Dubai in UAE offers the best opportunities for start-ups and corporates when they want to establish their offices. A business license is necessary for investors while forming a company in Dubai. However, getting a license is not easy, and companies should know the procedures properly. This, in turn, provides ways to obtain a license easily and helps plan operations without any difficulties. Anyone who wants to obtain a business license should seek support from a business service provider or consultant to handle complex issues.
11 Tips to obtain a business license in Dubai
1. Knowing the license types
Before applying for a business license in Dubai, investors should know the license types in detail. Dubai offers professional licenses, trade licenses, industrial licenses, and general trade licenses for investors. Start-ups and corporates should know what type of business they need while setting up their operations.
2. Selecting a business name
The first step in getting a business license in Dubai is selecting an appropriate trade name with more attention. When choosing a business name, investors should make sure that it complies with the UAE government authorities. Dubai follows strict rules and clients should choose a unique name that doesn’t have any resemblance to existing names.
Companies should also ensure that the name is not blasphemous or without any moral disregard. It is wise for them to check whether a business name is available for a company from different sources. Another thing is that it provides ways to select a name that adheres to the rules and regulations.
3. Defining the legal structure
Investors should define their legal structure while applying for a business license in Dubai that helps accomplish goals in the operations. A legal structure refers to the functioning of a business such as a sole proprietorship, partnership, LLC, joint venture, etc. Moreover, it should contain the details of the parties that are liable for the company.
Clients who are not sure about the legal structure should work with experienced business consultants. They will guide clients to determine the structure of a company after evaluating their requirements and other things. The rules and regulations to apply for a trade license may vary depending on the legal structure. Therefore, clients should understand with a business service provider to process a license without any difficulties.
4. Defining business activities properly
A company should define its business activities after deciding the business’s name and legal structure. In other words, it should focus on determining the activities and listing all of them when applying for a license. However, a business license allows a maximum of 10 activities, and investors should keep them in mind. Investors should consider seeking support from a business consultant who has a wide knowledge of company formation.
5. Completing the application form
Investors who want to apply for a business license in Dubai should filling out an application form and should submit the same to DED for initial approval. At the same time, they should follow the instructions carefully while filling an application. This is because a small error or mistake will lead to rejections or other problems. A business consultant will provide ways to fill an application with high accuracy to minimize unwanted issues.
6. Getting additional approvals
Some companies need external approvals and investors should make ensure that they will get them at the earliest. They should be aware of those requirements before proceeding with a business license application. Applications that don’t have additional approvals will be rejected and companies should consider working with a business service provider in Dubai to meet their needs.
7. Gathering and verifying documents
Documentation is an important aspect followed in company formation in Dubai and investors should have the necessary documents needed for their business operations. Those willing to obtain a license should gather them first and verify them properly. However, they need attestation from high-ranking officials and investors can seek support from a business consultant for this purpose.
8. Choosing the business location
Dubai offers various locations for start-ups and corporate companies when they want to plan their operations. On the other hand, they should know the options available to them while opening an office. Clients can choose a location in the mainland or free zone which fit their businesses. For instance, if they want to apply for a mainland trade license, they should have a physical address. Also, they need to obtain a tenancy contract that is duly attested by Ejari and submit the same along with other documents.
9. Cross-checking documents and submitting the application form
Companies should cross-check the documents to make sure that they haven’t missed out anything. The next step is to organize them in order and submit an application form to the DED with them. DED will review them and allocate a business trade license to a company as soon as possible and it can start operations immediately.
10. Paying the license fees
Investors have to pay some fees when they want to get a trade license. At the same time, they should know how to make payments in detail which help process an application form without any difficulties. The cost of a trade license may vary depending on the types of goods sold and approvals. Some other factors which influence the costs include types of business activities, the structure of a business, the region of establishment, etc.
11. Working with a business service provider
Companies that are new to Dubai markets should consider working with a reputed business service provider. This is because a service provider or consultant will take care of all tasks when setting up a company in Dubai which helps to minimize complications. A business consultant has a wide knowledge of Dubai markets and works on behalf of investors to process everything with ease. The primary advantage of seeking advice from a consultant is that it gives ways to save time and reduce the burden to a large extent. In most cases, a consultant will make the license approval process easy by addressing the needs of investors.