The mainland license in Dubai is one of the most sought-after licenses in Dubai, UAE. And why not? Dubai practically offers unending business opportunities for growth and expansion. It is a business hub and one of the most advanced emirates in the UAE. Hundreds and thousands of Indian businessmen have been eyeing Dubai as a business and investment spot. And if you are, too, you are making a wise choice.
If reports are to be believed, 200 out of 3,000 startups in Dubai are founded by Indians. Today, highly successful professionals make up around 35% of the Indian population in the UAE. Furthermore, according to figures from the ministry of commerce, bilateral trade between the UAE and India was $72 billion in 2021–22. Estimates predict that it will reach $100 billion by the following year.
After looking at these numbers, it is evident that obtaining a mainland license in Dubai is one of the most thoughtful business decisions you can make in today’s time. The question is: How do you get it? What are the benefits you will enjoy?
Want to know? Keep reading! This blog will walk you through all you need to know about a Dubai Mainland license.
So, without further ado, let’s dive straight into it!
What Are The Types of Mainland Licenses in Dubai?
The three most common types of mainland licenses offered by Dubai are –
- Commercial License — Commercial permits are given to businesses carrying out any commercial trade activity involving goods, commodities, or services.
- Professional License – A professional license is required for those people or companies who provide their skills to the general public as a service. Based on their academic credentials, companies are given professional licenses to practice a profession in which they have expertise. Foreign investors can acquire 100% of their company by getting a professional license.
- Industrial License – Manufacturing and other industrial operations are allowed in Dubai with an industrial license. Entrepreneurs with an industrial license are permitted to produce items with domestic and foreign raw materials.
Some other types of licenses issued include tourism licenses, craftsmanship licenses, and agricultural licenses.
Who Will Issue Your Mainland License in Dubai?
The Department of Economic Development (DED) issued the Dubai mainland license. DED governs all commerce and business registered on Dubai’s mainland. It has the authority to approve more than 2,000 economic operations on the Dubai mainland.
Why Should You Apply for a Mainland License?
What makes a mainland license in Dubai so popular? Here are a few reasons –
1. Enjoy unrestricted access to the UAE and beyond
You can conduct business with other businesses in the mainland region if you have a mainland license. In contrast, Free zone enterprises are restricted in their ability to deal with other firms in the same zone, and they must meet several regulatory restrictions if they wish to conduct business with mainland companies.
2. Chance to Promote FDI
A dramatic change in economic policy has increased the allure of the Dubai mainland business license. Before, only the Emiratis were eligible for full ownership under the mainland certificate.
However, it now grants Indian investors the same ownership in thirteen other areas, including e-commerce, logistics, IT, storage, transport, and communication. Additionally, the Foreign Direct Investment Law (FDI Law) eliminated the prior restrictions on Indian businesspeople conducting commerce on the Dubai mainland.
3. Robust Market Presence
Opening an office anyplace in Dubai is one of the primary advantages of holding a mainland business license. Additionally, this is the ideal option to conduct business in the local market and gives you access to international markets. Consequently, this expands the reach of your business across the nation.
4. Tax Exemptions
An advantage of starting a business on the Mainland is that it is free from several taxes and fees. Tax laws are unambiguous and easy to comprehend. You are not expected to pay corporate or personal taxes when starting a business on the Mainland. Furthermore, you can repatriate all your profits, and capital gains are not subject to taxation.
5. Access to Government Projects
Different government consignments will be open for bids from mainland businesses. These programs influence how the UAE will work, live, travel, and so on. You may broaden your professional network by working on these major initiatives.
How Do You Obtain a Mainland License?
Now that you know the types, benefits, and issuing authority for the mainland license, it’s time to apply for one! The following is a brief overview of the application process for a mainland license in Dubai –
- First and foremost, decide the industry you want to be a part of and then determine the activity you will carry out. For this, check out the list of activities permitted by the DED.
- Next, determine the legal structure of your company or business. This will decide which rules and regulations are applicable to your business.
- Subsequently, choose a business location on the Mainland for your office. You may rent or lease a space. Furthermore, you’ll have to enter into a tenancy contract (an ejari).
- After this, brainstorm a company name. Remember that the government here has strict rules for naming a company. Thus ensure your chosen company name complies with the rules. Then, register the name.
- The next step is to obtain initial approval. This is to ensure that the government has no problem with you carrying out business operations in your chosen industry.
- Once you have the initial approval, see approval from other government authorities if necessary. For instance, the health department, food department, etc., depending on your activity.
- Finally, apply for your license. Your business activity will determine which type of mainland license you’ll need. It will also determine the license costs and the documents you must submit. Once you submit your application, don’t forget to pay the fees within the stipulated time frame.
- If all goes well, the DED will issue your license.
What Documents Do You Require?
You’ll be asked to submit a couple of documents to the authorities for verification and issuance of the license. These depend on your chosen activity, license type, and other aspects. However, to give you an idea, the following are some of the documents you will have to submit –
- A copy of your passport
- Passport-size photographs
- A copy of your entry visa
You can contact the experts at the UAE Expansion India branch to get a detailed list of documents.
What Is the Cost of Obtaining a Mainland License?
For an LLC firm with one investor visa, the mainland licensing fee in Dubai for an Indian or any other international businessman ranges from 29,000 to 30,000 AED. However, UAE Expansion India branch experts can help you obtain the cheapest mainland license in Dubai.
Since several factors determine the cost of a Mainland license, it is advisable to seek help from experts to get the exact Dubai mainland license cost in 2023.
Obtain Your Mainland License With UAE Expansion
Setting up a mainland business and moving to Dubai is quick and straightforward. This is particularly true when working with reliable and experienced company development companies like UAE Expansion Indian branch specialists.
Your formation will be carefully supervised by advisors from the UAE Expansion India Branch, who will pay great attention to every little detail. All you need to do is reach out to us!