Types of commercial licenses in Dubai . In light of the rapid economic development of the Emirate of Dubai, the types of commercial licenses have become a vital tool for investors and companies wishing to grow and expand in this dynamic market. Dubai is characterized by a wide variety of types of business licenses that meet various business needs and goals, whether for small and medium companies or large international companies.

Itqan Company works to facilitate the process of establishing companies in Dubai and provides the necessary support for investors to make the most of these opportunities. By providing specialized and integrated services, Itqan contributes to accelerating the processes of obtaining commercial licenses and simplifying legal and administrative procedures.

In this introduction, we will shed light on the types of business licenses in Dubai for business licenses in Dubai, which can help investors understand the options available and choose the license that suits their business and business goals in the best possible way.

Types of business licenses available in Dubai

Dubai, as one of the most important economic cities in the world, provides a developed and diverse investment environment that attracts investors from all over the world. The emirate is characterized by a wide variety of types of commercial licenses available, which makes it easier for businessmen to establish and operate their businesses efficiently and at the lowest possible cost. Types of business licenses available in Dubai

Local companies:

• At least 51% of the capital must be owned by UAE nationals.
• Enjoy free access to the local market.

Subsidiary companies:

• They shall be branches of parent companies registered outside Dubai.
• It operates in accordance with special licenses granted by the relevant authorities.

Free companies:

• Provides complete freedom of ownership and operation.
• It is subject to the laws and legislation of the free zone in which it is established.

Sole proprietorships:

• Individuals can establish solo businesses without the need for partners.

Specialized industrial and professional licenses:

• Specialized in operating industrial or professional activities such as medicine, engineering, law, and many other services.

These multiple types of business licenses in Dubai allow investors to choose from options that suit their business objectives and financial terms, enhancing flexibility of business operations and contributing to Dubai’s position as a leading global business hub.

Basic steps to obtain a company license in Dubai

Dubai, as one of the most prominent global cities for business and investment, is characterized by a vibrant and developed investment environment that attracts investors and businessmen from around the world. Obtaining a company license in Dubai is a crucial step to start and operate a business efficiently and effectively, and requires specific procedures to ensure full legal and operational rights. Basic steps to obtain a company license in Dubai

• Determine the type of company: The investor must determine the appropriate company type, such as a local company, subsidiary, free company, or sole proprietorship.
• Choosing and confirming the company name: You must choose a unique and appropriate name for the company, ensure that it complies with local regulations, and be officially registered.
• Preparing the required documents: It is necessary to prepare the required company documents, such as the internal agreement, powers of attorney, and financial statements, as needed.
• Submitting a license application: An application for a license must be submitted to the relevant authorities in Dubai, along with submitting all necessary documents and paying the required fees.
• Compliance with legal and administrative requirements: You must comply with local legal and administrative requirements, and provide all required documents accurately.
• Obtaining the necessary licenses: After the approval of the relevant authorities, the necessary licenses are received to start work and operate the company in Dubai.

In short, obtaining a company license in Dubai includes several basic steps that must be followed carefully, and requires good planning and full compliance with legal and administrative procedures, which contributes to the success and sustainability of business in this dynamic and evolving economic environment.

Business license costs in Dubai

Business license costs in Dubai constitute an important part of the business establishment process, and these costs vary based on the type and size of the business and the location in which the activity is conducted. Business license costs can be divided into three main categories:

Government fees

Government fees include a set of fees imposed by various government agencies as part of the commercial license issuance process. These fees include the following:

1. Commercial registration fees: These are fees paid when the company is registered for the first time in the commercial registry, and its value varies according to the type of business activity and the size of the company.
2. License issuance fees: These are fees paid when issuing a commercial license, and their value varies based on the type of license required (commercial, professional, industrial) as well as the validity period of the license.
3. License renewal fees: These fees are paid when renewing a commercial license after its expiration, and its value depends on the same factors that determine the initial issuance fees.

Additional costs

In addition to government fees, there are some additional costs that the employer may incur, including:

1. Insurance costs: Some businesses require special insurance to protect the business from potential risks.
2. Legal consulting costs: Companies may need legal consulting services to complete the procedures for obtaining a license and ensure compliance with local laws and regulations.
3. Office or store preparation costs: These include the costs of preparing the place where the business activity will be carried out, such as renting the office, and purchasing the necessary furniture and equipment.

payment methods

Government agencies in Dubai are seeking to facilitate payment procedures to be more flexible and easy for business owners. There are several ways to pay for a commercial license, including:

1. Electronic payment: Business owners can pay government fees and additional costs via approved electronic payment gateways, saving time and effort.
2. Cash payment: Payment can be made in cash at the offices of government agencies concerned with issuing commercial licenses.
3. Payment via bank checks: Bank checks are also accepted as a method of payment for the business license.

It is important for potential business owners in Dubai to be fully aware of the costs of obtaining a business license and to keep these costs in mind when preparing their financial plans. Understanding these costs and managing them properly contributes to establishing a successful and sustainable business in Dubai.

Legal and administrative requirements for establishing a company in a free zone in Dubai

Dubai’s Freedom Zones are an ideal haven for investors seeking to build their businesses in a stimulating environment free from some of the typical restrictions imposed on businesses elsewhere. These areas offer unique and diverse opportunities for companies that want to take advantage of tax exemptions and flexible legislation, making them a preferred location for business in the UAE. Legal and administrative requirements for establishing a company in a free zone in Dubai

• Choosing a company type: The investor must select the appropriate company type, such as a limited liability company, a partnership, or a sole proprietorship, according to the planned business activities.
• Preparing the required documents: These documents include a copy of the passport for shareholders and managers, a detailed business plan, the partners’ agreement if any, and other financial and administrative documents.
• Submitting an application: An official application must be submitted to the competent authorities in the free zone, accompanied by all required documents and payment of the specified financial fees.
• Compliance with local conditions: Establishing companies in the free zone requires compliance with local conditions and regulations, including labor laws, taxes, and environmental regulations as needed.
• Obtaining licenses and approvals: After the application is approved, the necessary licenses to start work are granted, including commercial and professional licenses for the chosen activity.
• Securing a workplace: The company must secure a location for its headquarters within the free zone, and ensure that it complies with local legal and administrative requirements.

By adhering to legal and administrative requirements, companies can take full advantage of the competitive advantages of Dubai’s free zones, contributing to achieving success and sustainable growth in the local and regional market.

Differences between local companies and subsidiaries in Dubai

Dubai, as one of the most prominent economic centers in the world, is a preferred destination for international investors seeking to establish and operate their businesses in a favorable legislative and economic environment. Dubai offers many opportunities for businesses to choose from different types of legal structures, including local companies and subsidiaries, each with its own unique features and uses. Differences between local companies and subsidiaries in Dubai

• Local companies:
• Ownership: At least 51% of the capital must be owned by UAE nationals.
  Legal Guidance: Fully subject to local legislation, requiring compliance with local laws and regulations.
  Target Market: Usually targeting the local market within Dubai and the UAE.
  Subsidiary companies:
• Ownership: Branches of a parent company registered outside Dubai.
  Legal Guidelines: Follows the legislation of the parent company’s home country, but also requires compliance with local laws in Dubai.
• Target Market: Typically seeks to exploit international and regional opportunities, in addition to the local market.
  Conclusion

Dubai allows investors to choose the most appropriate legal structure for their business, whether it is local companies that provide stability in the local market, or subsidiaries that provide access to international markets or better deal with global clients. By understanding the differences between these two types of companies, investors can make an informed strategic decision that suits their business goals and the legal laws in Dubai and the UAE in general.

Learn about the types of business licenses in Dubai

In conclusion, it can be said that the diversity of types of commercial licenses in Dubai reflects the emirate’s commitment to providing a suitable investment environment that allows companies to achieve maximum success and sustainability. Thanks to continued government support and modern legislation, Dubai provides investors with broad opportunities to choose from different types of commercial licenses , such as local and subsidiary companies, free companies and individual institutions, in addition to specialized industrial and professional licenses.

Itqan Company stands out as a strategic partner that supports investors and businessmen in the stages of establishing and developing their businesses in Dubai, by providing integrated services that include business consulting, assistance in determining the most appropriate licenses, and completing all legal and administrative procedures with high efficiency. Thus, Itqan and Dubai together contribute to building a dynamic and prosperous business community that contributes to the growth of the local economy and enhances its position as a preferred destination for investment in the region and across the world.

Frequently asked questions about types of business licenses in Dubai