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Dubai has established itself as a major international business destination for entrepreneurs in recent years. Due to the wide variety of business opportunities Dubai offers, many budding entrepreneurs are drawn to the city. However, to operate in the city, companies must possess a trade license. There are different types of trade license in UAE including freelance, tourism, industrial, commercial, and professional. Obtaining the right trade license in UAE is crucial for any business looking to start a venture there.
In this blog, we have compiled all the essential information on the types of trade license in UAE and how to choose one for your business.
Different types of trade license in UAE cater to a different business activity. Start a business in Dubai requires entrepreneurs to choose the most appropriate business license in accordance with their business activities. This choice largely depends on whether the business operates within free, mainland, or offshore zones. Below is a list of the different types of trade License in UAE.
A commercial license is issued to individuals/companies engaged in buying and selling goods such as computers, automobiles, equipment and much more. This type of license allows trading activities within and outside the UAE. There are also specialised commercial licenses for certain business activities, such as:
Professional license, one of the UAE trade licenses, is designed for individuals with academic qualifications, professional proficiency, and intellectual expertise. Individuals in the IT sector, such as artisans, craftsmen, etc., can apply for a professional license in the UAE. This license type also includes business entities registered as civil works companies with multiple owners. Below mentioned are some of the specialised fields covered by the professional license:
This license is reserved for businesses or individuals manufacturing materials and products across multiple industries in Dubai. To obtain this license, the company must maintain a physical office within the UAE. Below are some of the specific types of industrial license:
A freelance permit is the ideal choice for individuals seeking self-employment opportunities. Several free zones offer this permit, making it easier for individuals to seek independent work besides regular jobs. A freelance permit caters to several creative professionals, such as:
Every year, countless tourists visit Dubai owing to its scenic beauty and architectural marvels. A Tourism license, yet another one from the types of trade license in UAE, is perfect for entrepreneurs working within the tourism sector. This license allows individuals to provide services within the travel and tourism industry. A tourism license is a testament to a business’s credibility. With a tourism license, businesses can offer a wide range of services such as:
Trade licenses delineate the specific areas in which enterprises are allowed to operate. These laws play a critical role in Dubai’s diversified economy by supporting the expansion of businesses and industries. These licenses set up distinct jurisdictions for transparency and improved customer service and simplify corporate processes. They also foster strong market ties. A business formation consultant at DUBIZ can help you determine which of the five common forms of trade licenses is best for your sort of business in Dubai, United Arab Emirates. Here is a step-by-step guide to obtain a trade license in UAE.
To select the right trade license for your business you need to evaluate the various free zones, each catering to a specific industry and choose the most suitable one per your requirements. It is advisable to select a Free Zone that is aligns with your potential clients, infrastructural needs, and your customer base.
You can seek the help of our professionals at DUBIZ to assist you in selecting an acceptable business name. Please note that you must choose a name that complies with the naming conventions in the UAE. Make sure your chosen name does not violate the moral code, nor should it hurt public sentiment.
As the application process is going on, you need to secure notarisation for essential documents such as Memorandum of Association (MOA) and Articles of Association (AOA).
A set of essential documents such as identity proof, trade name confirmation, and license application, along with the business plan, need to be submitted to the Department of Economic Development (DED) in Dubai as well as to the Department of Tourism and Commerce marketing.
The trade license will be issued after the Department of Economic Development approves the application. This process takes approximately two weeks on average.
After you have secured your trade license and other approvals, you can officially start a business in UAE. However, you need to stay informed about renewals and other legal obligations to operate smoothly.
Selecting the ideal license from different types of trade license in UAE for your business can be a tedious task. However, seeking the help of professional consultants can simplify this process. At DUBIZ, we handle everything, from assisting you in selecting the appropriate trade license to obtaining the required permission from the appropriate authorities.
To learn more about types of trade license in UAE, feel free to contact DUBIZ at +971 562986853 or WhatsApp us at +971 569973630. You can also drop an email at info@dubiz.co for any inquiries.
