Setting up a business in Dubai Mainland is an excellent opportunity for entrepreneurs aiming to tap into one of the most dynamic and business-friendly economies in the world. This article provides a comprehensive guide to understanding the costs associated with acquiring a Dubai Mainland License in 2025, covering every aspect from license types to additional expenses.
What is a Dubai Mainland License
A Dubai Mainland License is a government-issued permit allowing businesses to operate within Dubai and across the UAE without restrictions. It provides the flexibility to trade in the local market and engage in business activities outside the UAE. Unlike free zone licenses, it offers unparalleled access to the UAE’s thriving economy.
The Dubai Mainland License is regulated by the Department of Economic Development (DED). Companies with this license enjoy several benefits, including the ability to trade directly with the local market, take on government contracts, and establish an unrestricted physical office anywhere in Dubai.
Dubai Mainland Company Setup
Establishing a business in Dubai Mainland requires compliance with local regulations and coordination with the DED. The process involves selecting a business activity, reserving a trade name, and obtaining the necessary approvals. A critical aspect of setting up is acquiring a physical office space, as it’s mandatory for mainland companies.
The following are the main steps involved in Dubai Mainland Company Setup:
- Select a Business Activity: Identify the scope of activities your business will undertake.
- Choose a Legal Structure: Decide on the legal entity, such as an LLC, branch office, or sole proprietorship.
- Trade Name Registration: Ensure the trade name complies with DED regulations.
- Initial Approvals: Obtain preliminary approvals from the DED and other relevant authorities.
- Office Space: Secure a tenancy contract for office space.
- Final Licensing: Submit all documents and pay the required fees to receive your license.
Types of Mainland Licenses in Dubai
The Dubai Mainland License is categorized based on business activities. Understanding these types is essential to estimate costs and compliance requirements. The primary types include:
Commercial License
Issued to businesses involved in trading goods and services, such as retail, import/export, and general trading.
Industrial License
Suitable for companies engaged in manufacturing, production, or other industrial activities.
Professional License
Designed for service-oriented businesses such as consultancies, salons, and medical services.
Tourism License
Specifically for companies operating in the tourism sector, such as travel agencies and tour operators.
Factors Influencing Mainland License Costs in 2025
The cost of acquiring a Dubai Mainland License depends on several factors, including:
- Business Activity: Certain activities require additional approvals, impacting costs.
- Office Space: The size and location of the office significantly influence expenses.
- Number of Visas: The more visas you require, the higher the overall cost.
- External Approvals: Activities requiring permissions from other government bodies, such as Dubai Municipality or Dubai Health Authority, may incur extra charges.
- Legal Structure: Costs vary based on whether you set up an LLC, branch, or sole proprietorship.
Breakdown of Dubai Mainland License Fees
Understanding the cost structure of a Dubai Mainland License is vital for budgeting. Below is a typical breakdown:
- DED License Fee: AED 10,000 – AED 15,000 (varies by activity).
- Trade Name Registration: AED 620 – AED 2,000.
- Initial Approval Fee: AED 150 – AED 300.
- Local Sponsor Fee: AED 10,000 – AED 25,000 (if applicable).
- Office Rent: AED 15,000 – AED 50,000 annually (depends on size and location).
- Visa Costs: AED 4,000 – AED 6,000 per visa.
- External Approvals: AED 1,000 – AED 20,000 (based on activity).
These costs are approximate and subject to change based on government regulations and specific business requirements.
Office Space Requirements and Associated Costs
A physical office space is mandatory for business in Dubai Mainland. The cost of office space depends on:
- Location: Prime areas like Downtown Dubai and Business Bay are more expensive than suburbs.
- Size: Larger offices incur higher rental costs.
- Type of Lease: Options include serviced offices, shared spaces, or long-term leases.
Typical Office Rental Costs in Dubai:
- Shared Office: AED 15,000 – AED 25,000 annually.
- Small Office: AED 25,000 – AED 50,000 annually.
- Premium Office: AED 100,000+ annually.
Visa Fees and Employee Sponsorship Costs
A critical part of the Dubai Mainland License process is sponsoring visas for employees. Visa costs include:
- Investor Visa: AED 4,000 – AED 7,000.
- Employee Visa: AED 4,000 – AED 6,000 per employee.
- Medical Insurance: Mandatory and costs AED 1,500 – AED 5,000 per person annually.
- Labour Card: AED 200 – AED 300 per employee.
Additional Approvals and Permit Expenses
Depending on your business activity, additional approvals may be required. Common examples include:
- Dubai Municipality Approval: For construction and food businesses.
- Dubai Health Authority Approval: For healthcare-related activities.
- Civil Defense Approval: For fire and safety compliance.
Each of these approvals comes with its own set of costs, typically ranging from AED 1,000 to AED 20,000.
Steps to Obtain a Dubai Mainland License
To secure a Dubai Mainland License, follow these steps:
- Determine Business Activity: Select from the DED’s approved activity list.
- Reserve Trade Name: Ensure your chosen name meets legal standards.
- Initial Approval: Obtain a no-objection certificate from the DED.
- Office Lease Agreement: Secure a tenancy contract.
- Submit Documents: Provide all required paperwork to the DED.
- Pay Fees: Complete the payment to receive your license.
Cost Comparison: Mainland vs. Free Zone Licenses
Feature | Dubai Mainland License | Free Zone License |
Market Access | Full access to UAE local market | Limited to free zone and international markets |
Office Requirement | AED 15,000 – AED 100,000 annually (mandatory) | Optional; AED 5,000 – AED 15,000 annually |
Flexibility in Operations | Operate anywhere in the UAE | Restricted to the chosen free zone |
Government Contracts | Eligible for government tenders | Not eligible for government contracts |
Initial License Fee | AED 10,000 – AED 15,000 | AED 5,000 – AED 12,000 |
Local Sponsor Fees | AED 10,000 – AED 25,000 (if applicable) | Not required |
Visa Costs (Per Visa) | AED 4,000 – AED 7,000 | AED 3,000 – AED 6,000 |
Conclusion
Acquiring a Dubai Mainland License in 2025 involves careful planning and budgeting. By understanding the costs and requirements outlined above, you can make informed decisions to successfully establish your business in Dubai. Whether it’s navigating license fees or securing office space, the process is manageable with the right guidance.
For a seamless and hassle-free setup, consult GCS (Gulf Corporate Services), the leading business setup services provider in Dubai. From license acquisition to visa processing, GCS ensures your business in Dubai Mainland is operational in no time.