How to Set Up a Branch Office with a Mainland License in Dubai
The vibrant city of Dubai may be in store for a great expansion and opportunity resource for your business. The mainland-licensed branch office in Dubai opens local market doors and will help you enhance your presence within the country. A mainland license gives companies the liberties of being able to conduct business within Dubai mainland and across the UAE, but it offers a wider market compared to free zones. Procedures follow below: from understanding the requirements for a branch office by mainland license in Dubai up to finalizing the license.
Understanding the Basics of a Mainland License in Dubai
Before diving into the setup process, it’s essential to understand what a mainland license entails. A mainland license, also known as a Dubai mainland trade license, is issued by the Department of Economic Development (DED). This type of license allows companies to operate across the UAE without restrictions, unlike free zone licenses, which limit operations to specific zones. With a mainland license, a branch office has the flexibility to bid for government contracts, work with clients throughout the UAE, and conduct business freely within the local market.
Determine Your Business ActivitiesThe first step in obtaining a mainland license Dubai requires is to clearly define the activities of your branch office. Dubai's Department of Economic Development (DED) provides a list of activities that are allowed under the mainland license. These activities include but are not limited to, trading, manufacturing, and professional services. You must select the appropriate category for your business, as the activities you choose will determine the type of mainland trade license Dubai issues for your branch.
Appoint a Local Service AgentTo set up a branch office with a mainland license, you must appoint a local service agent (LSA), a requirement under UAE law for foreign-owned entities. An LSA is a UAE national who acts as your sponsor. They are not involved in your business operations or management but are essential for regulatory compliance. The local service agent will facilitate the registration process and liaise with government authorities on your behalf. This agreement must be legally documented, outlining the roles and responsibilities of both parties. It’s advisable to engage with a reputable LSA who understands the nuances of Dubai mainland license regulations to ensure a smooth process.
Prepare the Required DocumentationThe documentation process is critical when applying for a mainland license Dubai offers. Typically, the documents required include:
- Parent company documentation: This includes a copy of the parent company’s trade license, certificate of incorporation, and a resolution from the board authorizing the establishment of a branch in Dubai.
- Local agent documentation: A signed agreement with the local service agent is required.
- Additional supporting documents: These include passport copies of the branch office manager, Power of Attorney (POA), and other identification documents.
Choosing a unique trade name is another crucial step. The name should align with the nature of your business and must comply with DED’s naming guidelines. The trade name reservation can be done through the DED’s online portal or in person. After securing your trade name, you will need to obtain initial approval from the DED to proceed with your application. Initial approval is a green light from authorities, indicating that your branch office setup complies with mainland license Dubai requirements.
Find an Office Space
To obtain a Dubai mainland trade license, it’s mandatory to secure a physical office space within the city. The office should meet the DED’s requirements for minimum space and facility standards. Renting or leasing office space within Dubai is common for branch offices. The lease agreement must be registered with the Ejari system, an official registration system for rental contracts. The approved Ejari certificate will be part of your mainland trade license application.
Submit Your Application to the DEDOnce all necessary documents are ready, and you’ve received initial approval, submit your mainland trade license Dubai application to the DED. You’ll also need to pay the relevant fees, which may vary depending on your business activity, office size, and additional requirements set by the authorities. The application undergoes a comprehensive review by the DED, and it’s important to be patient, as approval times can vary based on the complexity of your business.
Complete the Registration with the Chamber of CommerceOnce your application is approved, you must register your branch office with the Dubai Chamber of Commerce and Industry (DCCI). This step is mandatory for all mainland businesses operating in Dubai, as it allows your branch to engage in trade activities. The DCCI registration provides access to additional business resources and industry networks that can support your branch office’s growth and development.
Open a Corporate Bank AccountAfter securing your mainland license, you’ll need to open a corporate bank account in Dubai. This account will facilitate the financial operations of your branch office, including payments, salaries, and vendor transactions. Many banks in Dubai offer specialized services for businesses with a mainland trade license, and they may require a minimum deposit. Choose a reputable bank that aligns with your branch office’s financial needs, as this account will be integral to your operations.
Hire Employees and Finalize Your Office SetupHiring the right talent is key to your branch office’s success. Dubai is home to a diverse pool of skilled professionals, and the mainland license allows you to hire employees without restrictions. Once you have recruited your team, ensure all necessary visas and work permits are in place. You may also need to provide your employees with medical insurance and other essential benefits as part of UAE labor laws. With your team onboarded and your office ready, your branch office will be fully prepared to commence operations.
ConclusionSetting up a mainland license in Dubai with a branch office is a great catalyst for international companies trying to expand into the UAE. Its strategic location, business-friendly environment, and enormous market opportunities make Dubai an ideal hub for companies in any sector. Hence, obtaining a Dubai mainland license requires vivid preparation, respect for local rules and regulations, and acquisition of local cooperation but the advantages weigh more than the efforts. If you follow the procedure outlined above, your branch in Dubai is likely prepared to be a roaring success in that lively marketplace.
Ready to take your business to the next level by opening a branch in Dubai? Our team is here to walk with you step by step in this journey. Whether it is a finalized setup or a Dubai mainland trade license, we have everything that you can request. Get in touch with us today to take the first step into one of the most exciting business terrains in the world.