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It is truly exciting to set up new business in the UAE but it starts with getting all the right business licenses to begin with. Be that trading, service, or manufacturing business, it indeed requires the right setup of license for a new venture that you plan to undertake. Seamless license setup saves time, reduces worry, and avoids costly mistakes. Therefore, here are the most important tips to have seamless new license setup in UAE.
Understand the Different Types of Business Licenses
The UAE offers several types of business licenses depending on your activities. The main categories are:
Commercial License: For businesses involved in trading and general commerce.
Professional License: For service-based businesses like consultancy, legal services, and accounting.
Industrial License: For companies engaged in manufacturing or industrial activities.
Select the appropriate business jurisdiction
The UAE has three main jurisdictions for business setup:
Mainland: For businesses that want to trade in the UAE market. It involves a local sponsor who has 51% ownership unless you qualify for full foreign ownership under recent reforms.
Free Zones: Suitable for 100% foreign ownership and tax advantages. Each free zone has specific regulations and is tailored to certain industries.
Offshore: Suitable for firms that operate internationally and have a need for asset protection.
Documents Preparation
The right set of documents ensures the expeditious processing of licensing. These may include:
Passport copies of the owners and partners
Business plan or feasibility study
Trade name reservation certificate
Memorandum of Association (MOA)
Lease agreement for office space
Business Activity Selection
The UAE government categorizes business activities into specific codes. There are specific codes for all the relevant activities of your business. Selection of wrong or partial activities may result in delaying the process or even rejection of license. DED may also be approached for help to identify the correct business activities.
Register Unique Trade Name
The name of your business has to be in compliance with UAE regulations. It must:
Unique and not identical to existing company names
Free from any offensive or religious references
Reflective of your business activities
Decide on Your Business Structure
The legal structure of your business affects your licensing process. Common structures include:
Sole Proprietorship: Suitable for individual ownership.
Limited Liability Company (LLC): Ideal for partnerships and limited liability protection.
Branch Office: For foreign companies expanding into the UAE.
Leverage PRO Services for Efficiency
Public Relations Officer services make dealing with government officials very hassle-free. From document to visa processing, PRO services may handle all the administrative red tape involved in getting a new license in UAE set up. Free Bird Business Consultants provide professional PRO services, ensuring your licensing procedure hassle-free and smooth.
Prepare for License Fees and Cost for Related Expenses
A hassle-free set-up process involves preparing and knowing the costs of your new license. These would range from:
Registration fees
Trade license fees
Office rental charges
Visa fees for employees and dependents
Keep Informed of UAE Laws
The business laws and regulations in the UAE are periodically updated. It is imperative to be abreast with the latest legal requirements that your license setup will not violate the existing rules. You can use professional consultants to keep abreast of the changes.
Consult Professionals
The licensing process can be quite complicated in UAE, especially for first-time entrepreneurs. Experts like Free Bird Business Consultants can make everything much easier. From a license to the right documentation process and liaison with the appropriate authorities, professional guidance means avoiding errors and making it efficient enough.
Final Thoughts
A new license setup in the UAE can be less strenuous. For this, know the types of licenses, so you should choose the jurisdiction that seems right for the business, gather all the important documentation for the process and seek professional aid. Free Bird Business Consultants here to guide one through step by step; your business thus gets off at a strong start.
Ready to launch your business in the UAE? Let Free Bird handle the complexities so you can focus on success!