We know that to start any form of business in Dubai, you need a valid license. The Department of Economic Development (DED) issues three forms of license for various companies:
Commercial License
Industrial License
Dubai has the advantage of being in a geographically strategic position, in the sense that many products are imported and exported from Dubai. So making a company in Dubai can be helpful to a businessman. If a person wants to set up a business in Dubai that involves trading or buying and selling products, they must obtain a commercial license from the respective authorities. The option of obtaining a license from each of the three jurisdictions is left to one. After deciding where to start a company, the next ideal step is to obtain a license.
Who is to apply for a commercial license in Dubai?
Since applying for a commercial license in Dubai, settle on the activities to be carried out under the same license. And, note that tertiary activities cannot be more than 10 per license, along with the main operation. The form of activity covered by a commercial license in Dubai is as follows:
Import and export activities
Sale of construction material
Logistics
Sale of electronic products
Real estate service
Auto vehicle trading
Travel & tourism
Supply of brokerage services
General stores and shops, etc.
The next step is to determine the company's trade name and to record it in the Companies Register. After that, you must apply a collection of documents to the DED and the UAE Federal Ministry of Economy for the commercial license to be released.
DOCUMENTS REQUIRED FOR COMMERCIAL LICENSE
Application type, where the name of the business should be indicated in English and Arabic.
The initial lease contract for the registered address of the company
Memorandum of Association (MOA) with the partneror sponsor
Permit provided by the Dubai Municipality Building Department to clear the use of the office space as a business address for the company.
Proof of the fee charged for the issuance of a commercial license
DOCUMENTS REQUIRED FOR RENEWAL OF COMMERCIAL LICENSE
The original or a copy of a commercial license
Copy of the contract for the office space lease
Authorization by the competent authorities, if necessary
Employee housing details for businesses with a foreign shareholder
The renewed commercial licence is valid for one year.
In July 2017, the Business Registration and Licensing (BRL) sector in Dubai launched the "Instant License" initiative. It enables businessmen and investors to receive their commercial licenses in one process within five minutes, without the company's lease or place – during the first year only. This initiative is said to have reduced 90 percent of the time taken to register and issue a trade license in Dubai. All other corporate activities benefited from this program, except for public and private shareholding firms. In the case of general trading activities, the use of e-services and the choice of LLC is obligatory.
PROCEDURE
Choose a legal entity for your company
Decide on your business operation
Add the spouses to the legal entity and define the following points:
Partners’ share in the capital
Distribution of profits and losses between the partners
Reserve of the trade name through one of the following ways:
Reservation of a new trade name through the Register of Companies
Use the automatically created trade name, which consists of the trade name reservation number
Add the value of the money to the company's data in the Commercial Register; the remaining fields will be filled out automatically.
You'll be given the choice of issuing an electronic Memorandum of Association (MOA) via the available electronic service; you can choose to do so or ignore it.
A payment voucher shall be issued
Pay the fee
The commercial license has benefits such as visa application, labor quotas, translation service, no corporate taxes, no income tax, and a streamlined financial reporting system once it is obtained.
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