Learn how to check a Trade License online

how to check a trade license online

Doing business in the UAE can be a very life-changing process. This region offers hundreds of economic opportunities to national and foreign entrepreneurs, both on the Mainland and in the Free Zones. However, when doing business, it is always advisable to be wary of scams. For this reason, in the following lines, we will talk about how to check a trade license online.

In this article, you will find information about what a trade license is, what documents you must submit to acquire one, how to ensure that a company in the UAE is legitimate, how to check a trade license online, and how can we help you in this process.

  1. What is a Trade License?
  2. What types of Trade Licenses can you find in the UAE?
  3. How can you get a Trade License?
  4. Trade license renewal process
  5. Requirements you must submit to obtain the license
  6. How to check a Trade License online?
  7. How can Connect Zone help you check a Trade License online?

1. What is a Trade License?

This license is a document issued by the Department of Economic Development (DED) of the Emirate where you decide to establish your company. This document allows companies to legally operate in the UAE. The Trade License in Dubai is valid for different activities, for example, import and export of services and products, and any other activity related to trade.

Companies that are established in a free zone can acquire one of these licenses. At the same time, professionals related to the industrial sector can also acquire one.

Knowing how to check a trade license online can help you and your company to avoid making unwanted alliances.

2. What types of Trade Licenses can you find in the UAE?

Not all licenses in the United Arab Emirates are the same, there are five main licenses and each one dedicates to a different productive sector.

The five main licenses are the following:

2.1 Professional license

This license is for those individuals who offer a professional service based on some mental or physical ability that allows them to generate profits. An important point of the professional license is that it allows entrepreneurs to maintain 100% ownership of their company.

2.2 Industrial license

The industrial license is an official document addressed to those companies whose activities are related to the collection, production, and transformation of natural resources into materials suitable for industrial use or into finished products.

An industrial company has global access to its customers and requires a large amount of manpower and resources to operate in the country.

2.3 Commercial license

This document is issued by the official authorities of the United Arab Emirates and is aimed at those organizations or companies that carry out activities based on the trade of services and goods. Some companies, for example, retail firms, business enterprises, real estate companies, transport companies, among others, must apply for this license.

Another key point of the commercial license is that, by having it, your company will be able to export and import products inside or outside the country (this will depend on the area where your company is established).

2.4 General license

The general license is perfect for startups that want to do multiple business activities with a single license. Individuals who hold this license can take advantage of business opportunities in the following sectors: Beverages, medical supplies, frozen foods, among others.

2.5 Tourism license

The Tourism trade license is an official document required by those companies whose commercial activity is based on the travel, hospitality, and tourism sector.

Every serious and respectable company must acquire one of these licenses in order to work legally and avoid any conflict with the authorities. Learning how to check a trade license online will prevent scams and you will be able to differentiate which companies you can trust and which you cannot.

3. How can you get a Trade License?

To obtain a trade license you need to follow these steps:

3.1 Business name

The first step in getting this license is to select an appropriate name for your company. The business name must adhere to the moral values ​​of the UAE, it cannot refer to any religion or political entity, and it cannot be registered by another organization or company.

3.2 Legal structure

To continue with the application for the trade license, you must choose the legal structure of your company. This structure will define how you must run your business and who is responsible for the company.

3.3 Business activities

When the name of your company and the legal structure is ready, you must determine the business activity you plan to carry out. You must make sure to mark all activities on the license and it must be remembered that each license allows a maximum of ten activities.

3.4 Complete the form

The next step is to fill out the application form, once ready, you must submit it to the Department of Economic Development of the respective Emirate to receive initial approval.

3.5 Additional approvals

Some productive activities require initial approval from other government entities. It is advisable that you do your research before completing the process of applying for your license. Otherwise, the authorities may reject your license.

3.6 Gather required documents

In addition to your application form, you need to gather certain documents to deliver them to the authorities. You must ensure that all necessary signatures are present to avoid any delay or misunderstanding in the process.

3.7 Business location

There are different options of places where you can establish your company if you choose to opt for this license. For example, if you decide to settle in Dubai Mainland, you will necessarily need office space.

Once you have the office space, you will need to create a tenancy contract. The entity in charge of attesting this contract is Ejari and you must submit it to the DED with the rest of the documents.

3.8 Submit your application

With all the documents in hand, the chosen location, and the necessary approvals, you are more than ready to submit your trade license application and receive your license.

3.9 Pay the fee

It must be remembered that applying for a license is not free. You must pay the issuance fee and the license fee itself in order to receive it.

4. Trade License renewal process

Generally, trade licenses have a validity period. Once completed, you must renew your license every year to continue working legally in the United Arab Emirates. Some aspects that you should know to renew your license are the following:

4.1 Approvals

To renew your license, you need to obtain the correct approvals. These approvals will depend on the commercial activity carried out by your company. For example, transport companies need approval from Dubai’s Road and Transport Authority to renew their licenses.

To speed up the process, it is advisable that you obtain these approvals before beginning the rest of the renewal process.

4.2 Documentation

In addition to the written approval of certain government entities, every company must gather documents such as the following:

  • Attested Ejari
  • A tenancy contract
  • Approval and authorization process
  • The complete renewal form
  • Photograph of all business partners
  • The payment number of renewal fees

Every company is required to submit these documents to the DED in order to acquire the renewal.

4.3 Tenancy contract

Before starting the renewal process, you should review your tenancy contract. This cannot have a validity period less than three months from the issuance date, to apply for the renewal of your license.

Learning how to renew and how to check a trade license online will save you time and effort in the long run.

5. Requirements you must submit to obtain the license

Part of the process of acquiring a trade license requires the delivery of certain documents. Each part of this process must be done in an orderly manner to avoid delays and misunderstandings.

Firstly, you will need to fill out the trade license application and all managers will need to sign the document. Secondly, you will need to create a Memorandum of Association (this must be done with the help of a legal representative). Thirdly, be sure to attach the approval of your business name. The DED will send you this approval before accepting the chosen business name.

Then, all shareholders of the company must submit a copy of their passports. Remember that learning how to check an Abu Dhabi trade license online will save you from the submission of documents to illegitimate companies.

6. How to check a Trade License online?

Previously, we have talked about trade licenses and how to get them. However, it is also important to know how to differentiate a legitimate company from possible fraud. Whether you are an experienced entrepreneur or a new one, it is only logical that one of your concerns is to hire reliable and legal companies. For this reason, it is very important to learn how to check a trade license online.

First of all, every business owner can perform their own company verification. By having basic information such as phone number and address, the entrepreneur can:

  • Give a call to the company.
  • Visit the office by himself.

If you ever wondered how to check a trade license online, this is definitely the simplest method. Other ways to verify if a business is properly registered in the UAE are the following:

Every company in the country is required to have a trade license to operate legally in the country. You can ask them to show you a copy of the license or you can check it online with the Department of Economic Development.

Remember that licenses are not confidential documents, they are documents that must be publicly displayed in a store or office. It is one of your rights to ask for this document or to have access to it.

Please know that most illegitimate companies will give you an invalid registration number as proof. This can be easily verified. And in this way, knowing how to check a Dubai Trade License will keep you from entering into an unprofitable and complicated business relationship.

There are certain methods that you can use separately or together to decipher if a company exists or not. Some methods you can use are the following:

6.1 Business License Verification

As shown above, you can request a copy of their business license and check directly on the government platforms if the license is registered or not. If you intend to create a company in the UAE based on partners, then they should provide the necessary documents.

If you feel any reticence, chances are something is wrong. On the other hand, the information exposed in a Trade license is not confidential, there you will find the following:

  • Office address
  • Name of the company
  • Registration number
  • License number
  • Name of manager

Someone who refuses to show you this documentation may mean that their business is illegitimate. Remember that knowing how to check an Abu Dhabi trade license online will prevent you from unnecessary trouble.

6.2 Contact the email

If the company is registered in any Free Zone, you might not be able to verify the license. In this situation, your only other option is to contact the registry by email stating the name of the business and ask if the company is registered in the country and if the license is active (and not canceled).

Another option is to verify the registration directly by visiting the offices in person.

6.3 Certificate of Good Standing

You can ask for a Certificate of Good Standing from the local registration authority. Generally, this certificate indicates that the company has filled reports and fees with the authorities.

This certificate serves as proof that the company exists and is authorized to operate legally in the UAE.

6.4 Social media

Social networks can be very helpful when verifying a business. Seeing that a company has a presence on social media is often a good sign. For example, you can check if they have professional profiles on networks like Facebook or Instagram.

Also, you can find out if their staff or managers have profiles on platforms like LinkedIn.

6.5 Google the company

A good idea is to search for information on Google, such as online forums, testimonials, etc. If the company in question has been involved in any illegal activity or any scams, there is a good chance that you will find this information on the internet.

Lastly, you can check on the free zone portals and the governmental portals to ensure that you are working with serious and responsible people.

7. How can Connect Zone help you check a Trade License online?

With more than 20 years of experience and hundreds of happy clients, our agency is the ideal service agency to accompany you in the process of setting up your company or acquiring your license.

At Connect Zone, we will provide you with all the documentation you need to prove that you are a legitimate and trustworthy company, and we will take care of guiding you in each procedure you carry out.

For example, applying for a visa, opening a bank account, and even obtaining your Emirates ID.

Are you interested in learning more about our services? You can reach us at +97143316688 or you can send us an email to contact@connectzone.ae where one of our representatives will assist you gladly.

Additionally, if you would like to apply for a job in the UAE, you can visit thetalentpoint.com or send your resume to contact@thetalentpoint.com. Remember that your security is a priority for us, your information will not be shared or stored.

The Gulf Business: How to cope with the challenges of the off-season?

Gulf business

The ongoing pandemic has affected the finances of many companies in the UAE, especially seasonal ones (tourism, events, entertainment). Nonetheless, with the end of the COVID era in sight, this recession seems to be coming to an end too. Each tome more foreign investors are looking forward to establishing a Gulf business.

In this article, you will discover the various challenges faced by Gulf Business due to both off-season and sanitary restrictions. In this way, you will be able to create effective plans and strategies.

  1. What is the GCC and what is Gulf business?
  2. What is off-season and how does it affect Gulf business?
  3. Which ones are the possible challenges Gulf business faces during the off-season?
  4. What are possible solutions to the work challenges faced during the off-season?
  5. How can you establish a Gulf business in easy steps?
  6. Ensure the growth of your Gulf business with business advisory
  7. How can we help you set up a Gulf business?

1. What is the GCC and what is a Gulf Business?

The United Arab Emirates is one of the most prosperous countries within the Persian Gulf. Nonetheless, much of UAE’s financial success is due to its membership in the GCC.

The Gulf Cooperation Council (GCC) is a group of Persian Gulf countries focused on improving their culture, politics, economics, and economy in a unified way. That is to say, it is a conglomerate of nations seeking to achieve common goals based on their cultural and political similarities.

Some of its members include Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, and, finally, the United Arab Emirates. Thanks to their flexible economic policies, country members have become investment hubs for local and foreign business owners, especially the UAE. Offering a 5% income tax rate, the UAE attracts a large number of investors every year.

Therefore, thanks to its low VAT rate and company formation packages, the UAE is thriving. Consequently, multiple investors come to the UAE to create companies of different nature, also known as Gulf businesses. To clarify, a Gulf business is an enterprise established within a GCC country, abides by the economic guidelines of the GCC.

2. What is off-season and how does it affect Gulf Business?

Within the UAE, there are businesses with a wide range of activities. From textile business industries to event management agencies, you can find any type of company in the country. However, there is one type of company that is affected by the seasons, national holidays, and even the product they offer. That is seasonal Gulf Business.

In other words, a seasonal Gulf business offer products and services deeply related to a seasonal period of the year. Their production and sales peaks depend on the season, climate, and holidays. For instance, hotels, tourist facilities, or agricultural companies are seasonal Gulf Businesses.

In this sense, the off-season in the UAE is the lowest season, affecting both seasonal and non-seasonal businesses. These are periods when the productive capacity decreases considerably, affecting the processes and the business processes.

In the UAE, this period is mainly in summer. This is due to the celebration of Ramadan and the rise in temperatures in the Emirati territory often causing a brief recession in seasonal Gulf business which, if not properly prepared, could suffer serious consequences further on.

3. Which ones are the top 6 possible challenges Gulf business faces during the off-season?

Gulf Businesses face multiple challenges throughout the year, especially seasonal ones. The list of challenges is extensive but to sum it up, there are 6 main commonalities between seasonal and non-seasonal that can help you develop a functional business analysis later on. These obstacles are related with:

3.1. Relationships

Business relationships with suppliers and retailers are fundamental to company growth. Nonetheless, during the off-season, relationships between Gulf business and its suppliers can be affected due to low orders and decreased production.

3.2. Costumers

When starting a Gulf business, it is often difficult to attract new customers. In this case, the biggest challenge is not to attract new customers but to create loyalty among the current customer base to avoid losses during the off-season.

3.3. Planning

The planning stage is important in any Gulf Business functioning. It is not only essential to plan the actions to be taken in the off-season, but also to create strategies that fit the needs, goals, and performance of the company.

In the same way, it is necessary to find a strategy that allows taking full advantage of the peak season.

3.4. Alternative income

A Gulf Business that focuses on a single financial activity may face several problems during the off-season. However, diversifying activities without the right advice could be more problematic.

3.5. Operations

One of the latest challenges is production and manufacturing. Among them, declining production capacity, a decrease in investment capital, and a drop in personnel productivity are some of the operational challenges facing Gulf Businesses.

3.6. Consultancy and advisory

Finally, one of the strongest challenges is to find the right consulting and advisory services. Starting a business in the UAE without the right advice is complicated. There is a wide variety of new rules, laws, and UAE Company structures guidelines that foreign business owners must understand first. So, the right counseling is a must.

3.7 What are the other common challenges Gulf Business faces during the off-season?

In addition to the off-season, Gulf businesses, new and old, face other types of challenges throughout the work year in the UAE. Among them are:

  • Operating in a jurisdiction that fits the company’s needs
  • Finding a comfortable and cost-effective business center
  • Language barrier
  • Growing familiar with Islamic culture and traditions
  • Measuring production time and scope
  • Understanding tax laws and regulations
  • Obtaining a long-term visa, e.g. a Golden Visa and work permits.
  • Create long-lasting ties with local and international suppliers

Knowing the different challenges can make the difference between creating a successful Gulf Business and a faltering one.

4. What are possible solutions to the work challenges faced during the off-season?

Although the list of off-season challenges is long, they are not impossible to overcome. On the contrary, there are several solutions that you can apply to solve from the smallest flaw to prevent even bigger mistakes. Points by point, the solutions you can apply in your Gulf business are:

4.1. Create and maintain good relationships with your retailers and suppliers.

Building good relationships with your suppliers and distributors will allow you to weather the off-season better. For example, you can arrange for smaller orders to be placed at the end of the season. Also, have inventory delivered by the end of the peak product season by prior arrangement.

In this way, your Gulf business will have a large stock reserve and your distributors and suppliers can save money on storage, transportation, and warehousing.

4.2. Building brand loyalty

A good customer comes up with successful branding strategies. Using resources such as social media and mass media can help you attract new customers. However, solid branding allows you to build customer loyalty and transform them into repeat customers. In addition, provide them with a unique experience with every purchase.

4.3. Plan operations during each season.

Both low and high seasons are times that must be planned for a Gulf Business to succeed.

In other words, invest in your stocks and increase working hours to generate more capital during the peak season to produce a reserve that will protect the business during the off-season. Rely on your expertise and the objectives of your Gulf business.

4.4. Diversify the company’s revenues

During the off-season, production becomes slow. Therefore, relying on a single product or service can cause challenges in the process. Consequently, it is highly recommended to find different forms of income that are derived from the main product. For example, an event management agency can offer courses on micro-events planning during the off-season.

4.5. Avoid closing during the off-season

Despite the reduction of activities, it is possible to continue working for a while. A great alternative is generating off-season expectations that create interest in the audience. Among the options, you can create marketing campaigns and deals that keep the bar high for your customers and suppliers.

4.6. Find the right business advisory

Performing a business analysis of your business can make the difference between surviving the off-season and generating massive losses. Using a consulting, auditing, and accounting firm can help you create effective action plans. On the other hand, it will help you better understand the UAE financial ecosystem and improve your bottom line, reaching new horizons further on.

5. How can you establish a Gulf business in easy steps?

Now that you know more about the pros and cons of setting up a Gulf Business and working during the off-season, there are a few steps to follow.

To be clear, entering the Emirati economic market is relatively simple thanks to the wide variety of flexible options. Nevertheless, to do so, it is important to follow a series of steps first. However, the steps are simple and quick. This indicates that you will be able to have your gulf business in the UAE in a very short time. In general terms, the common steps you should accomplish are:

  • Delimit the nature of your Gulf Business
  • Apply for a license according to your activities (Trade, Service, or Industrial).
  • Choose a suitable workspace
  • Get a residence Visa. Some of the different options are Freelancer, Golden, or Property Visas.

6. Ensure the growth of your Gulf Business with business advisory

Finding the right advice can help your Gulf Business survive before, during, and after the off-season. An advisory firm is a good option to learn more about:

  • Business activities consulting
  • Corporate compliance matters:
  • Investment guidance
  • Creating marketing and sales strategies
  • Tech consultancy

7. How can we help you set up a Gulf Business in the UAE?

Establishing a Gulf Business is an excellent idea if you know the issues to be faced. The UAE is an investment paradise, no matter the challenges to overcome.  Setting up a successful business in Dubai, Sharjah or any of the Emirates Mainland or Free Zones can be easy thus the UAE welcomes foreign investors with open arms.

At Connect Zone, we are ready to reach out to you during the company formation process. With 20 years of experience in the UAE market, we are prepared to assist you in finding the right bookkeeping team or VAT registration, taxation, and consultancy services.

Likewise, our Local Partner services allow you to get in touch with a reliable local agent who specializes in UAE business setup.  In the same vein, our team is ready to fulfill your company’s needs and obtain a residential visa in a short time, providing you with expert service and support 24/7 at the best price.

Would you like to contact Connect Zone to help you set up a Gulf Business cost-effectively? Give us a call at +971 43 316 688. We will answer any questions you may have about the process and our services. Moreover, you can send an email to us at contact@connectzone.ae. One of our representatives will write you back to answer your questions as soon as possible.

Lastly, if you want to receive extra information, attach your resume or CV to thetalentpoint.com. Do not worry, your personal information will not be shared or stored in our database.