Small Guide on Issuing Trade License in Dubai, UAE

For entrepreneurs, UAE is the ideal business destination to start new business. They have, they need to be aware of the UAE incorporation process.

For business entities to function in the country, the government has to start operating. So trade license issued by the DED are mandatory.

Regardless of whether your business idea is of UAE. Or your existing business requires national diversification or growth. The UAE market must be in your strategic considerations.

Steps to Issue Trade License in UAE

Registering a commercial license in Dubai faces difficulties. It is due to ignorance of the whole application process. The Dubai Department of Economics (DED) regulates and monitors each company's licensing process in the emirate. A smooth understanding of the process is necessary for a smooth transaction.

Decide The Jurisdiction

Before doing anything else, the first thing is to decide a jurisdiction for your business. There are approximately Twenty-five free zones in Dubai and other notable jurisdictions. It can be a very confusing and tough decision to select the jurisdiction. Depending upon your need, make a selection.

Choose Legal Structure

In UAE, various legal structures are available. Like single-owner LLC, civil company, sole proprietorship, a foreign company branch, and LLC. The standard format will define the ownership pattern of your business. Learn in detail about the legal system and then make a decision

Business Activity

List out the core business activities of your business. Define and list the core business activities according to the code laid by the license issuing authority. The business license type determines the type of trade license. There are three types of trade licenses- commercial, industrial, and professional.

Local Sponsor

Some business in the UAE requires the support of a local sponsor. The local partner can be an Emirati individual to meet license criteria. The new norm set by DED Dubai clears 122 business activities for 100% foreign direct ownership.

Trade name Registration

For business setup in Dubai, it is must to issue a trade name license. It is necessary to complete this trademark registration in dubai process before moving further. There are some stringent norms of the UAE government of tradenames. So select by following all those rules and standards. Don't use an existing trade name. It will get a rejection because of duplication.

Initial Approval

After you complete and fill all the essential documents and get sign by the concerned authority. It is necessary to get all the required documents. By submitting a small fee, you will get initial approval.

Tenancy contract

Every business in Dubai should have a physical workspace. The office can be of any size, from small to big. Many business centers in Dubai provide co-working spaces to startups. The most important contract that your should issue is the tenancy contract. It says your business is present at that particular location.

External Approvals

Some business like education, pharmacy, or other business need approval from external bodies. All companies don't need it, only some business activities. The license issuing bodies will convey this at the initial approval process.

Notary Public

Notarize your company memorandum to establish your entity . If your business requires the local service agent, then execute it using the notarization process. Engaging with the proper government relations provider is very important to ensure that your method is hassle-free and fast.

Get Final Approvals and Issue the License

Once you complete all the above trade license steps. The license issuing authority will issue your new business's trade license. You have to pay license fees at this stage.

Conclusion

For starting and running a company in Dubai, you need a trade license. The steps and process of issuing a trade license can be a very daunting task for new entrepreneurs. Make sure to now conduct any mistake while issuing a trade license. If you still face any issues, then you can seek the help of pro services in Dubai. The team of experts will help in making the process simple and easy.