The UAE is celebrated as a global business hub, offering unparalleled opportunities for business setup across various jurisdictions. For entrepreneurs aiming for flexibility and seamless access to local and international markets, Dubai Mainland and Abu Dhabi Mainland offer excellent options for company formation, catering to diverse business needs. In this blog we will understand why one needs a mainland business license, types of business license and more.
Why Do You Need a Mainland License?
- Legal Authorization: A trade license in Abu Dhabi or Dubai ensures your company adheres to local regulations.
- Market Access: With a mainland license, you can operate both locally and globally without restrictions.
- Regulatory Compliance: It assures clients and stakeholders of your business’s credibility.
- Scalability: Mainland licenses allow businesses to expand operations easily, including obtaining employment visas in the UAE and opening branch offices.
Types of Business Licenses in Abu Dhabi and Dubai
- Commercial License: Ideal for trading activities, such as retail, logistics, and construction.
- Professional License: Suitable for consultancy services, tax accounting services in Dubai, and other expertise-driven fields.
- Industrial License: Required for manufacturing businesses and production industries.
Step-by-Step Process for Mainland Business Setup
1. Select Your Business Activity
Choose a business activity that aligns with your goals. Multiple activities can be registered, depending on your industry and license type.
2. Determine the Legal Structure
A popular choice for company formation in Abu Dhabi and Dubai is the Limited Liability Company (LLC). This structure provides flexibility and limited liability for shareholders.
3. Register Your Trade Name
Your trade name must comply with UAE regulations, avoiding offensive terms or references to government entities. Trade name registration is crucial for business setup in Dubai and Abu Dhabi.
4. Obtain Initial Approvals
Submit the required documentation to the DED for initial approval. Partnering with professional business setup services in Abu Dhabi can streamline this step.
5. Apply for a Mainland License
Prepare and submit essential documents, such as a Memorandum of Association (MOA) and Local Service Agent (LSA) agreement, to secure your trade license in the UAE.
6. Secure Office Space
Leasing office space is mandatory for mainland licenses. Individuals can opt for either private offices in Dubai, or coworking spaces depending on their capital and area of operations.
7. Pay the License Fee
The cost of setting up a company in Abu Dhabi or Dubai depends on factors like business activity, location, and office type. Average Dubai Mainland business setup cost ranges from AED 12,000 to AED 15,000.
8. Open a Corporate Bank Account
Separate personal and business finances by opening a corporate account. This is essential for financial compliance and future growth.
9. Obtain Visas
Apply for resident visas in the UAE for investors and employees. Mainland companies allow unlimited visa applications, depending on the office space.
Factors Influencing Business Setup Costs
- Abu Dhabi Company Formation Cost: Costs vary depending on business type, office requirements, and approvals.
- Dubai Mainland Company Formation Cost: Mainland licenses are competitive compared to Dubai Free Zone business setup costs but offer greater operational flexibility.
- Low-Cost Business Setup in Dubai: Opting for virtual offices in Dubai or shared office spaces can reduce overheads significantly.
Business Setup Support
Setting up a business in the UAE requires expertise to navigate legal requirements, licensing, and cost management. From tax accounting services in UAE to office solutions, partnering with professionals ensures a seamless process.
Conclusion
At BLZ, we specialize in comprehensive business setup services in Abu Dhabi and Dubai. Our team simplifies the complexities of company formation, from securing the right license to managing Ejari registration and visa processing. Whether you’re exploring offshore company setup in Dubai, freezone company formation in Dubai, or mainland business formation in Sharjah, we are your trusted partner.
Take the first step toward your entrepreneurial journey with BLZ—your guide to business success in the UAE.