MAINLAND LICENCES
Choose The Right United Arab Emirates Mainland License
Our specialists will help you select the most suitable and advantageous United Arab Emirates mainland licence for your company – be it commercial, industrial or professional.
Mainland Licenses
The basic requirement for all mainland business activities in the UAE is to have a licence in one of these categories.
Just like many places around the globe, entrepreneurs and companies must obtain a trade licence to validate their mainalnd company as a legal entity in the United Arab Emirates. This trade licence must be granted before commencing business activity. This applies in both free zone jurisdictions and Mainland United Arab Emirates. Having a trade licence in United Arab Emirates ascertains your customers that you are a legitimate business that complies with local laws and regulations.
Whilst there are many steps to get your business registered in the mainland, obtaining a trade licence in United Arab Emirates is the most crucial to business setup.
When starting a new business in the UAE, you need to acquire the right trade licence to ensure that your mainland company is set up properly for the long-term. The type of business activities, company structure and jurisdiction where you will operate can affect the type of trade licence you need to acquire and the requirements applicable to you.
Below are the three types of trade licences that you need to consider as you begin the company formation process and start a mainland business in United Arab Emirates:
Types of mainland trade license
The UAE government requires businesses and entrepreneurs to obtain a professional business trade licence from the Department of Economic Development (DED) before they can be authorised to provide their professional services to clients from the United Arab Emirates mainland.
The purpose of professional licensing is to establish that the person or business is qualified to provide services in a certain profession. Issuance of these licences generally requires the applicant to show certain skills or training.
All professionals, specialists, craftsmen and artisans need to acquire a professional trade licence to set up a mainland company in United Arab Emirates.
When dealing with mainland company formation in United Arab Emirates, there are several company structures that can be formed with a professional licence: A Limited Liability Company where a local sponsor holds 51% of the company; and a Civil Company and a Sole Establishment where the foreign investor(s) have 100% ownership of their company.
However, in setting up a Civil Company or a Sole Establishment, a UAE national must be appointed as a local service agent (LSA) to complete the legal formalities.
Commercial trade licence
Mainland companies dealing with buying and selling of goods and commodities, or any kind of trade activities, require a commercial trade licence to operate in the UAE. This business licence can be used to form a limited liability company (LLC) or set up a sole establishment, and it can be used for both specialised trading and general trading activities in the UAE.
There are different types of commercial trade licences in the UAE. If you are navigating the process of company formation, you must apply for the correct type of commercial trade licence that will permit you to carry out trading activities specific to your business.
Broadcast and communications companies, rental transportation services, retail companies, construction companies, healthcare businesses, real estate businesses, and other general trading entities also need to apply for a commercial trade licence in United Arab Emirates.
Industrial trade licence
Businesses that want to conduct industrial or manufacturing-based activities in the UAE must acquire an industrial trade licence, which will allow them to engage in activities related to converting natural materials or incorporating natural resources into their end products.
This business licence is issued by the DED but additional approvals might be required from the Ministry of Finance, Ministry of Economy, the Ministry of Energy and Infrastructure and other authorities, depending on the industrial activity involved.
Requirements to obtain a UAE trade licence
When applying for a mainland licence in United Arab Emirates you must do so through the United Arab Emirates Economic Department.
Before opening any business with the United Arab Emirates Economic Department, one must meet the following legal requirements to obtain a trade licence in the UAE:
Determine the business category – whether it is professional, commercial, or industrial;
Determine the type of business activity;
Determine the legal structure of the business entity; and
Determine the trade name of your business.
The local department of economic development registers your trade name
The Ministry of Economy registers your trademark (if applicable).
Depending on the legal form of a business, it is also a requirement to complete and sign a Memorandum of association (MoA) or a local service agent agreement (LSA). The memorandum of association is required for the following business legal forms:
- Limited partnership
- Public joint stock company (PJSC)
- Limited liability company (LLC)
- Private joint stock company (PrJSC)
LLC Sponsorship
we provides a premier corporate nominee to act as your 51% local sponsor in United Arab Emirates. Our main objective is to give you 100% financial and operational control, whilst protecting your shareholder rights in your LLC company. The agreements and documents used are drafted by first-tier legal counsel, and they have been tried and tested for nearly 10 years and adapted over time to remain cutting edge. We believe our corporate nominee is the best available product in the market when it comes to finding a local sponsor. Our sponsorship services will provide you with all the documentation to protect your business and secure the financial rights of your company.
Operating since 2009, our team of 100 employees provides the combined resources necessary to deliver ongoing support in company formation, licence renewal, visa services and much more. We are truly a one-stop shop for company formation and our clients appreciate having a dedicated service agent to assist with all their corporate services needs.
In addition to LLC companies we are able to assist you in establishing any of the below entities in the UAE mainland:
- Branch
- Representative Office
- Sole Establishment
- Civil Company