How do I get a business license in Dubai

١٤ يناير How do I get a business license in Dubai

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Obtaining a business license in Dubai is a vital step towards achieving success in the world of business and investing in one of the fastest growing and developing cities in the world. Dubai, with its strategic location in the heart of global trade, provides an ideal environment for entrepreneurs and ambitious investors looking to establish successful companies. However, the process of obtaining a business license can be complex and requires a thorough understanding of the procedures and legal requirements. Here comes the role of partnering with Itqan, the leading company in providing advisory and business services in Dubai.

In this article, we will review how I obtain a commercial license in Dubai in cooperation with Itqan. We will cover the types of business licenses in Dubai, the basic procedures that must be followed, the required documents, and the expected costs. We will also highlight the important role that Itqan plays in facilitating and accelerating this process, by providing technical, administrative and advisory support that helps overcome potential challenges and ensure full compliance with local laws and regulations.

Dubai features a favorable business environment that attracts investors from all over the world, thanks to government facilities and multiple economic incentives. However, to make the most of this environment, it is essential to have a trusted partner who can guide you through all stages of the business license process. “Itqan” plays this role brilliantly, as it provides comprehensive services that include studying the market, preparing documents, submitting applications, and communicating with relevant government agencies.

How do I get a business license in Dubai?

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What is a Dubai trade license?

Obtaining a business license is perhaps the most important part after establishing a company in Dubai. The most commonly used type of business permit is the Dubai business license , which specifies most activities that can be carried out throughout the UAE. The business license is issued by the Department of Economic Development (DED) in Dubai.

This work permit can be used for the following activities:

Import and export of goods, usually required by trading companies registered in Dubai.
To carry out different types of business activities, such as selling goods and services in Dubai.
A general business license can also be obtained by companies registered in free zones in Dubai.
A business license can also be obtained by professionals who provide services in a specific industry.

How to get a business license in Dubai?

To obtain a business license in Dubai , you need to adhere to a number of basic requirements set by the Dubai Economic Development Authority (DED). Here is a list of basic requirements:

Determine the work activity: You must specify the work activity you wish to practice, as the type of license varies based on the type of activity.
Choosing a company structure: You must choose the appropriate legal structure for your company, whether it is a sole proprietorship, joint stock company, limited liability company, etc.
Determine your company name: Choose a name that is unique and appropriate for your company, that complies with local laws and does not conflict with existing trademarks.
Determine the business location: You must provide a valid business address to register the company, and this can be in an office or commercial space.
Submitting legal documents: The required legal documents usually include the company’s articles of incorporation, the company’s articles of association, passports of the founders, copies of the signature, and a license application form.
Payment of fees: The required registration and licensing fees must be paid, and these fees vary based on the type of activity and company structure.
Providing Tax Information: In some cases, you may need to provide tax information such as your tax ID number and financial tax information.
Obtaining additional approvals: You may need to obtain additional approvals from relevant authorities, such as the Health Authority for medical activities, the Dubai Financial Services Authority for financial services, etc.

Types of business licenses in Dubai

In light of rapid economic growth and continuous developments, Dubai has become one of the most prominent global destinations for business and investment. The thriving business environment and advanced infrastructure provide many opportunities for entrepreneurs and investors. To gain a strong foothold in this dynamic market, obtaining the appropriate business license is an essential step. Dubai provides a variety of business licenses that meet the needs of various sectors and economic activities. Through this article, we will review the types of commercial licenses in Dubai :

Type of commercial license	the description	Permitted activities	Basic requirements
General Commercial License	This license allows the practice of commercial activities such as buying, selling, distribution and storage.	Retail and wholesale trade, export and import, product distribution.	Valid passport, registered lease contract, initial approval from the Department of Economic Development.
Professional License	Issued to professionals who wish to provide services based on personal skills and qualifications.	Consulting, legal services, accounting, marketing services, design.	A valid passport, professional qualifications certificate, registered lease contract, and initial approval from the Department of Economic Development.
Industrial License	Issued to companies wishing to engage in industrial and manufacturing activities in Dubai.	Manufacturing, assembly, processing, industrial production.	A valid passport, registered lease contract in an industrial zone, initial approval from the Department of Economic Development, approval from the Environment Agency.
Craftsman License	It allows individuals to practice traditional craft activities.	Carpentry, sewing, barbering, construction, restoration.	A valid passport, skills or vocational training certificate, registered lease contract, and initial approval from the Department of Economic Development.
Tourism License	Issued to companies operating in the tourism and hospitality sector.	Travel agencies, tour operators, airlines, hotels, hospitality services.	A valid passport, registered lease contract, initial approval from the Department of Economic Development, approval from the Department of Tourism and Commerce Marketing.
Free Zone License	It is issued to companies operating within the free zones in Dubai, providing tax benefits and facilities.	Trade, import and export, consulting, logistical services, light industries.	A valid passport, lease contract or ownership certificate in the free zone, approval from the relevant free zone authority.
Agricultural License	It allows the practice of activities related to agriculture and agricultural production.	Crop cultivation, livestock production, hunting, horticultural services.	A valid passport, agricultural land lease contract, approval from the Ministry of Climate Change and Environment, and initial approval from the Department of Economic Development.

Types of business licenses in Dubai reflect the economic vitality and diversity that the emirate enjoys. Whether you want to start a small business or establish a large multinational company, Dubai provides the infrastructure and legal framework necessary to support your ambitions. Understanding the different types of business licenses and the requirements for each is the first step towards establishing a successful and sustainable business in Dubai. Complying with legal and administrative procedures ensures legal stability and enhances the chances of your project’s success in the competitive Dubai market. So, choose the license that suits your activity and get ready to benefit from the thriving business environment in Dubai.

Cost of a business license in Dubai

The cost of a business license in Dubai varies greatly and depends on several factors such as the type of business activity, company structure, business location, and expected business volume. Therefore, it is difficult to determine an accurate cost without the actual factors for each case. You should research and consult with local business consultants or stakeholders to get an accurate estimate of the cost of your business license. Here is the cost of commercial licenses:

Business registration fees: They range from different amounts depending on the type of activity.
Company registration fees: These fees also vary based on the company structure chosen.
Virtual office or commercial location fees: If you do not have a private office, you may need to rent a virtual office or commercial space, and costs vary according to location and size.
Legal and accounting consulting fees: You may need to use legal or accounting consultants to assist in the process of obtaining a license and managing the company, and the costs of consulting services vary.
Visa issuance and labor fees: If you intend to hire employees, you will incur costs for obtaining work visas and recruitment.

Benefits of obtaining a business license in Dubai

Obtaining a business license in Dubai comes with many benefits that make it an attractive investment for entrepreneurs and businesses. Here are some key benefits:

Access to a global market: Dubai is strategically located as a gateway to global trade, allowing companies to have ample opportunities to expand and grow both locally and globally.
Thriving Economic Environment: Dubai is considered one of the most economically stable and competitive cities in the world, providing a conducive environment for business and investment.
Regulating legislation: Dubai offers transparent and simplified commercial laws and legislation, which facilitates the procedures for establishing and operating companies.
Government incentives: The Dubai government provides a variety of incentives to companies, such as tax exemptions and financial facilities, which help reduce business costs and increase profits.
Advanced Infrastructure: Dubai has an advanced infrastructure that includes international airports, sea ports, and a modern transportation network, making it a global trade and logistics center.
Access to skilled workers: Dubai attracts national and international talent, providing companies with access to skilled and educated employees in various sectors.
Government and sector cooperation: The private sector cooperates closely with the government in Dubai, facilitating problem solving and corporate success.
Entrepreneurial Culture: Dubai encourages innovation and entrepreneurship, and provides a supportive environment for emerging and innovative companies.

In short, a trade license in Dubai provides great opportunities for success and growth for businesses, and is considered a strategic investment for entrepreneurs in a competitive global market.

Commercial licenses in Dubai

Professional business license in Dubai

A professional business license is a special work permit and is usually issued in one of the following industries:

Accounting and Finance.
Information technology management.
health care. education.
Advertising and marketing.

A professional business license comes with many advantages, one of which is the fact that it can be obtained by sole proprietors in Dubai. It also grants the right to full foreign ownership when acquired by a sole trader.

Commercial license in the free zone

In Dubai, the requirements applicable to businesses opening on mainland Dubai also apply to those establishing companies in free zones in the city-state and seeking a general or professional business licence. The trade licence, when applied for in Dubai Free Zone, will be issued by the relevant free zone authority. The peculiarity of a trade license issued to a free zone company is that it can only be used to complete business or commercial activities in the free zone in question.

Necessary steps to register companies in Dubai

Registering companies in Dubai requires following a series of necessary steps. Here’s an overview of the basic steps:

Determine the type of company: You must first determine the type of company you wish to establish, whether it is an individual company, a joint stock company, or a company affiliated with a free zone.
Choosing a company name: You must choose a unique and non-duplicate name for the company and ensure that it complies with local laws and legislation.
Determine the location of the company: The company must be located in Dubai, whether it is in the free zones or in the main commercial areas.
Obtaining prior permission: Establishing some types of companies in Dubai requires obtaining prior permission from the relevant government authorities.
Preparing legal documents: The necessary legal documents must be prepared to establish the company, such as articles of incorporation and articles of association.
Submitting the application: The application must be submitted to register the company at the Department of Commerce and Industry in Dubai or in the selected free zone.
Payment of fees: The relevant fees must be paid to register the company and obtain the necessary permits and licenses.
Determine the company structure and responsibilities of partners: The company structure and responsibilities of partners and managers must be determined and documented in legal documents.
Obtaining a business license: After registering the company, you must obtain a business license from the Department of Economic Development in Dubai.
Establishing a bank account: A bank account must be opened in the company’s name and the required capital must be deposited in accordance with local instructions

Advantages of establishing a company in Dubai

Establishing a company in Dubai offers many advantages and benefits that make it an ideal choice for investors. Here are some of the key advantages of setting up a company in Dubai:

Advanced Infrastructure: Dubai has a developed and modern infrastructure, with high-quality facilities and advanced technology. There are well-developed airports, ports, roads and communications, facilitating access and international trade.
Economic and legal stability: Dubai has a stable and reliable economic and legal environment. Local government policies embrace ease of trade and investment, and provide legal protection for businesses and investors’ rights.
Access to global markets: Dubai is a gateway to global trade, with companies and institutions from all over the world present. Companies located in Dubai can easily access the markets of the Middle East, North Africa, Asia and Europe.
Government support and facilities: The Dubai government offers many facilities and incentives to new companies, including tax exemptions, reductions in fees, and financial support. It also provides a competitive environment that encourages innovation and economic growth.
Cultural and linguistic diversity: Dubai is a multicultural and multilingual environment, where people of different nationalities live and work. This diversity provides access to a wide network of business relationships and international business opportunities.
Real Estate Investment: Investors in Dubai can benefit from the active and dynamic real estate sector. Dubai’s real estate market provides opportunities for investment, expansion, and profitable returns.

To obtain a commercial license in Dubai , you must follow several basic steps, including preparing the required documents, determining the appropriate type of license for your business, and submitting to the competent authorities in Dubai. Steps should also include paying the required fees and waiting for the license to be approved. You can get help from local legal advice offices or legal services to facilitate this process.

When you are ready to apply for a license, you should carefully submit the required documents, locate the business and obtain approval from local authorities for that location. After submitting the application, some additional licenses may require inspection procedures or approval from the relevant authorities.

Once you obtain the license, you must comply with your local tax and legal obligations, locate your business, whether that is a physical or virtual office, and begin your business activities. You should also consider marketing your company and building relationships with potential customers to ensure the success of your business in Dubai.

The most important frequently asked questions about a commercial license in Dubai

What are the basic requirements for obtaining a business license in Dubai?

Basic requirements include a valid passport, rental contract, and financial and personal documents of the investor.

How long does it take to obtain a business license in Dubai?

The range of time required ranges from a few days to several weeks, depending on the type of license and the fulfillment of all conditions and procedures.