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Dubai is known for its business-friendly environment that attracts entrepreneurs from all around the world. Company formation in Dubai requires obtaining a trade license, which is mandatory for anyone who wants to conduct commercial activities in the city. In this blog post, we will discuss the different types of general trading license in Dubai, their benefits, requirements, and how setting up a business in Dubai with A&A Associate LLC can help you get a trade license.
What is A Trade License?
A trade license in Dubai is a legal document that allows people and businesses to engage in commercial activities in Dubai. It is necessary for any business to have a trade license to operate in the city. The license specifies the business’s activities, the legal framework under which it operates, and the regulations it must follow.
Benefits Of A Trade License
Types Of Trade License
There are three main types of trade licenses in Dubai, each with its own set of requirements and restrictions. They are:
1. Commercial Trade License
A commercial trade license is required for businesses that engage in trading activities such as buying and selling goods. Some of the businesses that require a commercial trade license include retail stores, supermarkets, and wholesale traders.
Requirements to obtain a commercial trade license include:
- Tenancy agreement
- Passport and visa duplicates of proprietors and managers
- Preliminary endorsement from the Department of Economic Development (DED)
- No Objection Certificate (NOC) issued by the Dubai Municipality.
2. Professional Trade License
A professional trade license is required for new business setups in Dubai that provide consultancy, legal, or medical services. Some of the businesses that require a professional trade license in Dubai include law firms, accounting firms, and clinics.
Requirements to obtain a professional trade license include:
- Tenancy contract
- Educational qualifications
- Passport and visa copies of owners and managers
- Initial approval from the DED
- NOC from the Dubai Municipality
3. Industrial Trade License
An industrial trade license is required for businesses that operate in the manufacturing or production sector. Some of the businesses that require an industrial mainland license Dubai include factories and manufacturing plants.
Requirements to obtain an industrial trade license include:
- Tenancy contract
- Details of the machinery and equipment used in the manufacturing process
- Passport and visa copies of owners and managers
- Initial approval from the DED
- NOC from the Dubai Municipality
Requirements for a Mainland Trade License in Dubai:
- In-country sponsor: A mainland business in Dubai requires an Emirati national or a local sponsor who holds 51% ownership of the company, while the foreign shareholders or their affiliates hold the remaining 49%.
- Government clearances: A mainland company must obtain routine government clearances from the Department of Economic Development (DED), the Labor Ministry, and the Ministry of Immigration.
- Specific approvals: Depending on the nature of the business, specific approvals from authorities such as the Knowledge and Human Development Authority (KHDA) for educational licenses or the Dubai Health Authority (DHA) for medical licenses may be required.
- Registration and licensing: The Dubai Department of Economic Development (DED) is responsible for the registration and licensing of mainland businesses.
- Compliance with commercial regulations: Mainland companies must comply with commercial regulations enforced by the DED, as well as consumer protection laws.
Requirements for a Freezone Trade License in Dubai:
- Select a free zone: Choose the appropriate free zone in Dubai based on your business requirements and preferences. Dubai offers several free zones to choose from.
- Application process: The process of establishing a free zone company is generally straightforward and simple. The specific steps and requirements may vary depending on the chosen free zone, the type of business, and the specific free zone laws and regulations.
- Documentation: Investors will typically be required to provide documentation such as copies of passports, proof of business registration, and any other required documents specified by the chosen free zone authority.
- Benefit from free zone advantages: Free zones offer advantages such as complete ownership rights, access to world-class infrastructure, asset protection, tax benefits, and the ability to conduct business within and outside the UAE.
- Additional perks and support: Free zones often provide assistance with obtaining visas for shareholders and dependents, opening corporate bank accounts, and networking support for new businesses.
How A&A Associate LLC Can Help
Setting up a business in Dubai can be a complex process that requires extensive knowledge of local laws and regulations. A&A Associate LLC is a leading consultancy firm that offers a full range of business setup services with our expert business setup consultants in Dubai to entrepreneurs looking to set up their businesses in Dubai.
A&A Associate LLC offers businesses the advantage of:
- Expert Consultancy: A&A Associate LLC offers expert consultancy services to help businesses choose the right legal structure and obtain the necessary approvals and NOCs.
- Cost-Effective Solutions: A&A Associate LLC offers cost-effective solutions for businesses looking to set up their operations in Dubai.
Hassle-free Process: A&A Associate LLC takes care of the entire process from start to finish, ensuring that businesses can focus on their core activities.
Conclusion
In conclusion, obtaining a trade license in Dubai is mandatory for businesses operating in Dubai. There are three main types of trade licenses: commercial, professional, and industrial. Every category comes with its specific demands and limitations. To obtain a trade license, businesses must follow a set of procedures and obtain approvals and NOCs from the relevant authorities. A&A Associate LLC offers a range of business setup services to entrepreneurs looking to set up their business in Dubai, making the process hassle-free and cost-effective.
