A Definite Guide to Get Business License in Dubaiby Aaqil Faraj Business Setup in Dubai
Dubai is home to beautiful architectural marvels as well as booming tourism communities of the world. This city also has desirable tax regimes that make it appealing to entrepreneurs as well as traders from all over the world. The other reasons that make Dubai the prominent choice for business setup include 100% ownership, refined lifestyle, strategic location, free trade zones, economic as well as political conditions.
Importance of Obtaining Business License in Dubai
For foreign entrepreneurs, the process of business formation in Dubai is quite simple. With appropriate guidance, you could get a residency visa, have the company up as well as running in some weeks. The only way for confirming the legal identity as well as the status of the company is by getting the business license. In layman language, you need to obtain the business license for the company to be recognised as a legal business entity. A business license provides you with tax rights as well as provides protection against certain liabilities.
Kinds of Business Licenses
For a business set up in Dubai, it is important to obtain a relevant business license. In Dubai, you could obtain four kinds of business licenses
- Commercial License
In case you intend to purchase or sell the goods in Dubai, you would need to obtain a commercial license for your business. This license would permit your company to export as well as import products like precious metals, oil & gas as well as others. It would also allow to provide brokerage as well as logistic services.
- Industrial License
The company that wishes to produce goods or commodities in Dubai requires an industrial license. This license covers industrial business activities like product packaging.
- Professional License
This license is essential for those who wish to provide consulting services like commercial as well as real estate brokerage. For a professional company set up in Dubai, you need to obtain this license. Apart from these, another kind of license is a tourism license. In case you are going to provide services like hospitality, visa assistance, tour management, etc. you would need to get the tourism license before you start operations.
Steps to Apply for Business License
Before you apply for a business license, you need to complete numerous steps. To company registration in Dubai and obtain the license, consider following the given steps
1. Choose Business Name
Picking a business name that conveys each thing about the business is often a challenging process. Here are the certain practices you need to follow for making the process smooth
- Keep it simple as well as easy to remember
- Make it descriptive and ensure that name you select sells the identity of the brand
- Go for clarity
Ensure you follow the naming conventions of UAE while finalising the name for your business setup in Dubai. It means that name of the business you choose doesn’t contain any offensive words or be an abbreviation. Along with this, avoid the use of phrases that are similar to the ones of other businesses. And, ensure you include FZE, LLC, and other legal identifiers relevant to the business operations.
2. Define Business Activities
Having a general idea of what the business offerings would be is not enough. Before you apply for a license for company setup Dubai, ensure you list out the activities your company would engage in. It is worth noting that every business license category has the list of activities maintained by the DED (Department of Economic Development) of Dubai.
Ensure that the activities you plan are on the list. It is crucial that you list each activity that relates to your business while submitting the application. Else you might be fined or the license might be revoked after issuance.
3. Choose Between Free Zone or Mainland
Before you company registration in Dubai, deciding the operating jurisdiction of the company is crucial. Primarily, there are two choices for business locations i.e. Mainland and Free Zones. The best option for the business would be determined by the kind of business you have selected as well as the industry you are involved in.
Both zones are different and each one has its benefits as well as restrictions. For instance, free zone companies have complete control over operations and are entitled to tax exemptions. On the other hand, most trading companies choose to establish themselves on Mainland. And, the reason behind that is access to direct trade with the local Dubai market.
4. On Registration Process
In case you choose a free zone for business formation in Dubai, you need to submit the application to the managing authority of the concerned zone. Whereas the DED oversees the mainland businesses. Be it a free zone or a mainland, you would need to submit certain documents along with the application form. Such documents include a copy of your signature, business plan, copy of your and shareholders passport, and letter of no objection from existing employer (if applicable).
After this, you need to pay the fee for obtaining a business license. The cost of getting a license would be determined by numerous factors including proposed location, kind of business, and many others. To get an idea of the process and cost of obtaining a business license, you could get in touch with a reputed business consultant. The expert having knowledge and experience would assist with the entire process.
Created on Dec 22nd 2021 01:48. Viewed 653 times.