In terms of foreign investments and business, the UAE is a shining beacon of opportunity. A stable business environment in one of the fastest-growing business-oriented geographies in the world is attributed to the variety of operational zones available to businesses. Business and company laws are different in Dubai, so investors planning to start a company there should know what is required of them. Business owners in Dubai, UAE can apply for a trading or business license from Dubai’s Department of Economic Development (DED). As per their entrepreneurial activities, every business in the UAE has been assigned a license.
Business licenses in Dubai help create a structure for businesses as well as provide several benefits. Establishing a business in Dubai, UAE requires a business license.
In addition to having general trade licenses, you can use them for the following:
- Registration of trade companies in Dubai to import and export goods
- Engaging in various commercial activities, including the sale of goods and services
- Industry-specific professional services
Is it possible to obtain a trade or business license in Dubai, United Arab Emirates?
An applicant for a trade license/general trade license must provide the incorporation documents of the company’s activity related to the trading field. A general trade license can be used for most of the activities in Dubai.
It is necessary to select a trading name and prepare and submit the memorandum and articles of association to DED for approval before securing a business license in Dubai. As proof of residence of the registered address of the Dubai-based company, a rental agreement must be submitted along with the application for trade licence.
Here are the steps to guide a company in Dubai, UAE in renewing its trade license:
In order to operate as a business person in Dubai, you need a trade license. The process involves the following steps:
- A valid tenancy agreement is required
- Application for renewal of a license
- The process of making the payment
Dubai, United Arab Emirates has the following types of business licenses:
- License to carry on general trading as well as specialized trading activities are covered by the commercial license
- Obtaining a Professional License is very important for entrepreneurs who may be concerned with other types of services such as teaching, craftsmanship, artisans, and so on.
- Industrial License: This license is given to establishments that are engaged in industrial or manufacturing activities
- Tourism License: Required for tourism and hospitality businesses
There are different types of business licenses in Dubai, UAE for different jurisdictions:
UAE Mainland:
Dubai Economic Department (DED) issues Dubai Mainland Licenses to companies that fall under commercial, professional, and individual establishments. A mainland license allows you to develop your business with the most freedom and flexibility possible.
UAE Offshore:
Foreign entrepreneurs can manage offshore wealth, real estate, and hotels with Dubai Offshore as a tax-efficient and cost-effective structure. Companies without any administrative obligations are known as non-resident companies. An operating license is not issued to them. Incorporation certificates are the only documents provided.
UAE Free Zone:
There are different types of free zones in the UAE, and they are designed and operated accordingly. Foreign direct investments and companies have flocked to Dubai’s free zones. Each free zone is governed by an independent free zone authority (FZA), which issues operating licenses and assists entrepreneurs with setting up their businesses.
Trade licenses in Dubai offer the following benefits:
Investors in Dubai have several options for trade licenses. The advantages of trade licenses over other licenses are numerous. Included are:
- The process is quick and easy. Obtaining a license is a fast process
- There are relatively fewer requirements when it comes to paperwork
- It is possible to establish holding companies in Dubai with this permit
- An advantage of getting a trade license is that it is estimated to cost you very little money, which is one of the best things about getting one
- Generally, it is used as a legal holding structure for warehousing purposes and is exempt from taxes on profits and income since it is an exempt structure.
- As part of the process of submitting audit reports to the Dubai Government, there is also a provision for an exemption.
- Holders of a trade license are provided with a number of services such as corporate banking and other financial services
The following documents are required for a Dubai Trade License:
A trade license application requires the following documents:
- The legal representative of the company must fill out this standard application form
- Original and copy of the company’s statutory documents
- A letter from the DED approving the name of the company
- Letter from the DED attesting company registration approval
- Agreement between the tenant and the landlord
- Copies of each shareholder’s passports with their details (Copies of each shareholder’s passport with their details)
Read more,