Dubai Mainland License|Type of Licenses in Dubai Mainland

mainland company formation in Dubai is often a really lucrative investment option for investors and business establishments. Mainland companies are business entities that are allowed to function and operate within the boundaries of Emirati jurisdiction that come under commercialized countries. In Dubai, all business entities that come under commercial, professional, and sole establishment registered under the Dubai Economic Department (DED) are referred to as Dubai Mainland License. Primary, possessing a Dubai mainland license helps you enjoy maximum freedom and adaptability to grow and operate your business. There are certain regulations and policies amended by the govt that administer the operation of mainland companies in the UAE.

Dubai Mainland License|Type of Licenses in Dubai Mainland

One of the foremost important governing laws related to the mainland business set revolves around the company equity share.

Company incorporation law in the UAE mainland necessitates 51% of the entire share of a billboard company to a UAE national. The remaining 49% goes to the foreign national or foreign investor. And this rule is mandatory for any business regardless of the capital of investment.

However, the aforementioned law doesn’t apply to certain business endeavors and that they are.

  • freeport businesses
  • Businesses that have complete foreign ownership
  • UAE national – GCC partnership firms
  • Fully Local ownership business concerns

mainland company formation in Dubai, UAE gives you the liberty to increase your business’ branches to other parts of Dubai and across the UAE. the first requirement for all business activities within the UAE is to have a license in any of the categories: Commercial, industrial and Professional.

Branches and Representative Offices of Foreign Commercial Companies

Those Foreign companies who have the interest to open a Branch or a Representative Office in Dubai are governed under Commercial Companies law to try to to the formation in Dubai and other Emirates. These companies are often 100% owned by the foreign entity with the appointment of a local service agent.

The term Local service agents mean the UAE nationals or a firm which is owned 100% by UAE national. These local service agent also are mentioned as sponsor for the license and aren’t involved within the day to day operations, but helps the businesses in getting Establishment Card, Company Labour Card, etc and are being paid as payment in terms of remuneration and or a percentage in profit or turnover as per the agreement made. The Branch of a far off companies isn’t allowed to conduct any Importing activity apart from re-export.

Mainland License

DED (Dubai Economic Department) has divided all the commercial activity into three different categories:-

Commercial License – All the activities concerning Trading is roofed during this category and as termed as LLC formation

Professional License – All the activities reference to Services, Profession, artisans, and Craftsmen are covered during this category.

Industrial License – All the activities associated with Manufacturing are covered during this category.

All the above license is issued by Dubai Economic Department. Certain activities require approval from certain ministries and other government authorities. Below is the list of activities that requires approval from external ministries:-

  • Restaurant License fall into Dubai Municipality
  • Rent a Car License fall into RTA (Road and Transport Authority)
  • Advertising, Publishing, and Printing fall into National Media Council
  • Banking service and Financial Institutions fall into a financial institution of UAE
  • Insurance License fall into Insurance Authority
  • Industrial and Manufacturing License fall into Ministry of Economy
  • Pharmaceutical License fall into the Ministry of Health
  • Contracting License fall into Dubai Municipality
  • Logistic, Cargo packaging, Cargo Clearing License fall into Dubai Maritime City
  • Travel and Tourism License fall into DED
  • Sports Activity License fall into Dubai Sports Council
  • Jewelry and Precious metals License fall into Dubai Protective System

All commercial licenses and industrial licenses in Dubai must be registered under the Dubai Chamber of Commerce and Industry.

Some of the License needs Bank Guarantee and extra charges to be paid to the third Party

Mainland business licenses

Generally, four major licenses are issued for businesses operating within mainland company formation in Dubai. The licenses are issued supported the business endeavor and that they are:

  • Professional License – License issued for firms that undertake service-oriented endeavors. Professional licenses are required for professionals who participate in any professional activity like consulting. Compared to other licenses the value involved within the issuance of a professional license is a smaller amount.
  • Commercial License – License issued for those business establishments that undertake to buy and to sell of products or services or just trading. Most traders choose the overall trading license to conduct quite one trading endeavor with one license. Commercial licenses are quite common in Dubai and UAE mainland. the whole formalities connected with Professional License like issuance, amendment, cancellation are often accomplished easily.
  • Industrial License – License issued for firms that involve in the manufacture of products like factories, industries, etc. When it involves Industrial License, you’ll get to seek the approval of External Ministries and government departments depending upon the sort of commercial activity.
  • Tourism Licence – All tourism-related activities require a legitimate Tourism License. The Department of Tourism and Commerce Marketing DTCM features a major role within the issuance of a Tourism license. a legitimate Tourism license is mandatory to conduct inbound and outbound tour-related activities for mainland company formation in Dubai.

Why to Setup a Mainland Company in UAE is Best?

United Arab Emirates (UAE) offers the simplest environment within the Gulf and it’s a tremendous location for mainland company setup due to its strategic location, vibrant economic policies, and positive planning.

Well-planned enterprising initiatives, various tax incentives, avoidance of double taxation, and abundance of natural resources like oil have enabled service, industry, and trade sectors to flourish within the UAE, and have played an important role in making it a dynamic business hub.

Benefits of fixing Mainland Company in UAE
Ease of getting office space at affordable rates with the pliability to rent/lease office anywhere
Flexibility to try to business in any a part of the UAE
No restrictions in processing legal documents
No yearly auditing
No corporate or personal taxes

No limitations in getting employment visas and a straightforward recruiting process
No requirement for minimum capital
No need for the professional service agent to avail Professional Licenses

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