Dubai is one of the most popular business attractions in the world. Getting a proper license for a business in the city is not easy. The articles help compare and contrast the different licenses offered by UAE’s government.
License for Dubai Business: Many formal documents are required to run a business in any country. These documents are proof of a company’s genuineness. Moreover, there is a way through which the government can certify and verify them and notify them if there is any scheme or order for them. One such country where all these legal documents hold great significance is UAE (United Arab Emirates) especially in its capital city Dubai.
Dubai’s authorities have categorized every Dubai business into several groups and issued licenses according to these groups. This way, the city has developed a system where all the businesses, their data, and other records can be stored based on the type of operations they perform.
Getting a business license in Dubai is necessary for all businesses; otherwise, they have to pay penalty fees and charges, or their operation can get terminated temporarily. Below are the three most important licenses that Dubai’s government issued for business. A company must choose one of them according to their business type and then get verified by the authorities.
Types Of Business Licenses In Dubai
Broadly the licenses used in Dubai by the various businesses can be divided into four types.
- Commercial License
- Industrial License
- Professional License
- Tourism License
A person dealing with normal trading for goods should have a Commercial license. At the same time, a professional selling their service or knowledge needs a professional license to function properly. On the other hand, a tourism license is used by travel agents, and the Industrial License is for the manufacturing of products.
1. Commercial License
A business involved in general trading should have a valid commercial license. Any company undertaking any process or step related to commercial trade is a true applicant for this license. Consequently, no matter where you live in UAE, a commercial license is a must for you if you hold a commercial business.
A category that emerges here is the Commercial Trade license. As the name suggests, business people or companies directly involved in trading goods, services, or commodities can apply for this license.
Apart from the certification, a business verified from a Commercial Trade License is capable of availing many facilities and advantages compared to un certified firms. Such licenses are issued by DED or (Department of Economic Development), Dubai, and any investor must have this license or apply for the same to initiate their business. Anyone willing to use the country’s resources like import, export, international airports, trading location, or any other must get a commercial license from the government.
2. Professional License
Besides the intelligent strategic location and some businesses, Dubai is also known for attracting foreign professionals. These professionals are usually highly qualified in their field and provide service in the same subject matters. For instance, an excellent student of commerce would provide accounting services, while a law-qualified student can serve as a law consultant. When such individuals want to expand their business in Dubai to make their customer base wider, they must register for a professional license.
The license is proof that the given individual is qualified to provide services in the United Arab Emirates, and the professional should follow the basic safety and health norms proposed by the government. These certifications hold great significance for both the professional and the government.
A working professional needs this license to serve as a legal business. In contrast, for the government, this license verifies that the business follows the specified guidelines while meeting the recommended quality of services. These services may include consulting, accounting, auditing, design, tourism, advice, education, and other services for which a professional is required.
Apart from a degree or certification, the professional should have the necessary talent, knowledge, and practical and theoretical skills accompanied by impressive analytical skills to survive the competition and, most importantly, meet the standard requirements as a service offering business in UAE.
3. Industrial License
Dubai’s industrial sector is one of the most flourishing business fields. Many reports claim that the Industrial sector of UAE has shown a growth of 31% and is expected to achieve a greater number by 2027. Industrial businesses mainly rely on the transportation services of a nation. Thus, Dubai is of great importance to them as it has international airports, a well-maintained road system, seaports connecting major trade centers, and a well-managed legal system.
To make company formation in dubai, one must get an Industrial License from the DED( Department of Economic Development). It is necessary to fill the criterion specified by the government of Dubai to get verified. A company should own a physical warehouse in the nation and follow other safety and health norms to function properly in the city. Processes like production, segregation, final packaging, or manufacturing of goods and commodities require a valid Industrial license.
What Is The Actual Difference?
Although all the licenses seem similar, as each is for commercial activities and is Issued by the same department, what is the difference between the three licenses?
Functionality
Each license is unique and is provided to a business that falls under its category. A professional license is provided to an individual or group of individuals looking to provide their service in Dubai; they are manufacturing goods or carrying out any other commercial activity.
Procedure
The procedure and the documents required from a license may vary with the type of license you are applying for. Similarly, the duration of registration and time taken for the complete process may vary.
Fees
The registration fees are the most obvious factor in all three licenses. For example, the cost of a professional license may go up to AED 15,310, while the registration fee for the other two ranges from AED 12,000 to AED 50,000, depending upon the scale and type of business.
Conclusion
In a nutshell, getting a license to operate your business in Dubai is important. These licenses get many advantages on the tables like recognition from the government, information about any upcoming scheme or policy, etc. One can easily get to the Department of Economic Development, Dubai, to register for these licenses with legal documents of the Dubai business and the owner.
These processes require considerable knowledge of the Law. Vakilsearch is a great platform for bridging the gap between law service seekers and providers. It has a certified and experienced service provider that deals with legal documentation, taxes, and consultancy. You can log in to their app or website easily.
