How to get a Trading License in Dubai
When as investor decides to set up a business in Dubai, a process must be followed as per the Company’s law of the country that details all the important steps that need to be followed in order to set up a business for its smooth operations.
The investor must decide the type of license that suits the requirements and also determine the nature of the business activity that is going to be started.
Dubai offers different types of licenses and the investor has to choose as per the nature of his business activity. Obtaining a business license is one of the most important steps once the nature of the business activity has been determined.
The most common business license is the trading license, also known as the Commercial License. The trading license not only gives permits to an investor to start his business activity but also to determine the type of activities that will be allowed to operate.
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It is issued by the Department of Economic Development, Dubai. The trading license is issued for a number of activities such as:-
- 1. import and export businesses.
- 2. doing commercial activities such as the sale of goods and services within the country.
- 3. it can also be used by an investor in carrying out business activities within the Free zones.
Obtaining a trading license in Dubai, the investor must specify the nature of the activity that is being intended to be taken up. While applying for a trading license one must first notify the name of the business activity, prepare memorandum and articles of association and then file the application with the DED for getting the approval.
In order to obtain a trading license in Dubai, one must have a rental agreement prepared which will be used as proof for the address of the company.
Steps to obtain a Trading license in Dubai
- 1. First step in the process is to choose a name for the business activity.
- 2. Once the name has been decided the investor must choose the activities that must be included in the trading license with the maximum number of activities allowed being 10.
- 3. The investor should then move to fill and submit the application form so as to get the initial approval.
- 4. Get external approvals if needed as per the nature of the business activity.
- 5. Get all the documents like MOA and all other documents that have been obtained from the relevant government authorities.
- 6. Once all the documentation is ready it is time for an investor to choose the location of the business activity.
- 7. Deciding on the location the business investor must submit a complete application in all regards to the DED for its final approval.
- 8. The investor must pay the required amount and also the issuance fee in order to get the license from the relevant authorities.
Documents required for obtaining a General trading license
- 1. A complete license application that has been duly signed by the mangers of the company or their legal representatives.
- 2. A memorandum of association should also be submitted along worth the application form.
- 3. Company name approval letter that has been issued by DED and also duly attested.
- 4. Application form should be submitted along with a passport copy of the managing partners.
Once the above process has been completed, then commercial registry authority will check all the documents and accordingly validate them.
The next step in the process will be the addition of the company name to the commercial register. Afterward, the DED will forward the documents to the federal ministry of the economy for publication.
Once the documents have been published along with application entry the ministry will issue an approval letter for the business. Upon the completion of the above process, the DED will issue an original trade license.
Once the general trade license has been obtained by an investor it will be valid for a period of one year. In order to renew the general trade license, approval from the authorities is required for the same and once applying for the renewal the application should be submitted along with the previously issued license. The renewed license will be valid for a period of 5 years thereafter.
Advantages of having a trading license
- 1. The license has both domestic and international provisions.
- 2. It comes with a tax-free jurisdiction.
- 3. Wide range of banking facilities becomes available with the same.
- 4. Its legal process is easy and hassle-free.
- 5. Process is auditing is not a necessity.
- 6. There are no restrictions placed on the currency.
- 7. Paid-up capital requirement is also not a necessity.
- 8. The license also comes with the benefit of low import duties