opening to make business operations smooth and hassle-free in the UAE.

Types of Mainland Business License in Dubai, UAE

The license types for business setup in mainland Dubai UAE are the following:

Professional License

Professional licences are issued to professionals skilled and engaged in consulting, designing, teaching, etc. And the cost of obtaining a professional license is lesser than otter licences.

Commercial License 

The license is issued to establishments that buy and sell goods or services or are involved in a trade. And the most traders prefer a general trading license over a commercial licence to conduct more than one trade with a single licence.

Industrial License

The industrial licence is issued to businesses engaged in the manufacture of goods like factories, industries, etc. To obtain an industrial licence, you may need the approval of External Ministries and government departments depending on your industrial activities.

*Note: More than 3000 business activities are listed by the Free Zones and DED in the United Arab Emirates. However, you can consult a business setup consultant in Dubai for further details on business activities.

Benefits of an LLC Company in the UAE

  • A mainland company or a limited liability company (LLC) in UAE can trade in the local market and expand its business activities and office spaces across UAE.
  • Can recruit more support staff to scale up business operations in Dubai and other parts of the UAE.
  • LLC Company in UAE can apply for government projects and contracts and work closely with the Government of UAE.
  • LLC Company in UAE allows more flexibility and space to investors for growth and expansion.

Key Steps to Follow for LLC Company Formation in UAE

The steps you should follow to set up an LLC Company in Dubai.

  • Classify your business activity into commercial, industrial or professional
  • Decide on the related business activities that come under a specific business licence.
  • Find a local partner/sponsor/service agent for your business. You can take help from your business consultant to find a local partner.
  • Submit the application form to the Department of Economic Development (DED) for trade name and initial approvals.
  • Find a physical office location.
  • Prepare a tenancy agreement.
  • Draft the Memorandum of Association(MOA) with the local sponsor (UAE national).
  • Submit the application, tenancy agreement, and other necessary legal documents to obtain a business licence.

Documents Required for the Issuance of Trade License from DED

The documents that you will need for the issuance of a mainland business license in Dubai.

  • Fill out the application form signed by the authorised signatory
  • DED letter approving company name
  • DED attestation letter approving the setup of the company
  • Tenancy Agreement for the physical office
  • Shareholder’s details and passport copies.