It is not a hectic task to start a firm in the UAE, being the business hub of the Middle East. But in order to initiate the process, one must have a valid trading license. A general trading license can be applied by a company if it wants to import, export or trade goods that can include accessories, electronics, clothes, etc. Even though it is a costlier process, still has its own advantage. After setting up a company in Dubai, the second important step to do is get a trading license.
There are mainly three types of Trade Licenses in Dubai
• Commercial License
Commercial licenses will be undertaken by companies doing trading activities. If you want to do trading outside UAE then you can form a company in the UAE free zone and get your commercial license.
• Industrial License
Those companies having a physical office in Dubai will only be eligible to get an industrial license and these licenses are given to industrial or manufacturing companies only.
• Professional License
Professional Licenses can be attained by having a local service agent but you will have 100% ownership of your business and its profits.
Some of the advantages of having a Trade License in Dubai are:-
• The one having a trade license in the UAE has zero taxes to pay neither on profits, income or any other amount.
• With a trading license, one can do business in a national, local and international way.
• Those having a trading license don’t have to submit auditing reports to the government authorities. Thus avoiding the yearly auditing process.
What are the documents needed to obtain the Trading License?
• With the signature of the company’s legal representative, a standard application form must be filled.
• Both the original and copy of the company’s statutory documents.
• Tenancy agreement
• DED letter approving company name and DED attestation letter approving the setup of the company
• Complete details and passport copies of shareholders.