Get your Exciting Business License in Dubai
Essential Business license in Dubai
In order to carry on with business and demonstrate their legality, all organizations must get a business license in dubai. Although obtaining this license may be costly, there are several benefits and incentives in the post-acquisition stage.
There are many types of company licenses in Dubai, depending on the activities you are planning to conduct in the UAE. Therefore, each license is limited to only ten business activities except a general trading license that allows businesses to trade in different types of commercial activities.
What is a Business License in Dubai
A company trade license in Dubai gives the enterprise credibility. It makes clear the legal standing of each corporation or trade association that conducts business in a specific area. Moreover, it guarantees that the company accepts full responsibility for its activities. Finally, it handles, safeguards, and organizes the organization’s legal cases.
Dubai trade license details
In Dubai, an official document known as a trade license gives you the legal right to carry out company operations within the city. It is permission given by the appropriate government agencies, proof that you have complied with all rules and regulations needed to run a business in Dubai.
General trading licenses in Dubai are flexible and permit a variety of operations. With the aid of these permits, people are allowed to carry out a variety of business activities, including the import and export of commodities.
Dubai economic department trade license
Department of Economic Development
It is also known as DED, and the trade license issuing authority in Dubai supervises all aspects of Dubai’s economy.
Consumer protection, commercial compliance, licenses for mainland businesses, and registration are all under the purview of DED in Dubai. Users can access cutting-edge services that are designed to improve productivity and the economy.
Businesses based in and outside of the UAE, as well as domestic and international investors, are catered to by DED licenses.
Trade license cost in Dubai
The kind of economic activity determines how much Dubai’s trade license costs. After deducting all additional expenses, the price range is between AED 15,000 and AED 50,000.
Trade license Dubai prices vary
- License registration fee: AED 600
- Knowledge fee: AED 10
- Innovation Fee: AED 10
- General trading activity fees: AED 15,000
- Investment activity fees: AED 15,000
- Real estate activities fees: from AED 5000 to AED 25,000
- Building contracting activities fees: AED 10,000
- DED trade License: AED 1,070 + AED 300 Dubai Chamber fees
- Trade name advertisements: AED 350
- Service request form: AED 50
- Foreign trade name fees: from AED 1000 to AED 3000
- Business centre fees: AED 25,000
- Intelaq license: AED 1,070
Expired trade license in Dubai
You can face consequences in Dubai if you neglect to renew your trade license. Depending on the sort of activity, a trade license that has expired might cost anywhere between AED 5,000 and AED 50,000 in fines. In addition, failing to renew the trade license during the allotted 30 days would result in a $250 monthly penalty.
Why do you need a Business License in Dubai?
As previously said, obtaining a business license in Dubai entitles you or your organization to do certified business in the city. The license oversees customer safety and well-being in addition to managing the business’s commercial operations. Above all, it gives the company official legal recognition from the government.
Types of Business Licenses in UAE Jurisdictions
Business License in UAE Mainland
Suppose a person or corporate organization wishes to conduct business locally in the United Arab Emirates. In that case, they must first establish a business on the UAE mainland, in any of the emirates. The Department of Economic Development of each Emirate will grant business licenses, often known as "Mainland Licenses."
Business License in UAE Free Zone
In Dubai or the United Arab Emirates, free zones are defined as demographic areas where specific business activities are permitted. A UAE Free Zone Business License is necessary for any company that wants to conduct business in certain areas. It's important to keep in mind that these permits are restricted to particular commercial operations.
Business License in UAE offshore
The phrase "offshore company" is used in business to refer to a corporate entity that operates outside of its registration jurisdiction. The UAE's authorized licensing authorities, such as JAFZA, RAKEZ, and AFZA, are the source of all offshore licenses. The goal of establishing an offshore business in Dubai is to avoid paying taxes, retain corporate assets, and engage in international real estate investment.
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Benefits of a Business License in Dubai
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Possessing a license enables you to profit from the fact that your company is authorized and accredited. In addition to drawing in additional clients, reliability will pique the interest of investors and stakeholders. Consequently, this will have a big impact on the performance of your company
Tax Rights
The requirement for individual tax returns to be filed individually is guaranteed by the Tax Rights Company License in Dubai. It will assist you in lowering substantial business charges that are difficult to overlook when paying personal taxes, even though this can be laborious. Additionally, it will get simpler to report revenue and losses.
Individual Security
Licensed Companies insure against any liabilities based on the licensing and business formation. Various licensing kinds provide varying levels of security. There won’t be any consequences for your funds in the event that the industry sustains some harm.
How Can You Get a Business License in Dubai?
To begin the process of registering a company in Dubai, an investor must select the name and activity. Furthermore, in the case of a professional license, the company must choose UAE residents as its service agent; however, in the case of commercial and industrial licenses, the local agent will not own any equity in the business.
If the license is an authorized one, draft a Memorandum of Association, MOA, or LSA with the local sponsor.
Please fill out the Application Form at the DED and submit it to get the business activity and name approved. Before mailing the application to the Commercial Registration Department, please affix the following legal documents.
To manage your firm, you also require adequate physical office space. Thus, before submitting your license application, finish your tenancy agreement.
Documents Required to Get a Business License
- Passport copy, visa copy of the investor and manager
- Complete application
- Tenancy Agreement
- Three Name choices for the company name reservation
- Degree certificate attested (in some cases)
- Experience certificate (in some cases)
Cost of Business License in Dubai
A business license in Dubai can cost anywhere from AED 5 750 to AED 30 000. For example, a company license in the mainland of Dubai can cost between AED 6 000 and AED 27 000, while a license in the Dubai Free Zone can cost between AED 5 750 and AED 30 000.
Please take note that this is the general cost of a business license; extra costs based on your business activity and visas are not included. You should get in touch with an expert business setup consultant like ICONS for assistance if you want to know exactly how much you will need to pay for your license.
Business License Validity in Dubai
The maximum duration of a business license in Dubai is two years. However, the majority of UAE-based companies choose to apply for one-year licenses, which they then renew annually prior to the license’s expiry date.
There are fines and penalties associated with any delay in renewing your business license. For example, you may be fined AED 5000 for operating without a valid license and AED 250 for failing to renew your license. ICONS business setup may assist you with applying for a new license or renewing a current license prior to its expiration. With Dubai, there is a 30-day grace period for renewing a company license.
Renew Business License in Dubai
Renewing a business license is a rather easy process. The first thing you need to do is double-check the original documents’ License Validity. You can also use the internet to monitor its status. Before applying to renew a trade license in Dubai, be sure to check this fast checklist:
- Organize all of your documents.
- Complete the Application for Renewal.
- Renew fee payment must be made.
The Dubai government grants companies who miss their renewal date a grace period of 30 days. However, if the business submits a renewal application beyond this time, it will be fined. The fine can exceed a thousand Dirhams and begins at AED 250, depending on the circumstances
How does ICONS Support get a Business License?
If you have the correct help, applying for a business license in Dubai is not too difficult. Seeking professional guidance can be beneficial if you wish to stay away from novice errors.
Your one-stop shop for comprehensive licensing assistance is ICONS. Our team of experts works hard to provide you with the best services and comprehensive answers to frequently asked questions. We will assist you in carefully choosing the appropriate licensing type for your business and completing an error-free application.