Introduction
UAE’s economy has grown exponentially over the past ten years with its government policies and state of the art infrastructure. The establishments of international business companies, free zones companies and other investor friendly policies have provided numerous opportunities for a number of foreign investors and entrepreneurs.
Launching a new business can be overwhelming and exhilarating at the same time especially as a new budding entrepreneur about to start a new business in the UAE. A Business license is mandatory for any kind of LLC company formation Dubai or Business Free zone Company set up.
A TRADE LICENSE authorizes your business and company as a legitimate entity to do your business ventures. It also defends your public well-being and safety.
Obtaining a trade license is not at all difficult with the help of a team of professional business consultants at PRO Desk Documents Clearing Services. The availability of numerous licenses in the UAE can help you make a smart decision.
What is a trade license?
The trade license or commercial license certifies a company’s legal status if you wish to operate legally in the UAE.
So if you would like to open an LLC company formation Dubai or UAE Offshore company or Business free zone company setup, you must first determine the type of business activity you would wish to undertake. The Department of Economic Development (DED) is the governing authority that supports the growth of new businesses and issues trade licenses for various business activities.
The type of license that is right for your business will depend on the nature of your business and its activities, your jurisdiction, and many other factors. If you offer professional services, and then apply for a professional license. Similarly, if you deal with trading, then a commercial license is best and if you are a manufacturer, an industrial license will be best suited.
Types of trade licenses
With a booming economy, UAE deals with all types of business activities and free zones. Choosing the right kind of business activity can be overwhelming so it is advised to set up your business with the help of PRO Desk Documents Clearing Services. Some of the main types of business licenses available are-
Commercial license
This license is issued to businesses that are involved in the purchase and sale of goods. It is important to choose a specific commercial license for Mainland Company Set up, UAE Offshore Company, or Business free zone company setup. You can perform several activities under the same license and one can obtain residence visas for employees and company management. Some Commercial trade licenses available are-Oil and Gas trading, gold and precious metals trading, trading in chemicals, trading in automobiles, publications and media materials trading, used furniture trading, spare parts trading and safety equipment trading, and more.
Professional license
This license is given to individuals with academic achievements, intellectual abilities, and proficient skills. If the owner is more than one person, then it will be registered as a Civil Works Company. IT service suppliers, auditors, lawyers, craftsmen, etc can apply for this license. Some of the activities that come under this include- Consultancy and services, tax consultancy, computer consultancies, insurance consultancies, IT infrastructure consultancy, marketing consultancies, management consultancies, and more.
Industrial license
This license includes the business activities that are involved in the manufacturing of materials and products in industries. They must have a physical office to operate and some of the activities that fall under this category are-Carpet manufacturing, garments manufacturing, meat products manufacturing, dairy products manufacturing, wood products, and furniture manufacturing, and more.
How to apply for a UAE trade license?
UAE is a very popular destination for investors and foreign ex-pats to start their business ventures. To open a business, one must first select the business activity of your venture; select the jurisdiction-Mainland, UAE Offshore Company, or Business free zone company setup. Choose the legal structure for your company whether dubai trade license (Limited liability company), Sole establishment, civil company, and so on.
Next, you must get approval from the DED for your trade name and business activity. During this stage, you must also obtain any other necessary external approvals that may be needed. Find a trustworthy local sponsor if required. Draft the Memorandum of Association (MOA) and rent office space as well. Once you submit all the necessary documentation work to the DED, wait for the approval and pay the licensing fees to obtain your trade license.
Takeaway
Our business associates at PRO Desk Documents Clearing Services are familiar with the process and will be able to suggest the best activities that will align with your business. Also note, a trade license must be renewed every year with all the necessary authorized documents necessary for renewal. Do not worry as we can handle it all – leaving you free to concentrate on your business.
