A valid trade license is essential to start a business in Dubai. One should know about the trade licenses and the permissions required from various ministries and departments to start a business in the oil country. You should approach ministries and departments depending on the type of business you are planning to begin in a specific location.
Trade licenses fall into three categories. Check in which category your business belongs to.
Industry license – One should apply for an industrial license if their company is engaged in industrial or manufacturing activities. Many companies import raw materials from other places and manufacture products in their Dubai facility.
Commercial license – Those who are engaged in various trading activities should have a valid trade license. Various documentation procedures are associated with the sanctioning of trade licenses.
Professional license – One should apply for this license if there are service providers, IT professionals, artists or craftsmen.
All the above discussed licenses are issued by the Dubai government run Economic Department. This department has offices in various locations. This makes it easy for business people to approach the office that is near to their preferred company location.
Let us check the business registration process in Dubai.
To apply for a valid license one should submit Memorandum of Association, license application, attested company name approval certificate to the Economic Department of Dubai. Along with it one should submit the approval letter of concerned ministries. If you are planning to start a medical or pharma company then should get consent from the ministry of health. Those people who are interested in beginning oil or gas production business should approach industrial safety and environment offices of the ministry for getting approval. To start new banks and financial institutions one should get approval from the UAE central bank. Likewise, manufacturing companies should approach Finance and Industry ministry for getting final approval. In general, we can say the business houses should get approval from the Dubai chamber of commerce and industry for starting a new business. Foreign investors can seek the help of company formation consultants to prepare applications and draft documents that are essential for getting a valid trading license. Many company registration consultants are also helping in getting approvals from various ministries.
Collecting information on the procedures to be followed and documentations to be done allows in making the company registration process easy. Foreign investors who are planning to start a business in Dubai should give at least 51% of the shareholding to a UAE national or a company. But this is not applicable for companies registering in free trade zones. Getting a trade license is not a difficult task nowadays. There are many consultancies in Dubai which can offer all kinds of assistance in beginning a new company. Those who are interested in beginning a new business should apply for a valid trade license and kick start the journey to a splendid future.
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