Mainland Company
What is Mainland business licensing?
Companies established on the UAE mainland meaning those based outside of free zone, are free to operate across a wide range of sectors. They can trade with individuals and business within Dubai and across the UAE, as well as internationally. Most activities now allow 100% foreign ownership, although some may require an Emirati partner, depending on the business type.
Setting up a mainland company typically involves securing a trade license and office space. Costs vary based on your activity and set-up. Mainland companies may be based in specialized industrial parks.
How to process Mainland company Set-up?
1 . Choose Your License:
A mainland license in the UAE requires considering your business activity and target market. You can choose from several types, depending on your business activity.
Commercial License:
Issued for businesses involved in the buying and selling of goods and services, including import and export, logistics, wholesale, retail, software trading, construction, and real estate.
Professional License:
For service-based businesses that generate revenue by offering expertise and specialized services, such as consulting firms, administrative services and educational institutions, legal firms and artisans. In some cases, this allows for 100% foreign ownership on the mainland, but the eTrader version limits expatriates to professional services and not trading products.
Industrial License:
Required for businesses engaged in manufacturing, industrial production, packaging, segregation, or collection of goods, including industries such as food production, textiles, paper, petroleum products and equipment manufacturing. External approvals from relevant regulatory authorities are required before commencing operations
Tourism License:
A separate license for companies in the tourism sector, with its own set of rules and regulations.
ETrader License:
The E-Trader Licence is a home-based business licence that allows freelancers and entrepreneurs to legally conduct business from their place of residence in Dubai. Primarily for e-commerce, it is specifically tailored for individuals selling products or services through social media and online platforms. This licence is issued exclusively under the Sole Proprietorship legal form, with the owner bearing full legal responsibility and is available to expatriates aged 21 and over.
Dual Licence:
Dual licensing allows companies operating in specific free zones to extend their presence to the mainland without the hassle of leasing additional office space or partnering with a local shareholder. This is currently available in collaboration with the free zones below:
Dubai CommerCity
Dubai Design District (d3)
Dubai International Financial Centre (DIFC)
Dubai Multi Commodities Centre (DMCC)
One Central (Dubai World Trade Centre Authority)
Instant Licence:
The Instant Licence is a fast-tracked licensing service that allows entrepreneurs to obtain a business licence within five minutes through a fully digital process. This licence includes a virtual business site for the first year only, after which a valid business location must be provided upon renewal or any amendments. It is available for all business activities that do not require external approvals beyond the Department of Economy and Tourism.
SME Licence:
The SME Licence is designed to support small and medium-sized enterprises (SMEs) by providing UAE and GCC national entrepreneurs with an opportunity to operate businesses in Dubai at a reduced cost. Entrepreneurs may qualify for a fee exemption or a minimal annual fee, making it an ideal option for startups looking to minimize operational expenses.
Intelaq Licence:
The Intelaq Licence is a home-based business licence available exclusively to UAE or GCC nationals residing in Dubai. It allows individuals to legally operate businesses from their homes across various sectors. Designed as an affordable option for entrepreneurs, the Intelaq Licence is issued for a minimal annual fee, supporting homegrown businesses. This licence is issued exclusively under the Sole Proprietorship legal form, with the owner bearing full legal responsibility.
2 . Choose Your Legal Structures
General Partnership:
This involves two or more UAE Nationals who are jointly and separately liable for the company’s obligations using their personal funds.
Limited Partnership:
A company formed of one or more general partners who have joint and separate liability, or one or more limited partners who have limited liability proportional to their capital shares.
Limited Liability Company:
A business entity in which partners’ liability is limited to their capital share. A Limited Liability Company can be established and owned by a UAE national or any other individual or company, regardless of nationality, and can have multiple partners, up to 50.
A company of this type owned by one person only is known as a Limited Liability Company – Single Ownership. It is subject to the same laws and regulations as limited liability companies with multiple owners.
Private Joint Company:
A company of this type can have up to 200 shareholders, with the company’s capital split equally between shareholders into nominal value shares. Its shares cannot be publicly offered.
When a company of this type is owned by one legal person (either an individual or a company) only, it is known as Private Joint Stock Company – Single Ownership, and the owner’s liability for company obligations is limited to the capital specified in its Memorandum of Association. In this case the company’s name must include the term “One-Person Private Joint-Stock”. It is subject to the same laws and regulations as private joint stock companies with multiple owners.
Public Joint stock Company:
A company with capital divided into equal negotiable shares, where the founders subscribe to a portion of such shares, while the remainder is offered to the public through a public offering.
Civil Company:
This is a company owned by two or more partners practising a professional activity such as consultancy, accounting, training, tailors, beauty salons, etc.
Sole Proprietorship:
A business owned by one person, who is personally liable for all financial obligations and liabilities incurred by the business.
3 . Check Foreign Ownership Restrictions
Find out which business activities do not allow for 100% foreign ownership.
While Dubai companies under 100% foreign ownership can undertake the vast majority of activities, there are some categories where this is not allowed. Please refer to the list below for these activities before starting the business setup process, and plan accordingly.
If you do wish to operate a company which will perform one or more of these activities, you’ll need to work with a local partner.
Activities not permitted for 100% foreign ownership
Security and defence activities and activities of a military nature.
Telecommunications
Banks, exchange, financing, insurance and bank note or coin production
Other categories such as Commercial agencies, Hajj & Umrah Organizing, Holy Quran Recitation Institute, Fish catching, Natural pearl catching and Marine animals catching
4 . Check Addition Approvals:
Activities not permitted for 100% foreign ownership
Activities in certain sectors will require some extra approval steps.
For certain sectors including food and beverages, healthcare, aviation, education, communication, transportation and insurance, additional No-objection Certificates and documents are required.
Some activities will also require external approvals – please check the list below, which includes information on the relevant ministry or agency which must be consulted.
Activities in the Telecommunication sector
Telecommunications and Digital Government Regulatory Authority (TDRA)
Agriculture, veterinary, environmental consultant
Ministry of Climate Change and Environment
Air Cargo, Travel agent with ticketing activity
Dubai Civil Aviation Authority
Auditing
Ministry of Economy – Auditors Department
Branch of a foreign company / Representative office
Ministry of Economy
Construction companies, clinics, engineering firms
Dubai Municipality
Customs broker, freight forwarding, sea cargo
Department of Ports and Customs / Dubai Maritime City Authority
Financial Consultation, Share broker, Investment advisory
Securities and Commodities Authority
Cryptocurrency / Virtual Assets
Virtual Assets Regulatory Authority (VARA) / Dubai Financial Services Authority
Fintech services
Dubai Financial Services Authority
Financial institutions, banks, money exchanges
Central Bank of UAE
Healthcare, Biotechnology and Pharmaceuticals
Dubai Health Authority / Dubai Science Park
Insurance Company, Insurance Agents
Central Bank of UAE
Land Transport
UAE Ministry of Energy & Infrastructure
Lawyer’s Licence
The Rulers Office
Manpower Supply / Recruitment
Ministry of Human Resources & Emiratisation
National industrial licence
Ministry of Industry and Advanced Technology / Ministry of Economy
Publishing, printing, newspaper, advertising, video film, photography
National Media Council
Registration of boats, yachts, ships
Dubai Maritime City Authority / UAE Ministry of Energy & Infrastructure
Restaurants and Food Establishments
Dubai Municipality
Social Service Providers
Community Development Authority
Tourism – permits
Department of Economy and Tourism
5 . Check Essential Documents
New Business
To start a business in Dubai, you must hold a valid tourist or visit visa before applying for a licence. All new applicants need:
Copy of the licence holder’s passport (if a non-UAE resident) or Emirates ID (if resident)
Copy of the applicant’s residence visa or entry permit (for non-GCC nationals)
Company’s Articles of Association (not required for a one-person limited liability company)
Joint Stock Company
If you’re setting up a public or private joint stock company, you’ll also need a feasibility study of the project, in addition to the standard documents for new businesses.
Dubai Branch
Companies based in other emirates opening a branch in Dubai will need:
Board resolution from the parent company
Authorisation letter from the managing director
Parent company’s commercial registration certificate
Parent company’s Memorandum of Association (MoA)
Foreign or free zone branch
If your parent company is based abroad or in a UAE free zone, you’ll need:
Copy of the parent company’s licence
All parent company documents must be:
Attested in the home country by the UAE Embassy and Ministry of Foreign Affairs
Counter-attested by the UAE Ministry of Foreign Affairs
Legally translated into Arabic and attested by the UAE Ministry of Justice
6 . Start your registration
Steps to Establish Your Company in the UAE Mainland
Choose Business Activity (General Trading, Building Maintenance, Technical Service, IT Service.
Determine Company’s Legal Structure (Sole Establishment, Limited Liability Company, Civll Company.
Register the Trade Name (Commercial Name)
Apply for Initial Approval (for your Business activity)
Create LSA or MOA (Local Service Agent Agreement- Professional License / Memorandum of Association – Commercial License)
Choose Business Location (Shop, Office, Showroom, Flexi desk.
Apply for Additional Government Approvals (Some activities need approval from external Departments like Municipality, RTA.
Issue Trade License.
Request for initial approval
This is your first step towards obtaining your trade license. This helps you define your legal form, economic activities and the license partners. You can obtain this before or after reserving your trade name.
Purpose of this request:
Securing a commercial site lease contract
Obtaining approvals from relevant authorities for economic activities that require external approvals (e.g., Health Authority, Roads and Transport Authority, the Telecommunications Regulatory Authority and others).
Book a Trade Name
This service allows you to obtain an official government document that confirms your project’s trade name. This is used in contracts and other official documents and instances. You can reserve your trade name before or after receiving your initial approval.
Trade name guidelines:
Bear these guidelines in mind when you’re choosing your trade name:
Your trade name should be a proper name and free from obscene or indecent words and should not be offensive to the general public.
Do not include Allah’s name nor ‘God’ or His divine attributes.
Please refrain from using family names, tribe names or other individuals’ names – unless the name belongs to the licensee.
Your trade name should be distinct and not similar to existing brands in Dubai, government projects, or international brands.
Names should be written literally and not translated. For example, ‘السماء العالية’ must be written as ‘Al Samaa Al Aalya’, and if it is ‘هاي سكاي’ it must be written as ‘High Sky’
The trade name must be logical and reflect and indicate your business activity. For example, you cannot use ‘Al Madina Contracting’ for a building material trading licence.
You cannot use any restricted names which include global political organisations or religious sectarian organisations.
DET has the right to cancel or change a trade name, if it finds that a similar name already exists.
Preparing Memorandum of Association (MOA)
MOA or Memorandum of Association is a company’s corporate document wherein it defines the company’s scope of powers and its constitution. In other words, this legal document is a company’s foundation. In this article, we’ll look at the regulations and legislation which govern a memorandum of association. Also, Notary Public Dubai will help you draft a MOA by explaining its crucial contents and clauses.
Object of the Registration of a MOA
A company’s memorandum of association contains objects for which a company is established. It identifies a company’s scope of operations, as well as determines boundaries which the company shouldn’t cross.
A MOA contains all the details regarding the rights and powers of the company.
It is a legal corporate document that’s also public as per the UAE Companies Law; therefore, any person that enters into agreements with a company will have to be knowledgeable of the company’s memorandum of agreement contents.
Under no circumstance will a company be able to depart from provisions which are specified in the MOA. When or if it does, it will be considered as a breach of agreement.
Apply Ejari
Before you can obtain your trade license, you need a physical office space and a valid tenancy contract attested by Ejari (Real Estate Regulatory Agency’s).
Operating a mainland business without a registered tenancy contract can lead to fines and legal complications.
Get your Trade License
After completing all the necessary steps with Department of Economy and Tourism, DET, in Dubai. You will receive a payment voucher which is mentioned the fees to issue trade license
Before pay the fees, It’s important to review the details, as you may be able to apply for reductions on certain fees (Such as market fees or accommodations allowances)
Upon successful payment and final verification, your trade license will be officially issued, enabling you to legally operate your business in the UAE.
