The Dubai Trade License is a must-have for businessmen planning to set up a business in Dubai. The trade license issued by Dubai Trade and Economic Development (DTED) allows a foreign individual or firm to operate a trading and investment firm in Dubai. This gives you an easier time for establishing your business in Dubai. But before getting the trade license you should be aware of the various rules and regulations imposed on foreign traders. This will help you avoid any illegal or undesirable activities.
The general trade permit is generally issued within 5 working days from application. The Dubai Ministry of Commerce and Industry (MOICI) issues all the required documents to the necessary authorities of the Ministry. Another advantage of the Dubai commercial license is that it allows the establishment of numerous private businesses in Dubai. Simply put, foreign businessmen interested in setting up personal firms in Dubai may obtain a Dubai trade license for that purpose.
When a person applies for a Dubai trade license, he has to submit three important documents. These documents are the original copy of the letter of appointment, the proposed contracts, and the business plan of the proposed firm. A letter of appointment is issued to the applicant by the concerned government authority. The letter of appointment serves as proof that the person has been invited for an interview for a particular position in the concerned company. Besides, a copy of the letter of appointment is issued to the foreign investors before they start a company formation in Dubai.
As soon as the applicant receives his Dubai trade licenses, he has to take care of several issues. One of the most important issues to be taken care of is regarding the details of his company registration. Companies in Dubai do not need to have their own trademark or logo. They can simply use the trademark of their originating country or the name of their native country.
Holding companies are not allowed to engage in direct business activity. This is one of the requirements imposed by the Dubai government on foreign businessmen. The business activity can only be conducted through subsidiary companies. In addition to that, a foreign national who plans to open a business in Dubai must follow all the rules and regulations of the emirate.
It must be ensured that all the necessary documents are in place and that the business activities carried out by the firm will comply with all the legal requirements of Dubai laws. If a company is not able to comply with the legal requirement of holding a business license in Dubai, the owner could end up having his legal status suspended. Moreover, a foreign national who obtained a Dubai business license may not carry out any of his company's business transactions if he wishes to leave the country for a specified number of years. Such a decision cannot be made unless the person has obtained a new passport and applied for a visa.
Once a person has obtained his setting up a business in Dubai, it is necessary to get registered and start conducting business. This usually requires a tenancy contract. This agreement between the entrepreneur and the sponsor will specify the responsibilities of each party. Usually, the investor will pay a fee called an exit fee that will be taken by the sponsor after the successful completion of the business activities.
One of the requirements is the submission of an application for a Trade License. The necessary documents to be presented in this application include a business plan or operating agreement, a register of the company name, its shares, the Memorandum, and the Articles of Association. When all these documents are submitted to the Dubai authorities, they will verify the legality and the genuineness of the proposed company. They will also review the performance of the proposed firm and look into the previous business activities of the firm. After this, they will issue a license to the firm.