Foreign investors that are setting up any kind of business in the UAE have to pay close attention to requirements for business setup as per the UAE Companies Law. Local legislation provides guidance in completing the process of having a business up and running. An entrepreneur also has to pay attention to the business licenses and permits that are required in order to operate in a jurisdiction or several ones in the UAE as this can reflect how the business will be carrying out its operations. A business in the UAE can apply for any of the following:
- Professional license
- Industrial license
- Commercial or trade license
Experts on company formation in UAE can offer you with the complete information regarding each kind of business license. They can also assist with the entire business setup process including the obtaining of all necessary trade licenses your business needs.
The conditions in which an entrepreneur in UAE should meet in order to get a license with the UAE authorities include:
- Owner of the business should be at least 21 years old
- Startup or project should exist within the UAE
- The entrepreneur has to have a valid passport and emirates IDD in order to complete the company registration
Take note: the Department of Economic Development in UAE will require all applicants for trade license in UAE to have trade names, social media accounts and activities amended as per their request. A trade license can be valid for a definite number of years, and renewable if allowed by the authorities. An entrepreneur can also apply for more than a single trade license and he or she can carry out at least ten relevant activities for each license that falls within a group description.
How much does a UAE trade license cost?
Trade license registration costs approx. Dhs 2,500 in the UAE and has to be renewed on or before the date of expiration.
Can I get a trade license for any business?
The DED has strict conditions, especially on trade names which can be utilized for businesses in the UAE.
- The trade name should not have any form or reference to a religious word like Lord, Allah, and God
- A business trade name should not be reserved or existing for any similar or the same activity as the applicant for the trade license
- The trade name should not have the name of any person except for the person that owns the business and whose name is in the trade license
- A business trade name should not have phrases that discriminate or contain any profanities in any language
- Only a person’s name together with the family name should be used as the trade name
- It’s not permitted for an applicant to use an established trade name that’s translated into another language. The registered trade name of the trade license applicant should be written in Arabic and English.
- The trade name shouldn’t be carrying the name of a country or government and shall not give any indication on any religious affiliation, sectarian, or political organization
- The trade name of an applicant for a trade license in UAE should not be similar or exactly alike as a global or local brand
- A trade name has to be associated only and compatible with the business’ legal form and business activities.
- The trade name shouldn’t be using any icons like spacers and points
- It’s not possible for an applicant of a trade license to use the word International, Middle East, Universal or a translation of the same into Arabic for its trade name
- It is not possible for an applicant to register a trademark with the Dubai Economy. For trademark registration, the UAE Ministry of Economy (MOE) is the authority to seek approval of, specifically the MOE trademarks department
- A trade license applicant should not use another business’ trade name even when it offers a franchise
- The DED has the right in canceling or changing the trade name for names that are the same or similar to existing trade names
What is the process of acquiring a trade license in the UAE?
An application form is to be filled for trade license processing. In the application form, it has to be complete with accurate details on the applicant including the selected activities and trade name. The fees are to be paid upon the submission of the application.
The application may be approved or rejected as per the discretion of the authorities. Seek the help of experts on business setup in UAE if you want to ensure that your business has the appropriate license to run. Call us here in FAR Consulting Middle East for more information regarding company formation and how to get a trade license in the UAE.