Â
The UAE is the go-to business destination for investors and business owners when it comes to international trade or expansion. The government has introduced business friendly policies and its advanced infrastructure possesses a big opportunity for business to establish and thrive in the region. To begin with, companies from all over the world and diverse sectors are required to obtain a UAE trade license to carry out business operations legally.Â
Â
To promote sustainable business growth and boost revenues, the UAE government has also proposed to introduce long-term licenses. This will include the five year and ten year long business license.Â
Â
Let’s dive deeper into the complete guide covering the key types and processes.Â
Types of UAE trade licenses
To cater to a wide spectrum of business activities and sectors, the UAE offers a myriad of trade licenses in UAE:
Commercial License:
A commercial license is issued to a company which is involved in the trade, import or export of products. Surrounded by major global markets such as Africa, Europe, the Middle East and Asia, the commercial trade license in UAE has become a significant yet one of the most preferred licenses to operate legally in the country.
Â
Industrial License:
As the name suggests – the industrial license is valid for businesses setting up activities that are of industrial nature such as manufacturing or petrochemicals refining. It is essential for companies that produce or assemble products such as manufacturing facilities or factories.Â
Professional License:
A professional license is particularly specific to service related business activities. It covers a wide gamut of services such as consultancy firms, legal services, medical and other specialized services and can be obtained by businesses as well as specialized professionals.Â
Tourism License:
UAE with its luxury attractions and lifestyle has become one of the most sought after destinations for tourists coming from all over the world. Considering the surge, tourism and travel companies establish their businesses in UAE by obtaining a tourism license. It is valid for travel agencies and operators establishing their business in UAE.Â
Process for obtaining a trade license in UAE
Deciding a business activity
The first step in obtaining a trade license in UAE is to decide the business activity such as manufacturing, trading of products, consultancy services, advertising and marketing agency, etc. in order to be specific when it comes to obtaining a license in UAE.
Choosing a company name
A company name holds great significance as it reflects your company’s culture and values. Hence, it has to be religion neutral and should not reflect any biasness, obscenity or vulgarity.
Selecting a legal structure
The UAE offers a multitude of legal structures such as sole proprietorship, Limited Liability Company (LLC), etc. This will have its own processes and requirements while obtaining a trade license.
Initial approval
Once business activity, name and legal structure has been finalised, you need to apply for initial approval. It confirms that the UAE authorities have provided clearance and there is no objection on the business setup.
Selecting the office location
Any business in the UAE cannot be established without an office address. As part of the process of obtaining a UAE trade license, businesses must secure lease agreement for the office space as per the business needs.
Submission of application and fee
The final application for trade license in UAE can be submitted with relevant documents. For the final application, the copies of passports, photographs, office lease agreement, and other documents are needed. Once the application of the license is complete, you need to be pay the fee that varies based on the type of license and business activities.
Obtaining a business license in UAE is the fundamental step to establish a business anywhere in the country. Out of all jurisdictions, Sharjah free zone is gaining significant traction in which SRTIP has become a leading accelerator for business setup in Sharjah, UAE.Â
Â
If you are seeking assistance with starting a business in the UAE including the Sharjah Free Zone, connect with our professional team today.Â
Â
