For entrepreneurs, the United Arab Emirates is one of the most appealing countries in the world. Setting up a new company in Dubai will be rewarded with lucrative profits and access to global markets, in addition to the high standard of life, a central location linking East and West, a tax-free financial climate for personal and corporate income, and a system of business-friendly visa laws and regulations.

There are four different types of business licenses available in Dubai and having one is a legal requirement for doing business in the United Arab Emirates (UAE). The Government of Dubai Government Development Service (dedicated) publishes initial liquidation and each emirate has its own protocols and procedures.

The government of Dubai provides business incentives and perks in addition to these Dubai trade licenses.

It is critical to comprehend the various sorts of licenses available for various business ideas in Dubai, as well as how to apply for the right license.

In Dubai, UAE, there are four different types of trade licenses:

In Dubai, UAE, forming a business entity necessitates obtaining a trade license that is appropriate for the company’s kind, industry, and commercial activity. This applies to foreign companies wishing to set up a business in a free zone. The four most frequent Dubai trade license categories accessible to Free Zone businesses are as follows:

For typical trade firms, a commercial license is required.

For service-related businesses, a professional license is required.

Industrial License for the Production of Goods

For travel and tours, a tourism license is required.

1) Commercial Company License:

The general trading license or company license is another name for the commercial license. In Dubai’s Free Zones, it is the most commonly applied for and given trade license kind. This category of license is for companies doing business and trade in Dubai and the United Arab Emirates. Importing and exporting products, as well as trading goods and commodities, are common examples of these operations. For enterprises operating in Dubai’s Free Zones, the Commercial License provides both control and protection. This allows a company to benefit from various industry-specific business support mechanisms, such as startup incubators, financial aid, and company-specific business incentives.

The benefits of obtaining a business license in Dubai are:

Under one Commercial License, a license holder can engage in up to 10 commercial and trade activities, and a business owner can choose from a choice of firm creation and registration options.

On the Commercial License, license holders can apply for residence permits for employees and company management. A Commercial License also makes it easier to register corporate bank accounts.

UAE trade license renewals are more cost-effective.

2) Professional License: The Professional License was created to allow trained professionals to conduct business in certain industries. This type of trade license is for service-oriented businesses such as business consulting, operating management services, teaching and training, IT services, engineering skills, lawyers, mechanics, doctors and other medical and healthcare professionals, accounting and auditing service providers, and so on.

The following are some of the benefits of obtaining a Professional License:

• costs for business operations that are fixed every year
• clients’ transparency details for various services and industries
• Employee visas are available to bearers with professional licenses.

There are times when the business activities of service-oriented businesses are acceptable for both Commercial and Professional Licenses. Contact the trade setup experts at Avyanco for help determining the ideal type of trade license for your business and needs.

3) Industrial License: An industrial license is required for companies that produce and manufacture new items from natural or raw materials. This includes industries such as product manufacturing, food processing, textile manufacturing, engine and equipment manufacturing, etc. A corporation must operate from an office address within a Dubai Free Zone, such as a physical office space, physical warehouse, or industrial complex, to qualify for this trade license category.

When you get your Industrial License from the DED (Department of Economic Development), you’ll get operating, tax, and customs privileges based on certain criteria:

• Your business creates goods for the domestic market.
• As a new business venture, your items may be exported outside the UAE to compete with foreign goods.
• The company is located in a designated industrial development zone.
• The company manufactures locally sourced raw materials.
• Your business has a beneficial impact on the UAE market.

4) Tourism Permit:

The Tourism License allows companies to operate in any of Dubai’s tourism sectors. Outbound tour operators, inbound tour operators, and travel agencies are the most common forms of tourism businesses in Dubai.

The Department of Tourism and Commerce Marketing (DTCM) and Dubai’s Department of Economic Development (DED) grant this type of commercial license.

Which Trade License is the Most Appropriate for Your Company?

Businesses’ precise areas of activity are defined by trade licenses. The economy of Dubai is diversified, and these regulations play an important role in the development of industries and businesses. These trade licenses regulate the sector, direct company operations, improve market ties, and identify companies’ jurisdiction for greater transparency and better customer service. It is essential to discuss your needs with a business formation professional at Avyanco to identify which of the four major forms of trade licenses is most suitable for your business in Dubai, UAE.

The following are the steps to get a trade license in Dubai, United Arab Emirates:

These are the processes that must be followed in order to apply for a trade license in Dubai.

Step 1: Form an alliance with Avyanco.

The first step in starting any form of business in Dubai, UAE is to partner with a local company setup agency like Avyanco. You must adhere to tight business structure and formation laws in order to profit from the legal structures of operating with a trade license. Avyanco’s experts will take care of all parts of your company registration in Dubai and will advise you on the many governmental and local trade requirements that apply to operating in the UAE.

Step 2: Decide on a company structure

Dubai pioneered the concept of free zones, which are unique economic zones dedicated to specific businesses. The many free zones offer various benefits, including tax refunds and industry-specific business support services.

Companies in the free zone have access to FIRST CLASS infrastructure, business operations, qualified staff and a large number of customers, in addition to business licenses..

Step 3: Picking a Business Name and Registering It

Avianca can help you choose the best name for your business. The company name cannot contain offensive or blasphemous words, or any reference to Islam or Allah, according to the registrar. Your name can be used on behalf of the company, but it must be used in its entirety rather than in your last name or initials. Then we will see if the name is available for registration.

Step 4: Have your company’s documents notarized.

You’ll need to apply for notarization of your firm’s paperwork during the application procedure for your company and visa. You can get the Memorandum of Association (MOA) and Articles of Association (AOA) notarized with the Dubai Department of Economic Development once the Registry Office has approved your company’s name (DED).

Step 5: Submit your application for a business license.

We will submit your documents, along with your business plan, to the Department of Economic Development (DED) in Dubai once they have been notarized and finished (and the Department of Tourism and Commerce Marketing for Tourism Licenses). For a successful approval, the following documents are required:

• Directors and shareholders must provide proof of identity and address.
• Shareholders and directors will receive copies of their passports.
• a copy of the Registry Office’s confirmation of the trade name
• a copy of the application for a license
• Proof of Dubai’s management authorities’ acceptance of the initial activities
• Memorandum of Association Notarized (MOA)
• Articles of Association Notarized (AOA)
• a copy of the company’s physical address’s lease or property agreement
• Payment for a specific type of business license

Step 6 : Obtaining a Trade License

The DED will issue your company an appropriate trade license after it has been accepted. This procedure usually takes two weeks, however, due to COVID19 constraints, it can take up to four weeks.

Trade License Renewal in Dubai, UAE: The DED in Dubai, UAE must renew all trade licenses on an annual basis. This requires obtaining the necessary approvals and permits from the appropriate government and municipal agencies. A renewal form, lease agreement, authorizations, and approvals, as well as identification and photocopies of shareholders and directors, are all required documents.

Conclusion

The quickest way to secure a visa in Dubai, UAE is to start your own business. Using one of the four types of trade licenses discussed in this article will ensure that you have the proper framework in place to start your business in the UAE. Working with a company formation expert like Avyanco will help you get up and running quickly.

That’s why hiring a UAE business setup company to help you with your company’s license and setup based on your demands and budget is always a good idea.

When you engage with Avyanco’s expert advisers, we’ll walk you through the whole incorporation process and walk you through the most up-to-date government requirements for your trade license application and business needs. Get in contact with us immediately for a customized quote and a competitive edge.

We’ll provide you peace of mind by ensuring that your trade license and visa applications are free of errors and omissions, which can result in delays or rejection.

All you need to do is supply some basic documentation and corporate information. Then relax and let the professionals do the rest, including maintaining your license and visa applications, dealing with the appropriate government offices and authorities, and reporting back when you’re ready to trade. It’s as easy as that.