Firstly, starting a company formation in the UAE can be quite a lucrative business for entrepreneurs. Companies established on the Mainland in Dubai are business entities that can legally operate within the limits of the Emirati jurisdiction, that come under commercialized geographical regions.

In this region, all companies that work under the sole, commercial and professional establishment registered under the Dubai Economic Department (DED) can get a Dubai Mainland License.

Possessing a Dubai Mainland License allows entrepreneurs to enjoy maximum freedom and flexibility when operating and growing their businesses. However, there are certain regulations and policies imposed by the government to manage the operations of companies in the UAE.

One of the most important laws regarding company formation in the UAE has to do with the company equity share. The United Arab Emirates has allowed all companies to retain 100% of the ownership in Dubai Mainland. Previously, entrepreneurs could only maintain 49% ownership of their company, while the remaining 51% belonged to the Emirati Sponsor. Subsequently, all foreign entrepreneurs can open a company on the Mainland and get a Dubai Mainland License without the need for a local agent.

Establishing a company in this region, allows entrepreneurs to extend their business’s branches across Dubai and the rest of the United Arab Emirates. Also, one of the primary requirements to open a company in this area is to acquire one of the following: Industrial License, Commercial License and Professional License

Firstly, a Mainland Company is a business registered with the Department of Economic Development (DED) of the Emirate where you decide to establish yourself. Once you decide to register your company with the DED, you will need to purchase what is known as a Mainland License.

A Mainland License or a Dubai Mainland License is an official document that allows companies to carry out their activities legally in the UAE. All companies must acquire one of these licenses before establishing their facilities.

There are three main types of licenses: Professional, Commercial and also Industrial.

Professional License:

The government of the United Arab Emirates has imposed that all entrepreneurs interested in offering a professional service to their clients must obtain a Professional license.

The purpose of this license is to establish that the individual or company is qualified to provide services in a certain profession. It must be remembered that this license generally requires the applicant to show their skills.

All professionals, for example, craftsmen, specialists, and artisans need to acquire a Professional license to form a business on the Mainland Dubai. Another key point of this specific license is that allows entrepreneurs to retain 100% ownership in Dubai Mainland.

Commercial License:

In the United Arab Emirates, a company that carries out activities related to the purchase and sale of commodities and goods requires a commercial license to operate normally. This license can be used to form a Limited Liability Company (LLC) or to form a Sole Establishment. And it can be used for both specialized trading and general trading activities in the UAE.

There are different types of commercial licenses, you must make sure to apply for the license that best suits the needs of your business.

The commercial license activities list is the following:

• Broadcasting and communication
• Rental transportation services
• Construction
• Real Estate
• Healthcare Businesses

Industry License:

Every entrepreneur who wants to manage a company whose activity is based on the manufacture of products must acquire this Dubai Mainland License. This will allow you to carry out activities related to the transformation of natural materials into final products.

Important to realize: Depending on the activity of your company, you may need additional approvals from certain government entities to obtain your Dubai Mainland License. For example, the Ministry of Economy and the Ministry of Energy.

The price of the licenses can vary from time to time, so defining a rate for the approvals and the documentation can be hard. However, in the following lines, we will name some general costs when forming a Limited Liability Company:

Commercial License:

• Initial approval: AED 120
• Name approval: AED 620
• Tasheel Fee: AED 230
• Notarization of MoA: AED 1500
• License Fee: AED 10,000
• Market fees: AED 500

Professional License:

• Initial Approval: AED 120
• Name Approval: AED 620
• Tasheel fee: AED 230
• Notarization of MoA: AED 900
• License Fee: AED 5,600
• Foreign name charges (if you choose an Arabic name, this fee can be avoided): AED 2,000

Services included in the formation of a Limited Liability Company

Initial approval from the DED

The DED is in charge of approving the Dubai Mainland License along with the operations of all companies. A nominal fee will allow you to start working for a maximum period of six months. This way, you will have enough time to gather all the documents.

Approval for the trade name

The trade name is the name by which your company will be known. Depending on the situation, there is a possibility that the cost will fluctuate depending on the name you choose.

Some of the trade name charges include, commercial name fees, reservation fees, and foreign company name fees, among others.

Leasing an office for LLC

Renting an office is mandatory for those companies who want to obtain a Dubai Mainland License, as they help the government monitor their operations, conduct inspections, and ensure that immigration laws are being followed. Office space can be on a yearly or a termly cost.

Attestation of MoA

The attestation of the Memorandum of Association is made between the partners or the shareholders of a company. The cost may vary depending on the share capital, although it is a one-time expense.

DED fee

The Ministry of Economy, established in each Emirate, charges a nominal fee to register the Limited Liability Companies.

One of the biggest reasons why the United Arab Emirates is a successful area for solo entrepreneurs and small businesses is the affordability and flexibility when starting a business. A Mainland coworking license allows new entrepreneurs to run a business at a low cost.

With this Dubai Mainland License, you can trade your products from the UAE Mainland without having permanent ties to a place. In this way, you can use one of the many coworking spaces and you will be able to access a larger market without costly overheads.

Coworking is a working modality that has gained enormous popularity throughout the world. It is estimated that there are around 11,000 coworking spaces globally, serving 1.2 million people.

Some of the advantages that you can enjoy when acquiring this license are the following:

• A coworking space is a place that offers a perfect balance between the stuffy nature of an office and the casual surroundings of your home. Fewer distractions coupled with less formality usually mean higher productivity.
• Coworking spaces allow you to get together with like-minded individuals. Which, for the most part, will be able to help you with your company in the future.
• Working in one of these spaces offers great flexibility. Simply, you can choose how much or how little you used it.
• Having a coworking license allows you to use premium office facilities in excellent locations at a very affordable price. Therefore, you will not have to worry about utility bills or anything like that.

The Mainland is the geographic location outside of the free zone area. Companies here are also known as onshore companies and their licenses (for example a Dubai Mainland License) are issued by the Department of Economic Development or any related Department in some other Emirate. These companies are authorized to trade without any restrictions in the local market and outside the UAE.

Mainland companies need to work in a workspace with a minimum physical size of 200 sq ft. This must be leased annually or it must have an EJARI certificate.

Also, apart from getting a Dubai Mainland License, companies on the Mainland must obtain approval from certain government entities to trade. Depending on the nature of your business, you may need the approval of entities, such as the Ministry of Interiors, Ministry of Labor, and trade-specific associations. For example, the Health Authority.

Another key point of the Mainland is that any company established there has no limit on the number of residence visas that can be applied for. These visas depend on the designation of employees, as well as the size of the office or the business facility.

The number of visas issued for each company is closely related to the sq. ft of the office space. Therefore, the larger the office, the higher your company will be able to apply for residence visas.

Firstly, registering a company in the United Arab Emirates is a fairly straightforward process. All you need is to follow a few simple steps.

The documents required to register a Mainland company and get a Dubai Mainland License, vary depending on the type of shareholder. For example, corporate shareholders require one group of documents, while individual shareholders require others.

Some of the documents for individual shareholders are the following:

• Copy of the UAE Shareholders National’s ID
• No objection letter from the employers if the shareholder is on an employment visa
• Passport copy of the director, managers, and foreign shareholders.

Some of the documents to register your company and get a Dubai Mainland License for corporate shareholders are the following:

• Trade name registration
• Registration form
• Passport copy of the director
• Board resolution of the company
• Memorandum of Association
• Certificate of incorporation
• No objection letter from the parent company
• Power of Attorney
• Authorization of the management of the parent company

In the United Arab Emirates, there are different types of formation of companies on the Mainland Dubai, some are the following:

• Incorporation of a Professional company: Professional companies are those that rely on the intellectual capacities of their shareholders. All businesses whose productive activity is based on providing consulting services can be put into this category and must obtain a Dubai Mainland License. For example, educational consultants, accounting firms and legal firms, among others.

Incorporation of a branch office: You can form a branch office on the Mainland. This company operates as the child company of the parent company and conducts all transactions and business activities vested upon the parent company

The process of forming a company and getting a Dubai Mainland License only consists of a few simple steps.

1.    Choose the business activity

The first thing you must decide when forming a company is the activity to which you are going to dedicate yourself. The Dubai Economic Department of Trade license activities list is the following:

• Trading
• Manufacturing
• Agriculture
• Design
• Marketing
• Telecommunications
• Educational services
• Crafting, among others.

2.    Ideal location

Choosing a good location is very important when starting a company. If you want to obtain a Dubai Mainland License, this region offers multiple options and no restrictions.

3. Legal structure

When opting for a Dubai Mainland License you can choose between several types of companies. However, the most common is the Limited Liability Company (LLC). Those entrepreneurs interested in working under a commercial or industrial license must form an LLC.

4. Name your company

Deciding what name your company will bear is one of the most important decisions in this process. In the UAE, you must be aware of the regulations regarding the names. For example, it may not contain offensive language, it may not be associated with any political entity or religion, and it must respect the moral values ​​of the UAE.

5. Apply for a trade license

At this point, you must apply for a Dubai Mainland License with the DED. Part of the application process requires the submission of various documents. For example, shareholder visas, license applications, and memorandum of sponsor arrangements, among others.

6. Office space

The next step is to get an office space. When you apply for a Dubai Mainland License, you will find that, generally, a third party owns the offices and they are in charge of maintaining them. These offices already have everything you need, so all you have to do is move in and start working.

7. Visas

There is no limit to visa applications for entrepreneurs who apply for a Dubai Mainland License. However, the number of visas you can apply for will depend on the size of your office.

A Mainland Visa is an official document that allows you to work and live in the UAE. All entrepreneurs must have one if they want to form a company in the country and apply for a Dubai Mainland License. As a result, this visa works for setting up in different Emirates with a Mainland location and is valid for two years.