Dubai is considered to be a global hub of commercial businesses. It provides a lot of business opportunities to the people who are willing for starting a business setup dubai, UAE. Being a foreign investor, you need to have proper knowledge about starting a business in Dubai UAE. It may require proper planning and knowledge of everything related directly or indirectly to the business. The legal consultants having law firms in UAE may guide you about all the requirements and steps needed for a completely new business setup Dubai. All these tiny things may help you set a business empire. One of the steps having the prime importance in business set up is obtaining a trade license. This is because the trade license will reflect upon all the business services and products you aim to provide to the people.
Which Department Issues Trade License In UAE?
Department of Economic Development (DED) issues trade license in UAE. When you obtain a trade license, you get permission to carry out your business activities independently.
The type of the trade license depends upon the business activity you will carry out. That is why it is important to have a clear idea about your business activities and its structure. For different business activities, approvals are required from different institutions.
- UAE central bank issues approval for the banks and other financial institutions.
- Ministry of Economy and Commerce approves Insurance and other agencies related to it.
- Ministry of Finance and Industry approves all the manufacturing firms.
- Ministry of Health approves the Medical and pharmaceutical companies.
- Knowledge and Human Development Authority approves business related to education.
- Food Department of Municipality approves businesses related to food.
Investors or businesses who want company formation in dubai of oil or gas production, they would be needing additional approvals and endorsements from the government bodies. Note that for the sake of any sort of licensing, Dubai Chamber of Commerce and Industry will be involved.
Types of Trade Licenses in Dubai
There are three types of licenses you can choose from for your company formation in UAE. The type of the business license will be dependent upon the type of business activity you want to indulge in.
- Commercial license
- Industrial license
- Professional license
Companies who want to carry out the trading activities would be needing a commercial license. Mainland company formation would be best for carrying out the commercial activities within the premises of UAE. You will need a local sponsor for it but if you want to provide your services outside and inside UAE both, you would need to form your business in the free zone of UAE. For company formation in UAE free zone, you will not require any sponsor and will be able to have 100% business ownership. Note that the companies formed in free zones will require a partnership with UAE mainland distributor for providing their services within UAE.
Following are the business activities you can carry out under commercial license;
- Import and export of goods
- Car rental services
- Trading of electronic equipment
- Firms of Brokerage and Logistics
- Building material trading services
Manufacturing and industrial companies can obtain industrial licenses. You will need to have a physical office in Dubai for obtaining an industrial license.
Here are the types of companies which require an industrial license;
- Food products manufacturing companies
- Metal casting companies
- Furniture manufacturing companies
Craftsmen, professionals, artisans and service providers require a professional license. For obtaining a professional license, a local agent is required. You can have 100% ownership and profits of your business under a professional license. Farahat and Co. can act as your local service agent for protecting your business by all means.
Here are the businesses that need a professional license;
- Management and marketing consultancy businesses
- Law firms
- Auditing and accounting service providers
- Information technology (IT) companies
- Educational Institutes
- Medicine and the related businesses
The Process to Obtain Business Trade License in Dubai
- Determine your local partner
- Submit the application for trade name
- Select the business location
- Prepare a memorandum of Association with your sponsor
- Submit an application for obtaining a business license
Documents required for obtaining a license in Dubai mainland
- Application form properly filled and signed by the legal agent of the company
- Original and copy of statutory documents of the company
- DED letter which approves the company’s name
- DED Attestation letter approving company setup in Dubai or anywhere in UAE.
- Agreement of tenancy
- Complete details of the shareholders along with their passport copies.
After carrying out all the steps in proper order and managing the business setup in Dubai, UAE cost, you will receive your business license.
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