Usually recognized as the Middle East business center, the UAE has a significant contribution to the world economy. The most crucial part of business registration in Dubai obtains a trade license. This process is not only formalities but requirements. There are many factors involved, from knowing various assignments to choose your business’s right permit. For anyone who wants to set up business in Dubai, taking into account these variables is critical.
Foreign investors start all types of businesses tips in Dubai must pay attention to the company’s legal requirements that provide all steps that must be resolved by someone to run and run the company. Someone must pay attention to the business permit that they need to operate because this reflects the operation that will be done business.
What is a Dubai Business/ trade License?
Obtaining a business license may be the most crucial part after setting up a business in dubai. The most used type of business license is a trade license, also referred to as a commercial license and which sets most activities that can be done throughout the UAE. The trading license was issued by the Department of Economic Development (DED) in Dubai.
- Also known as a general trade license, this business permit can be used for the following activities:
- For import and export of goods, and are usually requested by trading companies registered in Dubai;
- To carry out various types of commercial activities, such as the sale of goods and services in Dubai;
- The general trading license can also be obtained by companies listed in the Dubai free zone;
- Trade licenses can also be obtained by professionals who offer services in specific industries.
Importance Of Trade License in Dubai?
Registration requires a certain fee, and while it can be a little expensive, obtaining a license to have its advantages. The trade license in Dubai gives your company the right identity because it is a permit that validates business legally. Trade licenses are issued for businesses to establish accountability for their activities in the area.
Obtaining a trade license in Dubai allows your company to operate legally and by the rules carried out by regulatory authorities. Getting a trade license in Dubai also provides several benefits. Because there is no income tax, if you are thinking of starting professional practices in Dubai, you will have 100% of the company, regardless of whether it is in Dubai’s free zone or land.
How To Get Business License in Dubai?
Issuing a trade license, the company’s merging document must provide company activities related to the field of trade. It is also mandatory to pay attention that most Dubai activities can be completed under the general trade license.
To get a trading license for a person’s company in Dubai, one must first choose a trading name, have a memorandum and article association prepared, and then submitted with DED for the initial approval. Someone must also have a rental agreement as proof of the registered address of the Dubai company. Then the application for trading licenses can be submitted.
Decide the Business Location
You need to ask for approval from the relevant authority—both the Department of Economic Development (DED) for mainland or independent sources for certain free zones.
Create and Submit a Business plan
Wherever you set up, you will make and send a business plan for restaurants. This plan will consider your vision for a business, financial feasibility, brand management, and emergency plans. You will also do a fee for your business to estimate the required capital for restaurants’ initial investment and walking needs.
Along with business licenses, you will need further permission to operate a business. So, along with a business license from the Department of Economic Development (DED), the free zone’s authority, or the Department of Tourism or Trade, you are required to get a food license from the Department of Food Safety.
Submit The Documents for approval
The following documents must be submitted to issue the trade license and the commercial registration department in DED when applying for a business license in Dubai:
- The standard application form that must be filled and signed by company legal representatives;
- Company legal documents, both in the original and copies;
- Letter DED with the approval of the company name;
- Ded’s letter proves the agreement to establish a company;
- rental agreement;
- All details of shareholders (copies after their passport).
Cost Of Business License
Costs, of course, are essential factors for many entrepreneurs. However, it is not always easy to estimate the total cost of implementing business licenses and starting a UAE business.
Costs will depend on many factors, such as the size of your business, the nature of your business activities, and whether you intend to set up in the free zone or on the mainland.
Get The License
After all the documents are submitted and verified, you have to pay the license fees, and then you get your business license.
However, while the application process is not complicated, it requires an expert eye. Every error in your application can cause delays or rejections. That’s why it’s often a suggestion to work with a company to set up a specialist to help you build your business.