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How to Open a Mainland Company in Dubai in 3 Easy Steps!

How to Open a Mainland Company in Dubai in 3 Easy Steps

Obtaining a trade license is a must for entrepreneurs who wants to open a Mainland company in Dubai, and few jurisdictions can be selected for operating a business in Dubai. Before setting up a business in Dubai, a trade license should be acquired per the relevant business activities and preferred company structure. The Department of Economic Development (DED) Dubai issues the DED license. 

A trade license in Dubai Mainland serves as the gateway for importing and exporting material to and from UAE, which means that selling goods and services in the various parts of the emirates is allowed. Professional services can be conducted under this license, such as healthcare, art galleries, law firms, etc.

Types of Trade Licenses

To open a Mainland company in Dubai, there are mainly four types of trade licenses to conduct business. However, it is less known that there are a few exclusive licenses only for specific free zones and business activities. 

1. Commercial license: allows a company to conduct trade activities such as buying and selling goods, and entrepreneurs can only perform the activities for the items mentioned on the license. 

2. Industrial license: allows the company to conduct the manufacturing of products, import the raw material required for the product, and export the finished product. It is noteworthy that a physical office in Dubai is mandatory for obtaining an industrial license.

3. Professional License: suitable for service providers and professionals like accountants, architects, lawyers, doctors, and many more. 

4. Tourism License: this license is issued separately for companies engaging in the tourism sector because Dubai exclusively values Tourism. It is noteworthy that the rules, regulations, taxes, compliance, and permissions are different for this sector.


3 Steps to Open a Mainland Company in Dubai

The DED Dubai guides the licensing and business activity classification in the local market of Dubai. Since the UAE government has adopted strategies for attracting foreign investors, the company registration costs and procedures are kept favorable for everyone. The steps for registering a general trade license are as follows:

1. Trade name registration in Dubai and obtaining initial approval: the very first step for registering a trading name. If the company name is available, a permit will be provided for the company, and the company can then apply for the initial approval to conduct the business activities. 

2. Memorandum of Association (MoA) Notarization for the company: drafting MoA is mandatory for obtaining a trade license in Dubai. The whole process of the MoA notarization will take less than a day at DED Dubai. A trade license application should also be submitted to the DED with the MoA.

3. Submission of documents: Document submission is required for getting a Dubai trade license and membership registration with the Dubai Chamber of councils. To submit the required original document, the applicant needs to visit the commercial registry present at the DED Dubai. If the documents are complete and legit, the company’s name is added to the Commercial Register. These documents, MOA, and trade license application forms are all forwarded to the Federal Ministry of Economy.  

Advantages of Holding a Trade License

Trade license has mainly provided foreign investors and entrepreneurs with ease for conducting business. Here are the main benefits of the trade license: 

  • Import duty is low
  • 100% foreign company ownership
  • Paid-up capital is not necessary
  • 100% repatriation not only on capital but also on profit
  • A wide range of banking benefits
  • Tax-free jurisdiction
  • Provides gateway for local as well as an international trading

Cost to Open a Mainland Company in Dubai 

The trade license in Dubai varies as per your business activities and requirements. The license fee in Dubai Mainland starts from AED 14,500. Please note that this fee is only the official fee for obtaining the trade license and not the complete company formation in Dubai.

How Can Choose UAE Help

Choose UAE’s Company Formation Specialists can give valuable business setup advisory in Dubai Mainland, they are experts in providing a straightforward step-by-step process and will help you form your company from A-Z. 

Benefit from our official partnership with the UAE government authorities for end-to-end, hassle-free processing. Plus, you can choose from our wide range of business support services to help you grow and expand your business on the Mainland.  Schedule a free consultation today. 

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