Dubai Mainland License Cost Guide 2025

Dubai has long been a hub for entrepreneurs and businesses seeking to establish their presence in the Middle East. The thriving economy, strategic location, and business-friendly policies make it an attractive destination for startups and established companies alike. However, understanding the cost of obtaining a mainland license in Dubai is crucial for making informed decisions. This blog provides a comprehensive guide to the Dubai Mainland License Cost in 2025, offering insights into fees, benefits, and how to optimize costs.

What is a Dubai Mainland License?

A Dubai mainland license allows businesses to operate within the local market as well as internationally. This license is issued by the Department of Economy and Tourism (DET), previously known as the Department of Economic Development (DED). Mainland companies are free from geographical restrictions within Dubai and the UAE, offering vast opportunities for growth and flexibility.

Key Features of a Mainland License:

  • Full Market Access: Operate within Dubai and across the UAE.
  • No Trade Barriers: Engage in business with government entities and private companies.
  • Flexibility in Office Location: Establish your office anywhere in Dubai.
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Types of Dubai Mainland Licenses

  1. Commercial License – Ideal for trading and commercial activities.
  2. Professional License – Suited for service-oriented businesses such as consultancy.
  3. Industrial License – For manufacturing and production.
  4. Tourism License – Required for travel and tourism businesses.

Each license type has its own specific costs and requirements. Let’s dive deeper into the financial aspects.

Breakdown of Mainland License Costs in 2025

1. Initial Approval Fee

Obtaining the initial approval from DET is the first step. This fee typically ranges from AED 1,000 to AED 3,000.

2. Trade Name Reservation Fee

Selecting a unique trade name is mandatory, and this service costs between AED 600 and AED 1,200, depending on the uniqueness of the name and any special features (e.g., foreign or premium names).

3. License Issuance Fee

This is the core cost of acquiring your mainland license, starting at AED 10,000 and going up to AED 30,000, depending on your business activity and the license category.

4. Office Rental Costs

A mainland company must have a physical office. On average, office rent in Dubai ranges from AED 20,000 to AED 100,000 per year, depending on the location and size. Prime locations like Sheikh Zayed Road and Business Bay are more expensive, while emerging areas offer cost-saving opportunities.

5. Local Sponsorship Fee

Mainland companies with foreign ownership require a local Emirati sponsor. Although the UAE now permits 100% foreign ownership in many sectors, some businesses still require a sponsor. Fees for sponsorship typically range from AED 5,000 to AED 25,000 per year.

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6. Additional Government Approvals

Certain businesses require extra approvals from relevant government departments. For example:

  • Health clinics need Dubai Health Authority (DHA) approval.
  • Food businesses must obtain approval from Dubai Municipality. Costs vary but expect to pay between AED 1,000 and AED 5,000.

7. Visa Costs

Each mainland license allows companies to sponsor visas for employees. Costs include:

  • Investor Visa: AED 4,000 to AED 7,000 per visa
  • Employment Visa: AED 3,000 to AED 5,000 per visa
  • Dependent Visa: AED 3,000 to AED 6,000 per visa

8. Miscellaneous Charges

  • Initial Company Registration Fee: AED 1,000 to AED 2,000
  • VAT Registration (if applicable): AED 500 to AED 1,000
  • Insurance Costs: AED 500 to AED 2,000 annually per employee

Cost Optimization Tips

  1. Choose Affordable Office Spaces: Consider renting shared offices or coworking spaces in emerging areas to reduce rental costs.
  2. Leverage 100% Foreign Ownership Laws: Avoid the cost of a local sponsor if your business falls under the eligible categories for 100% ownership.
  3. Bundle Services: Many business consultants in Dubai offer comprehensive packages that include trade name reservation, license fees, and visa processing at discounted rates.
  4. Work with Business Consultants: Firms like BizDaddy specialize in streamlining the licensing process and can help you minimize costs and paperwork.

Benefits of a Dubai Mainland License

  1. Geographical Flexibility: Operate anywhere in Dubai and the UAE.
  2. Partnership Opportunities: Collaborate with government entities and local businesses.
  3. Diverse Business Activities: Engage in multiple activities under a single license.
  4. Unlimited Visa Quota: Mainland licenses often allow companies to obtain more visas compared to free zone licenses.
  5. Enhanced Market Access: Expand into UAE’s growing economy without restrictions.
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Why Invest in a Mainland License in 2025?

Dubai is continuously evolving as a global business hub. With Expo 2020’s legacy and various government initiatives, the city is more attractive than ever for entrepreneurs. Key factors include:

  • Digital Transformation: Dubai leads in smart city initiatives, creating numerous opportunities for tech businesses.
  • Strategic Location: A gateway to the Middle East, Asia, Europe, and Africa.
  • Supportive Policies: Initiatives like the Golden Visa and green economy strategies bolster long-term investments.

How BizDaddy Can Help

BizDaddy, the leading business consultancy in Dubai, offers end-to-end services for mainland license setup. Here’s how we simplify your journey:

  • Expert Guidance: Tailored solutions to meet your business needs.
  • Cost Savings: Affordable packages to reduce expenses.
  • Hassle-Free Setup: We handle all paperwork and government approvals.

Visit BizDaddy to learn more and start your Dubai business journey today!

FAQ

Do I need a local sponsor to start a mainland company in Dubai?

If your activity falls under commercial or industrial licenses, a local sponsor (UAE national) owning 51% of the company is required.
For professional licenses, you can have 100% ownership, but you’ll need a local service agent.

Are there specific requirements for office space in the mainland?

Yes, you need to have a physical office space or a virtual office registered with the DED. The Ejari lease agreement is mandatory during the license issuance and renewal process.

What is the timeline to obtain a Dubai mainland license?

It usually takes 3–5 business days to obtain a Dubai mainland license after submitting all required documents and approvals.

What are the annual renewal costs for a Dubai mainland license?

License renewal fees typically range between AED 8,000 and AED 15,000 but can vary depending on the business activities and location. Additional renewal costs include:
Office rent renewal
Visa and sponsor fees

What are the penalties for not renewing a mainland license on time?

Failure to renew a license within the stipulated time can result in penalties, including:
Fines starting from AED 200 per month
Possible license cancellation
Legal implications for visa holders under the business

Are there tax obligations for Dubai mainland businesses?

Corporate tax will apply from June 2025 at a rate of 9% for profits exceeding AED 375,000.
Mainland businesses are also subject to VAT registration (5%) if their taxable turnover exceeds the VAT threshold (AED 375,000).