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Guide on Business Licenses in Dubai

July 26, 2021
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Guide on Business Licenses in Dubai
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Dubai is known as a business hub for industries from all around the globe. The Emirates of Dubai deals with all types of business activities and consists the free zone areas, which are a boon to many startups and entrepreneurs.

So if you are planning to set up a business in Dubai. This article will provide you information about business licenses in Dubai.

To incorporate a company in Dubai, there are various steps involved. One of the most important steps is selecting a business activity to finalize the business license.

Which authority is responsible for providing you the business license for your company?

The Department of Economic Department (DED) is a government body that is responsible for providing company licenses or individuals who desire to set up a business in Dubai.

DED is the authority assigned to provide the business license and regulate the procedures related to business licensing.

A DED licensed business is generally called a “local company”. One must note that only mainland companies are registered and licensed by the DED, whereas free zone companies – are licensed by private authorities.

Different types of business licenses in Dubai:

There are mainly four types of business licenses:

  • Commercial license – general trading businesses
  • Professional license – services related businesses
  • Industrial license – manufacturing goods
  • Tourism license – travel and tours industry

Steps included in applying for a business license in Dubai:

  • Categorize your Business: Both the Free Zone or the DED (Department of Economic Development) provide a category list. One has to identify the appropriate category for your Business.
  • Selecting a suitable legal structure: The company’s legal structure is just as crucial as your company’s trade name. This legal structure mainly depends on the number of shareholders one has in their business, and the jurisdiction they choose to operate their business in.
  • Selecting a trading name: while selecting the business’s trading name of the business one has to make sure that it sells the services and also it meets government guidelines.
  • How much to invest: It depends on the business.
  • Lease or purchase the office space: One has to choose an office space that suits the budget and business requirements.
  • Get initial approval from the authority: this is the fundamental step for getting a trade license.

Required documents:

  • Filled application form
  • The master plan of the business
  • Copy of passport (of every shareholder/partner associated with the business legally)
  • Certificate of reference (from the bank) or 2 years financial statements
  • NOC from sponsor
  • Letter of intent
  • Attested copy of Registry Identification Form (for the Director)
  • Passport-size photo of the Director or the manager
  • Details of Share Capital

When to renew your business license in Dubai?

The business license is renewed yearly in Dubai. Companies and commercial businesses need to go through the process of documentation for the renewal process. The business license must be renewed before the due date as a penalty is charged on late renewals.

Tags: Business LicenseBusiness Licenses in DubaiDubaiUAE

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