Dubai is thriving right now with one of the fastest-growing economies in the world. As one of the five largest financial hubs in the world, the United Arab Emirates (and Dubai in particular) is an entrepreneur and investor’s dream come true. Business in the United Arab Emirates is diverse, the government is pro-business, there is zero corporate or income tax, it boasts a world-class infrastructure, and an East-meets-West location for global trade from Africa, Asia and Europe to many countries around the world.
The UAE has created innovative Free Zones and Mainland Zones for business development with industry-specific benefits, support structures, and incentives. To operate in Dubai, every business must hold a relevant trade license relevant to their business activity. There are over 60 different jurisdictions and zones in Dubai from which you can choose. Which one is right for you and your business? Which is the relevant and right trade license for your business activity?
You can go about setting up your own company and getting your trade license yourself – but you’d need to familiarise yourself with the United Arab Emirates’ rules and regulations for company formation to stay on the right side of the law. To work closely with company setup consultants such as Trade License Zone’s expert team will make the process simple and straightforward – and with no any delays or errors – so you can start trading as soon as possible. While the Dubai government has recently streamlined its business regulations to make them more user-friendly, it still isn’t easy dealing with the various government agencies. Our first priority at Trade License Zone is helping companies get started on the path to success.
What are the Company Setup Packages to Choose from in Dubai?
As we’ve mentioned, business setup in Dubai is a complex process if you don’t know what you’re doing. That’s not to say you won’t be able to navigate through them yourself without setup consultants in Dubai, but with specialists in company formation in Dubai such as Trade License Zone, the process will smoother, faster, and more efficient for you and your business needs.
The type of decisions you make now when applying for a trade license will affect your company’s size, business activity, and scope of operations. Amongst the biggest considerations are: do you choose company formation as a Free Zone business or Mainland? These are the two most common company setup packages available: Free Zones and Mainland company formation packages.
#1: Free Zones
The simplest way to get started with a business in Dubai is a Free Zone company with a relevant trade license. Free Zone companies allow owners 100-percent ownership rights, offer no corporate or income tax, no customs duties, and have the option to repatriate 100-percent of your capital and profits.
For a Dubai Mainland company, business activities aren’t limited nor regulated in scope in the same ways as with Free Zone companies. It also offers no limit on the number of visas that can be issued with its specific trade licenses. These company types can also operate within the United Arab Emirates or beyond its borders.
Packages for Free Zone Company Setup
Trade License Zone offers several Free Zone packages that can be tailored to both large and small businesses and business activities. The most common company setup packages for Free Zones are:
Consultancy License: This license type is suitable for business consultants that provide expert and professional consulting services across all industries.
Service License: It covers service providers’ production, re-production, transformation, and distribution of services. The service license includes rendering services as the primary aim and utilising associated goods to provide those services.
Trading License: This license allows the import and export, distribution, and storing of goods specified on the license.
General Trading License: It enables the company to trade in a wider range of activities and gives the company the freedom and flexibility to trade in any commodity permitted by law within the UAE.
Industrial License: It allows the business to import raw materials, the production and re-production, manufacture, and packaging of the specified products – and finally export them, too.
Holding License: This license type allows the holding of standalone assets and/or shares in other companies. Holding companies are commonly used for controlling other companies and entities, property and real estate, stocks, assets, trademarks, and patents.
The Process of Business Setup in Dubai
Step 1: Partner with Trade License Zone
As we’ve mentioned, partnering with a local company setup agency is the first step to opening any type of business in Dubai. Our business advisors at Trade License Zone will manage all aspects of your company formation process, business licenses, and guide you to trade as soon as possible.
Step 2: Choose a Business Structure
The UAE (and Dubai) is the first region to implement free-trade zones for business growth. Choosing the right business structure will allow you to apply for a company license in a specific free zone for maximum benefits and support.
Step 3: Choose and Register a Business Name
Trade License Zone will help you choose and register your company name with the UAE’s Registry Office. The business name must adhere to the UAE’s strict naming regulations. Business names cannot include any offensive or blasphemous language, nor any references to Allah or Islam. If you wish to include your name in your company name, you must use it in full rather than just your surname or initials. We’ll also check that your chosen name is available to be registered.
Step 4: Notarizing your Business Documentation
Once the company name’s approved by the Registry Office, you need to apply for notarization of the company’s Memorandum of Association (MOA) and Articles of Association (AOA) with the Department of Economic Development in Dubai (D-DED).
Step 5: Submitting your Business License Application
Along with your completed application form and initial business plan, you’ll also need to submit the following documentation to the Dubai Department of Economic Development:
- Proof of ID and address for directors and shareholders
- Passport copies for shareholders and directors
- Copy of trade name confirmation
- Memorandum of Association (MOA)
- Articles of Association (AOA)
Step 6: Getting your Trade License
Let Trade License Zone quality services help you get a residency visa to live and work in the UAE. The steps are the same as the one above, from the application through to your passport stamp. With your relevant work visa, you can sponsor your dependents for their visas, too. Again, this follows the same process, whether you wish to sponsor domestic staff, a child, or a spouse. Our experienced professionals will guide you through every step of the process.
Step 7: Choose a Premises
Once you have your trade license in hand, you can find the right premises for your company – if it applies to your business, industry and trade license type. If you do need to rent premises, we at Trade License Zone will guide you in selecting the right location to meet your business needs.
Step 8: Hire the Right Staff
With access to a large pool of highly skilled people in Dubai, you will hire staff that’s right for your company. As experts in this field, Trade License Zone has partnered with specialists in recruitment and manpower supply. We’ll assist you with each step in setting up your own business in Dubai.
Starting a business in Dubai is a lucrative opportunity for entrepreneurs and business investors. The UAE government has designed the company formation process and trade license process in the UAE with simplicity in mind in navigating the legal requirements
That said, it takes some hard work and in-depth knowledge of the region, its markets, its many customs and regulations.
That’s why it’s always advisable to sign up with the services of a UAE business setup company to guide you on your company’s license and setup based on your needs and budget.
When you work with Trade License Zone, we’ll guide and manage the entire incorporation process for you, and guide you through the latest government regulations regarding your business. Get in touch today for a personalised quote and competitive advantage.
We’ll give you peace of mind that your license and visa applications are free from errors and omissions – both of which can lead to delays and rejection.
All you need to provide is some basic documentation and some information about your business. Then, sit back and let the experts take care of the rest – managing your license and visa applications, communicating with all relevant government departments and authorities, and reporting back when you’re ready to trade. It is that simple.