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To carry out any type and category of business in Dubai, it is essential to have valid ‘trade’ license.
Trade license requirements and necessary permissions may vary from different government ministries and agencies, depending upon the business category. It means that some business types, like health services, financial services, food trading, printing & publishing, etc. tend to require more clearances when compared to general trading business. Blackswan BSS will help in Business License in Dubai.
For company registration in Dubai, basically, there are issued three categories of licenses. However, license is issues depending entirely upon the activities that the business entity is to take. They are as follows:
Commercial License: It is issued to companies engaging in any type of trading activities.
Industrial License: It is issued to companies engaging in any industrial or manufacturing activity.
Professional License: It is issued to craftsmen, artisans, professionals and service providers.
Issuance of licenses to establish companies in Dubai is the responsibility of the DED (Dubai Dept. of Economic Development). For delivering licensing services, this department operates from different locations.
To register a business in Dubai, following are the approval procedure:
Each and every Company other than the one having professional license that are established anywhere in the UAE (United Arab Emirates) or in Dubai need to have at least 51% shareholding by local UAE nationals.
There are however few exceptions to the above mentioned requirement s with any of the seven conditions given below:
It is the type of business structure that is considered to be a major consideration with business registration made in Dubai as well as other Emirates.
7 legal structures are defined by the Federal Law for business organizations, which are as follows :-
Generally, medium and small sized companies are known to use points 5 & 6 mentioned above.
Representative or branch office in Dubai of any foreign entity is allowed as 100% foreign owned. But this privilege can be derived only on appointment of a local agent. The said local agent is to be UAE national or probably 100% UAE nationals’ owned company.
Establishing branch office or representative in Dubai might be a consideration that is worth the try, when few foreign entities are taken into account. For this option, Commercial Companies Law covers Dubai business registrations.
Based upon foregoing details and facts, Dubai company registration as well as registration anywhere in the UAE is termed as a procedure that is free from all complications.
Step 1: First, identify the prospective local partner – ‘Sponsor’. It is a crucial step and does require careful consideration as to the type of services expected to be provided by the sponsor.
Many potential problems can be eliminated by having excellent rapport with the sponsor.
Step 2: Derive activity approval and name from the DED (Dept. of Economic Development).
Application can be made and submitted at DED on standard application form.
Step 3: Identify appropriate business premises and prepare tenancy contract. Business premises evidence is an absolute necessity by tenancy contract for all businesses planning to get registered and start operation in Dubai.
Step 4: Sit with the sponsor to prepare MOA (Memorandum of Association) and submit the same to DED.
Memorandum can be created by any registered legal firm and is to specify ownership percentage and special arrangements made amongst all partners.
Step 5: Submission of License and MOA application is necessary at the DED along with the essential tenancy contract and other legal documents. It is during this stage that all required fees and charges need to be paid and cleared. License applied for, will be provided by the concerned department after a week or so.
Originally posted 2021-09-29 07:07:11.