UAE has become the commercial hub of the whole world. It has successfully brought a great number of business opportunities for the businessmen who want setting up a business in Dubai.
If you are also one of those investors who want to invest in UAE and establish your business here, make sure that you are well aware of all the rules and regulations. The sound knowledge of business set up in Dubai is really important as it helps the company in keeping up with all the business requirements and steps that should be completed for running the company successfully.
One of the most important parts regarding the company formation in Dubai is trade license. Trade license is of primary importance because it is something that reflects the overall operations of the company.
Department of Economic Development (DED) issues the trade license in Dubai UAE. When you obtain the trade license, you basically get permission to carry out your business activities in Dubai. Types of Trade License in UAE mainland
There are different types of trade licenses that can be obtained in Dubai for various business activities. The businessmen can choose any of them in order to provide their products and services to the people.
- Commercial license
- Industrial license
- Professional license
Companies undertaking trading activities can obtain this license. If anyone wants to have UAE business setup, he will have to apply for the commercial license an after that he should go for the Mainland Limited Liability Company formation. I would be the best option for such sort of business activity.
For manufacturing and industrial companies, the industrial license is a better option. Note that you must have a physical location of your office if you want to provide services under the industrial license
Professional service providers, artisans etc. require professional license. You can have 100 percent ownership under professional license as well.
Process for Obtaining Business Trade License in UAE mainland
- Select a local partner for the business. You must have a good relationship with your sponsor or partner so that you may be able to avoid any problems in the future.
- For obtaining the trade name and activity approval, submit the form to Department of Economic Development (DED)
- Choose a location for your business but do keep in mind that location plays a huge role in the success of the business.
- With your sponsor, prepare the Memorandum of Association (MOA)
- Submit the application for license approval and do not forget to attach the required legal documents.
Documents needed for a business license are;
- Application form which must be signed by the legal agent of the company
- Original and copy of statutory documents of the company
- DED letter which shows the approval of the company’s trade name
- Attestation letter from DED which is approving the company set up
- Tenancy agreement
- Complete details of the shareholders.
- Passport copies of the shareholders.
For a business start-up in UAE, you must pay all the charges and fees to successfully submit the forms and documents. If you do so, you can get your business license just in a week.