The new-age investors and entrepreneurs want a favorable business environment to pursue their business ventures. Dubai, the heart of the Middle East region, has all of that and more. You get a tax-free working ecosystem that allows complete repatriation of profits and capital gains. Furthermore, the VAT rate is among the lowest in the world, and therefore acquiring a business license in Dubai is a no-brainer for the locals as well as the foreign investors.
It’s imperative to obtain a business license in the UAE because it’s a legal confirmation of your company’s approved activities, location, and existence. You also need to renew it from time to time to ensure that it’s valid on any given date. All of this can be a bit taxing for an individual, especially an ex-pat. Therefore, all you need to do to avoid this hassle is get in touch with the business experts and we’ll take care of the rest.
How to get a business license in Dubai?
You can acquire a business license for your company in the UAE by following the steps mentioned below:
- List down your business activities
You must know all the business activities that you’ll carry out before applying for a business license in Dubai. The government maintains a list of permissible activities, and you need to list them down in accordance with your business’s nature. Moreover, you should also be clear about your company’s structure, i.e., would it be a limited liability company (LLC), sole proprietorship, joint venture, or any other legal entity in the UAE.
- Finalize the business location
Another critical decision you need to make is regarding the business location for your dream venture in the Emirates. You can select any of the specified free zones in the UAE like the DIFC (Dubai International Financial Center), DMC (Dubai Media City), AFZ (Ajman Free Zone), etc., based on your business activities.
Furthermore, you can enjoy 100% business ownership in these free zones. The investors can also choose to set up their business in the Dubai mainland and make most of the remunerative opportunities offered by the local market of Dubai. You’ll need a reliable local sponsor to obtain a business license in Dubai in the mainland region.
- Reserve a trading name
Once you’re done with the business activities and business license, it’s time to reserve a trading name for your company. All companies in the UAE must comply with the naming protocols to avoid any future problems. Therefore, choose a name that’s indicative of your business industry and doesn’t contain any derogatory or insulting terms.
Ensure that you don’t use any reference to god or gimmick the official name of some other established enterprise. Always use a person’s full name if you wish to keep it as the business name of your company.
- Rent an office space
Renting an office space in Dubai is the ideal choice for most investors and entrepreneurs instead of purchasing real estate for their business. It’s because you can find affordable office space on rent, and this saves you from the hassle of investing hefty sums of money in property. You need to have a minimum office size of 220 sq. feet to obtain a new business license as per the laws established by the authorities.
- Apply for a business license
The applicant needs to submit the application form alongside the statutory documents when applying for a business license in Dubai. Moreover, you should also obtain the initial approval from the DED before applying for a business trade license. It’s the most important document that any business needs in the UAE for smooth functioning. Therefore, always connect with the business consultants who’ll help you acquire the desired business trade license by doing all the heavy lifting for you.
- Manage visas and open a bank account
Once you have acquired the business license, you need to manage visas for your stay in the UAE. You can apply for multiple visas for your domestic staff, family, etc., The concerned authority will have their final say on it. Last but not the least, open a corporate bank account for your company to take care of all the monetary transactions. It’s better to choose a bank that offers a profitable partnership in the long run.
Types of business trade licenses in Dubai
There are several business trade licenses in the UAE, and you must choose the one that matches your business activities. They are:
- Commercial license
Investors looking to open a brokerage firm, logistics company, or deal in the import-export of various goods and commodities need to obtain a commercial trade license. Companies are allowed to trade within as well as outside the UAE given that they have the legal permissions to do so.
- Professional license
This type of business license in Dubai is ideal for auditing companies, law firms, consultancy services, and more. You can enjoy 100% shareholding of your company after partnering with a local service agent who’ll help you acquire the license and also assist with the paperwork. All service providers, artisans, etc., need to acquire a professional trading license.
- Industrial license
An industrial license is a mandate for companies dealing in manufacturing activities including food production, furniture, alongside various others. The applicant applying for an industrial license must have a physical office space in the UAE. Else the application won’t proceed further.
- Tourism license
Businesses dealing in hospitality, traveling, tour management and planning, etc. Need to obtain a tourism license from the DED and DTCM (Department of Tourism and Commerce Management). It’s a business license in Dubai that empowers companies to make most of the lucrative tourism opportunities in the UAE.
Documents needed to acquire a business trade license in the UAE
Documentation is a critical part of business licensing in Dubai. Therefore, the applicants must produce the required documents within the specified timeline to ensure the processing of their license request. Some of the documents include:
- Passport copies of all the shareholders
- MoA and LSA agreements
- NOC letter from your business sponsor
- Payment receipt of the trade name reservation
- A valid tenancy contract
- Copies of your company’s statutory documents (alongside originals for verification)
- Additional approvals/certificates from the concerned authorities
Connect
You need a business license in Dubai to get started with your business activities in the UAE. But which one should you choose? Which jurisdiction should you approach for your license? There’s a lot more that needs to be answered before you apply for a business license. However, it’s all smooth and risk-free when you collaborate with Shuraa Business Setup. Our experienced legal advisors will help you acquire a business license in Dubai by taking care of documentation, baking, licensing, and more.
