Having a license in one of these areas is a prerequisite for conducting business on the UAE's mainland.
In the United Arab Emirates, entrepreneurs and businesses must obtain a trade license to confirm their mainalnd company as a legitimate legal entity, just like in many other countries. Before starting a business, this trade license must be granted. This holds true for both mainland Dubai and free zone jurisdictions. Possessing a trade license in Duabi guarantees your clients that you are a respectable company that conforms to regional laws and ordinances.
Getting a trade license in Dubai is the most important step in starting a business, even though there are numerous steps to register your company on the mainland.
To guarantee that your mainland company is set up correctly for the long run, you must obtain the appropriate trade license when launching a new business in the United Arab Emirates. The kind of trade license you must obtain and the requirements that apply to you may vary depending on the kind of business you plan to conduct, the structure of your company, and the jurisdiction in which you will operate.
As you start the company formation process and launch a mainland business in Dubai, you should take into account the three types of trade licenses listed below.
Before being permitted to offer their professional services to clients from the Dubai mainland, companies and entrepreneurs must first obtain a professional business trade license from the Department of Economic Development (DED), according to the UAE government.
Professional licensing is intended to prove that an individual or organization is capable of rendering services in a particular field. These licenses typically require the applicant to demonstrate specific abilities or training in order to be issued.
To establish a mainland business in Dubai, all professionals, experts, craftspeople, and artisans must obtain a professional trade license.
There are a number of company structures that can be established in Dubai with a professional license when it comes to mainland company formation: a Limited Liability Company, in which a local sponsor owns 51 percent of the business; a Civil Company; and a Sole Establishment, in which the foreign investor or investors own all of the business.
However, in order to fulfill the legal requirements for establishing a Civil Company or a Sole Establishment, a UAE national must be designated as a local service agent (LSA).
To operate in the UAE, mainland businesses engaged in any type of trade activity, including the purchase and sale of commodities, need a commercial trade license. This business license can be used for both general and specialized trading activities in the United Arab Emirates, and it can be used to establish a sole proprietorship or a limited liability company (LLC).
In the United Arab Emirates, there are various kinds of commercial trade licenses. Applying for the appropriate kind of commercial trade license will allow you to engage in business-specific trading activities while you are navigating the company formation process.
In Dubai, businesses engaged in broadcast and communications, rental transportation, retail, construction, healthcare, real estate, and other general trading entities must also apply for a commercial trade license.
In order to engage in activities related to converting natural materials or incorporating natural resources into their final products, businesses wishing to conduct manufacturing or industrial-based operations in the United Arab Emirates must obtain an industrial trade license.
Although the DED issued this business license, depending on the industrial activity, additional approvals from the Ministry of Finance, Ministry of Economy, Ministry of Energy, and Ministry of Infrastructure, among other authorities, may be needed.
You must apply for a mainland license in Dubai through the Dubai Economic Department.
The following legal conditions must be fulfilled in order to receive a trade license in the United Arab Emirates prior to starting any business with the Dubai Economic Department:
Identify the type of business, such as commercial, industrial, or professional
Identify the kind of business activity
Ascertain the company’s legal structure
Choose your company’s trade name
Your trade name is registered by the local department of economic development.
Your trademark is registered (if applicable) by the Ministry of Economy.
Completing and signing a local service agent agreement (LSA) or a memorandum of association (MoA) is also necessary, depending on the legal structure of the company. The following business legal forms require the memorandum of association:
Limited collaboration
Limited liability company (LLC)
Private joint stock company (PrJSC)
Public joint stock company (PJSC)
Finding all of the licenses and permits that are relevant to your company on the mainland of Dubai can be challenging. Therefore, to ensure that you meet the licensing and regulatory requirements relevant to your business activity, it is always best to seek advice from a business setup specialist.
Being the top corporate service provider in the United Arab Emirates, GO GULF can assist you in establishing your business with the appropriate mainland Dubai license, guaranteeing your future expansion and prosperity. Additionally, GO GULF offers value-added business support services that can help your business get off to a great start and prosper in a cutthroat industry.
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