As a result of the government backing and favorable business environment, many people have now started investing in new businesses in the UAE. With the ease of doing business, enormous demands, and closeness to emerging markets, the UAE is the correct location for starting businesses. And trade business is one of the many potential businesses in Dubai, UAE. But before starting a trade business, you will have to get a valid trade license from the DED. Here is how you can receive a trading license in Dubai and its benefits.
How to Get a Trading License in Dubai, UAE
Getting a trade license in Dubai, UAE is relatively easy. Here are the steps.
1. Select a Name for Your Business
The first step to getting your trade license is to select a suitable trade name. The business name you choose must comply with the guidelines set by UAE for selecting a company name. The term also needs to be unique and shouldn’t have been taken by any other company.
2. Define the Legal Structure
The next step is to choose your business’s legal structure for continuing your trade license application. The legal system defines the operational process and structure of a decided business/company and who will be liable for it.
3. Define Your Business Activities
After defining the company’s legal structure and name, you need to determine the activities that your business plans to conduct. Enlist all the activities on your license. Every license allows ten activities at maximum.
4. Fill Application Form
After you’ve confirmed what activities your business will conduct, you need to fill out the application form. Submit it to the DED to get your initial approval.
5. Get the Additional Approvals
Some business activities will need you to get external approvals as well. It would be best to complete your research before starting this business formation process. Otherwise, there may be chances of rejection of your trade license.
6. Gather the Important Documents
Other than your filled application, you will have to submit some documents to complete your license. Ensure these documents are ready and all the required signatures are covered.
7. Choose the Location for Business
Based on what type of license you’re applying for, you will have several options for choosing a business location. For the mainland trade license, you must have a physical location for your business. After selecting the business location, you must get the tenancy contract. Your contract has to be attested by Ejari, which must be submitted with the other application materials.
8. Submit Application
When you have all the necessary materials at hand, it’s time to submit the trade license application with the business location decided. Submit all the things to the DED to get your trade license.
9. Pay the Licensing Fee
Applying for and getting your trade license is never free. You need to pay the issuance and the license fee to obtain your consent.
Required Documents for Getting a General Trading License in the UAE
To get a general trading license in the UAE, you will need the following documents.
- A license application that is signed by the manager of the company or the legal representative
- Shareholder agreement, memorandum of association, and other documents
- DED approved letter for attested company name
- Management partner’s passport copy
Benefits of Getting a Trading License
Here are some of the benefits of getting a trading license in the UAE.
1. Tax Exemption
As a trading license owner, you can enjoy tax exemptions linked to income and profits, therefore having a zero tax advantage.
2. Benefits of Repatriation
The business with a trading license becomes eligible for full repatriation of assets and profits.
3. Hassle-free and Straightforward License Issuance
The process of issuing trading licenses is relatively simple, with no complications involved. After completion of documentation, issuance formalities take only ten days.
4. Multiple Visa Benefits Offered
The trading license opens the way for multiple visas for the workers or staff of the holder. The number of visas issued, however, depends on the office area. The more the site, the more the visas issued.
5. Annual Auditing Exemption
The license holder also benefits from exemption from the annual auditing report. They don’t need to submit the information.
6. Improved Trading Possibilities
A trading license holder can benefit from conducting national, local, and worldwide trade by getting it, hence using the full potential of the markets.
7. Sponsoring Visas
For the dependents of the trading license holder, visa sponsorship tends to be a great benefit.
The Verdict
A trading license is a must in the UAE because it offers an excellent opportunity for inventors and traders, giving them a reliable and stable platform to get more revenue and expand their business. The steps of getting a trading license and its benefits are covered above.
