Can Valid trade license for sale in Dubai pose a threat
Dubai is a location many people recognize for its booming tourism, its beautiful oceans and landscapes. Something that they do not seem to know is that it is also a place for incredible trading opportunities. Right now, a lot of investors are looking for a trade license for sale in Dubai.
In this article, you will discover how to get a trade license in this emirate. Many investors are choosing the UAE, and especially Dubai as the home base for their businesses.
- Who can assist you in finding a trade license in Dubai?
- Safeguard your interests when buying a trade license
- Steps to get a trade license in Dubai for sale
- How can Connect Legal help you with this process?
1. Who can assist you in finding a trade license in Dubai?
Getting a trade license for sale in Dubai is a great way of going into business in the region. This old trade license for sale may already have loyal customers, trained employees, established operational techniques, and more. However, to get a trade license without further complications, it is important to hire legal services to receive the necessary support to safeguard your interests.
Finding an old trade license for sale in Dubai is a safer alternative than starting a business from scratch. As a result, many entrepreneurs in the UAE prefer to invest their time and money in seeking already existing businesses.
Before finding and selecting a trade license for sale in Dubai, investors should also search for the support of corporate lawyers in the UAE. These professionals will help you find a license that you can safely purchase. Subsequently, they will make sure to process and ask for all the necessary documents to verify its legality.
Additionally, with the support of a good team of lawyers in Dubai, you can check the background of the used trade license for sale in Dubai. In this way, you will also be able to know in advance if the business you are buying will be profitable or not. Thus, you will have a wider knowledge of the company that you will be acquiring. These specialists will also help you follow the local corporate commercial law throughout the whole operation.
2. Ways to safeguard your interests when buying a trade license
The steps you should follow to safeguard your interests when buying a trade license in Dubai for sale are:
2.1 Do your due diligence
Once the broad terms of the acquisition have been agreed upon, a prudent buyer should gather as much information about the target company as possible before committing to the purchase. This is commonly referred to as due diligence, and it is intended to provide the buyer with critical information about the target business. This is the main step you should take if you want to safeguard your interests while going through the process of getting a trade license for sale in Dubai.
A due diligence exercise should allow the buyer to make an informed decision about whether or not to proceed with the acquisition of the trade license. Due diligence results should also enable the buyer to identify any specific areas of concern for which they may need enhanced protection. It may also allow the buyer to seek to renegotiate the purchase terms.
A due diligence exercise should provide the buyer with vital management and operational information to plan for the post-completion period; in addition to allowing the buyer to evaluate the potential risks and rewards of the proposed purchase.
To carry out this due diligence, it is important to find the best legal representatives. These professionals will assist you with inspecting every single aspect of the trade license or business that you are buying, including:
- Validity of the license.
- Real estate and commercial properties (if they come with the trade license).
- Banking and finances, in case there are any debts or claims.
- Intellectual property that may come with the trade license for sale in Dubai.
- Tax records.
- Clients and customer base of the business which trade license you are acquiring.
- Employees and their UAE visa status.
2.2 Obtain an indemnity agreement and other warranties
Even after finishing the meticulous due diligence, you may be held liable for something the seller did or did not do before selling their old trade license for sale in Dubai. In this situation, an indemnity agreement can help protect the buyer.
The seller agrees to be responsible for any unforeseen liability that may arise after the sale for a specified period. This agreement protects the buyer because any statement discovered to be false or inaccurate gives the buyer grounds to sue for damages.
The process of negotiating warranties usually allows the seller to make disclosures against any guarantees that may not be precise or true. A seller’s disclosures should be carefully reviewed. Generally, a buyer will not be able to bring a warranty claim based on circumstances disclosed by the seller.
Negotiating warranties with the support of legal services will allow buyers to safeguard their interests. The purpose of having these warranties are:
- Before the buyer commits to the purchase of the trading license for sale in Dubai, encourage the seller to disclose any problems affecting the target business in full.
- Give the purchaser a legal foundation for a damage claim concerning any guarantees that turn out to be false, acting as a kind of retroactive price adjustment.
2.3 Purchase the assets that may come with the license
An asset purchase involves the purchase of individual assets such as equipment, inventory, buildings, and vehicles. In most cases, the buyer is not liable for the seller’s debts, obligations, or liabilities after the sale. An asset purchase can be much more appealing because you get to pick and choose which part of the business you want to buy, besides just the trade license.
2.4 Issue a Non-Compete Agreement
Issuing a Non-Compete Agreement before buying a trade license for sale in Dubai is very important. It will allow you to legally stop the seller from starting a similar business and issuing a similar trade license right before selling you the old one. By doing this you can avoid the issue of the seller taking away clients from the trade license you just purchased.
A Non-Compete Agreement is a promise that forces the seller to not engage in particular activities. Issuing this type of agreement can be easily done with legal advice in the UAE. Some of the restrictions that you must seek are:
- A restriction on approaching and interacting with customers, suppliers, and employees of the trade license for sale in Dubai that you are buying.
- Seller’s limitation to not engage or involve with any other business that may compete with the type of trade license that they are selling.
- To not disclose any sensitive information about the trade license for sale in Dubai that they are selling to any competitors.
This agreement must be carefully written by professionals in the area. The license buyer must have a real reason to protect their license and their interests before asking the seller to participate in the agreement.
3. Steps to get a trade license in Dubai for sale
The United Arab Emirates is a rapidly developing business environment with numerous offers for the sale of businesses on different websites. To select a valid trade license for sale in Dubai, investors must conduct an in-depth analysis and collect data on the real financial situation and potential growth prospects of the acquired business with the support of a business lawyer.
4.1 Check the business’ financial position
Firstly, you must hire legal services so that they can analyze the primary documentation, obtain bank statements, and verify the turnover.
4.2 Inspect the contracts between the business and its clients
A corporate attorney in the UAE must make sure that the company does not profit from several large contracts; otherwise, the contracts may be terminated.
4.3 Analyze labor contracts
The success of a company depends on the skilled staff. Therefore, with the support of a lawyer, make sure the employment contracts are legal and abide by the local labour law.
4.4 Open a new bank account
In the UAE, checks are used to pay contractors. Checks might be produced in the future. Closing the prior bank account and opening a new one is advised, so you can provide payments in the right way after buying your trade license for sale in Dubai.
4.5 Inspect the rental properties
Check the rental terms if the location of the business is important in attracting customers. Also, make sure that the owner intends to continue working with you. A lawyer will help you with understanding the commercial property law to finish this process quickly.
4.6 Examination of paperwork
It is critical to review the company’s charter documents, replace the local sponsor if one exists, and avoid the possibility of the company being controlled from this angle.
4.7 Check with the Ministry of Labor and Immigration
With the support of an immigration lawyer in Dubai, ensure that the owners’ and former employees’ visas are closed. In addition, check to see if the company has received any sanctions by the Ministry of Labor for violations.
4.8 Plan on how to develop the business
Request a business development plan from the seller and conduct an independent review. Our firm can assist you in reviewing and making the necessary changes to the company’s development plan.
4.9 Re-register the company
We can prepare all documents quickly and assist you in re-registering your business within 10 days of finalizing all legal and financial matters.
5. How can Connect Legal help you with this process?
Finding and getting a trade license for sale in Dubai is not a particularily easy process. It requires professional help to navigate this operation swiftly. Therefore, with the support of Connect Legal, you will be able to find a proper trade license in Dubai for sale and more.
We are a legal firm with many specialized lawyers in different areas, such as:
If you need the best legal advice, you can quickly register on our website and submit your question. Consequently, one of our professional lawyers will provide you with the aid you need. We have more than two decades of experience working closely with the UAE community to provide legal support to those that need it. Hire our premium legal services in the United Arab Emirates now!
Do you want to receive our support to find a trade license for sale in Dubai and purchase it correctly? Do not think it twice to contact us. You can send us an email at firstname.lastname@example.org or give us a call at +971 43 316 688 and we will provide you with all the solutions you need.
Additionally, if you have been looking for a job in the UAE without positive results, you can join thetalentpoint.com and obtain our professional help with this process. The Talent Point is the perfect site where to advertise your skills and qualifications and obtain a professional role in a top company. You can quickly submit your CV or send it via email at email@example.com.