Mainland – Ventures Biz

UAE Business License

Provides 100% ownership for foreign investors, tax incentives, and an easy establishment process. Business operations are usually confined to the Free Zone or overseas trade.

Mainland Company Formation in Dubai

Dubai has become a leading hub for entrepreneurs and investors looking to expand globally. Establishing a Mainland company in Dubai with a Dubai Mainland license enables businesses to operate both within the UAE and internationally. This setup offers direct access to local and global markets, along with the flexibility to conduct a wide range of business activities across the UAE. The Dubai Department of Economic Development (DED) oversees the licensing process, offering advantages such as 100% foreign ownership, the ability to work with government entities, and streamlined banking access. Mainland company formation is an ideal choice for entrepreneurs aiming to build a strong, flexible, and scalable presence in the region.

Ventures Biz supports you throughout the entire Mainland Company Formation process in Dubai, ensuring a smooth, efficient, and hassle-free business setup experience.

What is Dubai Mainland Company?

A Dubai Mainland Company is a business registered with Dubai’s Department of Economic Development (DED). It enables companies to operate freely across the UAE and internationally, without limitations on geographic locations.

Mainland companies have the freedom to conduct business across the UAE and internationally, without being limited to particular zones or regions.
The DED permits mainland companies to engage in a wide range of business activities. This flexibility allows businesses to grow or modify their operations easily by adding new activities through DED registration.
Mainland companies have the ability to establish multiple branches throughout Dubai and other Emirates, expanding their business presence and enhancing operational reach across the UAE.

Benefits of Mainland Company Formation in Dubai

Strategic Location: Dubai’s prime location serves as a bridge between the East and West, giving businesses easy access to markets in Europe, Asia, the Middle East, and Africa. Mainland companies take advantage of this connectivity through well-established air, sea, and land transport networks.
No Trade Restrictions:Dubai mainland companies can trade freely anywhere in the UAE and work with both local and international clients without restrictions. In contrast, free zone companies are usually limited to operating within their own zone and overseas markets unless they appoint a local distributor.
Diverse Economic Sectors:Dubai’s economy goes far beyond oil, with major strengths in real estate, construction, tourism, hospitality, technology, and finance. Mainland companies have the flexibility to work across almost any sector, offering entrepreneurs broad opportunities for expansion and diversification.
Eligibility for Government Contracts: Mainland firms have the advantage of competing for and winning high-value government projects, a benefit typically unavailable to free zone entities. These contracts are often substantial, particularly in industries such as infrastructure, healthcare, and education.
100% Foreign Ownership: UAE laws have recently been updated to permit 100% foreign ownership of mainland companies across several sectors. This marks a major change from the earlier rule that required a UAE national to own a minimum 51% stake outside free zones.
Ease of Doing Business: Dubai is renowned for its business-friendly environment, offering regulations that make it easy to start and expand a company. The government consistently updates business laws to encourage and attract foreign investment.
Ability to Issue Various Visas: Mainland companies have the option to apply for multiple visas, based on their office size and business type. This feature is especially advantageous for businesses that need to employ a substantial number of staff.
Local and International Banking Facilities: Dubai provides strong banking infrastructure that supports smooth business operations, catering to both local and international financial requirements. Companies on the mainland enjoy convenient access to corporate accounts, financing options, and business loans.
Networking Opportunities: Running a mainland company in Dubai provides extensive networking prospects with international businesses and opens doors to a wide range of potential clients and strategic partners.

These benefits make Dubai mainland company formation a compelling choice for businesses aiming to leverage Dubai’s dynamic market.

Business Activities Allowed in Dubai Mainland

Choosing the right business activity is an essential initial step when establishing a company in Dubai Mainland. This choice affects key elements of the setup, such as the legal structure and the type of license needed. Here’s a comprehensive guide on how to determine and select suitable business activities in Dubai:

Dubai’s Department of Economic Development (DED) provides an extensive catalog of over 2,000 business activities. These activities are organized into major sectors, including commercial, industrial, professional, tourism, agricultural, and occupational categories.
Match your business objectives with the available activities. Since each activity comes with its own rules and requirements, selecting one that fits your long-term goals is crucial for success.

Note: If your business plan involves multiple activities, ensure that all are compatible under the same license or if different licenses are required.

What is a Dubai Mainland License?

A Dubai Mainland License, issued by the Department of Economic Development (DED), authorizes businesses to operate freely within Dubai without limitations on their activities or location. This license is crucial for entrepreneurs aiming to establish a strong presence in Dubai, offering the flexibility to conduct business throughout the UAE. With a Mainland License, companies can directly engage with the local market, collaborate with government organizations, and explore numerous growth opportunities in one of the world’s most vibrant business environments.

Types of Licenses for Mainland Company Formation in Dubai

Dubai offers various types of licenses designed for different business activities in Mainland Company formation, enabling businesses to operate legally and efficiently across the UAE’s dynamic and diverse economic landscape.

Industrial License

An Industrial License allows a Mainland Company to carry out manufacturing and industrial operations, including production, sorting, storage, and packaging. It is designed for businesses that convert raw or natural materials into finished products, usually necessary for companies in processing and production sectors.

Commercial License

The Commercial License, granted by Dubai’s Department of Economic Development (DED), allows businesses to buy, sell, and trade goods across the UAE. It caters to both general and specialized traders, including companies in retail, construction, and real estate, making it perfect for those conducting trade activities in Dubai.

Professional License

A Professional License is issued to individuals or businesses providing specialized services based on expertise, skills, and talent. It is ideal for professionals and companies in fields like accounting, consulting, design, and tourism looking to set up a Mainland Company in skill-based sectors.

Tourism License

Mainland companies in Dubai can obtain three distinct types of Tourism Licenses for operating in the tourism sector.

Inbound Travel License: Enables a company to offer and manage travel services within Dubai, providing support and arrangements for tourists visiting and exploring the city.
Outbound Travel License: Allows a company to offer and sell travel packages outside Dubai, meeting the needs of international travelers.
Event Management License: Enables businesses to plan and conduct international meetings, conferences, and exhibitions, giving them the authority to host major events in Dubai.

Agricultural License

The Agricultural License is intended for businesses engaged in farming, cultivation, and various agricultural operations. It is required for companies or individuals involved in crop production, livestock farming, and other activities related to agriculture and harvesting.

Occupational License

An Occupational License is issued to individuals offering services that leverage their personal skills and expertise. It is suitable for professionals like artists, craftsmen, consultants, and other skilled individuals who provide specialized, talent-based services.

Types of Company Structures in Dubai Mainland

Choosing the right company structure is essential when establishing a business in Dubai Mainland, as it defines the legal framework and regulations governing your operations. Below is a concise overview of the legal forms available in the UAE:

General Partnership: This form is exclusively for UAE nationals, with all partners sharing full and joint responsibility for the company’s obligations and liabilities.
General Partnership: This form is exclusively for UAE nationals, with all partners sharing full and joint responsibility for the company’s obligations and liabilities.
Limited Partnership (also known as Partnership in Commendams): It consists of general partners, who are UAE nationals and bear full responsibility for the company’s liabilities, and limited partners, whose liability is restricted to the amount of their investment.
Limited Liability Company (LLC): This is a popular type of company structure, allowing between one and fifty shareholders, where each shareholder’s liability is restricted to the amount invested in their shares.
Public Joint Stock Company (PJSC): Ideal for major projects seeking public investment, where each shareholder’s liability is restricted to the amount they have invested in shares.
Private Joint Stock Company (PrJSC): It is not publicly traded and must have at least three founding members.
Civil Company: Typically designed for professionals in areas like consulting, healthcare, and legal services, this license allows full ownership by expatriates.
Local Company Branch: A UAE branch of a domestic company functions under the same legal entity and conducts the same business activities as its parent company.
GCC Company Branch: A branch of a company located in any GCC country is regarded in the same way as a branch of a UAE-based company.
Foreign Company Branch: Permits full foreign ownership, functioning under the trade license of the international company.
Free Zone Company Branch: A company branch established in a Dubai free zone that conducts business in mainland Dubai while complying with specific regulations.
Sole Establishment: Managed and run by a single person rather than a company, with the owner personally responsible for all financial obligations.
Holding Companies: Formed to oversee and manage other companies (subsidiaries) by holding shares and guiding corporate governance, rather than engaging in direct business operations.

Dubai Mainland Company Name: Guidelines and Criteria

A trade name acts as a distinct identity for a business, representing its type and activities. Entrepreneurs can register their trade name with Dubai’s Department of Economic Development (DED) to officially establish their business identity.

Criteria for Selecting a Trade Name in Dubai:

Specify the company’s legal structure using the appropriate acronym, such as LLC, EST, PJSC, or PrJSC.
Must not violate the public morals or disrupt the public order in the UAE.
Ensure it aligns with the nature of your business activity and adheres to the legal structure of your company or business entity.
Do not include any references to religions, government authorities, or external organization names and logos.
Must not have been registered under any other entity before.

Initial Approval for Company Setup in Dubai Mainland

Getting initial approval is an essential part of starting a business in Dubai Mainland. It shows that the UAE Government has no objection to the company being set up in the country. However, this approval does not permit the investor to start running the business or carrying out any commercial activities yet.

Requirements for Foreign Investors:

Foreign investors must obtain authorization from the General Directorate of Residency and Foreigners’ Affairs before they can move forward with the initial approval process.

Special Approvals for Certain Activities:

Some types of businesses must secure extra permissions from relevant government authorities before they can apply for initial approval. This is especially required for businesses involved in activities such as:

These extra approvals confirm that the business meets the specific rules and regulations for those sectors. Once the initial approval is granted, the investor can move forward with the remaining steps to fully set up and obtain a business license in Dubai Mainland.

MoA and LSA Requirements for Company Setup in Dubai Mainland

When setting up a business in Dubai Mainland, the type of business structure you choose will decide whether you need to prepare a Memorandum of Association (MoA) or sign a Local Service Agent (LSA) agreement.

Memorandum of Association (MoA)

The MoA is a crucial document that outlines the company’s structure and regulations. It is required for the following legal forms of business:

Limited Partnership: Outlines the duties, obligations, and monetary investments required from both general partners and limited partners.
Limited Liability Company (LLC): Outline the company’s core operations, how shares are divided among its stakeholders, and the methods it follows to manage and oversee its business.
Public Joint Stock Company (PJSC): Covers details about the company’s share capital, the original founders, and the management of shares available to the public.
Private Joint Stock Company (PrJSC): Outlines how the company’s shares are allocated, its internal management structure, and the procedures followed for day-to-day operations.

The Memorandum of Association must be prepared as per UAE regulations and must receive approval from the appropriate authorities to confirm it meets all legal requirements.

Local Service Agent Agreement (LSA) (MoA)

If a business in the UAE has foreign ownership and operates in professional fields, it may need a Local Service Agent Agreement. This is a contract between the foreign business owner and a UAE citizen, who serves as the service agent. The agent assists with government-related administrative processes but does not own any shares in the company.

Business Location for Dubai Mainland Company

Every company operating in Dubai Mainland must have a physical office address. The selected location should follow the guidelines of the Dubai Department of Economic Development (DED) and adhere to the urban planning and zoning rules set by the local municipality.

Requirements for Business Premises:

Additional Government Approvals for Business Activities

For some business activities in Dubai Mainland, it’s necessary to obtain extra approvals from certain government departments. Below is a list of activities and the respective authorities that issue these approvals.

Ministry of Interior: Permissions required for businesses involving transportation services such as driving institutes, fire safety gear suppliers, vehicle rental agencies, and automobile showrooms.
Local Municipal Department: Essential for providing architectural and engineering services.
Telecommunications and Digital Government Regulatory Authority (TDRA): For activities related to telecommunications.
Executive Council: Includes sectors like travel and tourism, general service providers, maritime-related activities, and branches of overseas companies.
Ministry of Economy: For providing insurance solutions and advisory services.
Local Health Departments: Needed for healthcare-related services.
Supreme Petroleum Council: Permissions required for providing onshore and offshore oil and gas services, including drilling activities.

Documents Required to Obtain a Business License in Dubai Mainland

To obtain a business license for any type of company in Dubai Mainland, you must submit the following key documents:

Initial Approval Receipt: Proof of the initial approval along with all documents submitted during that stage.
Tenancy Agreement: A copy of your office or business premises lease contract, officially attested by Dubai’s Real Estate Regulatory Agency (RERA).
Memorandum of Association (MOA): Mandatory for all company types and must be properly attested.
Additional Government Approvals: Any special permissions required from relevant authorities depending on the nature of your business.
Local Service Agent Agreement: Required for civil companies and businesses fully owned by non-GCC nationals, involving a UAE national as a service agent; this agreement must also be attested.

Procedure for Mainland Company Formation in Dubai

Once you have a clear understanding of business activities, licensing requirements, legal structures, and other important factors, here’s an easy-to-follow guide for establishing your mainland company in Dubai:

Step 1: Decide on Your Business Activity
Identify the business activity you wish to pursue from the 2,000+ options listed by the Dubai Department of Economic Development (DED).

Step 2: Pick the Right Business Structure
Select the most suitable legal entity for your company, such as an LLC, Sole Proprietorship, or Branch Office, based on ownership and operational needs.

Step 3: Reserve Your Trade Name
Choose and reserve a unique business name that aligns with DED’s naming rules and matches your chosen activity and structure.

Step 4: Get Initial Approval
Apply for initial approval from the DED, which confirms the government’s no objection to your business setup. Some foreign investors might require extra permissions.

Step 5: Prepare and Authenticate Legal Documents
Draft and notarize key documents like the Memorandum of Association (MoA) or Local Service Agent (LSA) agreement as required by your business structure.

Step 6: Arrange a Business Location:
Lease and register an office or warehouse space that complies with DED and municipal regulations. Ensure your lease is registered through Ejari.

Step 7: Obtain Any Special Approvals (if applicable) :
Depending on your activity, you may need additional clearances from government authorities such as the Ministry of Interior, Justice, or health departments.

Step 8: File for the Trade License:
Submit your completed application to the DED with all required documents, including the attested MoA, tenancy contract, and initial approval.

Step 9: Apply for Visas :
Once your license is issued, apply for residence visas for yourself, employees, and dependents. Make sure your office space can support the required quota.

Step 10: Receive Your License and Launch Your Business:
After completing all the steps, the DED will issue your trade license, officially allowing you to start business operations in Dubai Mainland.

Streamline Your Mainland Company Formation in Dubai with Ventures Biz

Ventures Biz makes the process of setting up a Mainland Company in Dubai simple and stress-free. Our team of specialists offers tailored advice to help you choose the right business activity, select the ideal legal structure, and secure all required approvals and licenses. From trade name registration and finding the perfect business location to opening a corporate bank account, we handle every step for you. With our end-to-end support, you can skip the hassles of company formation and focus on expanding your business in Dubai.

Planning to launch your business in Dubai Mainland? Ventures Biz is here to simplify the process with professional assistance at every stage. Reach out to us now to begin your journey!

FAQ's on Dubai Mainland Company

What distinguishes a Mainland Company from a Free Zone Company?

A Mainland Company can trade freely throughout the UAE and own property in mainland locations, whereas a Free Zone Company is limited to operating within specific free zones but provides advantages like tax exemptions and full foreign ownership.

What is a Dubai Mainland Company?

A Dubai Mainland Company is a business registered under the Dubai Department of Economic Development (DED) that can conduct trade and services across the UAE and abroad without any location limitations.

What advantages come with setting up a Mainland Company?

Advantages include a prime location, unrestricted trading opportunities, access to government tenders, full foreign ownership in several industries, a business-friendly environment, and the option to obtain multiple visas.

Are Mainland Companies allowed to conduct business on an international level?

Yes, Mainland businesses are free to conduct operations worldwide and throughout all parts of the UAE without any limitations.

What different types of business licenses are available for companies in Dubai Mainland?

The types of licenses offered are Industrial, Commercial, Professional, Tourism, Agricultural, and Occupational, each designed for particular business activities.

What types of legal structures can be chosen for Mainland Companies?

The legal structures available are: Limited Liability Company (LLC), General Partnership, Limited Partnership, Public Joint Stock Company, Private Joint Stock Company, Civil Company, Branch of a Local Company, Branch of a GCC Company, Branch of a Foreign Company, and Sole Proprietorship.

How do you go about registering a trade name?

Trade names must be registered with the DED, making sure they match the nature of the business, are distinctive, follow UAE regulations, and are not previously taken.

What is the process for selecting a business activity for a Mainland company?

Business activities should match your company’s objectives and are selected from a catalog of more than 2,000 options offered by the DED. Conducting multiple activities may necessitate separate licenses.

What documents or requirements are necessary to obtain initial approval in Dubai Mainland?

Initial approval confirms that the government has no objections to setting up your business. Foreign investors are required to obtain extra clearances from the General Directorate of Residency and Foreigners’ Affairs.

What is the function of a Local Service Agent?

In foreign-owned professional firms, a Local Service Agent facilitates interactions with government authorities but does not own any shares in the business.

What are the MoA and LSA requirements?

The Memorandum of Association (MoA) is needed for certain legal entities and outlines the company’s structure and rules, while a Local Service Agent (LSA) agreement might be necessary for foreign-owned professional businesses.

What paperwork do you need to obtain a business license?

The necessary documents consist of the initial approval certificate, tenancy agreement, Memorandum of Association (MoA), any extra approvals from relevant government authorities, and a service agent agreement if required.

Which additional permissions could be required for specific types of business activities?

Depending on your type of business, you might need extra clearances from authorities such as the Ministry of Interior, Ministry of Justice, local municipal offices, or other relevant government bodies.

In what ways can Ventures Biz help with setting up a Mainland company?

Ventures Biz offers professional assistance in choosing your business activity and legal structure, obtaining required approvals, and handling all steps involved in setting up a company in Dubai Mainland.

What documents and steps are needed to secure a trade license in Dubai Mainland?

The procedure involves choosing your business activity, reserving a trade name, getting initial approval, preparing required documents, arranging a business premises, and submitting everything to the DED.

What advantages does Dubai’s prime geographic location offer?

Dubai’s strategic position provides easy access to markets across Europe, Asia, the Middle East, and Africa, along with superior transport connections for seamless international business.

What are the key differences between Mainland companies and Free Zone companies?

Mainland companies can conduct business throughout the UAE and can participate in government contracts, while Free Zone companies face limits on where they can trade and usually cannot take part in government contracts.

What advantages do employees of a Mainland Company receive regarding visas?

Mainland companies are eligible to request an unlimited number of visas, based on the size and type of their business, making it ideal for companies that need a sizable workforce.

What is the process for choosing a business location in Dubai Mainland?

Your business premises must meet DED and municipal regulations, and any office or warehouse lease should be officially registered with Ejari.

Why the choice of legal structure is important in establishing a business.

The legal structure of your business defines the rules it must follow and affects factors such as liability and how the business is managed.

In what ways does Dubai Mainland promote the expansion and variety of business activities?

Dubai’s economy is multifaceted and extends beyond oil, encompassing industries such as real estate, construction, tourism, hospitality, technology, and finance, offering Mainland businesses a broad range of sectors to operate in.