Starting a business in Dubai with a mainland license is an exciting opportunity for entrepreneurs. The process, while straightforward, requires careful planning and adherence to local regulations. Here’s a step-by-step guide to help you steer the process.

Define your business activity:

The first step is to determine the specific business activities you plan to undertake. This is important, as the type of license you need depends on these activities. Dubai’s Department of Economic Development (DED) provides an inclusive list of permissible activities to help you choose.

Choose a legal structure:

Decide on the legal structure of your business, such as a sole proprietorship, limited liability company (LLC), or partnership. Each structure has different implications for ownership, liability, and management. For most startups, an LLC is a popular choice due to its flexibility and limited liability protection.

Find a local sponsor (if required):

If your business requires a local sponsor (51% local ownership), you’ll need to find a UAE national to act as your sponsor. This person will hold the required share in the company but won’t be involved in day-to-day operations. Recent regulations allow for 100% foreign ownership in specific sectors, so check if your business qualifies.

Reserve a trade name:

Choose a unique trade name for your business that complies with DED regulations. The name should not violate any established trademarks and must reflect the nature of your business. Once you’ve selected a name, you can reserve it through the DED’s online portal for a small fee.

Apply for initial approval:

Before proceeding with the full application, you must obtain initial approval from the DED. This approval indicates that the government has no objection to your business plans. You’ll need to submit your trade name reservation, business activity details, and copies of identification for the partners.

Draft the memorandum of association (MoA):

Prepare a memorandum of association (MoA) outlining the company’s structure, ownership details, and operational framework. This document must be notarised and signed by all partners. If you have a local sponsor, ensure their details are included.

Secure a business location:

You must have a physical address for your business in Dubai. This can be an office, a retail space, or a warehouse, depending on your business type. Obtain a tenancy contract, as this will be required for your license application.