The United Arab Emirates is generally regarded as the financial capital of the Middle East. Over the last two decades, the finance, industrial, trade, and logistics sectors have all seen significant development. They have a major influence on the global economy. The procedure for starting a business in Dubai is legal, and obtaining a business license is the most important step.
Obtaining a trade or business license is not only a requirement but also a precondition in Dubai. This authorization establishes your company’s reputation and establishes the essence of your business. While this license is expensive, it comes with a set of benefits and rewards.
What Are the Types of Business Licenses in Dubai?
Dubai’s Department of Economic Development (DED) is in charge of issuing business licenses in Dubai. The DED has assigned each company one of several licenses, which gives them prestige based on their business operations. Economic activities in the United Arab Emirates are classified into five groups.
- Commercial License for General Trading Businesses
- Professional License for Service-Related Businesses
- Industrial License for Manufacturing Goods
- Tourism License for Travel and Tours Industry
1. commercial license
In the United Arab Emirates, commercial licenses are given to businesses that buy and sell products. With a Commercial License from Dubai, businesses may operate within or outside the UAE. In the UAE, commercial licenses are required in a variety of ways for specific commercial activities.
If you only want to trade locally, you can apply for a general trading license in the UAE. Similarly, for any form of import/export, you must file an import/export authorization with the licensing authority. The UAE has a variety of business licenses and business service lists for exchanging products such as electronics, machinery, machines, and building materials.
Benefits of commercial license
For trading firms, a commercial trade license acts as both supervision and security. The following are the advantages of a commercial license:
- One commercial trade license can be used for a maximum of ten activities;
- There are a variety of company types to choose from when registering;
- A single license may cover a variety of related business practices.
- Secure commercial relationships with the Department of Economic Development and the Registrar of Companies;
- Residence visas for employees and company management
- Opening corporate bank accounts with assistance
2. Professional license
Any individual or business involved in the use of people’s intellectual abilities will need to obtain a Professional License in order to offer their services in Dubai and the rest of the UAE. If there is more than one male owner, the business would be known as a Civil Works Corporation.
Consultants, auditors, and lawyers may obtain professional licenses in Dubai. IT service providers, mechanics, and craftsmen, among others, can apply for a UAE Technical License. An ex-pat with a technical degree will own 100% of the company and be eligible to become the ultimate owner.
Benefits of a Professional License
Professional skills are essential in a service-oriented company. As a result, in order to open a business in the UAE, specialists and practitioners must also obtain a UAE professional trade license.
- The fixed annual fee for professional license holders
- Suitable for skilled professionals
- Transparency in dealing with clients
- Businesses can apply for visas for employees
3. Industrial license
The authorities in the United Arab Emirates have granted certain rights to companies that have obtained an industrial license. The aim is to encourage industries and increase investment in the industry.
The following are some of the benefits of holding an industrial license in Dubai:
- Terms for renting industrial space that has been specifically designed to support the investor
- For developing your industry, the government will provide land at a reduced rate or for free.
- Electricity, water, and other necessities are available at reduced rates.
- Guidance focused on the methods used by similar industries to improve your own.
- Innovative products can qualify for a loan with lower interest rates.
4. Tourism license
Dubai has done an outstanding job of presenting the tourism industry as a global leader and a hub for business executives, frequent tourists, and foreign travelers. To start a travel and tourism business in Dubai, you’ll need a travel and tourism license from the Department of Tourism and Commerce Marketing (DTCM).
There are three major categories of tourism licenses required in Dubai, depending on the operation of the tourism industry.
- Outbound tour operator
- Inbound tour operator
- Travel agent
Choosing the right license for your Business
Business licenses can either limit or expand the scope of a business. If you wanted to start an online company, a portal license, for example, would be ideal. A portal license also prevents you from selling your own handcrafted items on the internet. According to the Department of Economic Development’s (DED) regulations, you must apply for a general trade license.
Many factors influence which trade license is best for your company, including your industry, business method, business relationship, jurisdiction, and so on. As a result, before applying for a trade license in Dubai, you should address your needs with a market formation specialist. In the long run, this will save you money and time.
Get your Business license in Dubai
The Department of Economic Development (DED) in Dubai is responsible for granting Business Licenses to companies from around the world. When it comes to Free Zones, the applicable Free Zone Jurisdiction issues the business license. The same can be said for the offshore business sector.
If you want to do business in Dubai onshore or on the mainland, you’ll need to apply for a trade license with the DED. The authorizing process entails a number of documents and paperwork, as well as the participation of other regulatory bodies. In Dubai, obtaining a trade license can take anywhere from three days to several weeks.