Navigating The Ins And Outs Of Dubai's Mainland Business License


Dubai is a thriving business hub that attracts entrepreneurs from around the world. Setting up a business on Dubai’s mainland requires obtaining a mainland business license. Navigating the ins and outs of Dubai’s mainland business license can be daunting for those unfamiliar with the process. This article will discuss the steps involved in obtaining a Dubai mainland license.

Determine the type of business license required:

The first step in obtaining a mainland business license is determining the license type required for your business activity. Dubai Department of Economic Development (DED) issues several types of licenses, including commercial, industrial, and professional licenses. Each license has its own set of requirements and restrictions.

Select a business activity:

Once you have determined the license type required, you must select a business activity. Dubai has a comprehensive list of business activities classified into different categories. You must select the most relevant business activity for your business.

Choose a legal structure:

Choosing a legal structure is essential in obtaining a mainland business license. You can choose from various legal structures, such as a sole proprietorship, partnership, or limited liability company (LLC). An LLC is the most common legal structure used in Dubai, requiring a minimum of two shareholders.

Secure a local sponsor:

Foreign investors who wish to set up a business in Dubai’s mainland must secure a local sponsor. A local sponsor is a UAE national or company UAE nationals own. The local sponsor holds 51% of the shares in the company, while the foreign investor holds the remaining 49%. Choosing a reputable local sponsor is essential to ensure your business’s success.

Register your business:

Once you have secured a local sponsor, register your business with the Dubai Department of Economic Development. You must provide all the necessary documentation, including your business plan, lease agreement, and shareholder agreement.

Obtain approvals:

Before obtaining your mainland business license, you must obtain various approvals from government entities. This includes obtaining approval from the Dubai Municipality, Dubai Chamber of Commerce, and other regulatory bodies.

Navigating the ins and outs of Dubai’s mainland business license requires careful planning and attention to detail. It is essential to determine the type of license required, select a relevant business activity, choose a legal structure, secure a local sponsor, register your business, and obtain the necessary approvals. With the proper guidance, you can obtain a mainland business license and establish a successful business in Dubai.

By Natasha