When considering business setup in Dubai, one key factor is the cost of obtaining a mainland license. The cost of a Dubai mainland license can vary depending on several factors, including the nature of the business activity, the size of the company, and the specific requirements of the licensing authority. This article will provide an overview of the costs associated with obtaining a mainland license in Dubai.
License fees:
The license fees for a mainland license in Dubai can vary based on the business activity you wish to engage in. Dubai Department of Economic Development (DED) is responsible for issuing licenses for mainland businesses. The license fees typically depend on the type of business activity, such as trading, professional services, or manufacturing. These fees can range from a few thousand UAE Dirhams to tens of thousands, depending on the scope and scale of the business.
Trade name registration:
Before obtaining a mainland license, register your trade name with the DED. The trade name registration fee is an essential initial cost to secure your chosen business name. The fee for trade name registration is usually affordable and can range from a few hundred to a few thousand UAE Dirhams.
Local sponsorship fees:
When setting up a mainland business in Dubai, you must have a local sponsor or partner who holds at least 51% of the shares in the company. The cost associated with local sponsorship can vary based on the agreement between the business owner and the local sponsor. The fees for local sponsorship can range from an annual fixed fee to a profit-sharing arrangement. Discussing and negotiating the sponsorship fees upfront is crucial to ensure transparency and mutual understanding.
Office space rental:
Renting office space is another significant cost to consider when obtaining a mainland license in Dubai. The DED requires businesses to have a physical office address to operate on the mainland. The rental cost will depend on the office space’s location, size, and quality. Dubai offers various options, from commercial buildings to business centers, with varying rental rates. It is advisable to budget for office space rental as a recurring expense in your business plan.