Facts and Fictions of Business License in Dubai
Business in Dubai is a comprehensive strategy that is based on foreign relations, global investors, and a heap of reserves that focus on structuring Dubai as a commercial hub. Nevertheless, it can be hard to keep up with the legal obligation in terms of setting up business in Dubai. Should you register your company first? Or do you need to apply for the license beforehand?
In the article we will discuss about the facts of acquiring, possessing and implementing a business license and all the fictitious aspects surrounding it. Let’s get started!
Fiction – Not all business need a Trade License.
Fact – A business trade license is mandatory but there are exceptions & flexibilities.
There are countries where home-based or smalltime businesspersons do not need to have a Business Trade License, but this is definitely not the case in UAE. Dubai being the commercial hub, every trade is mandatorily required to be registered and licensed. However, at times there is a flexibility given for the foreign exhibitors. These foreign exhibitors could acquire a venue and get into a sale promotional activity by using a temporarily contracted license from a related company.
Fiction – Licensing and Registration is the same.
Fact – Licensing and Registration are not the same but go hand-in-hand the same process.
Licensing and Registration go hand-in-hand, but they are not the same. You need to first register your company’s Trade Name alongside get the initial approvals. After which, subsequently apply for the Trade License.
Fiction – You can take any license for any business
Fact – You can take a license only as per the categorical division of your business.
The Department of Economic Development (DED), has categorically determined every business, under which a particular organization has to endure to the listed legal requirements, approvals from government authorities and make sure the license which is applied for draws maximum commercial benefits. The three extensively determined categories are Commercial, Industrial and Professional Licenses.
Fiction – One Business can only have one activity under one License.
Fact – Under one license there can be as many as ten related business activities.
One business entity can have as much as ten related business activities under one license. Thus even if your business activity is applicable for more than one licenses, make sure to opt for the one that provides you and your business the maximum flexibility.
Fiction – Some Trade Licenses do not need local partnership.
Fact – You require a local partnership or local agent to setup a business.
All trade licenses require a partnership with an UAE national. In case of a professional trade license a UAE national can be a partner or even be limited to a local agent. However, with variations in commercial and trade activities in recent times, the DED has been planning for sole ownership in order to encourage foreign entrepreneurs. Advancements in freezone and offshore company formation are one among them.
Fiction – The DED is the only body that helps with a license.
Fact – Along with DED, there are several judicial bodies, mainly depending upon the jurisdiction.
The Department of Economic Development (DED), is a very important entity if you are considering business setup in Dubai, nevertheless if you choose to form an freezone company then the respective freezone authority would be accountable for the licensing and further required approvals that must be considered by the company. Another governmental body called the Trakhees is also an important entity providing business trade license in Dubai, nevertheless obtaining a license exclusively depends on the jurisdiction.
Fiction – Licenses are difficult to obtain and a lengthy process
Fact – To acquire a business license in Dubai swift and easy, just call us!
Business investors are welcomed in Dubai and all over UAE, the authorities in DED as well as several freezone establishments provide superfluous assistance. Moreover, there are also several business setup service providers that can help with all the requirement while you focus on your business idea.
To obtain such service or find out more about business license in Dubai or any other parts of UAE contact Shuraa Business Setup Service providers today!