The UAE (United Arab Emirates) is a Federation of 7 States, known as Emirates; Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah. The capital of UAE is Abu Dhabi.
UAE established on 2nd December, 1971, at the Southeastern end of UAE, Arabian Gulf. , bordered by Saudi Arabia to the west and Oman to the north and south-east.
Islam is the official religion and UAE is known for its religious tolerance.
Although English is widely spoken, Arabic is the official language, , followed by Hindi and Urdu.
The UAE possesses the fifth largest oil reserves in the world.
- Has the highest per capita income in the world
- No foreign exchange control, quotas or trade barriers
- Import duty is only 5% with exemptions
- 100% repartition of profits and capital
- Globalized business community and regional Hub for major MNCs
- No Income tax, Corporate tax and Withholding tax
- Modern Infrastructure facilities
- Mixed population and work force from all over the world (150+ countries)
- Stable currency (USD is pegged with local currency -1USD=3.66 Dirhams)
- Presence of biggest airports and seaports in the world
- Cosmopolitan culture
- Presence E-Governance system
- State-of-the-art telecommunications
- Sophisticated financial and services sector
- Top international exhibition and conference venue.
Types of trade license
All business activities in UAE can be categorized into is one of the following types of licenses.
- Commercial licenses including all kinds of trading activities
- Professional licenses professions, services, craftsmen and artisans
- Industrial licenses for establishing industrial or manufacturing activities
The Authorities also issue some special licenses, subject to certain criteria, such as Business Operation Permit, Entrepreneurial Business License etc.
Useful tips for business owners
- Currently, capital is not mandatory for a Dubai mainland (DED) license.
- Free zone license would be issued with hired free zone office space mainland businesses can be undertaken from any economic business center.
- Free zone business license and visa costs are comparatively lower, but law insists you to work within free zones and international regions only; with mainland (DED) license, you can operate business locally as well as internationally.
- The long-term free zone benefits and services are more favorable for large international Companies than a small business unit owner
- In general, there are no income taxes and if you are planning to start professional practice, you can own the company 100%.
What are the requirements for obtaining a trade license?
While planning your business in UAE, it is worth to pursue the following legal requirements applicable to all concerned government authorities in order to guarantee maximum commercial benefit for the business owner
- Designate the business category commercial, industrial and/or professional
- Determine all the related business activities within each business license (Maximum 10 per license)
- Plan your business legal status in UAE
- appropriate trading name
- Submit application to the Department for initial approval
- Register a trade name after receiving initial approval (option available to reserve trade name)
- Lease business premises and obtain approval from the Authority.
- Prepare all relevant documents such as memorandum of association and approvals from other relevant government authorities
- Submit further application to the department to obtain the final license
- Pay the required fees.
Renewal of trade license
One can conduct business in UAE with a valid trade license. HLB Hamt offers complete assistance in renewing the trade license. We could promptly remind when the license is due for renewal.
At HLB Hamt, Clients get the combination of our deep in-depth local knowledge and extensive experience, which enable us the ability to precisely understand the unique needs of your business. We are thus able to recommend the best possible options and ensure that your business set up is with minimal hassles and effort.