The International Entrepreneurs’ Approach to Getting Trade Licenses in Dubai Junction
Dubai is a model for becoming a global business hub for investors and entrepreneurs. Its strategic positioning, modern facilities, as well as policies that favor investors have made it a prime place to locate a business. So, for those planning to start a business, it is important to know how the trade license process works in Dubai. This will avoid any issues in their efforts. This post will discuss getting a trade license in Dubai. We will cover the types of licenses, the application process, and the benefits of doing business in this emirate.
What is a trade license in Dubai?
A trade license is a certificate. It allows the holder to do certain business activities in Dubai. It is an important document. The Department of Economic Development (DED) and other agencies grant it. It aims to help businesses operate within the region’s laws. There are three main and standard types of trade licenses available in Dubai.
Professional License: Issued to professionals and firms for activities like consulting, law, and accounting.
Commercial License: It allows firms in Dubai to conduct trade. This includes importing, distributing, and buying and selling goods and merchandise.
Industrial License: For businesses focused on manufacturing and industrial activities.
Benefits and Limitations
Mainland: Business activities in the UAE must have a local sponsor.
Free Zone: A free zone company has 100% foreign ownership and tax benefits. But the free zone restricts it to its domicile.
Offshore: It’s great for preserving wealth. You are very unlikely to work in the UAE.
TRADE LICENSE APPLICATION DUBAI
Necessities Permit or License (Dubai): Getting a trade license in Dubai involves various steps. The activities and conduct of these companies are limited by certain grounds.
Detailed Procedure
- Choose your business activity and legal structure.
- Reserve the desired trademark with the DED.
- Get a preliminary consent from the appropriate authority or authorities.
- Rent or buy an office.
- File in all the necessary documents to get the final approval.
- Make the necessary payments and get the issued trade license.
Necessary Documentation
- Completed application forms.
- Photocopy of the passports of the owners and partners.
- No objection certificate from a current sponsor (if any).
- Office premises lease agreement.
- Memorandum and Articles of Association (MOA).
- Timeline and Costs
The timeline for acquiring a trade license may differ, and it takes about one to two weeks. Costs will also differ based on the license type and business activity. They will range from 10,000 to 50,000 AED.
Trade License Renewal and Amendments
To avoid penalties and keep business running, pay for the trade license renewal on time.
Renewal Process
- You must make a request to renew a license by applying at least 21 days before it expires.
- We will provide an updated lease agreement.
- Renewal fees will be paid.
Amendments
To change a trade license, such as a business activity or ownership, please amend the application. Enclose the relevant documents and fees.
How do Free Zones assist in setting up a business?
Free zones are key to attracting foreign investors to Dubai. They simplify setting up businesses there.
Summary of Free Zones in Dubai
Dubai has many free zones. Each is for a specific activity: IT, media, finance, and transport. Among such free zones are the Jebel Ali Free Zone, Media City, and Internet City.
Free Zone Advantages
- A foreign company can own 100% of its ownership.
- No more tax on establishment.
- Less cumbersome import/export requirements.
- Modern regions, infrastructure, and provisions.
Sharjah Economic Development Department and Trade License
Their strong business setup makes them a rival to Dubai.
Introduction to SEDD
The Sharjah Economic Development Department (SEDD) issues trade licenses in this emirate. It accomplishes this in a swift and cost-effective manner.
Comparison with Dubai
Another difference is the low setup and spinning cost in Sharjah. It makes it ideal for small businesses and startups. Yet, it is below Dubai international connections and brand.
Benefits of Setting Up in Sharjah
- Reduced expenses.
- Prominent position geographically in the UAE.
- Market opportunities.
- Trade License Verification in the UAE
Always verify the trade license to do business in the UAE.
The purpose of Verification. Prevention of violation of the law and the prevention of fraud.
Verification Methods
- Online: Use the DED e-services portal to check the licenses of DED-registered facilities. Complete this task without delay.
- Offline: Go to the Department of Economic Development. Or, use the competent authority to verify yourself.
Summary
Entrepreneurs, SMEs, and foreign investors must know the trade license process to start a business in Dubai. One can avoid a real business failure. This is possible by using the benefits of the free zones. A city’s business environment changes with a click of a button. So, consider hiring a business setup expert for help.
