Dubai Mainland License: Everything You Need to Know for Business Setup in 2024
Dubai’s booming economy and strategic location make it a global business hub. Entrepreneurs looking to establish a company in the UAE often choose a Dubai Mainland License due to its flexibility, access to local and international markets, and ability to trade without restrictions.
If you’re planning to start a business in Dubai, this guide will walk you through everything you need to know about Dubai Mainland Company Formation, including its benefits, costs, and the step-by-step process.
1. What is a Dubai Mainland License?
A Dubai Mainland License allows businesses to operate anywhere in the UAE and internationally without restrictions. Companies under this license are regulated by the Department of Economic Development (DED) and can conduct business within Dubai, across the UAE, and beyond.
There are three main types of mainland business licenses in Dubai:
✅ Commercial License – For businesses involved in trading, general trading, and other commercial activities.
✅ Professional License – For service-oriented businesses like consultancy, law firms, and accounting firms.
✅ Industrial License – For businesses engaged in manufacturing and industrial activities.
2. Benefits of a Dubai Mainland License
A mainland company in Dubai offers numerous advantages:
🔹 100% Foreign Ownership – Since 2021, most business activities allow full foreign ownership.
🔹 No Trading Restrictions – Companies can trade anywhere in the UAE and internationally.
🔹 Multiple Visa Eligibility – Mainland businesses can obtain an unlimited number of visas (based on office space).
🔹 No Currency Restrictions – Businesses can deal in any currency without restrictions.
🔹 No Minimum Capital Requirement – Most businesses don’t need a large initial investment.
🔹 Government Contracts – Mainland companies can bid for lucrative UAE government projects.
🔹 Business Expansion Flexibility – Ability to open branches across the UAE without limitations.
3. Mainland License vs. Free Zone vs. Offshore: Which One is Right for You?
| Feature | Mainland License | Free Zone License | Offshore License |
|---|---|---|---|
| Business Location | Anywhere in UAE | Specific Free Zones | International business only |
| Ownership | 100% Foreign Ownership | 100% in Free Zones | 100% Foreign Ownership |
| Office Requirement | Mandatory | Required (in some free zones) | Not Required |
| Trading in UAE | No restrictions | Limited to free zone | Not Allowed |
| Government Tenders | Allowed | Not Allowed | Not Allowed |
| Visa Eligibility | Unlimited (based on office space) | Limited (varies by free zone) | Not Available |
| Cost | Medium to High | Lower than Mainland | Lowest |
Which one should you choose?
- Choose Mainland if you want unrestricted business access across the UAE and internationally.
- Choose Free Zone if you want full ownership with lower setup costs but don’t need to trade in the local UAE market.
- Choose Offshore for international trade and asset protection without a physical presence in the UAE.
4. Steps to Get a Dubai Mainland License
Starting a mainland business in Dubai involves several steps. Here’s a breakdown:
Step 1: Choose Your Business Activity
The Department of Economic Development (DED) offers over 2,000 business activities across various industries. You must choose the correct activity that aligns with your business goals.
Step 2: Select a Trade Name
Your company name must:
✅ Be unique and not match existing companies.
✅ Not include offensive or religious terms.
✅ Comply with UAE naming conventions.
Step 3: Determine Legal Structure
Decide on the legal structure of your business:
- Sole Proprietorship – Owned by one individual.
- Limited Liability Company (LLC) – Most common business structure.
- Civil Company – Suitable for professionals like consultants and doctors.
- Branch of a Foreign Company – A UAE branch of an international business.
Step 4: Obtain Initial Approval from DED
Once the trade name and business activity are selected, submit an application for initial approval from the Department of Economic Development (DED).
Step 5: Choose a Business Location & Office Space
A mainland company in Dubai must have a physical office. Options include:
📍 Renting an office in Dubai.
📍 Using a Flexi-desk option (for certain licenses).
Step 6: Draft & Sign MOA (Memorandum of Association)
For LLCs and partnerships, an MOA must be drafted and signed by all partners. This legal document outlines the business structure and ownership percentage.
Step 7: Obtain External Approvals (If Required)
Some business activities require approvals from other UAE regulatory bodies, such as:
- Dubai Municipality – For construction and food businesses.
- Dubai Health Authority (DHA) – For healthcare businesses.
- Ministry of Economy – For legal and consulting firms.
Step 8: Pay Fees & Get Your Dubai Mainland License
Once all approvals are in place, pay the required government fees and receive your Dubai Mainland Business License from DED.
Step 9: Apply for Visas & Open a Bank Account
After getting your license:
✅ Apply for employee and investor visas.
✅ Open a UAE corporate bank account for transactions.
5. Cost of Dubai Mainland License
The cost of a Dubai Mainland License varies based on business activity, office space, and visa requirements.
| License Type | Estimated Cost (AED) |
|---|---|
| Commercial License | 10,000 – 25,000 |
| Professional License | 7,000 – 15,000 |
| Industrial License | 15,000 – 35,000 |
Other costs to consider:
- Office Rental – AED 20,000 – 100,000+ (based on size/location).
- Sponsorship Fees (if required) – AED 5,000 – 10,000 annually.
- Visa Costs – AED 3,000 – 6,000 per visa.
💡 Tip: Working with a business setup consultant can help reduce costs and streamline the process.
6. Dubai Mainland License Renewal
A Dubai Mainland License must be renewed annually. Steps include:
🔹 Ensure Office Lease Renewal – Your tenancy contract must be valid.
🔹 Pay the License Renewal Fee – Fees vary depending on business activity.
🔹 Update Employee Visas (if required) – If you have employees, their visas must also be renewed.
Failure to renew can result in fines, penalties, or business suspension.
7. Conclusion: Is a Dubai Mainland License Right for You?
A Dubai Mainland License is the best choice for businesses looking for full market access, unlimited growth opportunities, and the ability to work with government contracts. While the setup process requires approvals and investment, the benefits far outweigh the challenges.
📌 If you’re planning to start a business in Dubai, consulting a professional business setup agency can simplify the process and ensure a hassle-free experience.
