UAE Business License Guide – All You Need to Know

The business license is a key document that you must acquire if you want to venture into the world of business in the UAE. However, it is essential that you know what type of license will correspond to the type of company or business you want to start. Additionally, there are many opportunities to start a business career in the emirate and it is a tax-free place for business.

In this article, you will learn what license you will need to start your business in the United Arab Emirates. Likewise, we will show you what the requirements are and another series of elements necessary to obtain it.

What is a Business License in UAE?

With a business license, you will be able to operate your company in the country, whether importing, exporting, or selling a service. Similarly, this license opens important doors in different types of markets in the Middle East, Africa, Europe, and Asia. Furthermore, the Emirates is in a good location that will allow you to market internationally.

Types of Business License in Dubai

There are several types of licenses in Dubai but the most important are the following:

Commercial License

This license is the most important for starting a business in the Emirates because you can sell and buy products and goods legally. Likewise, with this license you will have the opportunity to negotiate both nationally and internationally. However, the main headquarters of your business must be located in Dubai or the UAE.

Additionally, its scope will depend on the type of business you have, so if the company is on the continent it will be valid for all the Emirates. However, if it is located in a Free Zone, it will only be valid in special economic zones. On the other hand, if you will be working with a logistics company or perhaps as a real estate agent, this license is for you.

Also, remember that the commercial activity you carry out must have a license to avoid legal problems. If you do not have it, you will have to face high fines and penalties that will cause you to lose time and money. Below you will see the list of commercial activities that you can do with this type of license in the UAE:

• ·      Tourism and Travel
• ·      Logistics
• ·      Import and export
• ·      Real estate
• ·      Product-oriented sales (electronics, construction, retail, retail, etc.)
• ·      Intermediary activities
• ·      Rental business

With a business license, you will have many advantages that will generate profits. With it, you will be able to do business abroad as well as bring expatriate employees to work in your company. However, with the license, you can market with only one specific category of goods.

Professional License

The professional license is for those ventures where knowledge is the basis of the business. In this case, you will be the one who must choose whether you will work as a consultant, auditor, or others similar. In addition, they will be granted to the Civil Works Corporations, which are entities that have more than one owner.

Likewise, with this license, the expatriate will have full ownership of their professional title. On the other hand, in Dubai, consulting services will be able to obtain a license for the following areas:

• ·      Marketing
• ·      Tax
• ·      Real Estate Brokerage
• ·      Computer
• ·      IT and IT infrastructure
• ·      Management
• ·      Environmental
• ·      Commercial Brokerage
• ·      Consulting and professional services

Industrial License

The industrial license is a legal document that will allow you to start an industrial manufacturing business. Likewise, with the license, you will be able to manufacture semi-finished or finished items depending on your type of company. Also, for production, packaging, and storage, this type of license is covered and the companies that will need it are the following:

• ·      For all companies that need to work with manufacturing, production, or generation of physical items.
• ·      For the import or export of goods or materials, among others, used in the manufacturing process of a product.
• ·      In the case of producing and packaging products from existing materials or the combination of more products in a single article.

The first requirement to apply for an industrial license is the acquisition of a physical space where the company will operate. Equally, the DED will be in charge of issuing this type of license, but sometimes it will need the input of other authorities. Next, you will know which authorities you may have to request permission from:

• ·      The Ministry of Health
• ·      The Industrial Registry
• ·      Permits from the Chamber of Commerce and Industry

Tourism License

Among the business license in UAE, the tourist trade stands out, since Dubai is a very attractive place for different types of people worldwide. Likewise, many of them come to see and enjoy the lush beaches and other charms that the emirate offers. Therefore, it is a very lucrative business to engage in the tourist trade.

Similarly, if you have businesses such as hotels, travel agencies, or restaurants, you will need a tourist license to operate. Additionally, you must register your company with the DED and the Department of Tourism in Dubai or the emirate where you are located. Now, you will be able to know specifically the forms of tourist license in the Emirates:

• ·      Incoming Tour Operator License to interact with tourists in the city
• ·      To undertake excursions, you will need the Export Tour Operator License.
• ·      If you will be offering tours, hotels, cars, and flights, you will need to apply for a Travel Agent License.

Additionally, there is a tour guide license, which requires demonstrating excellent knowledge of Dubai to acquire it. Therefore, you will have to participate in the Top Guide program and complete it successfully. Also, the license will be valid for a few years and will have to be renewed year after year.

Legal Requirements for Obtaining a Business License in the UAE

Business license requirements are not difficult to meet, and the process is not complicated. However, you must know well what you must do to request it and the first thing you must do is gather the following documents:

• ·      Have completed the license application.
• ·      Have the complete Memorandum of Association (MOA) with all partners and shareholders of the business.
• ·      Receive approval for the company name from the UAE Registration Office.
• ·      All Copies of passports of the partners and shareholders who will participate in the company.

How to get business license in UAE

In Dubai and the rest of the Emirates, it is necessary to comply with the conditions established by law to establish a company. This includes a business license, commercial activity, and business name, among others. Therefore, below you will know what steps you specifically have to follow to obtain the license:

Step 1 Choose commercial activities

The first thing you need to do to obtain a Dubai business license is to decide which category your business will operate in. In this case, you will be able to choose between multiple types of activities to start your company in the Emirates. Therefore, include in your application all the commercial activities you will carry out with your business so as not to face sanctions for omission.

Step 2 Choose a legal structure for your company

In this step, you will have to choose the type of legal form that your business will have within the following forms allowed in Dubai and other Emirates:

• ·      Limited Liability Company (LLC)
• ·      Private Limited Company
• ·      Camaraderie
• ·      Joint Company Public
• ·      Limited liability company
• ·      Branch of a foreign company

Step 3 Select your business name

Register the company name with the Emirates Registration Office. To do this, you can enter a full name; do not include only initials or your last name. In addition, the name must conform to Emirati naming policies, which include not using language that is considered profane or offensive.

Step 4 Request initial approval

In this step, you will need to receive initial approval from the DED that will certify that your business does not have any problems with the government of the country. Likewise, this step is the most important to be given the UAE business license. However, with this authorization, it could not begin operations yet.

If you are an investor or an expatriate businessman, you will need authorization from GDRFA, the General Directorate of Residency and Foreign Affairs.

Step 5 Locate a Business Location

In the Emirates, they demand favorable commercial locations such as commercial premises and offices that can fit any company. In the same way, you can find different spaces and locations that you can adapt to your budget. Additionally, to obtain a business license, you will need to present the rental or lease contract where your business will operate.

Step 6 Acquire approval from government department

Depending on the type of business you will be doing, you will need specific approvals from some additional government authorities. Likewise, you can request them at the municipal or federal level since these are the ones that regulate the commercial actions of some particular industries. Moreover, this step must include registration with the Chamber of Commerce.

In this case, you will have to apply wherever you will operate your business in the UAE.

Business License Processing Time

When you have finished the license application process, you will receive approval in 15 minutes. This is if the type of license is instant, otherwise it will take approximately 4 weeks. However, if additional approvals are required, the time may vary from one license to another. Additionally, there are methods on how to check business license in Dubai online by available organizations such as the GDRF.

Benefits of a Business License in Dubai

This license offers you many personal and financial benefits as you will see below.

Showcasing the Feature

Having the license for your company will allow you the advantage of operating while being properly accredited and authorized. Consequently, many clients will feel attracted and confident, and it will generate greater interest among investors. Therefore, obtaining the license will result in great success for your business.

Tax Rights

With the business license, you will ensure that individuals file their tax returns. However, it could be a difficult process, but it will help you reduce business expenses by filing taxes individually. Likewise, you will see that in this way, you will be able to easily declare the income and losses you have.

Personal Safety

The licenses have several types of protection if you face any financial or personal harm, so you will not suffer any consequences.

Cost of a UAE Business License

The commercial license has a cost ranging from AED 5750 to AED 30000. An example of the cost is the following:

• ·      For companies in Dubai mainland, the cost will be between AED 6,000 to AED 27,000.
• ·      The license in Dubai Free Zone ranges from AED 5,750 to AED 30,000.
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Additionally, these costs are general and do not include expenses for visas and other permits for commercial activity. Therefore, if you want to know the exact amount of the cost, you can hire a professional consultant.

Why do business in the UAE?

One of the reasons why you may think about starting a business in the Emirates is the diversity of growing economies globally. Furthermore, in this country not only is the oil industry prosperous but it has become an industrial leader. Likewise, it is a leader within the 4IR or the Fourth Industrial Revolution at a technological level.

Similarly, the national government boosted the economy of the country through many investment projects and facilitated its regulations for trade. Additionally, it decreased corporate and personal taxes for a 0-tax environment. Moreover, it lowers trade restrictions and promotes foreign investment through the easy issuance of visas.

In the same way, the country has infrastructure considered first class. Also, its population is more than 90% expatriates and it is strategically located between the west and the east. In this case, investors and for any foreign entrepreneur, these features are very attractive and offer multiple business opportunities.

Length of validity of a business license

The license will be valid for 2 years but many business owners apply for the 1-year license and renew it every year before it expires. Likewise, if there is a delay in your renewal, you will face sanctions and fines. However, you have a grace period of 30 days to renew the license.

Renewal of business license in UAE

The first thing you should do is check the validity period of the license by checking its status online. Then, make sure you have all the original required documents and follow these steps:

1.    Keep your documents organized at hand

2.    Fill out the renewal application form

3.    Pay the corresponding renewal fee

There are 30 days where you can renew it and, if you exceed this time, you will have to pay AED 250 onwards.

Final Thought

The business license is necessary to start any business in the United Arab Emirates. Likewise, requesting it is simple or you can request specialized help on this issue. Furthermore, once its validity has passed, it must be renewed within 30 days to avoid facing fines. Also, if you need the help of our professionals, do not hesitate to contact us and we will advise you diligently.