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Draft text — under review by Milton Bridge
What is a mainland trading licence?
A mainland trading licence is a commercial licence that allows a company to buy, sell, import, export and distribute goods within the UAE market. In Dubai, mainland licences are issued by the Department of Economy and Tourism.
A mainland company is registered under the emirate's own authority rather than in a free zone, which means it can generally trade directly with customers anywhere in the UAE, open shops and branches, and bid for many types of contracts.
What can a mainland trading company do?
A mainland trading company can typically trade with businesses and consumers across the UAE without needing a local distributor. The exact goods it can deal in depend on the activities listed on its licence.
Some activities, such as food, healthcare products or certain regulated goods, may need extra approvals from the relevant authorities. Choosing the right activities at the start avoids the need to amend the licence later.
Trading licences are distinct from professional licences, which cover services and consulting, and from industrial licences, which cover manufacturing. If your business combines trading with services, you may need several activities on one licence or more than one licence, depending on how the activities are classified.
- Sell goods to businesses and consumers across the UAE
- Import and export goods, subject to customs registration
- Open retail outlets, warehouses and branches
- Work with a wide range of public and private sector clients
- Sponsor residence visas for owners and staff, depending on the setup
How is a mainland licence different from a free zone licence?
The main difference is market access: a mainland licence lets you trade directly across the UAE, while a free zone company typically operates within its free zone and internationally, and may need a distributor or additional arrangement to sell into the local market.
Free zones often offer simpler setup and flexible office options, and qualifying free zone income may benefit from a 0% corporate tax rate. Mainland companies are generally subject to the standard federal corporate tax, typically 9% on profits above a threshold. Which is better depends on your customers, your activity and how you plan to grow.
Can foreigners fully own a mainland trading company?
In many cases yes. Since reforms to UAE company law in recent years, foreign investors can fully own mainland companies for a wide range of commercial activities.
Some activities considered strategic may still have ownership conditions or require additional approvals. Whether full foreign ownership applies to your planned activity should be confirmed during the setup process.
What does the mainland setup process involve?
Setting up a mainland trading company typically involves choosing your activities and legal form, reserving a trade name, obtaining initial approval, preparing company documents, securing an office and then receiving the licence. After that come visas, Emirates IDs and a corporate bank account.
The exact steps and documents depend on the activity, the ownership structure and any extra approvals. If you want a rough idea of the budget for your case, the cost calculator is a good starting point, or you can book a free expert consultation to walk through the steps.
- Choose business activities and legal structure
- Reserve the trade name and obtain initial approval
- Prepare and sign company documents
- Lease a suitable office and register it
- Receive the licence, then arrange visas and banking
Questions people ask
Who issues mainland trading licences in Dubai?
Mainland licences in Dubai are issued by the Department of Economy and Tourism. Some activities also need approval from other government bodies.
Do I need an office for a mainland trading licence?
Generally yes, mainland companies usually need a registered physical office address in Dubai. The type and size of office can also affect how many visas the company can sponsor.
Is a mainland or free zone company better for trading?
A mainland company is usually better if you want to sell directly to customers across the UAE. A free zone company may suit businesses that trade mainly internationally or within the free zone.
Can a mainland trading company import goods?
Yes, a mainland trading company can typically import and export goods once it is registered with customs. The goods must match the activities on its licence.