UAE will be the perfect choice if you are planning to invest in the business field. The investor-friendly nation welcomes entrepreneurs with open hands. Consequently, the business setup process, company formation regulations, and basic requirements are simple and unfussy. One can obtain an industrial license in Dubai for establishing an industry without much complication.
Are you an expat entrepreneur thinking of commercial activities in Dubai/ UAE?
The activities for obtaining a commercial license in Dubai could be completed in fewer days than in any other places around the world. The same is the case with other types of licenses as well. Let’s have a detailed look through the formalities of business set up in Dubai and other related topics.
Types of Licenses in UAE
The UAE offers five types of licenses or an investor can consider establishing any of the five types of businesses. We request you to choose the business you are confident of. Or consider hiring a professional business setup service in Dubai, who will aid you in ascertaining the pros and cons and guide you accordingly. Ideally, the Department of Economic Development (DED) is the authority for initial approval, perusing the documents and for issuing a trading license in Dubai.
There are three jurisdictions, viz. Mainland, Free Zone and Offshore. The investor can choose the jurisdiction that is favourable for the activity he or she is planning. The approval authority will depend on the relevant Free Zone in case you are considering a business in any of the Free Zones. Or the Offshore authority in the case of offshore business entities.
- Commercial License
This type of license is necessary for carrying out commercial activities in Dubai, or any other emirate in the country. The trading activities in Dubai will also necessitate this license.
- Professional License
Are you a professional planning professional firm in the UAE? Then, you must get a professional license that will authorize you for the subject activity.
- Industrial License
The businesspersons focusing on industrial activities including moulding, manufacturing, assembling, and reconditioning must have an industrial license to conduct those operations in the UAE.
- General Trading License
All those business entities that consider export, import, and re-export activities must get a general trading license. Moreover, the general trading license in Dubai allows the trading of up to ten different commodities.
- Travel and Tourism License
Of course, this is not a trading license. However, travel and tourism companies in Dubai have great scope for growth, with the number of tourists arriving or registering a phenomenal increase every year.
Procedure to Obtain a Trade License in Dubai/ UAE
As stated in the introductory paragraphs, obtaining a trading or business license in Dubai is a simple process. You only have to understand it and submit the application along with the documents. Considering the variety of business activities permitted to be undertaken in the UAE, it will be beneficial if you hire reputed and experienced business setup services in Dubai for helping you with the task.
- Determine the Business Activity
The investor is authorized to put up more than one business activity for approval. Select the right ones for you. Or seek professional support in finalizing the businesses that have great growth prospects.
- Identify the Location
Location is of paramount importance in augmenting growth. Hence, choose the location wisely.
- Finalize a Trading Name
Go through the business naming guidelines promulgated by the authority and decide the name for your company. It is permitted to submit up to three names for approval. The name that doesn’t meet the stipulations will be rejected outright.
- Obtain Initial Approval
Submit the application and requisite documents indicating the type of business, your identity, your qualification (if necessary), address proof and other documents sought. Some of the documents may have to be attested for confirming authenticity. Unattested documents will not be accepted by the authority.
- Additional Approvals
Additional approvals may be necessary depending on the type of business activity you are planning. This may involve ministries and departments. Assistance from a professional company formation agency in Dubai/ UAE may be useful for getting the approvals.
- Rent an Office and Commercial Space
Hire or lease office and commercial space. Some of the business activities may need either office or commercial space only. Proceed accordingly and register Ejari.
- Get Trading License
Once you have all the documents and Ejari ready, apply for a trading license. The DED or the relevant authority will scrutinize the documents and provide the requested trade license in UAE. Commence full-fledged business operations with the trade license.