Steps to Getting a Trade License
The process getting a trade license in Dubai is structured as follows:
1. Select a Business name
Getting a business or trade name is the first and foremost step when applying for a business/trade license. The business name that you select has to adhere to the guidelines of the UAE government. The name selected for your business should not form any resemblance to the existing names and should not be blasphemous or without any moral disregard.
2. Define the legal structure
The legal structure you intend to comply with for your business has to be stated. The legal structure defines the method or manner in which the business is going to conduct and who will be liable or responsible for the various activities carried out by the business.
3. Define Business Activities
Once the business’s name and legal structure is decided, the next step is to determine the activities that the business has been set up to conduct. The business license can be obtained only for the stated number of activities. A designated business license will only allow the business owner to list out ten activities.
4. Complete the Application Form
The next step is to fill in an application and submit the same for DED’s initial approval.
5. Get in additional approvals
If your business activity requires additional external approvals, make sure you obtain those approvals at the earliest. You have to be aware of these requirements and approvals before proceeding with your business license application. If not, there are high chances of rejection of the application for a trade license.
6. Choosing a business location
There are different business locations that a business owner can choose from. You can choose your business in the mainland or freezone. You also require a tenancy contract. Ejari attests that the tenancy contract has to be submitted along with the rest of the documents for a business license in Dubai.
7. Pay your licensing fees
Applying for a trade license in Dubai is not free of charge. There are both issuance fees and license fees for applying for business licenses.
The documents expected of the entity applying for the trade license might change. But there are standard requirements of documents which is stated below:
> Trade name certificate
> Initial approval certificate
> Dubai Municipality and RERA attested Tenancy Agreement using Ejari online feature
> Memorandum of Association
> Government’s Approvals
Why is a Business License in Dubai Needed?
The Dubai Government's trade license issue service helps you get trade license in Dubai easily. To start a business in Dubai is itself a global recognition. There are many advantages to starting a business in Dubai and this is the main reason why there are many entrepreneurs who plan to start their own businesses in Dubai.
1. Helps in enhancing global trade
The general trading license gives the business owner the ability to import and export products and services. The license gives the business global visibility which in turn helps in the growth of the business exponentially.
The Dubai trade license is known for its value. The authority that grants trade licenses in Dubai has devised a fool-proof system which ensures that there will be no untoward activities conducted by the business owners in possession of the trade license. It direct;y contributes to increasing the credibility of the business entity or organisation. The business also receives wider exposure and recognition in the global market.
3. Tax benefits
The most prominent reason for opting to start an entrepreneurial venture in the city of Dubai is the kind of tax benefits offered by the government. The tax reductions and benefits are induced by the Dubai Government to increase the flow of trade in Dubai and make it a global business hub. The business owners are able to re-invest the amount which other ways have been spent off as taxes. This will eventually also help in bringing up the profit margin.
4. Less Trade Restrictions
The business forefront in Dubai pushes forth a general set of activities that can be done in the country. This list of activities is a fairly large one which implies that almost any activity can be conducted in Dubai. There are a set of activities that are considered to be illegal but it is comparatively small.
5. Easy License Approval
Dubai’s trade licences are approved within a very short period. There is no difficulty in setting up and obtaining the trade license as far every step is properly abided by the applicant.
6. Sponsor Visas
Dubai’s visa process for dependents and for employees can be obtained without much of a struggle or complications. Once you have obtained the trade license, the rest of the procedures become easier.