Obtaining a mainland license in Dubai is an exciting prospect for entrepreneurs looking to establish a business in one of the world’s most vigorous and lucrative markets. However, the cost of obtaining a mainland license varies depending on several factors, such as business type, office space, and legal requirements. A mainland license Dubai typically involves a combination of initial registration fees, office setup costs, and other necessary expenses.

Initial setup and registration costs:

The initial cost of obtaining a mainland license in Dubai involves various government fees, which are primarily based on the nature of the business and its legal structure. The Department of Economic Development (DED) is the primary authority overseeing business licenses in the mainland, and businesses are required to register with this body. The basic cost for registering a business in the mainland typically ranges from AED 10,000 to AED 15,000, depending on the business activity.

Business activity and license type:

The type of business activity you choose will significantly impact the cost of obtaining a mainland license. Dubai offers licenses for various business activities, including commercial, professional, and industrial. Each license type has different fee structures, with commercial licenses generally being the most expensive due to the nature of their operations. Additionally, some business activities may require additional permits or approvals, which can increase the overall cost.

Office space and rent:

For a mainland license, having a physical office is mandatory, and the cost of office space can vary significantly based on location and size. The lease agreement typically includes costs for the office’s facilities and services, which can range from AED 10,000 to AED 50,000 or more annually. Popular areas in Dubai, such as Downtown, Business Bay, and Dubai Marina, tend to have higher rental costs, while areas on the outskirts or in less central locations may offer more affordable options.

Local sponsor fees:

Another important consideration when obtaining a mainland license is the requirement for a local sponsor if you are a foreign investor. The local sponsor must own at least 51% of the company shares, and in return, they typically charge an annual fee for their services. The cost of a local sponsor’s services can vary widely but typically ranges from AED 5,000 to AED 25,000 per year, depending on the agreement made.

Other costs:

Along with the registration, office space, and sponsor fees, there are other associated costs, including visa applications for employees and owners, as well as health insurance for employees. The cost of work visas typically ranges from AED 3,000 to AED 7,000 per visa, depending on the type and the number of visas needed.