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Licensing Formalities Involved in Starting Company in Dubai

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Dubai offers businesses unlimited incentives to expand horizons and earn revenues. The investor-friendly climate and tax-free regime make it one of the hottest destinations. Entrepreneurs and corporate entities who wish to establish a presence by starting a company in Dubai need to fulfil certain requirements such as acquiring a license for operating in the mainland. Though it is true that at the licensing expenses are minimal/reasonable, there are certain formalities that need to be concluded. Here at the licensing formalities involved.

Three types of license
The three types of license required for starting a company in Dubai are an industrial license, professional business license, and commercial business license. As the name suggests each category of license permits the entity to be involved in different business activities. Commercial business license holders are permitted to carry on training activities, industrial license holders are permitted to be involved in manufacturing and industrial works, while professional business license holders are entities who are permitted to operate in the service industry.

The frequency of license fee remittance
The frequency of limiting license fee is split into two different categories. One is the annual fee, and the other is a one-time fee. The one-time fee is comparatively lower and is the first step toward licensing. The annual fee is relatively on the higher side. And a business that earns revenues and prosperous will find it easy to renew the license by paying the annual fees. It is important to note that the annual fee is referred to the fees charged by the government and the amount towards sponsorship.

The sequence of actions prior to licensing
Licensing typically involves a sequence of 5 actions – entity identification, registration, initial approval, location identification, final/additional approvals. These five actions occur in a sequence and conclusion of these, the business will receive its license and can commence business activities.

Entity identification – entrepreneurs and corporate entities need to first identify the business model and the type of business entity to start the licensing formalities. The intended business entity could be a limited liability company, a private joint stock company, a public joint-stock company, or a joint liability company. The above categories are regarded as commonly used types of business ownership patterns.

Registration – the trade name of the business need to be registered as per the guidelines. This a very important step in the licensing formalities and, businesses need to fully understand the procedures, failing which that could be delayed.

Initial approval – the DED is the issuing authority for initial approval. Only after this approval has been received can the business entity seek approval from other departments which is necessary for permission to comments business activities.

Location identification – every business needs to identify the ideal location for carrying out business activities. This needs to be considered in the context of the nature of business and proximity to targeted client and customers.

Final/additional approvals – the final and additional approvals are starting from concerned departments, which will be determined by the nature of the business. By relying on the services of a reputed service provider for assistance in starting a company in Dubai businesses can quickly identify the concerned department for additional and final approvals.

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