Things to Know About Business Licenses in Dubai

If you want to be successful in business, you should choose a firm in Dubai. Many men have set up businesses in Dubai and made a lot of money from them. When it comes to starting a business in the UAE, the laws are very strict.

In Dubai, you need a business license before you can start doing business.

You can go to the authorities and give them the documents they need to set up your business in Dubai or the UAE. But because the process is so long, it may take a while to finish. We’ve put everything you need to know about business licenses in Dubai in this blog post.

Which authorities are involved?

The main group in Dubai that can give out licenses is the Department of Economic Development (DED). Depending on the license you need, more departments and ministries will need to be involved.

To get approvals from ministries, departments, and legal entities, the necessary documents had to be sent in the format that was required. Before a business can start up, some types of businesses need a bank guarantee and extra fees.

But there are different businesses in the Free Zone area. Private agencies are in charge of giving out licenses for the same thing. Because of this, the rules, procedures, and requirements are different.

What is the Necessity of a Business License?

Your business will have to be responsible because you have a business license. It tells you where you are allowed to work and makes sure that you are in the right area. During the business period, the company will be watched for any unapproved or illegal actions or financial deals.

Also, with the license, the Dubai government will be able to confirm that you are not breaking any laws. And the business doesn’t hurt the public’s health in any way. No matter how big or small your business is, it will be listed in the government’s records.

Types of Business Licenses

In Dubai and the UAE, there are four kinds of business licenses.

Professional License

For businesses that offer professional services, you need a professional license. The job could be teaching, making art, dancing, etc. Before opening a professional academy in Dubai, artists, models, craftspeople, etc. must get a professional license.

Keep reading : Professional License in Dubai

Commercial License

An LLC can’t be set up without this license. With this license, the business’s trade operations would be okayed. The business also needs to be registered with the Dubai Chamber of Commerce and Industry.

Read on : Commercial License in Dubai

Industrial License

The Dubai Chamber of Commerce and Industry is also where you have to register your business licenses. You can set up production plants, manufacturing units, and other similar businesses with this license.

Keep reading : Industrial License in Dubai

Tourism License

It is for businesses in the tour and travel business. This is broken up into three parts: an outbound tour license, an inbound license, and a travel agent license.

• Outbound Tour License: This license is needed to take tourists out of the country or bring them in. With an outbound tour license, a tourism company can offer tours and business trips abroad. Also, they can put together tours.
• Inbound Tour License: Inbound tour companies with licenses can only run tours in their own country. They are not allowed to sell packages for international trips.
• Travel Agent License: This license is needed by all travel agencies. They can sell tickets for flights both in and out of the country and handle visa paperwork.

You will be Interested on : Tourism License in Dubai

What is the process?

The steps below are meant to give you a basic idea of how business is set up in Dubai. The same goes for getting a business license.

Keep reading : Steps To Get A Business License In Dubai

Find a Sponsor

If you are an expat and want to start a business in Dubai, you must have a local Emirati as a sponsor. You will own 49% of the company, and the local sponsor will own 51%. The most important thing here is that the sponsor is someone you can trust. Or else, the sponsor can cause problems that aren’t necessary and cause the business to lose money. Along with the paperwork for a business license, a NOC from the local sponsor must be turned in.

Business Owners and Partners

During the formalities, the owner of the business (the expat) or one of the partners must be in Dubai. Copies of the passports and resident visas of all partners, directors, and managers must be sent with the documents or certificate.

AOA and MOA

The Articles of Association (AOA) and Memorandum of Association (MOA) need to be made. The documents in question should be available in both English and Arabic. These papers will be the legal framework for your business.

So, they need to be made with a lot of care. If you need to, you can talk to reputable agencies about it. Additionally, experts must translate the documents into Arabic for legal purposes.

Submission of Initial Approval

Even though the initial approval will let you start your business, you will need a business license to run it fully. For a business license to be issued, the initial approval, permissions from outside departments or ministries, and any other required documents should be sent in.

You need to send the authorities or departments the specified fee, a bank guarantee, and any other fees.

Renting of Office Space and Ejari

For a business license, you need a certain amount of office and commercial space (at least 200 square feet). You will have to make a rental agreement with the people who own the office and commercial space for the time you need it.

Ejari is the name of the document that lets you use space for business. It is a very important document that must be given to the DED in order to get a business license. Every year, the business license needs to be renewed.

If you don’t renew the business license by the due date, you’ll have to pay a fine. There are also well-known companies in Dubai that can help you set up a business. They will be a big help in getting a business up and running.