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Trade License Dubai

Trade License In Dubai

Dubai is an attractive and best place to start a business for foreign investors. And in order to start a business in Dubai you need a trade license in Dubai. Which is the basic and most important document requires for a company. The activities that businesses can perform in the UAE are restricted to those listed in the entity’s license issued by the Economic Department in the relevant emirate. To start your business successful, you should choose the most appropriate type of license depending on the contemplated business activities. Knowing procedures of obtaining the license and peculiarity of its renewal and cost is also very important. TMS provides solution for incorporating your business in the UAE and offers a comprehensive range of services supporting your business needs in the country.

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A trade license is the most important thing for doing business in Dubai. TMS with its combination of deep knowledge and extensive experience, ensures that your business is set up with minimal hassles and effort.

Different Types of Business Trade License are required to start a business

COMMERCIAL BUSINESS LICENSE IN DUBAI:

This type of a license is issue to a kind of entity that are involve in trading. Such as buying as well as selling of goods. But note that you are only allowed to perform the activity mention in the license. You can get this type of a license for the following activity: Imports as well as exports need this type of a license, Electronics trading also need this type of a license, Car rental services as well as Brokerage firms, Logistics firms s well as Real estate brokerage, Building material trading need this type of a license.

INDUSTRIAL TRADE LICENSE IN DUBAI:

It is a fact that industrial zone is one of the main focus area of UAE. Industrial trade License Dubai is issue to those who are involve in manufacturing activity. The company must have a physical office within UAE for this type of a license. Companies that requires industrial license are the following: Manufacturing of food products need this type of a license, The production of cosmetic product need this type of a license, Metal casing as well as making of Furniture, Packaging.

 

PROFESSIONAL TRADE LICENSE IN DUBAI:

Professional trade License in Dubai is issued for business providing services. For this type of a license you need a local agent. But the main thing is that you will have 100% ownership of all the profits and operations. Following are the types of business that requires this type of a licenses: Law firms need this type of a license, Management consultancy, Educational institutions,  IT services also need this type of a license, Audit services also need this type of a license, Accounting as well as Marketing consultancy need this type of a license, Medical services.

TOURISM LICENSE:

Dubai is known for being an international tourist destination, and for this reason, the opportunities related to the tourism sector are bountiful. It is also the reason behind Dubai making it necessary to get a tourism license before operating in the industry. Some of the industries that need this license include; Hotels, Resorts, Guesthouses, Travel agencies, Tour operators. Holders of this license are allowed to carry out a number of activities including; Renting out spaces, Booking trips, Taking international or local tours.

 

CRAFTSMANSHIP LICENSE:

This license will be the one for you if you make your living through your craftmanship skills. It is a requisite, regardless of whether you wish to work with a company or individually. These are some of the fields that will require out to get this license: Electrical works (Electricians), Plumbing, Painting, Carpentry.

It is also important to mention that there are punishments such as jail time, fines and deportation for those that pay no heed and work without a license.

AGRICULTURE LICENSE:

If your ambition is to get into the agricultural side of business, this is the license that will be required. The activities that you can carry out include; Farming, Trading agricultural products (fertilizers for example), Producing farming equipment, Consulting on agricultural related matters.

 

 

 

FREELANCE LICENSE UAE:

Freelance license in Dubai and UAE is a permit issued to a freelancing individual, that allows to work legally anywhere in the country. If you are a freelancer, you may not need a resident visa (if your visa is under your spouse or a company), but you need a freelance permit. 

In other words, a freelance visa is optional, but a freelance permit is mandatory for anyone who wants to practice publicly and charge a fee for it.

Regardless of your profession, when becoming a freelancer and obtaining an official freelance permit, you are allowed to: Provide services to private individuals, Provide services to businesses, Raise Invoices and receive payments, Work with government agencies.

How to apply for a trade license in Dubai, UAE?

Investors are allowed to select a specific type of business niche from a number of available options to start their company and apply for a trade license. Here are the three types of trade licenses in Dubai, under which all of the business activities can be performed:

  • Professional License
  • Commercial License
  • Industrial License

Trade License Requirements in Dubai

Obtaining a trade license is important to validate the legal identity of your business in the UAE. There are certain requirements that investors must meet to obtain a trade license in Dubai.
Here is the step-by-step procedure to obtain a trade license in Dubai:

  • Select the specific type of license
  • Finalize all business activities
  • Select an appropriate trade name
  • Submit an application to DED for initial approval
  • Register the trade name after receiving the initial approval
  • Submit the tenancy agreement for approval
  • Submit all the legal documents including the memorandum of association, board resolution and all other related documents for approval
  • Submit the details of all shareholders with the copies of their passports
  • Pay the trade license fees to get the license

The trade license cost and requirements can vary depending on the specific type of company, nature of business and business activities involved.

There is a slightly different process here depending on whether you are setting up in a free zone or in the mainland.

If you’re setting up in the mainland, you can make your license application directly to the Department of Economic Development or equivalent. If you’ve chosen a mainland setup, you should apply directly to the managing authority of your chosen free zone.

In both cases, it is much quicker and easier to permit a company setup agent to handle this process for you. As part of your application, you are usually required to submit several documents along with your application form, including:

  • A copy of your passport – and that of any other shareholders
  • Your business plan
  • A copy of your signature
  • A No Objection Certificate from your current employer (if applicable)

Understanding UAE trade license fees

It is not always easy to estimate the UAE trade license cost, as it will depend on many factors. If you are starting your business alone in a free zone, with a professional license, for example, you will likely pay less than if starting an industrial business in the UAE mainland.

As a guide, free zone licenses tend to start in the region of AED 10,000 to AED 15,000. Mainland licenses start around the top end of that bracket, and can range beyond AED 40,000.

Business set up made simple

By following the steps above, it is possible to obtain your trade license in the UAE with minimal fuss.  

However, it is always advisable to undertake the steps with the assistance of a registered company formation agent to eliminate any potential hassles that might arise.

With so many years of experience in company incorporation, TMS can help you get your business up and running within a week or two. We’ll manage your license and visa application and correspond with all relevant authorities for you. All you need to do is wait for the green light to start trading.

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How to Get Business License in Dubai.

There are several steps to take before applying for your business license in the UAE. No step is particularly complex but the entire process does require some knowledge of UAE business. For this reason, it is always a good idea to undertake your application with the help of a company formation expert such as Worldwide Formations.

Step 1: Choose Your Business Activity

Every business in the UAE must list a business activity, or activities, on its business license. It’s important that you list every activity that applies to your business when making your application as failure to do so can lead to fines or even license revocation.

There are over 2,000 to choose from so no matter your industry or the type of business you undertake, you are sure to find an activity that fits the bill. The type of activity you intend to undertake will decide the type of license and setup that you require. 

 

Step 2: Choosing Your Company Name

A step of the business incorporation process that takes on more importance here in the UAE is the choosing of your company name. That’s because as well as the need for a name that’s catchy and captures the essence of your business, you’ll also need to stick to the UAE’s clearly defined naming conventions.

In short, UAE company names must not contain any blasphemous or offensive language, any references to well-known institutions or any abbreviations of your name – though your full name is acceptable.

Your name should also have a legal entity attached to it such as FZE or LLC. It must also relate to your business activity, not resemble the name of any other company and be available to register.

 

Step 3: Free Zone Or Mainland? There are two overarching business types in the UAE. These are free zone and mainland. Mainland companies can be registered anywhere in the country. They are permitted to trade freely throughout the UAE and, in many cases, can be owned 100% by foreign entrepreneurs.

Free zone companies can only operate from within their free zone. They can always be owned 100% by foreign entrepreneurs but must use a local agent to trade with the UAE market. However, free zone companies are afforded 100% customs tax exemption, can operate without currency restrictions, and are permitted to repatriate 100% of profits and capital.

 

Step 4: Applying For Your License You can now make your UAE trade license application. There is a slightly different process here depending on whether you are setting up in a free zone or in the mainland.

If you’re setting up in the mainland, you can make your license application directly to the Department of Economic Development or equivalent. If you’ve chosen a mainland setup, you should apply directly to the managing authority of your chosen free zone.

In both cases, it is much quicker and easier to permit a company setup agent to handle this process for you. As part of your application, you are usually required to submit several documents along with your application form, including:

  • A copy of your passport – and that of any other shareholders
  • Your business plan
  • A copy of your signature
  • A No Objection Certificate from your current employer (if applicable)

 

Step 5: Applying For Your Visa At the stage, you should also apply for your UAE trade license visas. This process involves four stages including a medical fitness test and biometric capturing. Your UAE trade license visas are usually issued in around a week.  

As the holder of a UAE business license, you can also sponsor others such as children, a spouse or domestic staff for their visas too, providing you meet the eligibility criteria.

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Documents related to obtaining a Dubai trade license

The following documents must be presented to the Trade License and Commercial Registration Department within the DED when applying for a trade license in Dubai:

  • a standard application form which must be filled out and signed by the company’s legal representative;
  • the company’s statutory documents, both in original and copy;
  • the DED’s letter with the approval of the company name;
  • the DED’s letter attesting the approval for setting up the company;
  • the tenancy agreement;
  • all shareholders’ details (copies after their passports).

One must also pay attention if any other special licenses are required.

What are the requirements for obtaining a trade license?

Prior to operating any business in Dubai, it is first necessary to follow the steps outlined below in order to meet the legal requirements of all concerned government authorities and to guarantee maximum commercial benefit for the business owner.

  • Designate the category which the business falls into- commercial, industrial and/or professional
  • Determine all the related business activities to be included within each business license (Maximum 10 per license)
  • Make a decision as to your business’ appropriate legal status in UAE
  • Select an appropriate trading name for the business.
  • Submit an application to the Department for initial approval
  • Register a trade name after receiving initial approval (If you don’t have previously reserved a trade name)
  • Lease business premises and obtain approval from the Authority.
  • Prepare all required documents; such as memorandum of association and approvals from other relevant government authorities which may be necessary to each case.
  • Submit a further application to the Department to obtain the final license.
  • Pay the required fees.
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Renew a Trade License in UAE

Step 1 – Have a valid tenancy contract

The first thing one needs to ensure is that the firm’s tenancy contract should have a validity of at least 1 month, and it should be attested by EJARI. If the tenancy contract does not have a validity of at least a month, the associated license cannot be applied for renewal.

 

Step 2 – Apply for license renewal

Doing business in Dubai needs approval from concerned authorities in order to renew their business license. Apply for license renewal at the DED, along with all the required documents. Here is a list of all the documents required for the purpose of trade license renewal:

  • A typed BR/1 form
  • EJARI Registration Certificate and a photocopy of Tenancy Contract
  • Photocopy of the current business trade license
  • Passport photocopies of all the business partners
 

Step 3 – Make the payment

After submitting the application, the DED shall allot a payment voucher. Once you receive the voucher, proceed to the payment procedure. Immediately after making the payment, you will receive your renewed license from the channel.

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