Dubai is one of the world’s most prosperous and business-friendly cities, attracting entrepreneurs and investors from all over the globe. Specific requirements need to be met to set up a business in Dubai mainland. In this article, we will discuss the Dubai mainland license requirements.
The legal structure is one of the first things to consider when setting up a business in Dubai mainland. The most common legal systems for businesses in Dubai mainland are Sole Proprietorship, Limited Liability Company (LLC), and Civil Company. The LLC is the most popular legal structure for foreign investors in Dubai, allowing up to 49% foreign ownership.
The next step is to determine the business activities that the company will undertake. Dubai’s Department of Economic Development (DED) has classified all business activities into three categories: Commercial, Professional, and Industrial. The business activities chosen will determine the type of license required.
The location of the business is also an essential requirement for a Dubai mainland business license. The company must have a physical office or commercial space in Dubai mainland. The location must comply with the zoning regulations of the area where the business will be set up.
Trade name and initial approval:
The company must have a trading name that reflects the nature of the business. The DED must approve the trade name. Once the trade name is approved, the company must obtain initial approval from the DED.
Dubai mainland companies must meet minimum capital requirements. The minimum capital requirements vary depending on the legal structure and business activity. For example, the minimum capital requirement for an LLC with a commercial license is AED 300,000.
License fees and renewal:
The license fees for Dubai mainland businesses vary depending on the legal structure and business activity. The license must be renewed annually, and the renewal fees must be paid before the permit expires. Failure to renew the request may result in fines and penalties.
Dubai mainland companies must have at least one shareholder or employee with a valid UAE residency visa. The visa process can be complex and time-consuming, but business setup consultants can help expedite the process.
In conclusion, setting up a business in Dubai mainland requires careful planning and adherence to the legal and regulatory requirements.