Are you thinking of starting a business in the United Arab Emirates? As we all know the UAE has so much to offer for entrepreneurs, as the country attracts Foreign Direct Investment through its lucrative business opportunities. Starting a business in a country like the UAE is always a good idea and one should not think twice about it.
Kicking off a venture in Dubai needs a license just as in any other country. So entrepreneurs should be prepared for their business needs and requirements.
There are two types of business licenses in Dubai- Commercial License and Professional License. These are the two main licenses issued by the Department of Economic Development. The department holds the power to grant and reject business licenses. Let’s explore these business licenses, how they work and the major differences between the two.
What is a Commercial License?
As the name suggests, these licenses are available to businesses that run trading businesses, import-export, foods, and other general trade ventures. This license is also issued by the DED (Department of Economic Development). Commercial licenses allow ventures to do any trades and other general trading activities. Business persons and foreign traders can only take up to 49% legal stakes under this trade authorization.
Dubai has many different schemes for foreign entrepreneurs, the remaining shares of 51% are secured by the UAE national or local service agents. By forming a Limited Liability Company (LLC) with a UAE national, the stakeholders have fewer obligations and responsibilities which reduces the risk of any financial mishaps.
Availing a Commercial License in the United Arab Emirates
Dubai has made the licensing process easy and feasible so that businesses don’t face many hurdles to avail the same. Simplifying the licensing process helps and attracts entrepreneurs to kick off their new venture in the smart country. The DED (Department of Economic Development) requires mainland businesses to apply for a trading license.
Business Licensing is handled by the relevant Free Zone Authorities for establishments located inside any of the free zones. Applying for a Commercial license in the UAE requires you to mention the type of business, Category, and Structure.
- First, choose your venture category from the catalog offered by the Department of Economic Development of the Free Zone Authority.
- After this, submit your rough business plan or a structure to legalize the business which includes details of the stakeholders and the category in which you wish to operate your company. It is important to finalize your trade name for your business under the given guidelines of the Government as one can not use names that have some religious indication or preference.
- You may obtain your company license for trade in Dubai in three days if all of the paperwork you've provided is accurate. The procedure might take many weeks if there are problems with the documents. Seek legal counsel in the UAE to obtain the license all at once.
What Are the Benefits of Having a Commercial License?
- Having a commercial license can help your company save on taxes and get you free returns of capital gains.
- It gives you the comfort of renewing your trade license without any audits.
- It also gives you an authorized permit to run ten different businesses under the same license.
- Having a commercial license can strengthen your interaction with DED.
- At last, it also allows you to engage and interact with international trading masters as well as in activities.
What is the Professional License in the United Arab Emirates?
On the one hand, a commercial license gives a permit to trade, on the other hand, professional licenses are availed by service businesses that include numerous accountancy services, software projects, medical reps, beauty shops, and consulting services, among others. Companies can take up to 100% of their ownership under this professional license as any trade that is service-based on a specific expertise is covered by this legal license.
Benefits of Having a Professional License
- A professional license can allow 100% foreign ownership.
- Businesses that have acquired professional licenses can apply for UAE visas for their employees and can obtain labor quotas and many more facilities.
- It helps you to save income as well as corporate taxes.
- This license ensures a smooth and seamless function of daily business operations.
How Does Markai Corporate Services Guide You to Your Desired Solution?
Getting a legal commercial license and a professional license is not that easy for entrepreneurs who are new in the field and want to set up their businesses quickly. And here, Markai Corporate Services guides you through the best solution. We not only provide you with the solutions but also help you to get your legal license quickly and safely.
