Now that you finally decided to start a business in Dubai, you would need to get a trade license first. Whether you want to start a UAE mainland business or offshore company formation, it pays a lot to know the whole process of obtaining a license. Thankfully, you will get to know how to obtain a trade license in Dubai through this post.
Three types of trade license
The type of license you will apply for would depend on the nature of your business. You would most likely need to apply for one of the following licenses:
- Commercial trade license – if your company is involved in any commercial trade activity, then this type of license is for you. General and specialized traders need to apply for commercial trade license.
- Industrial trade license – if your company is involved in converting raw materials to marketable products, then an industrial trade license is for you. Most businesses in the manufacturing and production sector should have this trade license.
- Professional trade license – if your company provides services and depends on the skills of professionals, then you need to apply for the professional trade license. Professional trade licenses may further be subdivided depending on the area of expertise and educational attainment of those who apply for this license.
To get the correct trade license, you can seek the help of business setup consultants in Dubai.
How to apply for a trade license outside of a free zone
Since there are different types of businesses, there are also different ways to apply for a trade license. However, the following are the basic steps that you should know about.
- The Department of Economic Development or DED is the government agency that has been tasked to issue local Dubai company licenses. They have offices from several locations. If you want to obtain a full range of their services, you would need to go to their main office located near the Clock Tower in Dubai.
- Get the approval of the right minister for your company’s category. For example, if your company offer financial services, you might need approval from the UAE Central Bank. If you offer medical and pharmaceutical products, you would need approval from the Health Ministry.
- Check how much you can own from your business. If you are an expat, you are allowed to own 49% of your business and you need to find a local agent or sponsor. However, there are some instances that you can own 100% of your company. One good example is when you choose a free zone as your place of business.
- Choose your business structure. There are seven legal structures you can choose from when it comes to company formation in Dubai. These are limited liability, share partnership, partnership in commendams, general partnership, joint venture, private shareholding, and publish shareholding.
- File with the DED. You would need to have your trade name and Memorandum and Articles of Association prepared. You would also need to prove that you already have a registered address for your company. A rental agreement would suffice.
To help you get your trade license, you would be happy to know that you can do it fast and effective with the help of Motei & Associates, one of the leading law firms in Dubai. They have some of the best legal experts and professionals who have the right knowledge and experience to help you establish your company. Give them a call today and have your business up and running in no time!