All you need to know about securing your E-Commerce License in Dubai

E-Commerce License in Dubai

The advancement of technology, the massive use of smartphones, and the speed of the internet have allowed the creation of an entire virtual industry that has not stopped growing exponentially in recent years. For this reason, it is not surprising that the E-Commerce sector is a point of interest for many investors in the United Arab Emirates, and that every day new entrepreneurs decide to acquire an Ecommerce License Dubai.

In this article, you will find information about what an this license is, what steps you must follow to obtain one, what is the cost of it, what are the documents necessary to acquire this type of license, and also how we can help you get one.

  1. What is a Ecommerce License Dubai?
  2. Types of licenses
  3. Procedure to get an E-Trade License in Dubai
  4. How much is the Ecommerce License Dubai?
  5. What are the necessary documents to obtain an Ecommerce License Dubai?
  6. Advantages of acquiring an Ecommerce License Dubai
  7. How can Connect Zone help you obtain your Ecommerce License Dubai?

1. What is a Dubai Ecommerce License?

Created in 2017, the Ecommerce License Dubai is an official document issued by the Department of Economic Development. This license is aimed at those entrepreneurs who do business from home and through online platforms, thus facilitating the offer of their products and services in a market where the possibilities are endless.

Having an online business means reaching a wide range of the public. For example, if you decide to create a clothing store in the local market of your country, the public target is limited. However, having a Dubai E-Commerce License allows you to overcome any territorial barrier and reach customers anywhere in the world.

In 2018 alone, the E-Commerce Sector in the United Arab Emirates was worth AED 36.7 billion.

2. Types of licenses

In the United Arab Emirates, there are three main types of Ecommerce Licenses. Each of these licenses is adjusted to the productive activities of your company and your nationality. These three types are the following:

2.1 Portal License

Dubai issues this license and only non-UAE Nationals can use it. This license will serve as a communication bridge between sellers and buyers, which facilitates the process of forming your company.

Also, this license is ideal for a listing website, where you can describe in detail your products, services, and reservations. If you decide to start your company and acquire this license, you must take into consideration that this license has a cost of AED 12,000.

2.2 Virtual Company License

The Ministry of Economy created the Virtual Company License, and allows overseas investors and non-residents of the United Arab Emirates to carry out agreements, transactions, and any commercial activity in the territory.

However, if you plan to acquire this type of license you should know that it is only applicable to the following sectors:

  • Computer programming (and related activities)
  • Services related to printing and advertising
  • Design activities

2.3 E-Trade License

If your goal is to trade products over the internet, then the E-Trader License is perfect for you. The DED created his type of license and only the GCC and UAE Nationals can acquire it

Note that investors who decide to opt for the E-Trader License must take into consideration that this license does not allow the opening of physical offices in the territory.

3. Procedure to get an E-Trade License in Dubai

Deciding to form a company in the UAE is the easy part. However, you cannot forget about the laws and regulations that you must comply with.

The authorities of the United Arab Emirates do not allow any random individual to start an E-Commerce Business and sell any product. If you want to start a company in Dubai you must apply for an E-Commerce License at the Department of Economic Development. The authorities will not consider your company legal until you have the license in your hands.

The application process for an Ecommerce License Dubai is the following:

3.1 Select legal structure for your business

The first step to follow to obtain this license is to choose the legal structure of your company.

Among the legal structures to choose from are the following:

The most popular options in Dubai are, without a doubt, the formation of Limited Liability Companies and Branch Offices, due to the multiple advantages that characterize these legal structures.

3.2 Select a Location

In this case, the location does not necessarily refer to where your company is based, but where you want to obtain the license from. Dubai is made up of two main zones: The Free Zones and the Mainland.

Getting an Ecommerce License in a Dubai Free Zone allows you to maintain 100% ownership. However, to form a company in Dubai Mainland you will need the services of a local agent, whose ownership of the company must be at least 51%, the rest will be your share.

Both zones offer unique advantages and disadvantages. Therefore, your job will be to decide which zone best suits the needs and objectives of your company.

3.3 Register a Trade Name

Since your business will not have a physical address, it is recommended that you choose a name that your customers will easily remember. Your trade name can be the same as the domain name, this way your customers can find your company more easily on the internet.

When you register the name, make sure you respect the different regulations that the UAE has regarding company names. For example:

  • It cannot have foul language
  • Avoid any relationship with any religious deity
  • It cannot be previously registered by another company
  • If you name the company after yourself, remember that the name should not be abbreviated.

3.4 Apply for a license

After deciding the location, it is time to apply for your Ecommerce License. If you want to establish your company in Dubai Mainland, you will have to pay around AED 10,000 for the registration of the Trade Name, the initial approval, and also the delivery of the license.

In the event that you want to get an Ecommerce License in a Dubai Free Zone, you must collect the license from one of the relevant authorities of the chosen Free Zone.

Note that this type of license issued will depend on the nature of your business.

3.5  Initial Approval Certificate

The Initial Approval Certificate is a No Objection Certificate from the authority that allows companies to legally operate in Dubai. You can apply for approval at the same time as submitting the trade name approval. This approval is valid for six months and is not renewable.

3.6 Memorandum of Association (MoA) and Local Agent Agreement

You must complete the MoA with your Local Agent and submit it to the DED. Any legal firm in the United Arab Emirates can type out the MoA, which must specify the ownership percentage of all shareholders and the specific arrangements between them.

Note that this step is exclusive for companies established in Dubai Mainland. Therefore, companies established in a Free Zone can skip this step.

3.7 Physical Office

The next step to follow is the setup of a physical office. The Dubai authorities have defined it as a mandatory requirement for companies established there to have a physical office. Otherwise, your company cannot be considered a legal entity.

3.8 Final Approval

Once you have completed the steps above, you should have your license within 1-7 business days, depending on the relevant authorities.

3.9 Export/Import Requirements

To be able to operate in the country, you need to register with one of the ports and customs authorities, so you can receive an importer’s code. The UAE imposes a 5% customs duty on imported products to companies established in Dubai Mainland.

Companies established in a Free Zone do not have import duty, since they can only trade their services and products with other Free Zones.

3.10 Open a Corporate Bank Account

Once you have completed the application process for your Ecommerce License and established your company, you will be able to open a corporate bank account. Opening an account is an extremely easy process, so your only concern will be choosing which bank best suits your needs.

4. How much is the Ecommerce License Dubai?

The Ecommerce License Dubai cost will depend on various factors. For example:

  • The size of your company
  • The number of Visas you need
  • The economic jurisdiction in which your company is established
  • And the size of your office.

However, an estimated cost can range from AED 15,000 to AED 50,000 depending on the requirements. Some requirements are the following:

  • Investor Visa Cost
  • Office Rent
  • Department of Economic Development Registration Fees
  • Sponsorship fee for the UAE Local Agent
  • Government Fees
  • Foreign Name Charges (if any)
  • Immigration Card Cost
  • Medical Insurance fee of the owner
  • Fee for the stamp of the company
  • Additional partner Visa fees (if needed)
  • Emirates ID fees

5. What are the necessary documents to obtain an Ecommerce License Dubai?

Part of the regulation process of the Department of Economic Development is the request for certain documents. These documents are mandatory if you want your company to be recognized as a legal entity and able to operate in the territory of the United Arab Emirates.

Depending on the productive activity of your company, you may need to submit some extra documents.

The requirements to acquire an Ecommerce License are the following:

  • Memorandum of Association (MoA)
  • No Objection Certificate (NOC) from the corresponding authorities
  • Copies of the local agent Emirate ID
  • Local Agent Agreement
  • Copies of the Visas of every partner
  • Copies of the passport of every partner

6. Advantages of acquiring an Ecommerce License Dubai

The E-Commerce Businesses has created a large number of jobs, not only in the United Arab Emirates but in the world. Although there are some advantages of trading products and services through digital platforms, for example, the low production costs and a larger customer base. There are other benefits directly related to obtaining the Ecommerce License Dubai.

Some of the benefits are as follows:

6.1 No Currency Restrictions

Due to the international nature of Ecommerce Licenses, the local government offers unique flexibility when trading multi-currencies. You have the possibility to carry out transactions in any legal foreign currency.

6.2 100% Repatriation

One of the greatest advantages of the Ecommerce License is that you can repatriate the profits generated and the investments made.

6.3 Free Ground of Operation

The government of the United Arab Emirates has been in charge of facilitating as much as possible the process of creating an E-Commerce Business in its territory. For this reason, the Free Zone, the Offshore, and the Mainland were places created to engage in different types of business. Each of these zones has its own regulations and procedures to follow.

6.4 100% Ownership

By having an E-Commerce License in a Dubai Free Zone, you can maintain 100% ownership of your company, without the need to hire a local agent.

7. How can Connect Zone help you obtain your Ecommerce License Dubai?

E-Commerce Businesses are, in short, one of the most attractive sectors for those entrepreneurs who want to invest time and effort in the United Arab Emirates. However, to carry out the formation process of this type of business, the acquisition of a license is of the utmost importance, and Connect Zone is the ideal partner to carry out this process for you.

With more than twenty years of experience, our firm is the trusted business setup agency of many successful companies. Our professionals in the area have the objective of accompanying you, guiding you, and offering you a quality service for the constant growth of your business. In Connect Zone, you can find services such as visa application, accounting, and clearing of documents, and we can even help you open an account in the bank of your choice.

Are you interested in knowing more about us and how to obtain this license? You can contact us at the following number +97143316688 or you can write to the following email contact@connectzone.ae where one of our representatives will gladly assist you.

Lastly, if you want to apply for a position in our agency, you can create an account and submit your CV at thetalentpoint.com, or you can contact us at the following email contact@thetalentpoint.com. You can rest assured, your data is safe with us, as we will not share it or store.

How can business setup consultants assist you in your company’s formation?

Business Setup Consultants

When we detail the evolution of Dubai in recent years, the interest of investors in forming a company in that region is understandable. Dubai is synonymous with economic growth, strategic location, superior connectivity, accessibility to important markets, and a supportive workforce to turn your business idea into an established company. However, creating a company from zero can be a lengthy process. This is where the assistance of Business Setup Consultants becomes important.

In this article, you will learn about what a Business Setup Consultant is, what services they offer, why you need to hire one, and how we can help you with your company formation process.

  1. What are Business Setup Consultants in Dubai?
  2. Positive aspects about Business setup Consultants
  3. Why do you need to hire one in DMCC?
  4. Benefits of getting the services of Business Setup Consultants in Sharjah
  5. Why is it important for your company to hire a Business Consultant?
  6. Responsibilities of Business Setup Consultants in Abu Dhabi
  7. How to open a Consultancy Company?
  8. Why should you select Connect Zone as your Business Setup Consultant?

1. What are Business Setup Consultants in Dubai?

Business Setups Consultants are professionals who are in charge of working with the managers and owners of the companies to improve the efficiency of their operations. Their main objective is to identify, address and overcome obstacles that may arise along the way.

1.1 What is the job of a Business Setup Consultant?

These professionals can assist you with almost any need your company may have. There are Business Consultants specialized in certain areas and there are others with a more general approach.

Although the services may vary, some of the most common services provided by Business Setup Consultants in Dubai are the following:

  • Define if any changes need to be made and implement them efficiently.
  • Identify what obstacles do not allow the growth of the company.
  • Implement new programs.
  • Offers the necessary resources and training to staff and management.
  • Study the company’s budget and make adjustments (if necessary)
  • It is the communication link between the local providers, other partners, and the government.

2. Positive aspects about Business Setup Consultants

Business Setup Consultants in Dubai tend to have a larger area of ​​expertise than the staff of a common corporation, so they can offer quite unique solutions. When deciding to hire a Business Consultant Service, it is a good idea to take into account the strategic advantages of having an expert ally in the creation of companies and the laws and regulations of the United Arab Emirates.

3. Why is it necessary to hire one in DMCC?

Starting a company needs a solid business plan and to carry it out successfully you need a Business Consultant.

Some of the reasons why you need to hire this type of service are the following:

3.1 Define the right business activity

All companies in the United Arab Emirates are classified according to the productive activity they carry out. This qualification determines the permits and regulations required by the Department of Economic Development for your business.

3.2 Choose the economic jurisdiction

Business Setup Consultants in DMCC can help you choose the jurisdiction that best suits the needs of your company. In the United Arab Emirates, there are different jurisdictions and each of them brings with it different rules and benefits. The Offshore, Mainland, and Free Zone jurisdictions are some of the ones you can find.

3.3 Create a business plan

When deciding to create your company, it is highly recommended to understand the process, operation, and legality of the United Arab Emirates market. For this reason, having a guide to accompany you and advise you is a very good investment.

3.4 Define your company structure

In the United Arab Emirates, there are multiple legally implied company structures in Dubai. Each business must choose one before starting the process of registering their company.

Finding Business Setup Consultants in the DMCC can be of great help when choosing which structure best suits the needs of your business.

3.5 Mainland company registration

For a Mainland Company Formation, the presence of a business consultant is more than important.

From doing all the paperwork to renting an office in a business center, a consultant can do it all.

3.6 Manage paperwork with the Department of Economic Development (DED)

A business consultant is someone who knows the laws and regulations in Dubai very well. The Department of Economic Development grants all permits and licenses to operate legally. To obtain your license you need a series of documents. For example, passport copies, the name reservation certificate, and depending on the activities of your company, additional approvals.

However, to make this process as easy as possible, hiring a business consultant is undoubtedly the best option.

3.7 Paperwork for a company formation

Documentation such as the Memorandum of Association is vital to continue the formation process of your company. And a business consultant is an ideal partner to carry it out.

Also, they can help you with the rest of the documentation to ensure that each step is successful. Another duty of a business consultant is to collect licenses from the corresponding departments and obtain the necessary permits from government entities.

3.8 Cost-effective process

Hiring a business setup consultant in time to apply for DED approval is not only easy but cost-effective as well. Moreover, getting offices or warehouses to rent and even getting the company’s contracts certified becomes very cost-effective since there are fewer chances of making a mistake and applying for unnecessary paperwork.

4. Benefits of getting the services of Business Setup Consultants in Sharjah

Every entrepreneur who decides to start a new chapter in their life as a company owner should hire a business setup consultant. A good business consultant will be in charge of offering strategies, valuable recommendations, and a business plan to make your company grow.

Some of the advantages that you can acquire when hiring Business Setup Consultants in Sharjah are the following:

4.1 Transparency in every procedure

During the process of forming your company, there are some legal formalities that you must complete.This includes various registration and licensing processes.

Generally, the Business Setup Consultant in Sharjah knows each of these processes. Then, when you hire them, they will ensure the successful resolution of each of them.

A Business Consultant will help process and resolve any risk (in legal matters) that your company may face.

4.2 Estimated cost analysis

These professionals will help you carry out a study on the estimated cost of your company. The Business Setup Consultants in Sharjah will advise you on all cost-related topics including when you should invest and when you should save.

4.3 Expert business knowledge

Having an experienced consultant who has a clear business vision is very helpful when positioning your company as one of the best. These professionals stay up-to-date with the various trends, methods, and practices to help your business achieve its full potential.

At the same time, a business consultant must be honest at all times, to avoid unnecessary risks and complications.

4.4 Save time, effort, and money

These professionals will ensure that your company complies with all the legal and financial rules and regulations of the United Arab Emirates. This will save you time and you will not have to do the paperwork yourself, allowing you to concentrate on other tasks related to your company.

Instead of learning from zero what the formation process of your company is like, what the necessary approvals are, which forms you must fill out, etc. A business consultant will present all the options that fit your business. In this way, you reduce the risk of making mistakes and causing delays for your company.

5. Why is it important for your company to hire a Business Consultant?

Choosing an experienced business consultant will make your company formation process much easier. Business Consultancies offer added value to the companies that assist and create an environment oriented to the growth and development of strategies and project management.

One of the most important aspects of creating a company is that they are not usually committed to a single firm. This allows the exercise of different activities and experiences. Also, these professionals can offer innovative ideas and solutions to create and maintain your business in the long term.

Here is the importance of choosing to work together with a business consultant.

6.  Responsibilities of Business Setup Consultants in Abu Dhabi

The most important role of Business Setup Consultants in Abu Dhabi is to prevent entrepreneurs from going through the entire company formation process alone. Their work facilitates and simplifies every step, method, and aspect of this process in the United Arab Emirates.

Some of the most important tasks that these professionals carry out are the following:

6.1 Following the national laws

One of the many tasks carried out by government entities is to ensure that companies in the United Arab Emirates comply with the provisions of their laws. Business consultants will be in charge of confirming that your business does not face any legal problems at the beginning or during the operations of your company.

A consultant will also advise you according to the activities you do and your needs.

6.2 Registration and business license

Your company registration may vary if your business is established in a Free Zone or Mainland. Business Setup Consultants have extensive knowledge of each area and can help you choose which one best suits your business model. At the same time, they will take care of carrying out all the forms and will deliver them on your behalf.

7. How to open a Consultancy Company?

So far, it has been mentioned why it is important that you hire a Business Consultant for your company. However, if, on the other hand, you want to start a Consultancy Company in the United Arab Emirates, the options to enter the local market and form this type of company are the following:

  • You can register as a freelancer and offer consultancy services in an Emirate of your choice. To do this you will need to gather the necessary documents, certify your qualifications and obtain a license.
  • You can register a company (onshore) in the free zone of your choice. If this is the case, you can hire employees (even foreigners) in the territory of the United Arab Emirates.
  • You can open a representative office of a distant company within the United Arab Emirates. If you decide to do this, keep in mind that the “parent company” must successfully exist at the place of registration for several years.

Note that each Free Zone is managed with different limitations and conditions at the time of registering your company. However, the formation process remains intact.

You must gather the necessary documents, request the approval of the corresponding entities, go through the verification process, rent an office, open a bank account and lastly, acquire a license

8. Why should you select Connect Zone as your Business Setup Consultant?

With more than 22 years of experience in the market, our firm has the ideal Business Setup Consultancy service for your business. Over the years we have perfected a host of services and options from all different Emirates, along with the aspects and prices that you should take into consideration. This includes visa packages, multi-year deals, and general special discounts.

Here at Connect Zone, we will accompany you at every step of the formation of your company and we will assist you in any way you need. Due to our years of experience, we have learned what entrepreneurs need. Our goal is the success of your business.

Among the services we can offer you are the following: Local partner services, Opening of bank accounts, visa application, etc.

Would you like to learn more about how to set up your business in one of the seven Emirates? You can contact the following number +97143316688 or send us an email to contact@connectzone.ae where one of our advisors will gladly assist you.

Additionally, if you want to send us your job application, please send your CV to thetalentpoint.com or you can send it to the following email contact@thetalentpoint.com. Remember that you have nothing to worry about, your information is safe with us. We are not going to share it or store it in our database.

 

How to obtain a professional license in the UAE?

professional license in the UAE

Before starting the process of forming your company, you need to take into account all the procedures and requirements that you must have in order to carry out any commercial activity in the United Arab Emirates. Depending on the type of your company, you can choose between four types of licenses (professional, commercial, industrial and general trading). Today, you will get to understand the professional license in UAE in depth.

In this article, you will find information about what a professional license in the UAE is, how to acquire this type of license, what documents are necessary to acquire it, who needs this license, and also how we can help you obtain one.

  1. What is a professional license in the UAE?
  2. Characteristics of a professional license
  3. What is the process of obtaining it?
  4. Step by step to get a professional license
  5. What are the necessary documents?
  6. How much is the cost of a DED professional license?
  7. The license renewal process
  8. Who needs a professional license?
  9. professional license activities
  10. Benefits of a professional license
  11. How can we help you get your professional license?

1. What is a professional license in the UAE?

Firstly, a Professional License in UAE is an official document issued by the Department of Economic Development (DED) for those entrepreneurs who carry out professional activities that depend on their mental and physical abilities to generate income.

These can be, for example, artists, designers, business services providers, auditors, accountants, engineering consultants, among others.

However, the company must belong to a single person to obtain the DED Professional License. If, on the contrary, the company belongs to more than one person, then the organization will be considered a civil corporation.

2. Characteristics of a professional license

This type of license is the only one that allows expatriates to retain 100% ownership of their company in the United Arab Emirates. However, in order to achieve this, you must hire an Emirati citizen to be your local agent.

This agent will not have any direct relationship with your business nor will it interfere, his role will be based on assisting you in the process of applying for your license and will handle the necessary legal procedures. You must keep in mind that this agent will not be responsible for any debt that your company may acquire.

3.  What is the process of obtaining it?

Before starting the application process for your license, you must make a clear description of the productive activities of your company. Then, search for a local service agent to carry out all the legal procedures for your company.

Finally, get the initial approval from the Department of Economic Development, present the name chosen for your company and submit all the required documents to the DED to get the approval.

4.  Step by step to get a professional license

The detailed steps to get your Professional License in UAE are the following:

4.1 Local service agreement

You must make the local service agreement with a UAE National and translate it with an official translator. Once translated, you must certify the agreement in a public notary.

Also, keep in mind that if you make the agreement in Arabic, then the entire translation process is not necessary.

4.2 Memorandum of Association (MoA)

The MoA is an official document that describes the data of the company and the data of the shareholders. You must complete the MoA with your local agent and you must include the sponsor’s early fee in the agreement.

4.3 Civil Company

If you are applying for a civil company license, then you will need to fill out another application form and certify it.

4.4 Public Notary

All partners involved in the creation of the company must go to a public notary and sign the agreement.

4.5 Approvals

To continue the process, you must get approval from Dubai’s Municipality for the Tenancy Contract.

4.6 Submit the documents

The shareholders must submit all the forms (duly certified and with a copy of each one), the passports of each partner, and the No Objection Certificate for an expatriate partner (if any).

4.7 Pay the fees

Make the payment for the entire process and receive your license, the DED will give you a payment voucher at the same time.

5. What are the necessary documents?

The necessary documents for the application of your Professional License in Dubai and  UAE are the following:

  • The application form duly filled out
  • Copy of the local partner’s naturalization book
  • Visitor’s visa of the foreign shareholders
  • A No Objection Certificate from the local agents of the foreign shareholders if the expatriate has an employment visa. If the shareholder has a visitor’s visa, then their ID number is needed.
  • The initial approval of the relevant government authorities depends on the productive activity of your company. For example, Dubai’s Municipality, Road and Transport Authority, National Media Council, among others.

5.1 Necessary documents to submit to Tenancy Contract

  • Rental contract
  • Ejari registration
  • Name reservation certificate
  • Initial approval from the DED
  • A prescribed application form (BR1 form)

6. How much is a DED professional license?

Generally, the Professional License costs AED 10,310 and includes the following:

  • Administrative Services fee
  • Trade Name Fees
  • Professional License Fees
  • Local Agents Feel
  • Market Fees
  • Local fees
  • Government cultural fees

Additionally, it is important to realize that a shareholder in a Professional License (civil) company must pay an amount of AED 20,000 as a security deposit.

If a person decides to apply for the license without a partner, then they must pay the amount of AED 10,000 as a security deposit. Please note that the cost of the Professional License may vary from time to time.

7. The license renewal process

Depending on the productive activity of your company and the economic jurisdiction to which it belongs, you must approach the relevant government authorities and renew your license every year. The shareholders must submit the necessary documents and make the payment of the License Renewal Fee to the authorities.

The steps you must follow to renew your Professional License in UAE are the following:

  • Keep your tenancy contract up to date, it must be valid for at least 3 months from the date of the renewal application (It is recommended that you renew the tenancy contract before carrying out the renewal process for your license)
  • Get the approval of the relevant authorities to receive the renewal.
  • For a Professionals License, it is not necessary to get extra approvals from additional authorities.
  • Submit the Ejari certificate, the valid tenancy contract, the renewal form duly filled out, and also any other documentation requested by the Department of Economic Development.
  • Make the payment through the relevant channels and receive your renewed trade license.
  • Receive the payment voucher and the transaction number.

8.  Who needs a professional license?

Those interested in offering professional services such as Tourism guidance, auditing, designing, consulting, accounting, research, or any other activity related to skills, talent, or experiences, must acquire a Professional License if they want to work in the UAE.

By holding a Professional License, you are legally authorized to work and offer your services to any client, employer, or customer in the United Arab Emirates. Also, you have the right to carry out activities according to your area of ​​expertise and qualifications.

Offering professional services requires experience, skills, and talent to carry out certain activities that meet the quality standards established by the government entities of the United Arab Emirates and by your own company.

Although the Professional License in UAE covers a large number of activities, certain activities require additional approval or authorization from certain government agencies.

These agencies are established with the objective of managing and regulating industry standards, maintaining health and safety, and also ensuring that services are only offered by authorized professionals who adhere to the compliances and regulations of the respective ministry.

9. Professional license activities

Any person who decides to start a commercial or business activity will need a Professional License. The Department of Economic Development has created an administrative system that separates licenses into categories. Consequently, this allows a better opportunity at regulatory and constructive facilities.

Some of the activities that you can do with a professional license are the following:

  • Teachers and educational professors
  • Lawyers and legal advisors
  • Accountants, financial advisors, and auditors
  • Technical services
  • Medical representatives
  • Business consultants
  • Printing and publishing
  • Consultancy services
  • Carpentry and artisan activities
  • Management consultancy
  • Architectural consultants
  • Entertainment artists
  • Advertising professionals
  • Technology services
  • Beauty salons
  • Repair services
  • Educational training services

Only the most common activities that need a DED Professional License appear in this list. If you are interested in seeing the complete list of activities that require this type of license, you can always go in person to the offices of the Department of Economic Development or you can check their website.

However, it will always be a better option to hire a business setup company or a business consultant, such as Connect Zone, to gather all the information you need and help you choose which license best suits your business needs.

10. Benefits of a professional license

Possessing one of these licenses brings with it multiple benefits, some of which are the following:

10.1 Cost-effectiveness

Possessing one of these licenses will allow you to save money in the long term since you will be able to establish the offices of your company in any part of Dubai, which neutralizes the ties with any lease contract or with any authority. In this way, you can enjoy the freedoms of a Limited Liability Company (LLC)

Most startups decide to use serviced offices or co-working offices to have enough time to get their licenses. This will allow new businesses to have easy access to the workplace while reducing the high costs of forming a company.

The current market fee is 2.5 percent, which makes this option the cheapest.

10.2 A large number of activities

This type of license is not aimed at a select group of activities or businesses, on the contrary, it covers various sectors. Day by day, the list of activities under the DED Professional License increases, which greatly facilitates obtaining this license.

If you are interested in starting a company, there is a high probability that the business idea you have is already supported by the government entity that is in charge of delivering the Professional Licenses.

10.3 Foreign companies involvement and an adaptable market

As mentioned above, this type of license allows shareholders to maintain 100% ownership of their companies in Dubai. Another key point is that you can maintain the daily operations of your company without the need to use a local shareholding party, which is sponsored and made up of mostly UAE citizens.

In addition, with the help of this license, you will have the opportunity to meet, invest and trade in different places and with different clients. You will also be able to offer services to your clients and achieve important contracts with other companies.

Note that this includes those agencies that have ties to the UAE government and other educational institutions.

11. How can we help you get your professional license?

Going from being a novice entrepreneur to a successful businessman is the dream of every person who decides to invest in Dubai.

Over the last few years, the United Arab Emirates has become the quintessential region for job opportunities, and every month hundreds of people take the risk of starting a business. However, they do not go through this process alone, investors often hire specialized company formation agencies, such as Connect Zone, to guide them through the process.

At Connect Zone, we will be your trusted link with government entities. We will take care of being your local agent to carry out all the necessary paperwork and we can even help you find a list of business centers in Dubai for your offices.

Do you want to know more about us and the Professional License in the UAE? You can contact the following email: contact@connectzone.ae. Then, one of our advisers will answer all your concerns.

Also, if you would like to obtain a job in our firm, go to thetalentpoint.com and submit your application. In addition, you can contact the following email contact@thetalentpoint.com and send us your CV. We keep your information safe, as we do not store it or share it.

 

Trade License in Dubai: How to secure your trade license?

Trade License in Dubai.

If you want to start the formation of your company in Dubai, one of the most attractive places when it comes to economic expansion opportunities for new investors, you must take into account the laws and regulations of the United Arab Emirates. In order for your company to operate legally and freely, you must first obtain a Trade License in Dubai.

In this article, you will find information about what is a Trade License, what are the types of trade licenses in Dubai, what documents do you need to apply for this type of license, what benefits can you get when applying for a Trade License and how we can help with the process of obtaining this license for your company.

  1. What is a Trade License?
  2. How many different types of trade licenses are there?
  3. Procedure to get a Trade License
  4. What are the necessary documents to obtain a Trade License?
  5. Dubai Trade License cost
  6. How is the Trade License renewal Dubai?
  7. Differences between the Offshore, Mainland, and Free Zone licenses
  8. Benefits of applying for a Trade License
  9. How can we help you get a Trade License in Dubai?

1. What is a Trade License?

A Trade License in Dubai is an official document issued by the Department of Economic Development (DED) that allows different companies to operate legally in the United Arab Emirates.

This license is valid for different activities in Dubai, such as the export and import of products and services and any commercial activity.

Companies established in a Dubai Free Zone can acquire one of these licenses, as can professionals who offer services related to the industrial area.

2. How many different types of trade licenses are there?

There are four main types of licenses, and each is intended for a different activity. These are the following:

2.1 Professional License

These licenses are for those individuals or entities that offer a professional service that depends on their physical and mental abilities to generate profit. The professional license allows entrepreneurs to maintain 100% ownership of the company.

2.2 Commercial License

The UAE Commercial License is an official document issued by the authorities of the United Arab Emirates addressed to those companies or organizations that carry out activities related to the trade of goods and services.

Some businesses, such as real estate companies, retail firms, transport companies, business enterprises, among others, must apply for this license.

It is important to realize that by obtaining this license, you can trade, export, and import products within the United Arab Emirates.

2.3 Industry License

In essence, this license is intended for those companies whose activities are based on the transformation of natural resources into the material to operate or finished products.

An industrial company has global access to its customers and requires a large number of resources and manpower to operate.

2.4 General License

This type of license is ideal for those startups that are interested in doing business with a single license. Entrepreneurs who have this license can take advantage of business opportunities in certain areas, such as frozen foods, beverages, medical supplies, among others.

3. Procedure to get a Trade License

The process to obtain your Trade License in Dubai is quite simple, all you have to do is follow these steps:

3.1 Choose a business name

The first procedure that you must carry out is the choice of the name of your company. You must make sure that this name complies with all UAE regulations, Therefore, it cannot be offensive or indecent and cannot be related to any religious deity.

At the same time, the name must be unique and cannot be registered by some other company.

3.2 Select a legal structure

To continue with the process of applying for your Trade license, you must choose the legal structure of your company. This step will define how your company operates and who is responsible for the company.

3.3 Define a business activity

Once the name of your business and the legal structure are ready, the next step is to decide the activity that your company will carry out.

Be sure to name all the activities on the license and keep in mind that each license is limited to 10 activities.

3.4 Complete the application form

The Department of Economic Development will give you a form that you must fill in with some basic information about yourself and your company.

Once completed, submit the form to DED and wait for initial approval.

3.5 Additional approvals

Some productive activities require the approval of other government entities. For this reason, you must carry out good research before completing the process of forming your company. Otherwise, there may be delays or they may even reject your license.

3.6 Get the necessary documents

Along with the form submitted to the DED, you must submit several documents to acquire your license. Gather the documents and make sure all the necessary signatures are present.

3.7 Select a business location

If you choose to establish your company in the Mainland, you will need a physical office. Once you choose the location, you must get a Tenancy Contract.

Ejari will be the entity in charge of certifying the contract and you must submit it with the rest of the documentation.

Also, if you want to know how to obtain a Trade License without office space, you can contact us.

3.8 Submit the application

When you have all the corresponding documentation and the location of your chosen office, you can submit your application to the Department of Economic Development to receive your Trade License.

3.9 Pay the fees

To apply for this type of license you need to make a payment of the issuance fee and for the license fee.

4. What are the necessary documents to obtain a Trade License?

The application process for a Trade License requires the submission of certain documents. To get started, you need to fill out the application for your trade license and make sure all managers sign it.

Also, you will need to create a Memorandum of Association (MoA) (preferably with the help of a legal representative). After this, you must make sure to put the company name approval to your application.

The DED will send the approval after accepting the name of your company. Lastly, all shareholders must submit copies of their passports.

Keep in mind that you must check the license application carefully to avoid any type of delays.

5. Dubai trade license cost     

Before starting the process of applying for your Trade License, you need to know the cost you could pay. This will help organize your budget and prevent future confusion.

The Dubai Trade License cost will depend on the type of product or service you want to offer or the approvals you need to get. Other factors that may affect its cost are the following:

  • Region of establishment
  • Type of business activity
  • Business Structures
  • Number of business partners
  • Partnerships with local sponsors

However, a Trade License in Dubai can cost anywhere from AED 15,000 to AED 50,000, generally speaking.

Also, remember that the cost of a Trade License in a Free Zone will be different from the cost of a Trade License in Mainland Dubai.

6. How is the Trade License renewal Dubai?

An important aspect of the Trade Licenses in the UAE is their validity. This type of license must be renewed every year if you want to continue operating legally in the United Arab Emirates.

Some of the steps you must follow to trade license renewal Dubai are the following:

6.1 Approvals

To start the process of renewing your license you need to receive the approvals of the relevant government entities. These approvals will depend on the activity carried out by your company.

 For example, transport companies must acquire approval from Dubai’s Road and Transport Authority. If you want to speed up the process, it is recommended that you obtain approval before proceeding with the Trade License Renewal Dubai process.

6.2 Documents

In addition to written approval from the relevant authorities, companies must provide certain documentation, for example:

  • A Tenancy Contract
  • Certified Ejari
  • Complete renewal form
  • Photo of all business partners
  • Payment number for renewal fees
  • Approval and authorization letters

All the shareholders must submit these documents to the Department of Economic Development to obtain approval.

6.3 Tenancy Contract

Before following the Dubai Trade License Renewal, you must have your Tenancy Contract up to date. It must be valid for no less than three months from the date on which you applied for your trade license renewal.

7. Differences between the Offshore, Mainland, and Free Zone licenses

The Trade License you choose will depend on where you decide to establish your company. Whether you decide to establish an offshore company or a Free Zone Company, certain factors vary from location to location.

A Mainland License is intended for those companies that carry out their operations in Dubai Mainland. It requires approval of various government entities and is issued by the Department of Economic Development.

The Free Zone Trade Licenses are issued by the corresponding government authorities of each zone.

In this zone, there are different limitations and benefits, for example, you can enjoy 100% ownership and 0% corporate tax.

If you want to start an offshore company in Dubai, you will need an offshore corporation certificate. Also, these types of companies cannot carry out commercial activities within the UAE.

8. Benefits of applying for a Trade License

Currently, there are multiple benefits in acquiring a Trade License in Dubai, for this reason, many entrepreneurs decide to set up branches or organizations in the United Arab Emirates. Some of the benefits you can enjoy are the following:

8.1 Improve credibility

It is common to see that many companies decide to try to go the easy way and skip some rules to get higher profits. However, those companies that decide to take the time to build their brand and follow the UAE regulations, earn the trust and preference of customers.

In addition, having a trade license increases your company’s exposure in the market, which increases confidence in your business and your product.

8.2 Few trade restrictions

One of the reasons why Dubai is so attractive to foreign investors is the few restrictions that exist when trading. As long as your products are registered in the license, you will not have to worry about any restrictions.

8.3 Promotes international and local trade

By having a Trade License, you have many opportunities to import and manufacture products. You can trade them in the local Dubai market or you can send them abroad and generate profits from other countries.

Also, this license allows you to re-export your own goods, which increases your company’s ability to trade services and products around the world.

8.4 Tax benefits

In the year 2021, more than 90,000 people decided to move to Dubai, this was with the motivation of being able to enjoy tax incentives. While most countries require investors to pay large amounts of money in taxes, Dubai remains an almost tax-free region.

In this way, new investors can generate additional revenue.

9. How can we help you get a Trade License in Dubai?

Obtaining a Trade License in Dubai is the starting point for any entrepreneur who wants to succeed in the United Arab Emirates. However, if you are not familiar with the company formation process and the different laws of the UAE, the process may take longer than usual. For this reason, Connect Zone is the ideal partner to help you with everything you need.

We are your trusted agency that will take care of all the paperwork for your Trade License application, we will advise you to make the right decisions and additionally, we can help you choose a place for your office in one of the best list of  business centers in Dubai.

Do you want to know more about how to acquire a business license in Dubai? You can send us an email to contact@connectzone.ae where one of our representatives will answer all your questions.

Also, if you would like to apply for a job in our agency, you can submit your CV to thetalentpoint.com or you can send an email to the following address contact@thetalentpoint.com. The Talent Point does not store data sent via email or share it with third-parties.

Securing a DED E-Commerce License: A step by step guide

DED E-Commerce License.

Because of the COVID outbreak, many businesses were forced to leave behind their traditional sales strategies and bet on the world of online sales. The United Arab Emirates became a starting point for many new entrepreneurs and a world of possibilities for those entrepreneurs looking to expand their businesses. As a boost measure for all investors, the government of the United Arab Emirates decided to create the DED E-Commerce License.

In this article, you will find information about what a DED E-Commerce License is, how to obtain one, what is the cost of an E-commerce License and how we can help you with the process of obtaining an E-Commerce License.

  1. What is a DED E-Commerce License?
  2. What are the requirements to obtain an E-Commerce Trade License in Dubai?
  3. Steps to get an Ecommerce License in the UAE
  4. How much is the cost of an Ecommerce Trade License in Dubai?
  5. Types of Ecommerce Licenses
  6. E-Commerce Licenses in the UAE’s Mainland
  7. Advantages of obtaining an E-Commerce License
  8. How can we help you obtain a DED E-Commerce License?

1. What is a DED E-Commerce License?

The DED E-Commerce License is also known as the Online Business License; this is due to the support from the government of the United Arab Emirates in offering new business alternatives.

This license allows companies to carry out transactions virtually. It is similar to traditional businesses, with the difference that all business activities are carried out through the Internet. Besides, customers can review the company’s catalogs and place orders online.

Companies can make deliveries of digital goods or deliver goods physically with the help of delivery services, if some of these activities are carried out through the internet, then it can be considered an Online Business.

2. What are the requirements to obtain an Ecommerce Trade License in Dubai?

The Department of Economic Development requires certain documents for regulatory purposes. Depending on the activities of your business, you may need to submit some extra documents.

The documents required by this department are the following:

  • Local service agreement
  • Memorandum of Association (MoA)
  • Copies of the sponsors’ Emirate IDs
  • No Objection Certificate (NOC) from the relevant authorities
  • Copies of the visas of all the shareholders
  • Copies of the passports of all the shareholders

Also, keep the following in mind:

  • The No Objection Certificate is valid for six months and is not renewable. You can request the NOC when you go through the application process for your trade name approval.
  • The Memorandum of Association is only required for companies established in the Mainland. It is a legal document that describes the name of the company, the name of the shareholders, registered office or physical address, and also the distribution of shares.
  • Companies established in the Free Zones do not need a Memorandum of Association

3. Steps to get an Ecommerce License in the UAE

To opt for an Ecommerce License in the UAE, you must follow the following steps:

3.1 Define your legal structure

The options for the Legal Structure of your company will depend on where you decide to establish it. If you decide to form your company in any of the Free Zones, then your options will be limited to the Legal Structure allowed in those Free Zones.

In Dubai Mainland, there is a wide variety of options, such as General Partnership, Public Shareholding, Limited Liability Company, Sole Proprietorship, Private Shareholding Companies, among others.

3.2 Define your business activity

During the registration process of your DED E-Commerce License, you must include the productive activity to which your company is going to dedicate itself. Once you receive the license, you can only engage in that activity.

In other words, if you decide to produce and sell certain products virtually, after registration, you will not be able to sell any other products.

3.3 Register your trade name

To continue the process, you must register the trade name of your E-Commerce company in the general diary of the UAE. After the registration of the trade name, you will have to place the chosen name in two local newspapers.

UAE Nationals will have two days to object to the name, if they do not make any complaint, then the name will be registered as yours.

3.4 Initial approval

In the Department of Economic Development, you must take and fill out a form, there you must add basic information about yourself and your business and also attach the business plan of your company.

Make sure you enter the correct information in relation to the productive activity and the legal structure since any error would mean a considerable delay in the process of acquiring your Ecommerce License in Dubai.

3.5 Search for an office space

By owning an E-Commerce Business you can choose to use virtual office spaces. If you are going to do physical activities, you can also opt for any of the business centers distributed throughout Dubai.

3.6 Submit the documents and pay the fees

The last step of this process is to submit the documents to the Department of Economic Development and pay the necessary fees to acquire your Ecommerce License in the UAE. After you have done this, your license will be issued to you and you can start your business activities.

3.7 Apply for a visa

Once you have applied for your DED E-Commerce License, you can begin the Visa application process for yourself and your employees. The number of Visas you can apply for will be limited by the location and size of your business.

3.8 Open your corporate bank account

To carry out any transaction with your clients, you need to open a corporate bank account. Then, there are many national and international banks in Dubai and the acceptance criteria and application process is different for each of them.

Once you choose the bank, it is likely that you will be asked for the following documents:

  • Memorandum of Association (MoA)
  • Company Trade License
  • Passport Copies of shareholders
  • Supplier information
  • Source of funds
  • Authorized Signatories

4. How much is an Ecommerce Trade License in Dubai?

The cost of forming a company with this license will vary due to different factors. The general cost of a DED E-Commerce License is AED 4,500. However, there are certain additional costs that you should take into account-

Some of the most common costs are the following:

  • Immigration card cost
  • DED registration fees
  • Sponsorship cost for UAE local partner
  • Investor visa cost
  • Investor’s medical and Emirates ID costs
  • Office rent
  • Fee for the stamp of the company
  • Medical insurance fee of Investor
  • Any other government fees
  • Additional partner fees, if needed
  • Additional partner visa fees, if needed

If you are a foreigner, it is normal if you do not know very well the laws, regulations, and the process of forming a company in Dubai. For this reason, it is advisable to hire a specialized agency to facilitate the formation process of your company and guarantee efficiency.

Also, the cost of forming your company with the assistance of an agency and including the DED E-Commerce License can range from AED 6,000 to AED 15,000.

5. Types of Ecommerce Licenses

In the United Arab Emirates, there are several E-commerce Licenses and in Dubai, they mainly offer three. You can obtain these licenses depending on the productive activity of your company and your nationality.

The three main nationalities are the following:

5.1 E-Trader License

If you want your company to sell products or offer services via the Internet, you can obtain an E-Trader License. This license is monitored by the Department of Economic Development and can only be obtained by UAE and GCC Nationals living in Dubai.

However, you cannot open a store or have a physical office space with this license. To learn how to start a business without office space in Dubai, you can contact us.

5.2 Portal License

This license can only be granted to non-UAE nationals. You can form your online business with a Portal License (which will connect sellers and buyers).

This type of license is perfect for a listing website, which includes services, products, and reservations. If you decide to establish your company in the Mainland region, AED 12,000 is the cost of this license.

5.3 Virtual Company License

This type of license was created by the DED and allows non-residents of the United Arab Emirates and overseas investors to carry out business activities in the region.

However, the Virtual Company License is only applicable to three sectors, designing activities, computer programming (and related activities), and services related to advertising and printing.

6. Ecommerce Licenses in the UAE’s Mainland

6.1 Ecommerce License Abu Dhabi (Tajer)

The Abu Dhabi Department of Economic Development (ADDED) issues this license. Also, it allows new and old entrepreneurs to include online trade activities in their existing licenses. Besides, you can get a new license to run the business through social networks and websites.

This license includes UAE residents and GCC Nationals under the following conditions:

  • One-person company for GCC nationals and Emiratis
  • Establishments for GCC nationals and Emiratis
  • Limited Liability Company for residents in partnerships with Emiratis

6.2 Virtual Merchant License from Ras Al Khaimah

The authorities created this license to promote businesses managed through social networks, smartphone applications and also websites. However, this license is only available to UAE citizens living in Ras Al Khaimah.

Some activities that you can carry out with this license are the following:

  • Real estate and commercial brokerage
  • Retail business
  • Technology and computers

6.3 Etimad Ecommerce License Sharjah

The Sharjah Department of Economic Development (SEDD) offers this type of license for  E-Commerce businesses in Sharjah that are carried out through social networks and from home. This license is available to anyone over the age of 18 and a resident of the Emirate of Sharjah.

6.4 Dubai Commer City (DCC)

This area dedicates to promote E-Commerce Business in the Middle East and North Africa (MENA). 

Also, this license offers the following benefits:

  • Pre and post-setup support
  • Smart and centralized customer relationship
  • Access to on-site ecosystem service
  • Business support, for example, talent acquisition, networking events, and marketing management.

Some incentives also include the following:

7. Advantages of obtaining an Ecommerce License

Obtaining the Ecommerce License Dubai has helped many companies sustain themselves during the pandemic. Although there are some benefits of conducting transactions virtually such as a wider reach, decreased cost, and a customer base, there are also advantages directly related to this license granted by the government of the United Arab Emirates.

Besides, some of the advantages are the following:

  • You can maintain 100% ownership of your business, in other words, by having an E-Commerce License in Dubai you will not need a local sponsor to share ownership of your business.
  • You can register your company with the Dubai Chamber of Commerce, which will make it easier for you to import and export products.
  • Basically, by having an E-commerce License, you can easily open an account in the bank of your choice.
  • You can promote your services and products through different social platforms and ads.
  • Lastly, you can register your company’s trade name with the help of an E-Commerce License.

8. How can we help you obtain a DED E-Commerce License?

If you are an entrepreneur who wants to start a new chapter in your life by forming an E-Commerce company in the United Arab Emirates and you do not know what steps to follow, do not hesitate to contact us. We are your trusted agency that will accompany you in every decision you make to ensure that your company prospers and works under the laws of the UAE.

Here, at Connect Zone, we will take care of the entire application process for an E-Commerce License in the UAE, from collecting documents to opening an account at the bank of your choice. Also, if you need it, we will be your local agent in Dubai to help you find the ideal space for your office.

Are you interested in learning more about the DED E-Commerce License? You can write to the following email contact@connectzone.ae where one of our advisors will help you gladly.

Also, if you want to know more about us you can send us your CV to thetalentpoint.com or you can write to us at the following email contact@thetalentpoint.com. You do not have to worry, your information is in a safe place with us, we will not share it or store it in our database.

Get complete insight on how to start an online business in Dubai and the UAE

Online Business in Dubai

Over the years, business models have evolved. Today, making transactions, attracting new customers and closing deals can be done completely online. With the outbreak of the Covid-19 and the beginning of the pandemic, the new entrepreneurs saw an opportunity to continue generating profits with the formation of an Online Business in Dubai.

In this article, you will find information about what an online business is, what the steps for the formation of an Online Business in the UAE are, what type of licenses you can acquire when creating this type of company and how we can help you become the successful owner of an Online Business in the UAE.

  1. What is an Online Business in Dubai
  2. How to start an Online Business in Dubai?
  3. Dubai Online Business Models
  4. E-commerce licenses in the UAE’S Mainland
  5. Benefits of having an Online Business in the UAE
  6. How can we help you start an Online Business in Dubai?

1. What is an Online Business in Dubai?

A Dubai Online Business, as its name indicates, is a commercial model in which money is earned online, either by offering services or selling products online. Online businesses can cover different areas; they can range from an online food store to private jet booking.

Whether you work for a multinational company or are a freelancer, maintaining a good online presence is necessary for the success of your business.

2. How to start an Online Business in Dubai?

Once you decide that a Dubai Online Business is the right option for you, you must follow these steps:

2.1 Select a product

Firstly, if you are a new entrepreneur, choosing a product or service to offer can be the most difficult step. Before choosing, you should think about:

  • What kind of products your target audience needs or is attracted to?
  • How profitable it is?
  • How well it will fit into the market niche?

Because your business is online, there are certain costs that you must take into account, for example, shipping fees, advertising costs, labor, etc. You must select products that can generate a profit of at least 50%.

2.2 Manufacturing

Once you have chosen the product or service that you are going to offer, you must start thinking about how you are going to source it. Searching for local suppliers and manufacturers, as well as connecting with their communication networks, is the first step when you need a supplier.

The market for Online Businesses in the UAE is quite competitive. Each company strives to deliver a quality product that meets consumer expectations. For this reason, you must make sure to associate with suppliers and manufacturers that will raise your name and meet the standards of your company and your customers.

2.3 Choose a brand name

When choosing a name for your company you should take into account the following aspects:

  • The name of your company cannot contradict the productive activity to which you are going to dedicate yourself. In other words, the name of your company must show the essence of it.
  • When you choose the name you must make sure that it has not been previously registered and that it is not protected by copyright by another business in the UAE.
  • The chosen name cannot be related to God, nor divine attributions in English, Arabic, etc.
  • Make sure your company name does not contain indecent or obscene words, and cannot offend the general public.

2.4 Choose the right location

When choosing the location of your Online Business in Dubai, you have the following options:

2.4.1. Mainland

Companies operating in the Mainland can freely conduct business across the UAE and in international markets. These types of companies receive their licenses from the Department of Economic Development (DED) and have the advantage of not having a visa limit for their employees, depending on the size of the offices. Also, they can carry out projects for the UAE government.

If you choose to establish your company on the Mainland, you will need a local agent. It is important to realize that our Online Business in the UAE cannot be registered as a Limited Liability Company (LLC)

2.4.2. Free zone:

On the other hand, companies established in the Free Zones can enjoy their low taxes for trading within the limitations of the Free Zone. Low taxes drive the export and import of products. These areas are characterized by the variety of activities that can be carried out in them.

If you choose to establish your company in a Free Zone you will not need a local agent.     And you will be able to register your business as a Limited Liability Company. Deciding between both options will depend on the nature of your Online Business and your public target.

2.5 Initial Approval

After choosing the desired jurisdiction, you must apply to the corresponding government entities, the following documents:

  • Colored passport photos
  • Passport copy
  • Application form

2.6 Start the process of your E-commerce trade license

Once the formation process of your E-commerce Business in Dubai is ready, you can apply for an E-commerce trade license. This license will depend on the nature of your company, the productive activities you carry out, and the chosen jurisdiction.

The Dubai authorities will be in charge of delivering your Trade License and the process will last approximately 7 business days. Also, you must renew this license every year.

During the license application process, you will also need to provide all social media related to your business. Keep in mind that if you decide to establish your online business in the Mainland, you must submit a Memorandum of Association (MoA) as part of the requirements to obtain your E-commerce Trade License.

2.7 Acquire visas

Having an E-commerce Business in Dubai gives you the opportunity to not need a physical office or be physically present in the United Arab Emirates. However, you will need a legal address to be able to operate in the UAE, according to the laws of the country. If you do not want to have an office in Dubai, you and your employees will need to have a visa.

The formation of an E-commerce Business in the UAE allows you to have a Visa valid for 3 years. It must then be renewed every year. The number of Visas you can acquire will depend on the size of your business and where your company is located.

2.8 Opening a bank account

Lastly, once you get your license and establish your company, you will be able to open a corporate bank account. To open an account at the bank of your choice, you must submit the following documents:

  • Visa copy
  • Business license
  • Passport copy
  • Emirates ID

3. Dubai Online Business models

There is a wide variety of Online Business Models and you can choose the one that is most related to the nature of your business. Some models are the following:

3.1 Business-to-consumer

It is the most common model for Online Businesses and includes the following:

  • Direct selling: In this model, customers buy products from online retailers.
  • Community-based: Social networks like Facebook create communities with common interests and help marketers and advertisers to sell their products directly to customers.
  • Subscription: Some companies charge customers a fee to access their content.

3.2 Business-to-business

In this model a business sells to another business directly, most of the time, the buyer resells a product to a customer.

3.3 Consumer to business

This business model applies to independent workers and freelancers who do work for companies or organizations. In this E-commerce model, the use of a website is very important, as it allows customers to post the work they need to be done.

3.4 Consumer-to-Consumer

This model works through an online marketplace that connects customers to negotiate goods or services. They earn money by making transactions or listing fees.

3.5 Dropshipping

In this model, the stores do not carry the stock of the products they sell.  Instead, they buy their products from a third seller and he is in charge of delivering the products directly. In this way, the seller does not have to deal with the products.

4. E-commerce licenses in the UAE’S Mainland

When starting the formation of an E-commerce Business in the UAE, you have to apply for a license in the DED, in the respective Emirate. All E-commerce trade licenses must have approval of the Telecommunications and Digital Government Regulatory Authority, which is in charge of regulating everything related to E-commerce Business. Some of the licenses issued by the UAE’S Mainland are the following:

4.1 The E-commerce License (Tajer Abu Dhabi)

This license is issued by the Abu Dhabi Department of Economics (ADDED) and allows online traders to add their virtual transactions to their existing licenses. Or they can also acquire a new license to conduct business through social networks and web pages.

Entrepreneurs who have this license can use their E-commerce mark (ETajer) and serial number to promote their products.

4.2 Dubai CommerCity (DCC) Free Zone

Dubai CommerCity is a free zone that seeks to promote E-Trade in the Middle East and North Africa (MENA). This area offers a unique opportunity for E-Commerce in that region and to promote small, medium, and large companies.

4.3 Etimad Domestic License from Sharjah

The Sharjah Department of Economic Development (SEDD) grants the Etimad license for businesses established in the home and for those virtual businesses through social networks.

Anyone over the age of 18 is eligible for this license, however, it is restricted to UAE Nationals residing in the Emirate of Sharjah.

Important to realize: This license does not allow the recruitment of staff.

4.4 Virtual Merchant License from Ras Al Khaimah

The Department of Economic Development (DED) in Ras Al Khaimah issues the E-Trader License to promote those businesses that are managed through Social Networks, smartphone applications, and web pages. Some activities to carry out under this license are the following:

  • Electronic Retail Business
  • Commercial and Real Estate Brokerage
  • Advisory
  • Information technology and computers

5. Benefits of having an Online Business in the UAE

Deciding to form an E-commerce Business in Dubai brings with it multiple benefits, some of which are the following:

  • Ownership of a Business: The different areas of the United Arab Emirates allow new entrepreneurs to maintain 100% ownership of their company, depending on the productive activity to which they are engaged.
  • No personal tax
  • Full profit repatriation: Companies can send all profits to their country of origin. This allows entrepreneurs to transfer 100% of their capital without any obstacles.
  • Bank account assistant
  • Residence Visa granted for 3 years
  • Low costs in the setup of the company
  • Easy and efficient trade license process

6.  How can we help you start an Online Business in Dubai?

Over the years, the United Arab Emirates has proven to be a world of possibilities for every area you are interested in. From forming a physical company in a Free Zone or deciding to undertake through social networks, the United Arab Emirates supports, assists, and encourages new entrepreneurs to invest in the country.

The process of forming an E-Commerce Business in Dubai can be tedious and even long-lasting if you do not know the laws of the United Arab Emirates.

Here at Connect Zone, we are your trusted agents, we will be the communication bridge between the corresponding government authorities and your company, we will take care of being your local agent (if you need it), we will accompany you in each step of the process of forming your company and we can even open a bank account for you.

Are you interested in learning more about starting an online business in Dubai & the UAE? You can contact us at the following email address: info@connectzone.ae where one of our advisors will answer all your questions.

Lastly, if you want to apply for one of many job vacancies or obtain a job in our agency, you can send your CV to thetalentpoint.com or you can contact the following email contact@thetalentpoint.com. Do not worry, we will not share or store your information in our database.

Company Formation: How to open a fashion store in Dubai?

fashion store in Dubai

When it comes to the fashion industry, Dubai has positioned itself as a world leader. Multiple well-known brands have decided to establish themselves in Dubai to meet the demand for quality clothing and accessories. At the same time, many new entrepreneurs decide to take the risk and become the owners of a fashion store in Dubai.

In this article, you will find information about the fashion business, what are the steps to a fashion store business setup in Dubai, what benefits can you get by opening this type of store, how to start an online fashion store and how we can help you meet your goals.

  1. The fashion business in Dubai
  2. How to start a fashion store in Dubai?
  3. Benefits of a fashion store company formation in Dubai
  4. Why should you open a fashion store in Dubai?
  5. How to start an online fashion store?
  6. How can we help you open a fashion store in Dubai?

 

1. The fashion business in Dubai

In recent years, the fashion industry has reached a large part of the UAE market, due to the numerous strategies implemented.

According to Dubai Chamber Research, the fashion industry has contributed an amount of AED 44 billion, with an annual growth of 4.8 percent. Also, the industry is expected to grow the most between 2019 and 2023.

The UAE fashion industry has done a great job of attracting the attention of worldwide investors. Some of the most striking products are bags, footwear, accessories, and apparel.

In essence, Dubai is the perfect place for almost any company, its different areas allow economic flourishing for new entrepreneurs. In the case of the fashion industry, Dubai Design District is the perfect place to start your company.

1.1 Dubai Design District

Since its foundation in 2013, Dubai Design District has been characterized as an area full of opportunities for creative minds and entrepreneurs interested in the fashion industry. This area had a global value of AED 3 billion in 2019 and its sales continue to increase.

2. How to start a fashion store in Dubai?

To open a fashion store in Dubai you must take into consideration the following steps:

2.1 Market research

The first task you must perform is market research. You must understand the population and your target audience, know their preferences and tastes to satisfy their needs.

Analyzing the competition, understanding the demands of the public, and learning what strategies work in the market will be essential for the success of your company.

2.2 Clear your products and your target audience

Once the market study has been carried out, you need to clarify what products you will sell and to whom it is directed. Also, you need to have a clear idea of ​​the supply and demand for your products and form an active network around them.

2.3 Strategic location

It is well known that the United Arab Emirates offers flexibility when choosing a location for your company. Choosing a favorable location is vital to the success of your business.

2.4 Required documents

To complete the process of registering your company, you need to submit the necessary documents to the Department of Economic Development. The necessary documents are the following:

  • Passport and visa copies of the shareholder
  • No Objection Certificate for initial and name approval
  • The application form filled out
  • Memorandum and Articles of Association (MoA/AoA)
  • A well-structured business plan

2.5 Approval and license

After the submission of the documents, you need to obtain the approval of the corresponding government entities. Once the approval is received, you will be able to withdraw your specific business license. This license will serve as permission to operate in Dubai.

2.6 Accounting and bookkeeping

From the beginning of your company, you must be very clear about the income and expenses generated. Keeping an accounting and bookkeeping record will help you with the organization of your company.

2.7 Product marketing

The reputation of a fashion store in Dubai is of paramount importance if you want to be successful. For this reason, you should focus on making your brand and products known, investing in marketing strategies, and promoting your services in the local area.

2.8 Online presence

To extend your reach in the market, it is necessary to create an online presence that fits the dynamics of your company and the business environment. In addition to this, creating a web page where you show your products will help you reach a local and international audience.

If you want to enter the fashion industry, there are different types of companies that you can choose from. For example:

  • Opening a fashion boutique
  • Manufacturing business
  • Online fashion business
  • Wholesaler

The fashion industry in Dubai is a sector full of possibilities for new entrepreneurs, and if approached with the correct strategies, it can result in a very profitable business.

3. Benefits of a fashion store company formation in Dubai

Among the many benefits of starting a fashion store in Dubai, there are the following:

  • Free zone benefits
  • No restrictions on trading locations
  • Low import duty
  • First-class infrastructure
  • No minimum capital requirement
  • Work along with government bodies
  • Tax benefits
  • No restriction in currency limitation
  • More options for business activities
  • No limitations to the number of visas

4. Why should you open a fashion store in Dubai?

Entering a market that is full of big brands in the fashion industry can be challenging. However, the fact that these brands exist only shows the demand for high-quality clothes and apparel.

This presents opportunities for small and medium-sized businesses to offer services that the big brands cannot. (Boutique fashion, homegrown, etc.) If you think you have the necessary skills to succeed in this world, check the following considerations:

4.1 Huge potential in the market

While the prestigious, international brands fill the need for hot couture clothing, there is still interest from the UAE locals for other types of clothing. The modest, homegrown, and UAE fashion houses are just flourishing and it is a turning point for new entrepreneurs.

In 2021, UAE locals have spent millions on clothing, footwear, and accessories of this kind, with the big brands just watching from afar. It is important to point out that this gap in the market can be considered an opportunity for those entrepreneurs who wish to create a fashion company in Dubai.

4.2 Set up in a Free Zone or in Mainland

Depending on the nature of your company, you can establish your business in a Free Zone or the Mainland. If what you are looking for is to have a retail outlet, then a Mainland Setup is the best option for you.

On the other hand, if you decide to start an e-commerce fashion company, you will notice that the benefits of the Free Zones are more adapted to your needs.

For example, no corporate and personal tax, 100% ownership, and full export and import tax exemption.

4.3 Easy setup

To start a fashion company, either in a Free Zone or in the Mainland, no additional licenses are needed. The process of establishing this type of business is incredibly easy, if you decide to open your company in the Mainland, go to the Department of Economic Development, the process will not take more than 90 minutes.

If you decide to open your company in a Free Zone, all you have to do is go to the authorities of the corresponding zone. Licenses are normally delivered within a couple of days.

The only thing you need to start trading is a license. However, if you wish to establish a brand, you must apply for a trademark, and this can only be requested through the Ministry of Economy.

Whether you decide to settle in the Mainland or a Free Zone, you will find it favorable to hire a specialized company formation services provider, such as our agency, to ensure that the process is carried out successfully.

4.4 Multiple shareholders

Although you have the option to work alone and create the company on your own, you can also establish your company with multiple shareholders in the Mainland or a Free Zone. These shareholders can be corporate entities or individuals.

4.5 Multiple visas

When setting up your fashion company, you will come across many visa options. If you decide to settle in a Free Zone, you will have a limit of visas for which you can apply, and this limit will be directly related to the office space you have. In contrast, for the formation of a company in the Mainland, there is no limit on visas.

However, this is also directly related to your premises. The general rule is one visa for every 100 sq. ft. of office space.

 4.6 Sponsor your dependents

While you must apply for the necessary visas for you and your employees, you can also sponsor your dependents for their visa application. Whether you need a visa for a child, spouse, driver, etc. The process is the following:

  • Entry permits
  • Status adjustment
  • Medical fitness test
  • Emirates ID registration and visa stamping

4.7 Open a corporate bank account easily

Once you have applied for your license and established your company, you will be able to opt for a bank account. The process to acquire one is very simple, if you decide to open your company in a Free Zone, your staff can advise you on which bank best suits your interests.

On the contrary, if you decide to open your company in the Mainland, an agency specialized in company formation can carry out this process for you. Also, if you prefer, you can go to a local or international bank yourself.

5. How to start an online fashion store in Dubai?

Firstly, online global retailers are a millionaire business and by far one of the most attractive e-commerce areas. Secondly, with revenues exceeding AED 50 billion annually, the online fashion industry is a world of opportunity for new entrepreneurs.

If you are interested in forming an online store in Dubai, check out the following steps:

5.1 Trade license

The main thing to form an online fashion store in Dubai is to legitimize it. Dubai offers a variety of e-commerce licenses that will allow you to operate both in the Mainland and in the Free Zones.

5.2 Cost

The cost of forming an e-commerce company can vary from one area to another. For example, an e-commerce trade license in Dubai Media City can cost AED 40,000 and is divided into:

  • Registration: AED 9,020
  • Initial application: AED 1,015
  • Establishment card: AED 1,800
  • License: AED 20,285
  • Memorandum of Association (MoA): AED 2,020
  • Residence visa: AED 3,330
  • Visa deposit: AED 3,000

5.3 Documents

For the approval of the e-commerce trade license, you must submit the following documents:

  • Copy of investor’s passport
  • Business plan for online clothing store
  • Proof of residential address in the country of residence
  • Filled and attested online application form
  • The lease agreement of office space in DMCC

5.4 Online payments

Including an online payment system allows the entrepreneur to generate profits through the online store. To do this, you will need to have two bank accounts, a commercial bank account, and a merchant bank account.

The commercial bank account is managed by the business, while the merchant bank account is managed by the investor and will handle all of the buyer’s online transactions.

5.5 Logistics support

It is essential for a fashion company to partner with shipping companies that are capable of delivering products on time and safely. Shipping companies in Dubai offer corporate packages to e-commerce companies, depending on the needs of your company.

6. How can we help you open a fashion store in Dubai?

Connect Zone is an agency dedicated to advising our clients to meet their goals as entrepreneurs in Dubai. We are known for working quickly and efficiently and we place your interests as a priority.

We can help you with the request and application of your trade license, we can act as your Public Relations Officer, and also we can accompany you in each step of the formation of your business.

Do you want to know more about our business setup services? You can contact us through the following email address: info@connectzone.ae where you will speak with one of our representatives, who will answer all your questions.

Lastly, if you are interested in working with us, you can go to thetalentpoint.com and send an application. Also, you can send your CV to contact@thetalentpoint.com. We do not share or store your information.

The importance of PRO services for companies

PRO services in Sharjah and Abu Dhabi

All companies in the United Arab Emirates, in order to operate legally and efficiently, must submit several documents to the corresponding government entities. This process can be long and tedious, especially if you are an entrepreneur who is just starting in the United Arab Emirates. For this reason, we are going to guide you step by step with the PRO services in Sharjah and Abu Dhabi.

In this article, you will find information about what a Public Relations Officer is and how to choose the best PRO services in Sharjah and Abu Dhabi. Also, you will learn why your company needs a PRO and what services you can enjoy by hiring a specialized agency in the UAE.

  1. What is a PRO service?
  2. What do PRO services offer in the UAE?
  3. When do companies need PRO services?
  4. Advantages of hiring PRO services in Sharjah and Abu Dhabi
  5. How to choose the best PRO services in Sharjah and Abu Dhabi?
  6. Why does your business need a PRO service?
  7. How can Connect Zone help you find PRO services in Sharjah and Abu Dhabi?

1. What is a PRO service?

The PRO Services in the UAE are those activities related to the documentation and paperwork that must be consigned to the corresponding government entities in order to work and live in the UAE.

Among the most common PRO services are the following:

  • Family Visas
  • Emirates ID Cards
  • Labour and Immigration Cards
  • Company and Branch Formation
  • Annual License Renewals and Updates
  • Resident and Employee Visa
  • Notarization of Legal Documents
  • Investors Visa
  • Labour Quota applications
  • Offshore and Security Passes (CICPA)
  • Regulatory Approvals and NOC letters

2. What do PRO services offer in the UAE?

PROs or Public Relations Officers are professional government liaison officers in the area of ​​regulations, administrative policies, and laws of the government of the United Arab Emirates. PROs are able to develop a good relationship and communication with government officials, thus allowing the accomplishment of procedures quickly and effectively.

Hiring a PRO in Sharjah and Abu Dabhi for your company is not only a smart decision but also a cost-effective one too.

The experience of these officers in the area of ​​immigration, labor-related works, and their relations with the Ministry of Economy, allow the steady advance of the formation of your company.

Besides, Public Relations Officers are Independent workers who do not require much involvement from the entrepreneur. This way, you can focus on other aspects of your company formation.

Some services that you may need when forming a company are the following:

  • Translations
  • Attestation
  • Company Licensing
  • Visa Services
  • Government Approvals
  • Labor and Immigration Services

2.1 Labor of a PRO in the UAE

When starting a company in the UAE, the first thing you will need is a Company License or Trade License. This license will allow you to operate in the United Arab Emirates legally. The process of applying for this license can seem complicated, especially if you do not know the regulations and laws to open a company in Dubai or the UAE.

This is when hiring a PRO in Sharjah and Abu Dhabi becomes important. They will be the communication bridge between your company and the government, they will be in charge of submitting all the documents and they will also ensure the successful accomplishment of the application process for your license (managed by the Department of Economic Development)

2.2 Services offered by PRO Services Companies

Public Relations Officers are not only limited to starting the process of forming a company. On the contrary, they offer a wide variety of services to facilitate your stay and your work in the United Arab Emirates.

After the initial process, the business must establish, expand and increase its presence in the UAE society. And this will require the hiring of personnel, renewals, cancellations, and any other type of administrative procedure.

If you are an entrepreneur looking to set up your company, here are some of the documents you will need at some point:

  • Renewal and/or cancellation of trade license
  • Labor and Immigration Services, some are the following: Non-educational certificates, Commercial certificates/documentation, and Educational Certificates
  • Attestation of documents, some are the following: Execution of employment contracts and employment visa quotas and Issuance of residence visas and work permits

3. When do companies need PRO services?

Many people tend to assume that a PRO in the UAE is only required for processes related to Immigration and Visa applications. However, this is a false assumption, below are several situations where PRO services are more than needed.

3.1 Department of Economic Development:

Regarding a new license issuance:

  • Initial approval
  • MoA signing
  • Trade name reservation
  • Final submission of documents

For established companies:

  • Change in trade name
  • Change in business activity
  • Addition and/or removal of business partner or manager
  • Any amendment to trade license

3.2 Immigration

After completing your application process for a Trade License, the PROs in the UAE will help you with the following:

  • Typing of medical and emirates ID applications
  • Processing of your ID
  • Visa stamping on your passport
  • Visa application
  • Typing of medical and ID applications
  • Application for Company Establishment Card
  • Modifications to establishment card
  • Issuance of e-signature
  • Registration in the Emiratisation system of employers
  • Renewal of emirates ID

3.3 Labour

Running a business in Sharjah and Abu Dhabi requires a workforce, your business must have (mandatory) a Labor Computer Card to hire employees. Hiring a PRO in the UAE to carry out the processes related to the employee Visa and work permit application will reduce your labor concerns.

A PRO in Sharjah and Abu Dhabi will help you with the following:

  • Labor inspection of your office location
  • Employee visa applications
  • Employee visa quota application and approval
  • Processing of employees’ Emirates IDs
  • The accomplishment of employees’ medical tests and biometrics collection
  • Typing of medical and Emirates ID applications
  • Employees’ visa stamping
  • Amendment, renewal, and/or cancellation of employment labor contract
  • Issuing and renewing work permits

4. Advantages of hiring PRO services in Sharjah and Abu Dhabi

By contracting a PRO in Sharjah and Abu Dhabi, you are acquiring multiple benefits that will make your life and work in the United Arab Emirates easier. Some benefits are:

4.1 Saving time

Having all the documentation and paperwork necessary to carry out any procedure can take some time. However, it is of vital importance for the company to carry it out. For this reason, it is advisable to leave all the paperwork in the hands of experts, who will be in charge of carrying out all the steps of the process quickly and efficiently so that your only concern is to focus on maintaining and expanding your company.

4.2 Legal requirements

Many activities that are part of the services offered by the PROs, are legal and juridical in nature and are extremely necessary for employees and companies in Dubai.

Carrying out these processes with the help of a Public Relations Officer eliminates the probability of any setback or sanction for the business. Also, the UAE government requires some processes to be completed through authorized service agents.

4.3 Business sustainability

Most of the PRO services in the UAE are designed according to the interests of the companies. Hiring a Public Relations Officer results in an improvement in business functions.

For example, if a person wants to work legally in the United Arab Emirates, they must apply for a work permit and a resident Visa.

These are the basic requirements that will allow you to opt for an Emirates ID, open a bank account, sign a housing lease and get amenities like electricity.

5. How to choose the best services in Abu Dhabi, Sharjah & the UAE?

Choosing the best Pro Service in Sharjah and Abu Dhabi is a big decision. For this reason, you must take into account certain criteria that will help you determine which PRO service best suits your company.

5.1 Scope of services

The first thing you need to be sure of is the scope of the services of your PRO service. Establishing easy and direct communication about the services they offer will save you from misunderstandings in the future.

At the same time, your PRO must describe the process in detail and its cost.

5.2 Credibility and reputation

Another very important aspect when choosing a PRO in Sharjah for your company formation is its reputation and credibility. You can learn from this aspect in the following way:

  • Check the firm’s market reputation
  • Ask for references to companies that have worked with the firm before.

Choosing a PRO in Dubai can be challenging, especially if you do not know where to look. For this reason, an employer of record is the option that can bring the most benefits to your company.

5.3 Local presence

When looking for the best PRO in Abu Dhabi, you should look for one that is in the same place where you want to establish your company. This means that the firm must have physical offices and workers who perform the service for your company.

Having your PRO service in the same place as your company is necessary for the following reasons:

  • With a physical office, they can help you find and choose the best location for your business
  • They can help you with all regulations and keep up to date on UAE laws
  • The local presence ensures greater speed when applying for a visa and other government services.

5.4 Size of a PRO team

Taking into account that PRO services in Abu Dhabi perform multiple tasks at the same time. The team must be made of efficient and proactive people, with enough skill to carry out each one of them. At the same time, the team must have specialists for each task and thus ensure great performance.

6. Why does your business need a PRO service?

Firstly, the activities carried out by PRO services in Abu Dhabi are legal requirements for all companies and employees. Ensuring that all processes are carried out correctly and within the established time will reduce the risk of any sanction or other type of consequences for the business.

Secondly, in addition to the legal consequences that it would bring, failing in this type of process can bring with it an unfavorable impact on factors external to the company. For example: Obtaining resident Visas, work permits, obtaining an Emirates ID, etc.

7. How can Connect Zone help you find PRO services in Sharjah and Abu Dhabi?

Receiving help with the formation of your business in the United Arab Emirates is vital to start operations in the country. Our PROs at Connect Zone encompass a host of services that connect with the relevant government ministries and departments, allowing you to complete daily operational paperwork and get the necessary permits and licenses for your company.

We can act as your communication bridge between your company and the government of the United Arab Emirates, applying for visas and work permits, and we can even help you choose the perfect location for your business.

Connect Zone provides personalized attention, with special detail on the specific requirements of your business, we are one of the top-leading firms in the Arab Emirates, and we have provided PRO services to different companies over the years, which has allowed us to establish strong relationships with government authorities, trusted partners and professionals.

How can we help you learn more about PRO services in Sharjah and Abu Dhabi? You can contact our email info@connectzone.ae where you will speak with one of our representatives, who will answer all your questions.

Lastly, if you want to know more about us, you can send your CV to thetalentpoint.com or contact us through our email contact@thetalentpoint.com, no need to worry, your information will be safe with us, and we will not share it or store it in our database.

 

How to get a trade license in Dubai without an office space?

Trade License in Dubai

In recent years, Dubai has become the destination for excellence for new freelancers, entrepreneurs, or already consolidated businessmen who seek to expand their businesses in an area full of possibilities for economic growth. To carry out the formation of a company in Dubai successfully, it is necessary to obtain a Trade License Dubai, which will allow you to carry out all types of transactions legally and safely.

In this article, you will learn about what a Trade License Dubai is, how to get a Trade License in Dubai, what you need to know to get a Trade License without an office space, and how we can help you with the process of obtaining your license.

  1. What is a Trade License?
  2. Types of Trade License Dubai
  3. How to get a new Business License in Dubai?
  4. Benefits of applying for a new Trade License
  5. How to get a Business License Dubai without a physical office?
  6. What you should know about getting a Trade License Dubai without a physical office?
  7. How can we assist you through the process of obtaining a Trade License Dubai?

1. What is a trade license?

A business license in Dubai is a document that indicates what activities a company can carry out in the UAE. General Trading Licenses apply to various activities and are issued by the Department of Economic Development. Keep in mind that among the activities that can be carried out with this type of license are the performance of commercial activities and the import and export of goods.

2. Types of Trade License Dubai

Currently, there are mainly three types of business licenses in Dubai (Commercial, Professional, and Industrial), however, you can find more depending on the economic jurisdiction in the areas of Dubai. Some of the trade licenses Dubai that you can find are the following:

2.1 Commercial Trade License:

Commercial Trade Licenses are delivered to those companies whose activities are directly related to trade, purchase, and sale of goods and services, export and import of products, brokerage activities, and car rental.

Important to realize: If your business is located in Dubai and you want to trade outside the UAE, you will still need a commercial trade license.

2.2 Professional License:

The Professional license allows individuals or companies to pursue their chosen profession, based on their education. Some of the activities covered by this type of license are the following:

  • Carpentry
  • Printing and Publishing
  • Security Services
  • Document Clearing
  • Repair Services
  • Beauty Salons
  • Medical Services
  • Computer Graphic Design
  • Craftsmanship.
  • Digital Marketing Services

With a professional license, foreign entrepreneurs can maintain 100% ownership of their company.

2.3 Industrial License Dubai:

If you have a company that is dedicated to industrial or manufacturing activities, you will require an Industrial License Dubai to carry out the activities. Entrepreneurs can assemble and process goods using domestic or imported raw materials. You need an Industrial License Dubai for the following activities:

  • Equipment and engines
  • Paper
  • Food
  • Textile
  • Metals
  • Petroleum products

2.4 Tourism License:

The Tourism License is for those businesses that operate activities related to the UAE tourism sector. Some activities are the following:

  • Cruise Boat Rental
  • Restaurants
  • Travel Agencies
  • Tourist Camps
  • Hotel rental
  • Guest House

The UEA government introduced this license for a more efficient control the tourism industry. Also, compared to the others, this Tourism license is relatively new.

2.5 Agriculture License:

This type of license is delivered to those businesses dedicated to cultivation and harvesting activities, installation of greenhouses, trading of pesticides. Also, it is given to those companies dedicated to agricultural consultancy.

2.6 Craftsmanship License:

Those individuals who engage in activities related to electrical work, plumbing, carpentry, must acquire this license. For this reason, if a company hires a craftsman, then they need to apply for the license.

In the United Arab Emirates, it is illegal to operate a business without the corresponding UAE license, you can be sanctioned or banned. In addition to this, the Trade License renewal must be every year to avoid penalties.

3. How to get a Business License Dubai?

Due to the growing population of entrepreneurs who have come to form new companies in Dubai, the UAE government has facilitated the process to acquire business license Dubai. The process consists of the following steps:

3.1 Choose the economic jurisdiction:

Firstly, to start a company, you must choose in which economic jurisdiction you want to operate. In Dubai, these can be Free Zones, Mainland, and offshore companies.

3.2 Choose the company structure:

At this point, you must choose the legal form, this will determine the rules and regulations to which your company must submit in the future.

 3.3 Select the business activity:

The productive activity to which you are going to dedicate yourself will determine the trade license for which you must apply. Select all activities to work because later you will not be able to operate activities that you did not choose beforehand.

3.4 Get the initial approval:

After completing the first three steps, you must get approval from the Department of economic development in Dubai, to do so you must fill out an application form that they will provide.

3.5 Choose your business location:

To get your business started, you must choose where your company will be. Once the place has been chosen, you must obtain a tenancy contract, Ejari must certify it and send it along with the rest of the documents.

3.6 Prepare the MOA

The memorandum of association is of the utmost importance when applying for a business license in Dubai. It is recommended to hire legal experts to carry out this document.

3.7 Get the external approval:

Depending on the productive activity chosen, you may need the approval of other government departments and entities.

3.8 Submit the documents to the Department of Economic Development

To complete your application for your trade license, you must submit the following documents:

  • The Memorandum of Association
  • The tenancy contract and EJARI
  • The initial approval letter from the DED
  • The DED application form
  • Copies of all the shareholders’ passports

These are some of the most common documents, however, others can be added, depending on the chosen productive activity.

3.9 Complete the final application

After completing all the above steps, you will need to submit the documents and complete the final application from the Department of Economic Development.

3.10 Pay the fees

Once approval is received from the Department of Economic Development, you must pay the fees and receive the trade application.

4. Benefits of applying for a new Trade License

There are many benefits to getting a Trade License Dubai, such as:

4.1 Low taxes

One of the reasons why so many people have decided to start a new life in Dubai is the low taxes. While most countries require investors to pay large amounts of money, Dubai does not. Since Dubai is almost tax-free, investors can earn additional revenue. Money that would otherwise go to taxes can be used for production costs, instead.

4.2 Easy set-up

Getting a Trade License Dubai is much faster than any other procedure. As long as you have the corresponding documentation, you should receive your trade license without any problem, in a few weeks.

4.3 Fewer trade restrictions

Dubai has very few restrictions when doing business, which makes it easy to trade from one place to another. For this reason, as long as you register your products under the appropriate license, you will not have to worry about restrictions.

4.4. Sponsor opportunities

An important point of obtaining a Trade License Dubai is that you can sponsor dependents. This makes it easy to bring family members or employees over to Dubai.

4.5 Boost international and local trade

With a general trading license, you have the opportunity to produce or import products, either to the local Dubai market or abroad, and receive profits from other countries.

Also, this type of license gives you the opportunity to re-export your products, this can help you improve your ability to trade goods and services around the world.

5. How to get a Business License Dubai without a physical office?

The Department of Economic Development and the Free Zones in the UAE have enabled license packages for virtual companies. In other words, small entrepreneurs can start working without having a physical office.

Also, as an initiative of the government of the United Arab Emirates to boost economic growth, they have introduced the “Instant Trade License”. This is a variation of the normal Trade License that you can have in just five minutes and brings with it unique benefits.

     5.1 Benefits of the Instant Trade License:

  • It is not necessary to carry out the Memorandum of association
  • Does not require trade name registration for the first year
  • Can be ready in five minutes
  • It is not necessary to have a physical office

5.2 Documents required to acquire an Instant Trade License

  • Passport copy for all licenses (Partners and managers)
  • A copy of your Visa (If applicable)
  • A copy of your residence Visa and a No Objection Certificate (If applicable)

Also, note that Instant Trade Licenses can only be applied to those businesses engaged in activities that do not require external approvals.

6. What you should know about getting a Trade License Dubai without a physical office?

By not having the concern of a physical office, there is a lot of flexibility when working, however, you should take the following aspects into account:

6.1 Create your business plan

The employer must create a business plan to accommodate the flexibility of working hours and the availability of their workers to meet business requirements. You should also be knowledgeable about current market conditions. That is to say, having a business plan will ensure an organized and stable future for your company.

6.2 Alternative workplace

Firstly, without a physical office, the entrepreneur must find an alternative to his workplace. Secondly, it must be a quiet place where the investor can concentrate and offer quality work.

Some jobs can be done remotely and efficiently. For example, software programming, IT, project management, services engineering, consultancies, etc. Also, most interactions are virtual, making the need for a physical office obsolete.

6.3 Use of the right technology

Investing in technology is essential for maintaining a virtual company, to keep your employees and clients active. In addition to this, the latest technological advances have achieved efficient work and communication from many parts of the world.

6.4 Allocate flexible working hours

One of the most important advantages of the no-office package is the ability to work at any time and from anywhere. Also, they can organize meetings with clients from different parts of the world.

6.5 Virtual meetings and teams

Learning to work through the tools that technology offers us is of the utmost importance. Besides, conducting virtual meetings, hiring remote staff and online teams is the right way to go if you want to succeed by having a company without a physical office.

7. How can we assist you through the process of obtaining a Trade License Dubai?

Carrying out the different legal processes to live and work in the United Arab Emirates can be long and difficult if you are a new entrepreneur. For this reason, we want to provide you with support and guidance so that you can carry out all your processes quickly and efficiently.

Our experts have the training to carry out the entire process of applying for a trade license, also, Connect Zone is the perfect agency to start/renew your visa and act as your local agent.

Do you want to discover more about the Trade License Dubai? You can contact us at the following email address: info@connectzone.ae. Here, you can communicate with one of our representatives, who will answer all your questions.

Also, if you are interested in knowing more about us, visit thetalentpoint.com or send your CV to contact@thetalentpoint.com, no need to worry, your information will be safe with us, we will not share it or store it in our database.

Do you know how to set up an Industrial Company in Dubai?

Industrial Company

An Industrial Company or manufacturing company is the company in charge of extracting the raw material and transforming it into products or goods to be marketed to the final consumer.

In recent years, there has been a boom in the creation of this type of company in Dubai, due to the various opportunities for economic growth that have been created in the Arab Emirate.

In this article, you will learn how to start an Industrial Company in Dubai, the various benefits that this kind of company brings, and also the cost of forming such companies.

1. How to set up an Industrial Company in Dubai?

2. Which activities fall under the Industrial License?

3. What is the cost of the Industrial License?

4. What is the cost of forming an Industrial Company in Dubai?

5. Benefits of forming an Industrial Company in Dubai

6. Why is Dubai the perfect place for your Industrial Company?

7. How to set up an Industrial Company in Dubai Industrial City?

8. In which way we can help you with the setup of your Industrial Company in Dubai?

1. How to set up an Industrial company in Dubai?

1.1 Choose an activity corresponding to the manufacturing sector

The first step for the creation of an Industrial Company is to choose the good or product you want to manufacture, in this way the legal form and the corresponding license (commercial, industrial or professional) are determined. Also, you could open a Textile Company, a printing or publishing company, a parts factory, etc.

Keep in mind that a company in Dubai can be engaged in more than one activity at a time and that the United Arab Emirates offers more than 2,000 productive activities to choose from.

1.2 Select a local partner

To carry out the process of forming an Industrial Company in Dubai, you need the support of a local agent, a national representative who will accompany you throughout the process and who will take care of all the paperwork.

1.3 Select the legal form

The legal form will depend directly on the product or the good that you are going to make and is the basis for applying the laws and regulations of your company. The investor can choose between the following legal forms:

  • Limited liability company (LLC)
  • Public joint-stock company (PJSC)
  • Private joint-stock company (PrJSC)
  • Civil company
  • Local company branch
  • General partnership
  • Limited partnership
  • Foreign company branch
  • Free zone company branch
  • Sole establishment
  • Holding companies.

Important to realize: The legal form must coincide with the chosen productive activity

1.4 Choose a name for your Industrial Company

Firstly, every Industrial Company in Dubai must have a trade name that distinguishes your business from another, and in turn, must reflect its essence. This must be directly related to the chosen activity, cannot allude to any religion or political ideology, cannot be previously registered, and must respect the moral values ​​and laws of the United Arab Emirates.

Throughout the trade name selection process, you will be given a payment voucher or transaction number that you will need as a reference when paying.

Must be remembered: Trade names certificates are renewable and are registered by the department of economic development. While the trademark is registered by the Ministry of Economy.

1.5 Send the corresponding documents

After choosing your trade name, the legal form, and having chosen a local agent, you must register your company with the DED (Department of economic development) to obtain initial approval and other types of approvals.

1.6 Initial Approval

Afterward, your documents have been reviewed and processed, the UAE government will notify you if your application has been approved.

Receiving this approval means that the government of the United Arab Emirates accepts the creation of your Industrial Company and you can continue with the next steps of the formation process, however, it does not (yet) grant you the authority to start working.

Also, foreign investors who decide to set up an Industrial Company in Dubai must first obtain approval from the General Directorate of Residency and Foreign Affairs.

1.7 Memorandum of association

Once the first part of the formation process of an Industrial Company is completed, you must file a Memorandum of Association (MOA) signed by all the shareholders.

1.8 Submit to the Ministry of Economy

Once the Memorandum of Association has been signed, you must submit the corresponding documents to the Ministry of Economy, where you will receive authorization to continue with the formation of your manufacturing company.

1.9 Find a location

According to the laws of the United Arab Emirates, every company must have an infrastructure, a physical address where the company is located. For this reason, you should rent an office or Business Center in a beneficial location for your necessities.

Additionally, as a requirement, you must provide the official rental agreement and in Dubai, this agreement must be registered by Ejari.

1.10 Dubai Municipality

Afterward, to continue the process of forming an Industrial Company you must obtain the approval and permission of the Dubai Municipality’s planning department to obtain the Industrial license. Once the approval is received, you must complete the documentation and submit it to the environment department to obtain authorization to continue the process.

1.11 Civil defense

After obtaining permission from the Dubai Municipality, you must apply for a NOC (No Objection Certificate) from the Civil Defense, to continue with the process of forming your manufacturing company.

1.12 External Approval

In addition to the approvals shown above, some manufacturing industries in the United Arab Emirates need approval from other government departments. It is important to note that this will depend on the objects or goods that your company produces. For example: If you produce food, you need a food control permit. In the same fashion, if you decide to produce any chemical material, you need permission from the Narcotics Department.

1.13 Trade License

After receiving all the relevant approvals and necessary permits, you can submit the final documents to the Department of economic development to receive your industrial trade license. At last, make the payments of the corresponding fees and your trade industrial license will be delivered to you.

2. Which activities fall under the Industrial License?

Industrial licenses work for a large number of activities and many of them are directly related to manufacturing. For example:

  • Food & beverage manufacturing
  • Helicopter repair & maintenance
  • Metal products coating
  • Multi-dimensional images
  • Sculptors
  • Textile manufacturing
  • Adhesive & paper slitting
  • Bookbinding
  • Saddle & animal, bird training requirements making
  • Safety harness manufacturing
  • Casting of metals
  • Cards & envelopes printing
  • Lathe workshop
  • Magnetic technology equipment trading

To clarify, this is a general list of some activities that need the Industrial license.

Note that if your company does production, fabrication, preparation, or manufacturing of products, then you will need an industrial license as well.

3. What is the cost of the Industrial License?

Firstly, the cost of the application for an Industrial license will depend directly on the area in which you want to establish your company.

As shown above, to apply for a license, you need to comply with certain documents, obtain certain approvals from government entities and pay the corresponding fees.

In general, an Industrial License can cost between 10,000 – 25,000 AED, these prices may be different if you decide to set up your Industrial Company in a Free Zone.

4. What is the cost of an Industrial Company Formation?

Due to the growing popularity of the financial benefits that can come from investing in the United Arab Emirates, the costs to set up a manufacturing company are relatively low. As following:

  • Initial Approval: AED220
  • Trade name approval: 720 AED
  • MOA preparation: 600 AED
  • Notarization of MOA: 1800 AED
  • Sponsorship Fee: AED10,000
  • License: 10,000 – 25,000
  • Market fee: 5% of the rent
  • Environment Impact Assessment Report: 10,000

5. Benefits of forming an Industrial Company in Dubai

The exponential growth that has occurred in the United Arab Emirates in recent years has brought multiple benefits to new investors, encouraging the creation of new companies every day.

The government of the United Arab Emirates, over the years, has tried to diversify its investments to attract new entrepreneurs and position itself as the leading region when it comes to economic growth.

Due to the new regulations, investors have 100% ownership of their companies and can trade without any restrictions.

Among the benefits of an Industrial Company Formation in Dubai, we find the following:

  • Business supportive regime
  • Optimal chances for business growth
  • Maintaining business privacy
  • World-class infrastructure
  • Exemplary standard of living
  • Strategic location
  • Excellent connectivity

6. Why is Dubai the perfect place for your new Industrial Company?

In essence, Dubai is one of the most economically attractive areas for old and new investors. It has an open environment and full support for small, medium, and large companies that allow the growth of the region’s economy.

Free-market policy, fair competition, and low taxes have been another key point to receiving multiple foreign investments each year.

Dubai is the perfect place to invest for the following reasons:

  • It has a strategic geographical location, it is located in the heart of MENASA (Middle East, North Africa, and South Africa). Also, it allows trade with these regions of the world.
  • It has a very stable financial and banking system
  • The taxes in this region are the lowest in the world
  • The economy is proactive and constantly evolving
  • As an incentive for new investments, they have an entire support system to facilitate the formation of an Industrial Company.

7. How to set up an Industrial Company in Dubai Industrial City?

The Industrial Company Formation process in Dubai Industrial Park is very similar to the process of setting up an onshore company in Dubai.

Firstly, you must choose the productive activity of your company, select the trade name (which must be related to the productive area), prepare the memorandum of association, and take the corresponding documents to the relevant government authorities.

Then, once the documents are ready, you will be given a registration certificate and business license.

Dubai Industrial Park has, at the present time, six areas in which companies can work. Each area is dedicated to a specific productive activity, like the following:

  • The transport area
  • The machinery area
  • The food and beverages area
  • The mineral production area
  • The base metal area
  • The chemicals area

 7.1 What is Dubai Industrial City?

Dubai Industrial City is the free zone in Dubai that focuses on manufacturing industries. It opened in 2004 and recently its name changed to Dubai Industrial Park.

7.2 What type of Industrial Company can settle in Dubai Industrial City?

At this point, Individuals or legal entities can establish limited liability relationships in Dubai Industrial City. Subsequently, foreign companies can open extensions of their offices or enter into joint ventures with other companies in Dubai.

The industries allowed to settle in Dubai Central Park (in addition to manufacturing) are:

  • Machinery
  • Transportation
  • Logistics
  • Food and beverages

Also, Manufacturing Companies in Dubai Central Park can process metals, minerals, and even chemical materials.

8. In which way can we help you with the setup of your Industrial Company in Dubai?

When it comes to Industrial Company Formation in Dubai, Connect Zone is the perfect partner to carry out this process. We are your trusted agency that will take care of all the paperwork, legal and administrative aspects so that your only concern is to focus on the formation of your new business. Also, we will provide you with the best places to locate the headquarters of your company.

Here at Connect Zone, we care about your safety and the security of your investment, which is why we assume the role of your local agent, to guarantee a safe process.

Would you like to connect with us?  If you want to learn more about Connect Zone and how to set up an Industrial Company in Dubai, you can call us at +97143316688. Also, you can contact us via email at info@connectzone.ae, where you will speak with one of our advisors who will answer all your questions.

Besides, if you are looking for a job in the UAE and other regions, feel free to visit thetalentpoint.com. Do not worry, your information will not be shared or stored in any database.