Investing in Dubai requires an all-encompassing strategy that relies on international connections, global investors, and an enormous amount of reserves to achieve the goal of developing Dubai as a commercial centre. Nonetheless, it may be difficult to maintain compliance with regulatory requirements when it comes to establishing a company in Dubai. Is it necessary to register your business first? Is it necessary to apply for a licence in advance, or can you just show up?
In this essay, we will go through the realities of obtaining, holding, and putting into effect a business licence, as well as all of the fictional elements that surround it, in detail. Let’s get this party started!
Fiction – A Trade License is not required for every company.
Fact – Although a company trade licence is required, there are certain exclusions and flexibility in the process.
There are certain nations where home-based or small-time company owners are not required to obtain a Business Trade License, however this is not the case in the United Arab Emirates (UAE). Being a commercial centre, Dubai mandates that all businesses be registered and licenced in order to do business there. Foreign exhibitors, on the other hand, are sometimes allowed some leeway in terms of timing. Using a temporary licence from a connected business, these overseas exhibitors were able to obtain an exhibit space and engage in sales marketing activities.
Fiction – The process for licencing and registering is the same.
Realization – Licensing and registration are not the same thing, but they are both part of the same procedure.
Although licencing and registration are closely related, they are not the same thing. You must first register your company’s Trade Name and get the necessary permissions before proceeding. This will be followed by the application for a business licence.
Fiction – You may get a licence for whatever kind of company you choose.
Fact – You can only get a business licence if your company falls under a certain category division.
In a categorical determination, the Department of Economic Development (DED) has determined that every business under which a specific organisation operates must adhere to the listed legal requirements, obtain approvals from government authorities, and ensure that the licence that is applied for generates the greatest amount of commercial benefits. Commercial, industrial, and professional licences are the three categories that have been thoroughly researched and decided.
Fiction – A single licence may only be used for a single activity by a single business.
Fact – A single licence may cover up to 10 different business operations that are linked to each other.
With a single licence, a single business organisation may conduct up to 10 connected business activities at the same time. In this case, even if your business activity is eligible for several licences, be sure to choose the one that will offer you and your company with the most amount of freedom possible.
Fiction – Some trade licences may not need the participation of a local partner.
Fact – In order to start a company, you will need to form a local partnership or hire a local agent.
All trade permits need a partnership with a citizen of the United Arab Emirates. It is possible for a UAE citizen to collaborate with another or even be restricted to the role of local agent in the event of a professional trade licence. However, in light of recent fluctuations in commercial and trade operations, the Department of Economic Development (DED) is considering single ownership as a means of encouraging foreign businesses. One example is the development of freezones and the creation of offshore corporations.
Fiction – The DED is the only organisation that can assist with obtaining a licence.
Fact – In addition to the Department of Economic Development, there are a number of judicial organisations, the number of which varies based on the jurisdiction.
If you are considering establishing a business in Dubai, the Department of Economic Development (DED) is an extremely important entity to consider. However, if you choose to form a freezone company, the relevant freezone authority would be responsible for the licencing and other approvals that the company would be required to consider. Another major governmental agency, the Trakhees, is also responsible for issuing commercial trade licences in Dubai; however, getting a licence is entirely dependent on the jurisdiction in which the company is conducted.
Fiction – Obtaining a licence is a tough and time-consuming procedure that takes a long time.
Fact – To get a business licence in Dubai in a short period of time and with little effort, just contact us!
Business investors are welcomed in Dubai and across the UAE, and the authorities at the Department of Economic Development (DED) as well as numerous freezone institutions offer unnecessary help. Furthermore, there are a number of company setup service providers that can assist you with all of the necessary requirements while you concentrate on your business concept.
Contact Generis Global Service providers now to acquire such a service or to learn more about business licences in Dubai or any other area of the United Arab Emirates.