Dubai is one of the most intriguing places in the world that harbours one of the best jurisdictions for the investor fraternity. Both of these aspects have given a great deal of impetus to the growth of business in this region. The city offers supreme privileges and unmatched benefits to entrepreneurs. Dubai has set the benchmark as one of the fastest growing free zones in the UAE. It serves as a gateway to both new as well as approaching economic powers of the Emirates. Due to its open and dynamic economy, foreign investors find it easy to set up a new business in Dubai.
To carry out any business activity smoothly and efficiently, entrepreneurs must own a legal trade license in Dubai. A trade license in Dubai is mandatory and the approvals required from the several government bodies and authorities differ depending on the category of the trade. Business sectors such as financial institutions, health services, food trading, printing and publishing require more clearance as compared to general trading activities.
There are basically 3 categories of licenses issued in Dubai. These include:
- Commercial License – This type of license is issued to an organization that will be involved in any type of trading activity
- Industrial License – This is issued to an organization that will indulge in manufacturing or any kind of industrial activity
- Professional License – This type of license is issued to professionals, service providers, craftsmen and artisans
These licenses are issued by the economic section of Dubai, which is the government authority responsible for issuing such authorizations. These authorities have offices at several places from where they offer licensing services.
General Trading is the most popular business activity in the United Arab Emirates, as many investors are attracted to the profits associated with trading without taxes. This gives liberty and flexibility to trade.
Here are some of the best ways to get a Trade License in Dubai:
A trading license is allotted to foreign investors, local organizations and free zone organizations who desire to indulge in trading business activities in the free zone. An organization can get the trade license by registering for membership at the Dubai Chamber of Commerce and Industry (DCCI). However, a past approval is necessary from concerned governments and relevant authorities, for the respective business segments.
Below are the major organizations and governments which allot direct licenses to Dubai’s key business domain and trade houses:
- Bank and Financial institutions require permission from the United Arab Emirates Central Bank.
- Insurance companies and related agencies need approval from the Ministry of Economy and Commerce.
- Manufacturing Entities require a go-ahead from the Ministry of Finance and Industry.
- Pharmaceutical and medical products require an authorization from the Ministry of Health.
There are specific trade activities that require the approval of financial guarantee allotted by a bank functioning in UAE. For organizations that are into oil and gas manufacturing and accompanying industries; the licensing procedures are quite complicated as compared to other trading license. Also, the prices of the UAE trade licenses differ depending on the type of industry and business activity.