Dubai is a popular destination in the Middle East for start-ups, investors, freelancers, as well as established companies. It has an amazing business infrastructure that enables companies to effectively advertise their services and products. However, every business owner desires to keep their costs as low as possible, and starting a company without an office space is an ideal way to do that. This provides a lot of flexibility to the business owners. Getting a Trade License in Dubai issued by local economic departments eliminates the need for a physical presence in the UAE.
Trade License in Dubai
A trade license is a legal permit that allows businesses to conduct business activities anywhere in the region. To obtain a trade license in UAE, the business owner needs to follow all the rules and requirements and seek permission from the proper government authorities. These licenses are flexible and allow conducting various business activities, such as buying and selling goods, import and export, storage, manufacturing, and other activities.
Advantages of obtaining a trade license in UAE:-
- Ensures legal business operations within the UAE
- Opens doors to lucrative opportunities and a diverse consumer base in the UAE market
- Enables the opening of a corporate bank account for easier financial transactions.
- Enhances the credibility of business with partners, suppliers, and customers
- Ability to sponsor employees and family and obtain resident visas for them
Trade License in Dubai – Types
There are basically three primary types of business licenses in Dubai. Although many economic jurisdictions in Dubai have more, these are the most common ones:-
1. Commercial license – These licenses are generally issued to businesses that are engaged in buying, selling, and trading goods and services. It allows Dubai-based companies to trade outside the UAE.
2. Professional license – This license is required for individuals and firms who sell their services to other people and companies based on their expertise. Moreover, foreign entrepreneurs and investors can retain full ownership of their companies with a professional license. It covers a wide range of activities, such as –
- Medical Services
- Document Clearing
- Carpentry
- Craftsmanship
- Repair Services
- Printing and Publishing
- Security Services
- Beauty Salons
- Software development services
- Accounting services
- Digital Marketing Services
- Computer Graphic Design
3. Industrial license – This license is issued to businesses that do industrial or factory work. For instance, processing raw materials and natural resources to produce finished products that are ready for export. An industrial license covers the following industrial operations:-
- Food
- Metal
- Textile
- Engineering works
- Petroleum products
- Packaging
Guide to obtaining a trade license in Dubai
Now that more and more entrepreneurs and investors are setting up their business base in Dubai, the government has simplified the business setup procedure. The license acquisition procedure involves the following steps –
1. Choose a jurisdiction – Start off by choosing a jurisdiction in Dubai where you want to set up your company – Mainland, Free Zone, or Offshore.
2. Name the company – Now select a name that resonates with the idea of your business. However, make sure it abides by the guidelines of the UAE authorities. A unique and compliant trade name will help you obtain your trade license in Dubai quickly.
3. Define the legal form of the company – The legal structure you choose for your company must suit your business nature and its liabilities.
4. Determine the comprehensive activities – Choose your business activities wisely to ensure the smooth functioning of your business. Your activities will determine the nature of your business and the type of trade license you will need to operate in Dubai.
5. Seek initial approval – After completing the initial process of company registration and licensing, get preliminary approval from the Department of Economic Development (DED). This approval is necessary to proceed to the further stages of company formation in Dubai.
6. Gather the required documents - Assemble all the required documents and make sure they are duly signed and authenticated by the required authority. The general requirements may include:
- Completed Application Form with all your business details
- Passport Copies of all company owners and shareholders
- Visa Copies of current UAE resident visas
- NOC from the Current Sponsor
- Business Plan outlining your business objectives and operational strategy
- Proof of Initial Approval for business name and activity
- Lease Agreement for your UAE office or commercial space lease
7. Complete the application form – Now fill out the application form with all the requested details and submit it to the relevant licensing authority.
8. Obtain additional approvals – Certain business activities may require additional approval from external authorities or government bodies.
9. Pay the required fees – After submitting the license application and documents, make the necessary payments for the issuance of a trade license in Dubai.
Factors to consider while running a business without a physical space
Entrepreneurs need to consider a few parameters while running a business in Dubai without an office space –
Review the business strategy
Business owners must revise their business plan in order to accommodate flexible work hours and workforce availability and satisfy the business requirement. To achieve this, they need to be aware of the existing market conditions and accordingly create a solid business plan that will assist in the planning of the company's future. Further, the business operations, growth, and diversification of the company will all depend on the initial business strategy.
Alternative workspace
Since the business does not have a physical office space, the owner must choose an alternative workplace to focus on their work and produce fruitful results. They can consider a separate location at home or in any business center. Activities like engineering, consulting, project management, software programming, IT-related business activities, etc. can be operated remotely without an office space as the majority of the work takes place online and via planning software.
Collaborate and work
Networking and collaboration are critical for businesses to manage business operations. It helps in expanding business efficiently. Even without an office, free zone entities can interact and work together to stimulate business growth. Furthermore, the top-notch infrastructure of Dubai assists entrepreneurs in coordinating meetings and conducting corporate networking activities.
Virtual meetings
In this digital era, businesses need to adjust to digital practices to prosper. They can connect with clients online and hire remote personnel. To achieve efficient results, businesses must have proper strategic planning, and a strong understanding of everyday operations, marketing components, and future growth plans.
Investing in the right technology
Businesses operating online must invest in the right technology in order to keep their staff and clients engaged and on the right track. With recent developments in technology, companies from all around the world are now able to collaborate. It minimizes the need to travel to physical office locations thus leading to increased productivity and better profits. Furthermore, various project management and productivity solutions are available to boost the efficiency of the company.
Final Words
Thus, starting a business in Dubai without an office space enables business owners to grow their business venture easily with minimal initial costs and managerial overheads. Opting for cost-effective business establishment packages of Shuraa can make this process simpler for you.
Shuraa Business Setup is one of the best company formation specialists in Dubai offering affordable and valuable business setup services to clients worldwide. Their team of professionals will accelerate the process of company formation in Dubai and provide adequate assistance in obtaining a trade license that too without an office space, thereby saving you time, money, and effort.
Contact Shuraa today and get your trade license in Dubai.
