How to Obtain a Business License in Dubai

Dubai takes one of the highest positions among the most enticing destinations for business people all around the globe. But for business people, the city has many advantages. The advantages are a favorable location, markets around the globe, and also a favorable business environment. Dubai is one of the fastest growing economies and enjoys the high life of its inhabitants. So, those wishing to start their business in UAE prefer this city.

However, to start targeting clients for its operations, the correct business license has to be acquired. A business license in Dubai permits one to do business legally in Dubai. Whether it is a consulting business, a retail business, or even a general trading business, in this article, you will find out all the necessary information about getting a business license. It includes which licenses exist, and what procedures should be taken.

What is a Business License in Dubai?

A business license is a legal document issued by the government of Dubai. It permits a certain person or company to engage in legal business in the area. The license enables you to run a certain commercial activity and the type of license that is necessary for running your business. It, however, depends on the character and size of your business.

Why is a business license so important? 

If you are running your business without a proper license in Dubai, the government has the right to impose serious penalties on you. The result is fines or even a business shutdown. Moreover, it is crucial to have the right license. This is because it provides your business legitimacy in government. So, it allows you access to necessities, including banking and contracts.

Types of Businesses That Need a License:

• Companies that buy and sell goods (selling companies or mercantile concerns).
• Self-employed individuals who provide services (consultants, freelancers, and so on).
• Industrial venture or enterprises, which engages in the process of fabricating products.
• Professional services comprising accounting services, legal services, etc,
• Currently, it has major importance in several sectors such as hospitality-related industries (hotels, tour operators, etc.).

Types of Business Licenses in Dubai

Dubai has many business licenses depending on the business that you wish to start. Knowing the distinctions of various licenses will give you a clear comparison of which one should be adopted.

1. General Trading Licence in Dubai

A general trading license is suitable for any firm that seeks to trade goods in the region. It allows the trading of goods. This license is also good for those firms that intend to have several kinds of products or a general trading business.

Benefits

• Enables you to exchange virtually any type of merchandise.
• An entrance to the domestic as well as the global market.
• Versatility to penetrate various sectors.

Requirements

• Affidavit of support.
• A physical office location.
• A list showing merchandise that you intend to export.

2. Professional License in Dubai

If you are conducting a service-based business, for instance, a consulting business, IT services, or freelance service operating a business in Dubai means that you need a professional license. So, this license applies to those who impart specialized knowledge in their sectors or offer them services.

Benefits

• Consulting services, technical or other professional services are the form of services you can provide your clients.
• The law does not set any minimum capital that should be brought by the foreign player into the country.
• Perfect for those having an independent practice, or who are self-employed.

Eligibility

• A valid degree or experience in your field is an important and common requirement for almost all job posts.
• A clear business plan.
• Certification of professional qualifications.

3. Other License Types

Apart from the general trading license in Dubai and professional license in Dubai, Dubai offers other types of business licenses depending on your activity:

• Commercial License: For purchases for retail operational needs, wholesale businesses, and other trading businesses.
• Industrial License: For manufacturing companies.
• Tourism License: In particular, the following groups of companies: travel agents, hotels, and event organizers operating in the sphere of tourism.

Step-by-Step Guide to Obtaining a Business License in Dubai

Now that you know which type of business license you’ll need, let’s learn the process of getting a business license in Dubai.

Determining Your Business Activity

The first activity involves identifying what your business will be doing and therefore focusing. Currently, Dubai hosts more than 2’000 types of business, including technology and retail. To do this one should select the business activity that corresponds to his business idea and is conformable to the legislation of Dubai.

Choose a Company Name

After you decide your business activity, the next step is to choose your company name. You need to follow the naming structures for business in Dubai and should not choose a name that might offend or may be very similar to any already in use in the market.

The name must also be endorsed by the DED or the Free Zone Authority for the selected area of operation.

Decide on the Legal Structure

It seems to be one of the most important decisions an owner of a business can make, as it will define the legal framework that a business has to adhere to. Your options include:

• LLC (Limited Liability Company): It is the most popular business structure for foreign investors to engage in business in a particular country.
• Sole Proprietorship: Most suitable for anybody who has a small business.
• Branch Office: Thus, for foreign companies that seek to increase their foothold in Dubai. It is crucial to comprehend the importance.

These choices will involve matters of legal structure, which will influence your accountability and legal risk, the ownership, and the profit-sharing model.

Select the Business Location

The selection of the site is crucial for any business. Dubai offers different options:

• Mainland: Working under DED directly which suits businesses that they want to establish anywhere in Dubai.
• Free Zones: Places intended for the development of foreign and attractive incentives such as tax incentives for the business to be established.
• Offshore: For many organizations that wish to set up an office, but do not wish to have an actual office in Dubai.

Apply for the Business License

Having chosen your location and your legal status, you can obtain your business license. The application process requires forwarding your documents to the right channel; it could be the DED or any Free Zone Authority. After you’ve submitted your documents, the government will peruse them and issue you a license.

Costs Involved

• License fees.
• Office rental fees.
• Additional service charges.

Prepare and Submit Required Documents

You will need to submit several documents for your business license application:

• The copies of the passport for the shareholders of the firm.
• Certificate hence proving the permits of being a legal structure (partnership agreement, etc.).
• Business plan (for license type B and in case of type A if the buyer requests it).
• Official office address (for companies situated on the mainland).

When you have all that, you can forward any documents to the relevant authority.

Costs of a Business License in Dubai

Pricing of business licenses in Dubai depends on the type of business as well as its location. For instance, a general trading license in Dubai can cost more since the license is for virtually any type of business activity. Other costs are the cost of offices: rent, visa, government charges, etc.

One needs to set aside cash for all these expenses if one has to set up a business successfully.

Renewing of a business license in Dubai

This is a necessity where like any other country Dubai expects business people to renew their licenses every year. Business license renewal requires filing some papers and paying license renewal charges.

You may also have to show that your business continues to be active and meets the requirements of the rules. Section 

Why Hire Services of Business Setup Professionals in Dubai

With the help of Business setup consultants in Dubai, the procedure of getting the business license may be coped. Such specialists have profound knowledge of the local market and crucial legislation depositories. So that you won’t meet significant losses.

Business Setup Experts DMCC and other consultants offer services like:

• Providing you assistance in selecting the best business structure.
• Accompanying you in the process of documentation.
• Helping people to get visas and with the leasing of offices.

Conclusion

The RAK Business License is therefore easy to obtain but it is important to understand the type of license required, meet all the required procedures, and adhere to all the required rules. Regardless of whether you are an entrepreneur, a start-up, and a freelancer. Moreover, a business license is a legal paperwork that you need to get when running a business in Dubai.

However, when it comes to business setup. It is advisable to consult Business setup experts in Dubai to help one through each of these processes.

Are you prepared to do business in Dubai? Seek business setup in Dubai now for help and comprehensive consultation for your business venture. Whether you require company formation in Dubai or general trading license in Dubai or any other license we are with you all the way.