The Dubai government has mandated possessing a trade license if any investor intending to conduct a business in the UAE. The business license in Dubai is issued by the UAE Economic Department, and the procedure of issuing the license varies from emirate to emirate. This article will help you to understand the main types of business licenses in Dubai. Farahat & Co. is a consultancy firm based in UAE that can help you in getting a trading license in UAE.
Kindly note that different UAE jurisdictions have different processes for processing trade permits. In the UAE, one can apply for a variety of licenses, including commercial, industrial, and professional ones. Other permits that are exclusive to economic activities may also be granted by the government.
Let’s discuss the main types of trade licenses in Dubai
Entrepreneurs from all over the world are drawn to Dubai, a thriving center of innovation and commerce, because of its advantageous location and welcoming business environment. However, acquiring the necessary trade license is necessary to launch a business in Dubai. In addition to giving your company legitimacy, the trade license establishes the range of operations you are allowed to carry out. In general, Dubai offers six main kinds of trade permits, each suited to sectors and pursuits. An extensive summary of various trade licenses can be found below:
1. Business licenses
Businesses that engage in any kind of commercial trade activity involving goods, commodities, and services are awarded commercial licenses. Prior to requesting a commercial license, one must decide what they intend to do. General trading license in Dubai also falls in this category.
Real estate brokerage, vehicle rental, and logistics are a few of the operations that fall under the category of commercial activity. Each license should only allow ten tertiary activities in addition to the primary activity.
2. License for Industry
Industrial licenses are required for manufacturing units in the UAE. With the industrial license, businessmen can assemble and process goods using raw materials into a finished product. One needs to obtain an industrial license for the manufacturing of;
- Food
- Engines and machinery
- Textile
- Metals
- Products made from petroleum
- Papers
3. Professional certification
Based on their educational background, professional licenses allow people and businesses to pursue a careers in which they are skilled. This license covers a variety of operations, including carpentry, artisanship, consulting, publishing, printing, medical services, beauty salons, computer graphic design, repair, security, and document clearing, among others. Foreign investors can acquire 100% ownership of their company by obtaining a professional license.
4. License for Tourism
Companies that rent out hotels, vacation homes, cruise boats, restaurants, guest houses, travel agencies, and other tourism-related services need to obtain a trade license.
5. License for agriculture
An agriculture license is required for anyone engaged in tasks like growing and harvesting crops, trading pesticides, crops, etc., setting up greenhouses, and offering agricultural consulting.
6. A license for craftsmanship
This license is required for individuals who are involved in mechanical works like plumbing, carpentry, technical works, etc. If a company employs a craftsman to work for them, then this license applies to them.
How to Modify Your Trade License Activity in Dubai
In the United Arab Emirates, a business entity may apply to add, modify, or eliminate an activity listed on the license it has been granted. The following steps are involved in converting business operations to a trade license in Dubai:
Step 1: The first step involves applying to change the activity in your trade license.
Step 2: Ensure that the paperwork gets completed and is compliant to the requirements
Step 3: Pay for the modifications to the trade license activity.
Step 4: Obtain a current license.
A business entity must meet certain requirements to be permitted to change its trade name. The entity’s business premises must be in line with the proposed operations (subject to UAE authorities’ approval), the trade name must be changed if necessary, and an announcement must be made and published in any local newspaper for a day.
Conditions for Modifying an Activity to Obtain a Trade License in Dubai
For modification of trading license activity, the following conditions must be satisfied.
- The board of directors’ decision to alter the activity (for firms)
- The initial license granted by the local government
- Governmental bodies’ approval of the desired activity
The changing activities are indicated in the company’s memorandum and articles of association (this applies to all types of firms that seek to change, remove, and/or add commercial operations).
The UAE Ministry of Economy’s certification of a company’s memorandum of association once its economic operations have changed
FAR Consulting Middle East can be of help in deciding the trade license category in UAE
Businesses in the UAE can get professional help from FAR Consulting Middle East. to register a trade license, guaranteeing a quick and easy procedure. They assist in determining the appropriate license type—commercial, industrial, or professional—that is in line with the business activity, thanks to their thorough understanding of UAE rules. They also give businesses the knowledge they need to make wise decisions by delivering guidance on legal requirements, visa eligibility, and tax ramifications. Therefore, call us today and get your trade license registered to start your business in the UAE.
Call us here in FAR Consulting Middle East today! Our team can help you get the license you need for your business.
