A mainland trade license in the United Arab Emirates (UAE) is a permit issued by the Department of Economic Development (DED) in each emirate. It allows businesses to operate within the UAE mainland, which includes all regions outside of the free zones. This type of license is crucial for companies that want to engage in activities directly with the UAE market and local businesses.
Types of Mainland Trade Licenses
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Commercial License: For companies engaged in trading activities (buying and selling goods).
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Professional License: For service providers, professionals, artisans, and craftsmen.
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Industrial License: For companies involved in manufacturing or industrial activities.
Importance of Obtaining a Mainland Trade License
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Market Access: It allows businesses to operate anywhere in the UAE, giving them access to a broader market compared to free zones, which are restricted to specific areas.
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Local and International Trade: Businesses with a mainland license can trade within the local UAE market and conduct international trade without restrictions.
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Contractual Advantages: Companies with a mainland license can bid for government contracts and undertake projects with UAE government entities, which is not possible for free zone companies.
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Business Expansion: It facilitates the opening of multiple branches across the UAE, providing opportunities for business expansion.
5. Flexibility in Business Activities: Mainland licenses offer more flexibility regarding the type and scope of business activities that can be undertaken.
Benefits of a Mainland Trade License
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No Restrictions on Office Location: Businesses can establish their offices anywhere in the UAE, unlike free zones which have geographical limitations.
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No Minimum Capital Requirement: Most mainland business setups do not have a minimum capital requirement, reducing the financial burden on startups.
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Access to Government Contracts: Mainland companies can participate in lucrative government tenders and projects.
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Broader Client Base: Ability to serve both local and international clients without the limitations imposed on free zone entities.
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Visa Eligibility: Mainland companies can sponsor employee visas, facilitating the hiring of international talent.