How to start a business in Dubai and Trade Registration and Trade License
Yes, a non-UAE national can start a business in Dubai too, and most do. The foreign population is more than 80% foreign, with many of these having their own successful businesses. Dubai is home to numerous business formation specialists and setup agents, designed to assist individual newcomers in setting up their desired venture. These business formation specialists make it their mission to assist in finding the best business opportunity available in Dubai.
Just as there are different types of trade licenses for foreigners in other countries, there are many for foreigners in Dubai. A foreign investor wishing to open a business in Dubai needs to apply for a Dubai trade license. This is a five-year permit that allows the foreigner to purchase or engage in trading in the property market in Dubai. The permit is renewable every five years, after which it becomes a Dubai contract export license (one of the fastest procedures to obtain a business license in Dubai). If an individual has an existing business in Dubai that he intends to transfer to another location in the emirate, he is required by law to obtain a new Dubai trade license before transferring any of his assets.
Foreigners need to consult with a Dubai company formation specialist before establishing a new company in Dubai. An important condition to obtain a Dubai trade license is that all five documents required for the registration of the company are in Persian. For example, all business references should be in Persian, all the documents should be filed in Persian and a copy of the director’s letter should be sent to the Ministry of Culture in Dubai. In addition, all the necessary licenses and authorizations for conducting business in Dubai must be obtained before proceeding. These include a copy of the applicant’s passport, residence visa, work permit, and other relevant travel documentation.
Forming a company in Dubai does not require you to hold a commercial license; however, it is recommended that you do, in order to protect yourself, your assets and your company in case something happens to your premises while operations are in progress. Holding a Dubai commercial license is not mandatory; however, it will give your company better recognition in the business world. If you are unable to obtain a Dubai trade license, you can also consider obtaining a Private Port Company, or PDC, which will allow you to trade only in Dubai. On the other hand, if you have an existing business in Dubai and you wish to incorporate it in the emirate, you will have to get a commercial trading license from the Dubai Civil Aviation Authority.
Before starting trading activities in Dubai, you have to make sure that you hold an aed number, or a security certificate, issued by the Dubai aviation industry authority. This documentation proves that your property and equipment are completely safe, and there is no possibility of hijack or accidents during flight. You will also be required to submit an annual return ticket which has to be paid in full.
After obtaining all the necessary documents mentioned above, you have to submit an application for the Dubai free zone visa. The application for the free visa will be checked by the Dubai Department of immigration and if your business poses no risks, you will be given a positive response. Once your application is approved, you will be required to visit the departing office and purchase a passport. Your passport should be photocopied and stored in your personal bag, and any unused passport should be handed over to the nearest embassy.
If your business is to run on non-governmental lines, you may apply for a business visa under the general category or any one of the commercial categories. The Dubai government formalities for this are quite simpler, and a business visa will be granted if your company has at least one employee. If you are trading for another person or a company, you will require sponsorship from a UAE national or a valid investment contract with the Government of Dubai. There are several companies in Dubai, which can help you get the best of service without any government formalities. These companies offer free website development and are specialized in handling all kinds of technical problems associated with domain registration, email marketing, SEO, PPC, mobile apps, and social media.
Finally, one must consider the type of business he/she intends to set up. Before you finalize anything, it is important to keep in mind that an individual who wishes to trade in Dubai may not be permitted to open a traditional trade. However, if one intends to start a business which is purely administrative in nature, he/she can apply for a business license which is referred to as Trade License. A Trade license allows the individual to trade in Dubai in the areas allowed for that type of trade. Once your business is registered with the Dubai Company Registration Office (DCOR), you will be provided with a Trade Seal.
