Dubai is a world-renowned destination with a diverse population and a dynamic economy. The UAE government actively encourages new businesses by offering numerous incentives to entrepreneurs.
If you are considering establishing a business in this vibrant city, one of the first steps is obtaining a Dubai Mainland License. This article offers a detailed overview of the costs involved and provides insight into what a mainland licence entails, along with reasons why it may be the right choice for your business.
Overview of Dubai Mainland
“Mainland Dubai” refers to the geographical area within the UAE where businesses can operate without restrictions on their commercial activities. The Department of Economic Development (DED) regulates mainland companies and oversees a broad range of activities, including buying and selling, professional services, and manufacturing.
Unlike free zones, mainland companies are not restricted to specific areas and can trade directly within the local market and participate in government projects.
What is a Dubai Mainland License?
A Dubai Mainland License is a legal requirement for any business operating within the mainland territory of the UAE. It serves as official permission for companies to set up their business in Dubai and to carry out commercial activities in compliance with local regulations. By obtaining this licence, businesses gain access to the extensive opportunities within Dubai’s thriving marketplace while ensuring full compliance with the emirate’s laws and guidelines.
Cost Components of a Dubai Mainland License
The cost of a Dubai Mainland License varies depending on several factors, including the business activity and jurisdiction. The key cost components include:
1. Registration Fees
Registration fees differ according to business activity and jurisdiction, ranging between AED 3,000 and AED 10,000. This is typically a one-time payment to the DED or relevant free zone authority.
2. Trade Name Reservation
A trade name reservation is a mandatory step in business setup. Costs range from AED 620 to AED 2,000, depending on the uniqueness and category of the name.
3. Initial Approval Fee
Initial approval from the DED or free zone authority is required before proceeding. This fee ranges from AED 100 to AED 3,000, based on the activity and jurisdiction.
4. Licence Fee
The licence fee is the principal cost factor, varying according to the type of licence and business activity. On average, licence fees range from AED 5,000 to AED 15,000 per year. Free zones may offer different pricing structures, often providing packages that include multiple services.
5. Office Space Rental
A physical office is required for most business licences in Dubai. Rental costs vary significantly by location and size. Prime locations and larger office spaces typically increase rental costs. Businesses should budget between AED 15,000 and AED 50,000 annually for office space in free zones, with mainland offices potentially a bit more.
6. Sponsorship Fees
Mainland businesses require a local sponsor or service agent. Sponsorship fees range from AED 10,000 to AED 50,000 annually, depending on the nature and scale of the business.
7. Visa Costs
Visa expenses for employees and shareholders are another significant cost. Residency visas typically cost between AED 3,000 and AED 7,000 per person, covering medical tests, Emirates ID, and visa stamping fees.
8. Additional Costs
Additional costs of a Dubai Mainland License may include administrative charges, legal fees, government levies, annual office rent, visa costs for employees or the number of visas required (which increases with the number of staff), investors’ fees, insurance, utilities, and municipality charges, which are approximately 5% of the annual rent.
Example Cost of a General Trading Licence in Dubai
| Cost Component | Estimated Range (AED) |
| DED Activity Fees (General Trading) | 15,000 |
| Tasheel Fees for Initial Approval | 345 |
| Tasheel Fees for MOA | 350 |
| Immigration Card | 750 |
| Trade Name Reservation | 620 |
| Initial Approval Fees | 120 |
| Licence Fees | 12,500 – 15,000 |
| Total Cost | 29,685 AED |
The total cost for a general trading licence in Dubai varies depending on factors such as the number of managers and partners, and the chosen trade name. On average, it ranges from AED 28,000 to AED 32,000.
How to Reduce Costs When Starting a Business in Dubai Mainland
Although obtaining a Dubai Mainland License can involve significant expenditure, there are several cost-saving strategies entrepreneurs can adopt:
- Consider Free Zones: Setting up your business in one of Dubai’s free zones may offer cost advantages and tax benefits.
- Form Partnerships or Joint Ventures: Collaborating with an established company can allow you to share licensing costs.
- Utilise Expert Consultancy Services: Engaging experienced business setup consultants such as Filings.ae can help reduce costs. As a leading consultancy in Dubai, Filings.ae offers some of the most cost-effective business setup solutions in the UAE.
- Choose the Right Business Structure: Select a structure that matches your budget and long-term goals. For example, a Sole Establishment may have lower setup costs than an LLC.
- Optimise Office Space: Where possible, begin with a smaller office or a flexi-desk option to significantly reduce rental expenses.
- Take Advantage of Packages: Explore bundled services or packages that offer savings on trade name registration, initial approvals, and other setup requirements.
- Plan for Scaling: Start small and expand operations as your business grows to manage cash flow and avoid high upfront costs.
- Stay Informed: Keep updated with the latest regulations and incentives from the UAE government, including tax exemptions and other benefits for new businesses.
Ensuring Compliance and Avoiding Penalties
It is essential to obtain a Dubai Mainland License before commencing any business activity in the Emirates. Operating without the required licence can lead to severe consequences, including substantial fines, closure of the business, and legal action.
Adhering to licensing requirements and maintaining compliance safeguards your business and ensures smooth operations in Dubai’s competitive and dynamic marketplace.
Get Started in Dubai Mainland
Understanding the cost of a Dubai Mainland License is essential for effective planning and budgeting. With the right guidance and support, you can navigate the process smoothly and establish your business in Dubai Mainland successfully.
At myOffice Dubai, we provide workspace solutions, professional services, and enterprise support to help you obtain your Dubai Mainland License efficiently.
From flexible private workspace solutions to virtual offices and well-equipped meeting rooms, we offer customised workspace solutions for all types of businesses. We are located in Boulevard Plaza and Dubai Marina Plaza, prime locations in the Dubai Marina area, which is part of the Dubai mainland.
Contact us today to begin your business journey in Dubai’s thriving market.
Frequently Asked Questions
What is the difference between a free zone and the mainland?
Mainland companies can operate anywhere in the UAE without restrictions. Free Zone companies are permitted to operate only within the Free Zone or internationally, unless they appoint a local distributor. Business operations in the mainland require a No Objection Certificate (NOC) from the Department of Economic Development (DED).
What defines a mainland area?
A mainland area refers to the main part of a country or territory, excluding surrounding islands, regardless of jurisdiction. It is generally considered more significant politically, economically, and demographically than isolated territories.
Can Freezone companies work with the Mainland?
Yes. The DED can allow a Free Zone company to operate in the mainland by granting a licence to establish a branch of the Free Zone company within Mainland Dubai.
Is DMCC mainland or freezone?
DMCC is a Free Zone in Dubai, recognised for commodities and trade, offering a wide range of business activities.
How to renew a mainland license?
A Dubai Mainland trade licence can be renewed via the DED portal. Submit the required documents, complete the payment, and the renewed licence will be issued digitally.
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