Establishing a business in Dubai Mainland requires completing several key steps, such as selecting a business activity, securing a trade license, and fulfilling government regulations. Operating in Dubai Mainland enables businesses to trade within the local market and conduct activities across the city.
This guide offers a comprehensive overview of the setup process, licensing requirements, and other important considerations.
Selecting a business activity:
Choosing a business activity is the first step to business setup in Dubai mainland. Dubai’s Department of Economic Development (DED) has a list of approved activities covering various industries, such as trading, manufacturing, and professional services. Ensuring that the selected activity matches the business plan is necessary for obtaining the right licence.
Choosing a legal structure:
Businesses in Dubai Mainland can be registered under different legal structures, including Sole Establishment, Limited Liability Company (LLC), and Civil Company. The structure determines ownership regulations, liability, and operational guidelines. Many investors choose an LLC, as it allows full control of the business without needing a local sponsor.
Obtaining a trade name and initial approval:
Selecting a unique trade name is required before registering a business. The name should follow DED guidelines and must not be similar to existing businesses. After name approval, an initial approval certificate is needed, allowing the business to proceed with further licensing steps.
Securing a business location:
A physical office or workspace is required for businesses operating in Dubai Mainland. The location must meet government regulations and be registered with the Ejari system. A registered office lease agreement is necessary for trade licence approval.
Applying for a trade licence:
The type of trade licence depends on the business activity. Dubai Mainland businesses usually apply for one of the following:
- Commercial licence – for trading businesses
- Professional licence – for service-based businesses
- Industrial licence – for manufacturing and production businesses
Submitting the required documents, including the tenancy contract, initial approval certificate, and passport copies, completes the application process.
Completing visa and labour card applications:
After obtaining a trade licence, businesses must apply for visas and labour cards for employees. The process includes submitting visa applications, undergoing medical tests, and obtaining Emirates ID registration. Businesses must also register with the Ministry of Human Resources and Emiratisation (MOHRE) for employee work permits.