MAINLAND LICENSES
Find the Perfect Dubai Mainland License
The specialists at Premier Corporate Services are here to assist you in selecting the perfect Dubai mainland license tailored to your business, whether it’s for commercial, industrial, or professional purposes. We focus on securing the most advantageous and strategic license option to align with your objectives.
Types of Mainland Trade Licenses
Professional Trade License
In the UAE, businesses and professionals must obtain a professional trade license from the Department of Economic Development (DED) before they can legally offer their services in the Dubai mainland. This license is crucial for confirming that individuals or businesses are qualified to deliver services in a particular field. Typically, applicants must demonstrate specific skills or training to be eligible for this type of license.
A professional trade license is mandatory for specialists, craftsmen, artisans, and other professionals wishing to establish a mainland business in Dubai. When setting up a mainland company with this license, various structures can be formed, such as a Limited Liability Company (LLC), where a local sponsor holds 51% of the business, or a Civil Company and a Sole Establishment, where foreign investors can retain 100% ownership. However, for both Civil Companies and Sole Establishments, a UAE national must be appointed as a Local Service Agent (LSA) to handle the legal formalities.
Commercial Trade License
For businesses engaged in buying, selling, or any kind of trading activities, a commercial trade license is essential. This license allows companies to operate within the UAE mainland and is applicable for forming an LLC or setting up a sole establishment. The license covers both specialized and general trading activities.
There are several categories of commercial trade licenses in the UAE, each catering to specific trading activities. Companies involved in retail, real estate, healthcare, broadcasting, construction, transportation, and other trading sectors must obtain the appropriate commercial trade license to legally operate in Dubai.
Industrial Trade License
Companies looking to engage in industrial or manufacturing-related activities in the UAE must acquire an industrial trade license. This license allows businesses to transform natural materials or resources into finished products. While the DED issues the industrial license, additional approvals may be required from various ministries and authorities, depending on the nature of the industrial activity.
Requirements for a UAE Trade License
To obtain a mainland license in Dubai, applications must go through the Dubai Economic Department. Before starting a business, the following legal requirements must be met to secure a trade license:
– Identify whether the business falls under the professional, commercial, or industrial category.
– Specify the business activities to be carried out.
– Decide on the legal structure of the business.
– Choose a suitable trade name for the business.
The Department of Economic Development handles the registration of trade names, while trademarks, if applicable, are registered with the Ministry of Economy. Additionally, depending on the business structure, companies may need to draft and sign a Memorandum of Association (MoA) or a Local Service Agent (LSA) agreement. This is necessary for legal entities such as limited partnerships, limited liability companies (LLCs), public joint stock companies (PJSCs), and private joint stock companies (PrJSCs).
Expert Assistance in Starting Your Dubai Business
Navigating the various licenses and permits required for mainland business formation in Dubai can be complex. It’s advisable to consult with business setup specialists to ensure full compliance with licensing regulations relevant to your business activities.
As a top corporate service provider in the UAE, Virtuzone is here to help you secure the appropriate mainland trade license for your business, ensuring you’re set for success and growth. Virtuzone also offers value-added services to help your company establish a strong foundation in a competitive market.
Need help selecting the right trade license for your business? Contact our team today for expert assistance.
Documents Required for Mainland Company Formation in Dubai
Memorandum of Association (MOA)
A detailed document specifying the business activities, the structure of the company, and the shareholders involved.
Lease Agreement
Proof of a physical office space located within Dubai.
Passport Copies and Visa Information
Copies of the passports for all shareholders along with their visa details.
No Objection Certificate (NOC)
A letter from the local sponsor granting permission for the expatriate partner to participate in the business.
Trade Name Reservation Certificate
An official confirmation from the DED that the chosen trade name has been approved and reserved for the company.
Mainland Company Formation in Dubai
A mainland company is a business entity that holds a license from the Department of Economic Development (DED) in the respective Emirate within the UAE. Mainland companies offer extensive business opportunities, both within the UAE and internationally. These companies are permitted to trade directly with the local market and can engage in a broad range of business activities.
Dubai Mainland Business License: Key Information
- Recent government reforms in the UAE have made it possible for entrepreneurs to fully own a mainland business in Dubai, regardless of whether they are local or foreign. Foreign investors no longer need to partner with a local Emirati to establish a mainland company.
- Under new regulations, joint stock companies can now offer up to 70% of their shares through an Initial Public Offering (IPO), a significant increase from the previous cap of 30%.
- Additionally, shareholders are granted the right to take legal action if the company engages in activities that lead to financial loss.
- Company meetings no longer require an Emirati to officiate, opening the process to expatriates as well. The introduction of electronic voting in annual general meetings is another new feature, implemented as a response to the pandemic.
- Furthermore, company leaders, including chairpersons and senior officers, can be dismissed if they misuse their authority.
