Business Trade License

Trade License in Dubai

Businesses looking to establish a solid presence in the UAE need to obtain a Trade license. This is the most important document for carrying out operations legally in the country. Given the UAE has one of the most thriving economies in the Middle East, attracting foreign investors and entrepreneurs, its government has decided to control and regulate the several types of companies looking to participate in its marketplace.

Getting the Trade license is a simple process. It starts from deciding the type of business activity you would like to carry out up to getting approvals from different government departments. In the process, you will have to form a company, since individuals cannot obtain a Trade license, only enterprises can apply for it.

What is the Trade License?

A Trade license is a business document aimed at companies looking to perform a particular activity in the UAE. Thus, this document it is designated the activities the company is going to carry out. Every enterprise that wants to conduct business in the country needs to have this document. Otherwise, it would be working illegally and it could face fines and bad consequences.

The UAE Government has established several types of Trade licenses. This is to regulate the different industries operating in the country. So, depending on the nature of your business, you will have to choose the license that best suits it.

Types of Business Licenses in Dubai

Commercial License

Professional License

Industrial License

Tourism License

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Home Business License in Dubai

Working from home has become a great option for small businesses and startups that want to participate in the flourishing market of the UAE. Since it has been gaining popularity, the UAE has established the home business license in Dubai intending to support SMEs.

If you are interested in having a home-based business in Dubai, or anywhere in the UAE, you now have the chance to do it. You can sell your skills, and goods, or offer your services once you have this valid document. Whether you are a UAE resident or a foreign professional, you can apply for this type of trade license.

Instant Trade License in Dubai

Since there are many business opportunities in Dubai, the DED introduced an option for foreign investors looking to set up their businesses in the region. This is the instant trade license. It is an initiative aimed at entrepreneurs looking to start their companies easier and quicker. The best part is that it is a one-step process and you need fewer documents than for the traditional process.

However, it is worth noting that this type of license is only for those businesses that do not need external approvals. Moreover, only businesses with the legal structure of an LLC, one-person LLC, Sole Proprietorship, and Civil Company can apply.

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How to apply for the Instant Trade License in the UAE?

The application process for the Instant Trade License is even simpler than for the Traditional Trade License. Keep in mind that through this process you can only obtain commercial and professional licenses. So, if you are interested in any other type of license, you cannot apply.

First, you have to select the business activity you want to perform. Make sure that business activity does not require any external approval. Otherwise, you will not be able to continue with the process. You can check this through the DED.

After that, you have to choose a company name. Make sure to follow the DED guidelines in this matter. Lastly, you have to fill out the application form. You will receive a payment voucher and you have to pay the required fee. After that, you will receive your license immediately.

Once you receive your license, you can start engaging in commercial activity. You become part of a member of the Dubai Chamber and you will receive your establishment card.

Who should apply for the Trade License?

Every company that would like to perform any type of business in the UAE should apply for a Trade license. This is for foreign and local business owners as well. Both UAE residents and foreigners have to incorporate a company before starting the application process.

Once your business has a valid license you can start carrying out your operations in the UAE. The best news is that the process to obtain a license is quick. So, in less than 4 weeks you can have your business up and running. Here at Connect Business Centers, we can help you obtain this important document for your company in no time.

Business Structures

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Sole Proprietorship

A Sole Proprietorship is a business owned by one person, which can carry out commercial, professional, and industrial activities.

Sole Proprietorships Business Types

A professional business sole proprietorship covers a range of professions from owning a seafood restaurant to a bespoke tailoring service. In those cases, the owner does not have to be an expert in that particular business field, but as the sole owner of a consultancy, for example legal counsel, building contracting or home tutoring, the sole proprietor must specialise in that business. Most professional-type sole proprietorships providing personally offered services or the services of a recognised profession such as medicine or engineering require a Local Service Agent (LSA) if they are owned by a National of a country other than the UAE or GCC countries. The local service agent is a UAE National who manages licensing requirements and other government-related matters for your business, in exchange for an annual fee. The LSA has no responsibility for your business and no financial commitment to the business or its activities in Dubai or elsewhere. A sample Local Service Agent Agreement is available, explaining the relationship and the obligations of the owner and the LSA. This agreement must be authenticated by a Notary Public/Court within the UAE.

Ownership

A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
A professional-type sole proprietorship can be owned by an individual of any nationality.
A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.

Civil Company (Recognised Professions)

A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
A professional-type sole proprietorship can be owned by an individual of any nationality.
A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.

Limited Liability Company (LLC)

A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
A professional-type sole proprietorship can be owned by an individual of any nationality.
A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.

Private Shareholding Company (Private Joint-Stock Company)

A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
A professional-type sole proprietorship can be owned by an individual of any nationality.
A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.

Simple Limited Partnership

A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
A professional-type sole proprietorship can be owned by an individual of any nationality.
A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.

Foreign Company Branch or Representative Office

A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
A professional-type sole proprietorship can be owned by an individual of any nationality.
A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.