Due to the various advantages offered in UAE free zones, many investors are keen on setting up a business in a free zone jurisdiction. More importantly, business setup in a free zone also comes with a combined urban ecosystem that empowers businesses to develop at a substantial rate. Dubai South Free Zone is a hotspot for events and collaboration, which investors can take advantage of. Setting up a company in a free zone, also known as economic zone, offers opportunities in different business sectors and activities, including logistics, exhibition, commerce, real estate, and many more. But, to set up a business in Dubai South Free Zone, one needs to have a valid license. There is a variety of licenses offered by Dubai South Free Zone. They are:
1. Commercial License
Having this type of license allows a company to engage in trading activities, or buying & selling of goods. If you choose a business operation that is classified under commercial activity, you have to obtain a commercial license. To apply for a commercial license in Dubai, one must fulfil all the rules, regulations and procedures duly mentioned, as well as designate the type of activity the company intends to carry out, and submit it to the free zone authorities.
2. Service License
This type of license is issued to the service providers, mostly professionals who convert their passion/hobby into a full-time business. Rendering services and utilizing goods to provide the same is the primary objective of having a service license in Dubai South Free Zone. There are relevant services mentioned in the license, and the holder of the license is authorized to carry out those services within the free zone.
3. Industrial License
Manufacturing & industrial activities are included in this type of license. This license allows import of raw material, and the manufacture, processing, assembly, packaging and exportation of the finished product. Companies that convert natural resources or alter raw materials and turn them into a finished product are suitable for obtaining this type of license.
4. Freelance License
This is also a type of service license, as freelance essentially means providing services to different companies on a particular assignment. A freelancer is then identified as a sole practitioner, and free to to conduct a business in his/her birth name as opposed to the brand name.
5. Holding License
If an expat has a holding company or wishes to have one, he/she needs to have a holding license. Having a holding company allows one to hold standalone assets and/or stakes in other companies. One would require a holding company for the purpose of controlling other companies, property such as real estate, patents, trademarks, stock, and other assets.
6. Education License
An investor wishing to start an educational institution should have an education license. By holding this license, an investor can open schools, colleges for students. Other than this, educational consultancy services, educational and training institutes or social service company that want to register in Dubai South Free Zone should obtain an education license.
7. Teacher’s License
Having a teaching license is mandatory for getting a professional teaching position in Dubai. Knowledge and Human Development Authority launched the and Leadership Standards (TELS) and pilot project in September 2016 with 227 teachers, and 15 schools were assessed as a part of this project.
8. Entrepreneurial Business License
Also known as EBL, this license is designed especially for entrepreneurs and their business, providing an array of support resources and services. Depending on the free zone, it may have personal restrictions as to who may obtain it.
9. Trading License
Another type of license issued for import, export and distribution business is the trading license. Obtaining a general trading license is an easy process once you follow the procedure mentioned by the authorities. This license can also be applied for the sale of products within the UAE market through a local distributor.
Obtaining license can be hassle-free if there is someone to guide an individual through the process. Appointing a consultancy firm to perform these activities is preferable. If you wish to obtain any of the aforementioned licenses or want to set up a business in the UAE, we at Commitbiz have our team of experts to help you with company formation, registration, and counseling. If you want to avail this service, do contact us, even if it’s just for a friendly advice.