The United Arab Emirates ranks for the ease of doing business 16 according to the World Bank’s 2019 Ease of Doing Business report. Ajman Free zones authority in the United Arab Emirates. Therefore, it reflects the true picture regarding the ease of business. Besides that, Dubai has several free zones with advanced technology, making the business setup process in Dubai a very smooth and lucrative prospect for investors from all over the world due to its strategic location, business-friendly policies, and strong support. Of the government. With a solid business plan and professional assistance from renowned business setup consultants in Dubai, starting a business becomes an easier task.
Nevertheless, Investors must religiously follow the business setup procedures and regulations in Dubai. As per the regulations, obtaining a business license is mandatory for all entrepreneurs to set up a business in Dubai. The Department of Economic Development (DED) is the competent authority that issues business licenses in mainland Dubai, and the authority has stipulated certain procedures for obtaining the license. Before venturing with the business setup procedure in Dubai, The Department of Economic Development (DED) is the competent authority that issued business licenses in mainland Dubai. The authority has stipulated certain procedures for obtaining the license. The authority has stipulated certain procedures for obtaining the license. Before venturing with the business setup procedure in Dubai,
What are the main types of business licenses in Dubai?
A commercial business license broadly covers all trade-related business activities. A business license issued by the DED is intended for companies engaged in activities that require capital for their exercise. General trading companies and other retail companies must have a business license to conduct business in Dubai.
A professional license in Dubai is mandatory for activities that depend on the professional knowledge and skills of the business owner. A professional license in Dubai is required for businesses such as consulting services, auditing firms, accounting firms, etc. Such businesses appoint a Local Service Agent (LSA) and enjoy 100% ownership.
Companies that transform raw materials into finished products are covered by the industrial license issued by the DED. Manufacturing companies are required to obtain a DED industrial license to conduct business in Dubai. Unlike other licenses, manufacturing companies must obtain approvals from authorities, including
- Ministry of Economy
- Dubai Municipality
- Ministry of the Interior of the United Arab Emirates
The process of obtaining a business license in mainland Dubai
The process of obtaining a business license in Dubai involves several requirements, which can be met without delay if you hire reputable business setup consultants in Dubai. The following are the mandatory steps to follow to obtain the business license issued by the DED.
- Determine the right business
The first and most crucial step in obtaining a business license in Dubai is identifying the right business activity. Investors should be careful when starting the business setup process in Dubai, as the DED allows companies to conduct business in its approved activities. The DED has a list of more than 2,000 business activities associated with the appropriate business license. A heavy fine will be imposed if any company is found to have conducted business in activities that are not under the corresponding license. Check out the best company formation consultants in uae services in Dubai to avoid any kind of penalty when setting up a company.
- Special Business Activities Requiring Approvals
In Dubai, special business activities require the approval of competent ministries and authorities to obtain a business license.
The activities that require the approval of the Ministry are:
- oil gas
Obtaining approvals from the Ministry in question is not straightforward, and investors would require professional assistance.
- Determination of the legal structure of the company
The legal structure or the legal form of the company is the type of company you plan to establish in Dubai. LLC is the most popular type of company formation in mainland Dubai where the foreign owner owns a 49% stake while a local sponsor (UAE national) must hold at least a 51% stake in the company. Other forms of business establishment in Dubai include the branch of a local or foreign company, representative company, etc. Determining the legal structure requires careful study and research,
- Choose a business name
The entrepreneur must reserve a business name for the company immediately after determining the legal structure. There are strict business name guidelines in Dubai for choosing a name for the business.
- Request initial approval
To have a smooth business setup process in Dubai, you need to get an initial approval certificate from the DED. Reputed business establishment services in Dubai handle the initial approval application on behalf of entrepreneurs with proper documentation.
- Rent an office space
The DED requires companies operating in mainland Dubai to rent or lease office space to meet the requirement for a physical address. Foreign investors, therefore, need to find affordable office space in the location that best suits the business. Office space is a must for visas on the mainland too.
Entrepreneurs must sign a lease with the owner to rent office space in Dubai. After that, they must register the contract with Ejari for certification. Business setup services consultancy in Dubai is a reliable solution to meet office space requirements.
- Issuance of Business Licenses in Dubai
In the last stage of the process, you must submit all the documents and certificates of approval to the DED. The business license fee must also be submitted along with the required documents. The DED will issue the business license with which you can start your dream business in Dubai.
How do Jitendra business consultants help to get a business license in Dubai?
A business license is a mandatory requirement for company formation in Dubai. Investors should pay attention to business activities, legal structures, and documentation required for approvals as they initiate the business setup process in Dubai. This is where expert assistance from business setup services like Jitendra Business Consultants (JBC) becomes essential for investors.
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