The glorious city of Dubai has successfully retained its position as global commercial hub and provides diverse business opportunities to entrepreneurs keen to setup new business in Dubai. If you are a foreign investor with a plan to establish your own company in Dubai, you must have sound knowledge about the Company Law of Dubai which narrates all the requirements and steps you need to complete in order to setup and run your company. One of the most integral steps of business setup is obtaining trade license in Dubai as it will reflect the operations your company will carry out.
Kinds of business licenses in Dubai, UAE
There are basically six types of business licenses in Dubai and the UAE. Their issuance depends upon the business activity the entity intends to undertake. They are valid to run operations throughout the UAE.
- Commercial License
- Industrial License
- Professional License
- Tourism License
- Agriculture License
- Craftsmanship License
Now, we briefly look upon these kinds of business licenses in Dubai.
Commercial License
Commercial license will be issued to companies undertaking trading activities. In case, you want to trade within the UAE under a commercial license. Then, the creation of mainland limited liability company best suits your needs. For that purpose, you may need to appoint a local sponsor for public liaison.
You can however obtain commercial license for trading outside UAE by forming company in UAE free zone. In this case, you do not require local sponsor and can own 100% of your business. Free zone companies can also sell their products within UAE by partnering with UAE mainland distributors.
Some of the businesses requiring commercial license in Dubai include the following.
- Brokerage firms
- Electronics trading
- Import and export
- Car rental services
- Logistics firms
- Trading of building material
Industrial License
Industrial license will be issued to manufacturing or industrial companies. To obtain an industrial license, you are required to have physical office inside Dubai. Some of the companies requiring industrial license in Dubai include the following.
- Food products manufacturing
- Packaging
- Manufacturing of furniture
- Metal casing manufacturing
Professional License
Professional license is required by professionals, service providers, crafts men and artisans. You are required to have local service agent for this license but you have 100% ownership of your business and its profits. KWS ME can act your local service agent and we will always protect your business investment and ownership.
Some of the business that require professional license in Dubai are the following.
- Management and marketing consultancy
- Law firms
- Auditing and accounting companies
- Information technology companies
- Educational institutions
- Healthcare/Well-being businesses
Requirements to acquire a trade license in Dubai
Getting a trade license permits you to conduct your business in Dubai and across the UAE. Department of Economic Development (DED) is responsible for the issuance of business license in Dubai. Your business activity in Dubai determines the kinds of approvals you require from the relevant regulatory authorities.
- Licensing of any business requires the involvement of the Dubai Chamber of Commerce and Industry (DCCI).
- Banks and other financial institutions require approval from the UAE Central Bank.
- Insurance and other related agencies require approval from the Ministry of Economy and Commerce.
- Manufacturing firms require approval from the Ministry of Finance and Industry.
- Medical and pharmaceutical companies need approval from the Ministry of Health.
- Educational businesses require approval of the Knowledge and Human Development Authority.
- Food-services businesses require approval from the Food Department of the Dubai Municipality.
- Companies in the gas or oil production may need additional endorsements and approvals from government authorities.
Process to obtain general trading license in Dubai
- Determine and select your local partner as sponsor for your business. Also pre-decide the extent of services you require from local sponsor. Have good relationship with your sponsor to avoid future problems.
- Submit an application form to Department of Economic Development (DED) for trade name and activity approval.
- You are required to have business premises therefor look out for office location and make a tenancy contract.
- Prepare Memorandum of Association (MOA) with sponsor.
- Submit application for business license to DED along with the essential legal documents.
- Pay the application fees and all charges to the regulators.
- After the approval, you receive the business license.
Necessary documents to get business license in Dubai
Following are the documents which you must submit to the Trade License and Commercial Registration Department in DED.
- Completely filled application form signed out by company’s legal agent
- Original as well as copy of the company’s statutory documents
- Letter by DED approving company name
- DED attestation letter approving the setup of company
- Tenancy agreement
- Shareholder’s complete details and their passport copies
Conclusion
This article lists out the general guidelines you need to follow for securing a business/trade license in Dubai. However, you may need to fulfill additional requirements to ace the procedure. Also, you may have to seek further regulatory approvals depending upon the type of licensing you are applying for.
KWS Middle East is right here to hold your back as you start your entrepreneurial journey in the UAE. Contact our Dubai company formation agents for further assistance in fetching your company trade license. Remember, your business registration in Dubai is as easy as a pie with us.
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