Business Licensing and Setup Process of Dubai Mainland

Setting up a business in Dubai mainland involves a specific process and obtaining the necessary licenses to operate legally. 

Here is an overview of the business licensing and setup process for Dubai mainland:

Determine Business Activity and Legal Structure:

Identify the type of business activity you intend to undertake and select an appropriate legal structure, such as sole proprietorship, partnership, or limited liability company (LLC). This decision will impact ownership, liability, and licensing requirements.

Choose a Local Sponsor or Local Service Agent (LSA):

For certain business activities, you will need a local sponsor or LSA who is a UAE national or a UAE-owned company. The local sponsor will hold a 51% ownership stake in the business, while the foreign investor retains the remaining 49%. The local sponsor may not have any involvement in the day-to-day operations or profit-sharing.

Reserve a Trade Name:

Select a unique trade name for your business and submit it for approval. The name should align with the guidelines set by the Department of Economic Development (DED) in Dubai.

Memorandum of Association (MOA) and Local Service Agent Agreement:

Prepare the MOA or partnership agreement, detailing the shareholding structure, management responsibilities, and profit-sharing arrangements. If you have a local service agent, an agreement outlining the terms of the engagement must be signed.

Lease a Physical Office Space:

Obtain a tenancy contract for a physical office space that complies with the requirements of the Dubai Municipality. The location of your office will determine the jurisdiction where your license will be issued.

Submit License Application:

Prepare the required documents, including the completed license application form, MOA, local service agent agreement (if applicable), tenancy contract, passport copies of shareholders, and other necessary documents. Submit the application to the DED or the relevant authority based on your business activity.

Approvals and Inspections:

Depending on the nature of your business, you may need approvals from various government departments and agencies. This may include obtaining approvals from the Dubai Municipality, Dubai Civil Defense, Dubai Health Authority (for healthcare-related businesses), and other relevant authorities. Inspections may also be conducted to ensure compliance with regulations and standards.

Pay Fees and Obtain License:

Pay the required fees for license issuance, registration, and any other applicable charges. Once the application is approved, you will receive your trade license, which allows you to legally conduct business activities in Dubai mainland.

Post-License Requirements:

After obtaining the trade license, fulfill any additional requirements such as obtaining visas and labor cards for employees, registering for taxes, and opening a corporate bank account.

It's important to note that specific requirements and procedures may vary based on the type of business activity, jurisdiction, and other factors. Engaging the services of a business setup consultant or PRO services can help streamline the process and ensure compliance with all necessary requirements.

Stay informed about any updates or changes in licensing regulations and maintain compliance with the legal and regulatory framework to operate your business smoothly in Dubai mainland.