If you are an Indian entrepreneur who is in search of starting a business in Dubai, comprehending the various kinds of business licenses is necessary. Unlike free zones, a business setup in UAE mainland permits you to trade directly within the domestic market and with government units without any limitations. Here, we will discuss the vital business licenses and registrations you have to understand.

Why Choose the UAE Mainland for Business Setup?

The UAE mainland provides a wider reach, even though free zones have fantastic advantages like 100% foreign ownership and tax exemptions. Anywhere in Dubai and the UAE can be used by a mainland business. Additionally, it can participate in both domestic and foreign trade without the need for a local middleman and is big on government contracts. The UAE is now even more appealing to foreign investors because of recent changes to its commercial company laws that permit 100% foreign ownership in the majority of mainland business sectors.

The Department of Economy and Tourism in Dubai is the primary license-issuing body on the mainland.

Key Types of Business Licenses in Dubai

The kinds of business licenses you require are based on the business activity you have selected. The government of Dubai has categorized business licenses into certain major classes.

The three most typical for Indian entrepreneurs are –

  • Commercial License
  • Professional License
  • Tourism License

1. Commercial License –

A commercial license in Dubai for any company that deals with the purchasing and selling of goods. It is for trading activities of all types, whether it is import or export, retail, or general trading.

Who needs a commercial license?

  • Traders of clothing, electronics, and other goods.
  • Corporations in the real estate and construction industries.
  • Logistics and transportation corporations.
  • Companies that manage the import, export, and re-export of products.

Why is it the right choice for Indian entrepreneurs?

A commercial license in Dubai provides you with the freedom to trade on the domestic market and access a huge client base. With Dubai being a prime trading center, this business license is a gateway to the whole Middle East and beyond. It is the most typical business license for companies that deal with tangible products.

Note – The new rule permitting full company ownership for foreign entrepreneurs on the mainland has made it simpler than ever to obtain a commercial license without any requirement of a local partner.

2. Professional License –

A professional license in Dubai is for companies that deliver services depending on intellectual or professional specialization. This business license is ideal for freelancers, consultants, and anybody who utilizes their skills to earn a living.

Who needs a professional license?

  • Consultancy agencies (IT, Marketing, and Management).
  • Accounting and auditing services.
  • Legal companies and legal consultants.
  • Architects, engineers, and other proficient experts.
  • Freelancers in sectors like graphic design, content writing, and web development.

Why is it the right choice for Indian entrepreneurs?

A professional license in Dubai is a famous choice as it permits full foreign ownership of the company and requires you to hire a Local Service Agent. The LSA, a UAE citizen, works as a sponsor for your company but has no ownership or financial interest in it. They manage management tasks for a certain yearly amount, providing you with full control over your corporation

3. Tourism License –

If your company is associated with the flourishing tourism industry of Dubai, you will have to obtain a tourism license in Dubai. This business license is necessary for any business that delivers services to travelers and visitors. The DTCM (Department of Tourism and Commerce Marketing) grants this license and has particular needs to make sure top-quality service.

Who needs a tourism license?

  • Travel agencies (Inbound and outbound).
  • Tour operators who host sightseeing tours and excursions.
  • Hotel and hotel apartment operators.
  • Car rental firms that cater to tourists.
  • Restaurants, tourist camps, and floating restaurants.

Why is it the right choice for Indian entrepreneurs?

The tourism industry of Dubai is booming, enticing millions of visitors each year. A tourism license in Dubai provides you with the legal structure to tap into this market. Whether you wish to begin a travel company for Indian travelers visiting Dubai or present remarkable local tours, this business license is your key to success.

The Business Setup Process on the UAE Mainland

Once you have made a decision on the most suitable business license, the procedure for a business setup in UAE mainland is simple.

Here are the major steps –

  1. Establish Your Legal Structure and Business Activity – Choose a legal structure for your business, such as a Limited Liability Company (LLC) or a Sole Establishment (for a single owner).
  2. Reserve a Trade Name – The name of your business must be original and adhere to the DET's naming guidelines. You can reserve a name online and check its availability.
  3. Obtain Initial Approval – Send your application to the DET along with the necessary paperwork, such as a business plan and copies of your passport, for initial approval.
  4. Create a Memorandum of Association (MOA) – For an LLC, you must draft a Memorandum of Association (MOA) that specifies the share capital and company regulations.
  5. Obtain Additional Approvals (if necessary) – Before you can obtain your final license, you may need to obtain additional approvals from other government agencies for certain business operations, such as healthcare or education.
  6. Pay Fees and Submit Final Documents – After obtaining all necessary approvals, pay the licensing fees and submit the final documents to the DET.
  7. Obtain Your License – You can begin operations after the DET issues your official license.

Indian business owners can effectively establish their presence in one of the most vibrant business hubs in the world by being aware of these necessary licenses and adhering to the straightforward procedure for Business Setup in UAE Mainland. In Dubai, the process of turning an idea into a fully functional business is now easier and more fulfilling than ever.