The United Arab Emirates is widely regarded as the Middle East’s commercial capital. The economic, industry, trade, and logistics sectors have experienced considerable growth over the last two decades. They make a huge impact on the global economy. The process of registering a company in Dubai is legitimate and obtaining a business license is the most important part of the process. There are several considerations, ranging from understanding the various types of business licenses to choosing the appropriate type of license. As a businessperson, it is important that you consider both of these factors.

In Dubai, securing a trade or company license is not only a formality but also a prerequisite. This authorization establishes the nature of your corporation and establishes your company’s legitimacy. Although this license is costly, it comes with its own package of privileges and incentives.

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Why Do You Need a Business License to Do Business in Dubai?

First and foremost, we must understand the UAE company’s license. Each onshore business in Dubai must be licensed, whether it is in the Free Trade Zone or in the major territories.

The corporation would have an identity thanks to the Dubai business license. A corporate license is a document that certifies a company’s legal status. Companies are given business licenses in order to provide responsibility for their operations in the region. It also organizes, safeguards, and categorizes the firm’s legal cases.

Obtaining a trade license is needed if you wish to trade lawfully as a company. Trade licenses would ensure that the company is managed in line with the UAE’s Commercial Firms Act. Furthermore, obtaining a trade license in Dubai helps you to do business lawfully and in accordance with the regulatory authorities’ laws, as well as provides you with a number of advantages.

Major Licenses in Dubai That You Can Apply For

The Department of Economic Development in Dubai (DED) is the agency in charge of issuing business licenses in Dubai. Any company has been allocated to one of many licenses by the DED, which grants them prominence depending on their business operation. In the United Arab Emirates, commercial operations are divided into five categories.

The following are the most common forms of business licenses available in the UAE.

Commercial License in Dubai

Businesses engaging in the purchase and sale of goods are given a commercial license in the UAE. Businesses may operate in the UAE or outside the UAE with a Commercial License from Dubai. Commercial Licenses for particular commercial activities are required in the UAE in different ways. You may apply for a general trading license in the UAE if you just choose to trade in the local sector. Similarly, you must file an import/export authorization with the licensing authority for some kind of import/export. For exchange in goods such as electronics, equipment, machines, and building materials, the UAE has various types of business licenses and business operation lists. When launching a company in one of Dubai’s free zones, whether on the mainland or offshore, the applicant must choose a particular Business License. An ex-pat or international owner may legally own 49 percent of the total shares of a commercial license, with the remaining 51 percent belonging to a UAE national or local service agent.

For your particular business operations, here is a list of Commercial Trade Licenses available.

Publications and media materials trading
Used Furniture trading
Oil & gas trading
Spare parts trading
Gold & precious metals trading
Trading in chemicals
Trading in Automobile
Safety equipment trading, etc.

Advantages of Acquiring a Commercial License

A commercial trade license serves as both the regulation and protection for trading companies. The benefits provided by a commercial license are as follows:

To perform a maximum of ten activities in one commercial trade license;
Several options for the type of company to register;
Several similar business activities can be undertaken under one license;
Secure business engagement with DED and Registrar of Companies;
Residence visas for employees and company management
Assistance with opening of corporate bank accounts
Cost-effective ways for the renewal of a commercial trade license in the UAE

Professional License in Dubai

To provide their services in Dubai and the rest of the UAE, any person or company involved in the use of people’s intellectual abilities would be necessary to acquire a Professional License. The company firm will be classified as a Civil Works Corporation if the owner is more than one male. Professional licenses are available in Dubai for consultants, auditors, and lawyers. A UAE Technical License may be requested by IT service suppliers, mechanics, craftsmen, among others. An ex-pat with a professional degree would have 100 percent ownership and would be able to become the ultimate owner.

List of business activities in the UAE that include a valid professional license.

Consultancy & Services
Insurance Consultancies
Computer Consultancies
Information technology Consultancies
IT Infrastructure Consultancy
Environmental Consultants
Tax Consultancy
Marketing Consultancies
Management Consultancies

Advantages of Acquiring a Professional License

A service-oriented company relies on professional skills. Therefore, specialists and professionals each need to acquire a UAE professional trade license in order to set up a business in the country.

Benefits of having a professional license are as follows:

Fixed annual fee for professional license holders;
Suitable for skilled professionals;
Transparency in dealing with clients;
Business can apply visas for employees

Industrial License in Dubai

A service-oriented company relies on professional skills. Therefore, specialists and professionals each need to acquire a UAE professional trade license in order to set up a business in the country.

Benefits of having a professional license are as follows:

Garments Manufacturing License
Meat products Manufacturing
Dairy Products Manufacturing
Animal & Birds Feed Manufacturing
Carpet Manufacturing

Tourism License in Dubai

Dubai has done an excellent job of portraying the tourism industry as a global pioneer and as a centre of attraction for drawing corporate owners, casual visitors, and international travelers. A travel and tourism license from the Department of Tourism and Commerce Marketing (DTCM) is required to start a travel and tourism company in Dubai. There are three major categories of tourism licenses required in Dubai, depending on the operation of the tourism industry.

Outbound tour operator
Inbound tour operator
Travel agent

Freelance Permit in Dubai

The freelance permit is another new authorization in Dubai these days. In the United Arab Emirates, freelancing has also gained momentum. Individuals may apply for Freelance Permits in the free zones of Dubai, Abu Dhabi, Ras Al Khaimah, and Fujairah.

These permits enable skilled individuals in the media, telecommunications, art, and entertainment sectors to provide consulting services in addition to their full-time work. Individuals may get a Freelance Permit from places like Dubai Media City, Dubai Knowledge Park, Dubai Internet City, Ras Al Khaimah Free Zone Authority, Fujairah Creative Zone, Twofou54, and others.

Freelancer Licenses are issued to the following creative and media professionals.

Actor
Animator
Audio/Sound Engineer
Cameraman
Content provider
Copywriter
Media Specialist

Which Is the Right Trade License for Your Business?

Business licenses will either restrict or extend the company’s reach. A portal license, for example, would be great if you were to start an online business. Furthermore, a portal license would not authorize you to sell your own handcrafted products online. You must apply for a general trade license in accordance with the Department of Economic Development’s (DED) regulations in order to become a registered dealer to trade both offline and online.

Knowing the best trade license for your organization relies on a lot of things, including your industry, your business process, your business relationship, your jurisdiction, and so on. As a result, you can first discuss your needs with a business forming specialist before applying for a trade license in Dubai. This will save you money and time in the long term.

Where to apply for a Business License in Dubai?

The Department of Economic Development (DED) in Dubai is the government body in charge of issuing Business Licenses to businesses from the rest of the world. If it comes to Free Zones, the business license is provided by the relevant Free Zone Jurisdiction. The same can be said for anyone in the Offshore Business sector. You must apply for a trade authorization with the DED if you choose to conduct business in Dubai onshore or on the mainland. The authorizing procedure involves a variety of documents and documentation, and it can even include other regulatory bodies. Obtaining a trade license in Dubai will take anything from three days to many weeks. The length of time it takes to obtain a trade license is determined by your commercial conduct, the permits you need from regulatory and non-governmental agencies, and other factors. A trade license will be given in three days if you have any of the required paperwork.

How to Get a Business License in Dubai?

To obtain the general trade license one must follow a few steps.

Categorize your Business: The Free Zone or the Department of Economic Development (DED) provides a category list. You must identify the appropriate category for your Business.
Choosing a suitable legal structure: Your company’s legal structure is just as important as the trade name of your company. The legal structure mainly depends on the number of shareholders you have in your business, and the jurisdiction you choose to operate your business in.
Choosing a trading name: While choosing a trading name whether it defines your business activity and make sure it adheres to the government guidelines
How much you need to invest: Depending on your business you must have an idea of your investment.
Lease or purchase office space: Choose an office space that suits your budget and business requirements and make sure, you can conveniently accommodate your employees.
Get initial approval from the authority: It is a fundamental step for obtaining a trade license.

Required Documents

Make sure you have the documents such as

Duly filled application form,
The master plan of your business activity
Copy of passport (of every shareholder/partner associated with your business legally),
Certificate of reference from the bank or 2 years financial statement,
NOC from your sponsor,
Letter of Intent
Notarized copy of Registry Identification Form (for the Director)
Passport-size photograph of the Director or the Manager
Details of Share Capital.

Requirements for Business Licensing

Issuance of licenses for banks and other financial institutions must have the approval of the UAE Central Bank

Issuance of licenses for manufacturing companies must have the approval of the Finance and Industry Ministry.

Issuance of licenses for companies engaged in insurance and other relevant firms must have the approval of the Economy and Commerce Ministry

Issuance of licenses for medical and pharmaceutical products must have the approval of the Health Ministry

Renewal Process of Business License in Dubai

A trade license under the Department of Economic Development (DED), must be renewed every year. The process is explained below:

Authorization: To renew a business license business in Dubai, you will need approvals and authorizations from the concerned governmental bodies. For instance, a Taxi Service company needs consent from the Road and Transport Authority of Dubai, likewise, a restaurant needs approval from the Food Safety Department and municipality. It is usually best to get the authorization letter before applying for license renewal.
Documentation: The typed renewal form, the tenancy contract, attested EJARI, any authorization documents, approvals, photographs of all the business partners, and the payment voucher/transaction number (given by the DED) are the documents you will require while renewing the license with the DED.
Tenancy Contract: Your tenancy contract should be valid for not less than three months from the application date. Make sure you check your tenancy contract and then apply for the renewal along with an attested EJARI.

Why Riz & Mona

Our consultants have years of hands-on experience in this domain and we can make the whole process easy and completely hassle-free for you. Contact us for any kind of assistance, we also help in Specialized Business Licenses.

A Complete Guide on Business Licenses in Dubai