The company incorporation and related service in the UAE are gaining high momentum with more and more company registration set up every year. The UAE’s government is actively implementing businessmen-friendly policies such as Long Term Residency Visa, reducing specific business setup fees, etc. The UAE aims to boost its economy to greater heights by attracting more companies to join the UAE market and supplying business setups with world-class infrastructure.
Free Zones, Mainland and Offshore Company in the UAE
- The Free Zones, Mainland, and Offshore company give investors a whole host of options to choose from in UAE for the growth of the business.
- Based on the nature of your company, selected business activities, and target market. You can choose in which business jurisdiction in the UAE you want to establish your dream company.
- There is a range of business practices to choose from, whether you are establishing your company in three business jurisdictions.
- The justification behind selecting the right business jurisdiction depends primarily on whether you focus only on foreign markets or consider UAE and other GCC markets for your business.
- In the case of registering the Mainland Company, a local sponsor (51% of the shares) and international individuals (49% of the shares) required to start the corporation and operational processes in the UAE.
- There are various advantages, such as working on the local market, applying for government contracts, establishing up your company anywhere in the UAE, no cap on employee visa quotas, the setup of a limited liability company, etc.
- Whereas in the case of free zones, you get advantages like 100 percent foreign ownership, 100 percent tax repatriation, exemption from customs duty, world-class infrastructure, simple business creation, etc.
What Is a Business License?
Procuring a business license is a vital step in setting up a company in the UAE. Unless the management does not have the necessary permits, the company may be faced with extra fees, operating limitations, etc. fines and will eventually have to shut down the company.
A business license is a permit or permission document that enables the corporation or person to perform a specified business. The factor-based permits are the organization’s size, and the operation conducted the jurisdiction under which the enterprise is built and various other factors.
Types of Licenses Required to Apply for the Company Incorporation in the UAE
The selection of the right business license is of extreme significance and is one of the first steps in the UAE company forming process. Business operations in the UAE are divided into four main business licenses.
The following are the essentials type of Business License authorized in the UAE:
- The commercial license is issued at UAE for companies involved in the purchase and sale of goods. The Dubai Commercial License allows businesses to trade in the UAE, as well as outside the UAE.
- There are various forms of Commercial License for particular business activities in UAE.
- There are different categories of business licenses and business operations registered in the UAE for the different trade-in products such as computers, vehicles, machinery, and building materials.
- The investor must pick a particular Dubai Business License when registering the business with the respective free zones, on the mainland, or offshore.
- Any person or business involved in using the individuals' intellectual abilities is required to obtain a Professional License to conduct their services in Dubai and the rest of the UAE.
- The Dubai Professional License provides advisory, audit, and legal services. IT service providers, technicians, craftsmen, and artisans, etc., may also apply for the UAE Professional License.
Industrial License is granted for companies engaged in the mining and manufacturing activities in Dubai and UAE. To give an Industrial License, the company must have a permanent office in the UAE.
- Freelancing has gained attention in the UAE already. Dubai, Abu Dhabi, Ras Al Khaimah, and Fujairah Free Zones provide individuals with Freelance permits.
- These permits concentrate on skilled individuals in the media, technology, fashion, and entertainment industry to provide their expertise on a consultant basis and full-time employment.
- The Dubai Media City, Dubai Knowledge Park, Dubai Internet City, etc., are currently offering citizens a free license.
Business License Issuing Authorities in the UAE
- The Dubai Department of Economic Development (DED) is the government entity that grants business licenses to Mainland companies.
- It is the specific Free Zone Authority which issues the business license when it comes to free zones. The same goes for the forms of an offshore company too.
- The businessmen are associated with a variety of important decisions when beginning a new company. The first is which business practice you will be trading.
- It applies to the industry in which you are dealing and the types of market practices that you wish to pursue.
- Choosing business activity can be very confusing since there are more than 3000 authorized activities to choose from in the UAE as per DED and the UAE free zone authorities.
- Dubai continues to draw more and more international investors, owing to the excellent facilities and services available.
- When you're looking to start entering the UAE and the world market by opening your company in Dubai, the most sought after is the Free Zone company licenses.
- Free Zones Company Licenses are popular with investors because of their ease of company forming, a wide range of business activities, and a host of business benefits.
There are several ways we can make the process of license acquisition simple for you. Also, to provide you advice on which type of license to pursue your business, we are doing all the paperwork to issue the permit. Since we have been in this sector for many years, we are well aware of the laws, regulations, and deadlines of and jurisdiction, and therefore guarantee our client’s error-free paperwork. We've trained individuals who are liaising with government agencies to address flaws in the licensing process.
Most of these include several visits to government offices. We periodically conduct the trips to ensure that things are finished on time. Eventually, when you have to be present for the inspection and signing of documents before the authorities, we will take you to the departments concerned.
Commitbiz is a management consulting firm that will help you integrate the business and assist you in various other services that a company may need in the future, such as intellectual property services or tax filings. Contact us for more detail; we’ll be happy to help.