Choose the right Dubai Mainland License
Our experts will assist you in selecting the ideal Dubai mainland license tailored to your business needs, be it commercial, industrial, or professional.
Mainland Licences
The United Arab Emirates is the jewel of the Middle East and a hotspot for anyone wanting to invest or start a new business. The rich economy and gorgeous capital city, Abu Dabi, make for an incredible place for you and your family to live and work.
While there are many steps to registering your Business on the mainland, obtaining a trade licence in Dubai is the most crucial to business setup.
When starting a new business in the UAE, you need to acquire the right trade licence to ensure that your mainland company is set up properly for the long term. The type of business operations, the structure of your company, and the jurisdiction where you’ll operate can all impact the type of trade license you require and the criteria that will apply to you.
Just like many places around the globe, entrepreneurs and businesses in the United Arab Emirates must obtain a trade license to establish their mainland company as a legal entity. This license is compulsory before starting any business activity and applies to both free zone jurisdictions and Mainland Dubai. Having a trade license in Dubai ensures that your customers know you are a legitimate business that adheres to local laws and regulations.
Types of Mainland Trade Licences
Below are the three types of trade licences that you need to consider as you begin the company formation process and start a mainland business in Dubai:
Professional Trade Licence
The UAE government requires businesses and entrepreneurs to obtain a professional business trade licence from the Department of Economic Development (DED) before they can be authorised to provide their professional services to clients from the Dubai mainland. This licensing requirement aims to ensure that individuals or businesses are qualified to offer services in their respective professions, necessitating the demonstration of specific skills or training during the application process.
All professionals, specialists, craftsmen, and artisans intending to establish a mainland company in Dubai must obtain a professional trade licence. In the context of mainland company formation, various company structures are available with a professional licence, including a Limited Liability Company where a local sponsor holds 51% ownership and a Civil Company or Sole Establishment where foreign investors enjoy 100% ownership.
It’s noteworthy that in the establishment of a civil company or sole establishment, a local service agent (LSA), typically a UAE national, must be appointed to fulfil the required legal formalities.
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Industrial trade licence
Businesses that want to conduct industrial or manufacturing-based activities in the UAE must acquire an industrial trade licence, which will allow them to engage in activities related to converting natural materials or incorporating natural resources into their products.
The issuance of a business license by DED may necessitate additional approvals from various authorities, such as the Ministry of Finance and the Ministry of Economy, Energy, and Infrastructure, depending on the nature of the industrial activity involved.
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Commercial Trade Licence
Mainland companies dealing with buying and selling goods and commodities or any kind of trade activities require a commercial trade licence to operate in the UAE. This business licence can be used to form a limited liability company (LLC) or set up a sole establishment, and it can be used for both specialised trading and general trading activities in the UAE.
There are different types of commercial trade licences in the UAE. If you are navigating the process of company formation, you must apply for the correct type of commercial trade licence that will permit you to carry out trading activities specific to your Business.
Broadcast and communications companies, rental transportation services, retail companies, construction companies, healthcare businesses, real estate businesses, and other general trading entities also need to apply for a commercial trade licence in Dubai.
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Essential Legal Formalities
Depending on the legal Form of a business, it is also a requirement to complete and sign a Memorandum of association (MoA) or a local service agent agreement (LSA). The memorandum of association is required for the following business legal forms:
- Limited partnership
- Public joint stock company (PJSC)
- Limited liability company (LLC)
- Private joint stock company (PrJSC)
Requirements to obtain a UAE trade licence
Before opening any business with the Dubai Economic Department, one must meet the following legal requirements to obtain a trade licence in the UAE:
Business Categorization:
- Determine the business category – whether it is professional, commercial, or industrial;
Defining Business Activity:
- Determine the type of business activity.
Structuring Legally:
- Determine the business category – whether it is professional, commercial, or industrial.
Crafting Identity:
- Determine the trade name of your Business.
Registration at Local Department:
- The local Department of Economic Development registers your trade name
Trademark Protection:
- The Ministry of Economy registers your trademark (if applicable).
Get expert help in starting your new Business in Dubai
It can be difficult to identify all the licences and permits that apply to your Business on the Dubai mainland. Hence, it’s always best to consult a business setup specialist to make sure you comply with the licensing and regulatory requirements applicable to your business activity.
As the leading corporate service provider in the UAE, Gulf Gateway CSP can help you start your company with the right Dubai mainland licence, ensuring you are positioned for future growth and success. Gulf Gateway CSP also provides value-added business support services that can help your company start strong and thrive in a competitive market.
Do you need help in choosing a trade licence for your Business? Contact us today so our team can assist you.
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