Professional Trade License
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Securing a professional trade license in the UAE is essential for establishing service-based businesses. This permits legal operation of services like consulting and medical practice. The process involves activity selection, documentation submission, and acquiring a physical office. While local sponsorship might be needed, certain zones allow 100% foreign ownership. This license lends credibility and access to UAE’s thriving market and infrastructure.
Frequently Asked Question
Learn how to choose the right business activity, navigate legal requirements, secure a unique trade name, and more. Unlock opportunities in the UAE market with a legitimate and credible business presence. Explore now!
To obtain a professional trade license in the UAE, follow these steps:
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Choose Business Activity: Determine the specific business activity you wish to engage in. This is crucial as the trade license type depends on your chosen activity.
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Select Company Structure: Decide on your company structure. You can opt for a sole proprietorship, partnership, or limited liability company (LLC), among others.
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Choose a Trade Name: Select a unique trade name that complies with UAE regulations. The name should not violate any religious, cultural, or political sentiments.
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Apply to Relevant Authority: Submit your trade license application to the Department of Economic Development (DED) in the emirate where you plan to operate your business.
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Legal Documentation: Prepare the necessary documents, which may include passport copies, visa copies, NOC from sponsor (if applicable), and tenancy agreement for your business premises.
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Approval and Payment: Await approval from the DED. Upon approval, pay the required fees and obtain the trade license.
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Commercial Space: You’ll need a physical office space for a professional trade license. This could be a commercial office or a rented desk in a business center.
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Local Sponsorship: If you’re not a UAE national, you’ll require a local sponsor (UAE national) for the trade license. They will typically hold 51% ownership in the business unless structured differently through legal agreements.
Having a professional trade license in the UAE offers several benefits:
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Business Legitimacy: A trade license enhances your business’s credibility and legal status, building trust with customers and partners.
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Access to Markets: You can access UAE and international markets, expanding your business’s reach and potential for growth.
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Tax Incentives: Many UAE free zones offer tax incentives, allowing you to enjoy tax exemptions on corporate and personal income, import/export duties, and more.
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100% Repatriation: You can repatriate 100% of your profits and capital back to your home country.
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Infrastructure: The UAE’s advanced infrastructure and strategic location facilitate efficient business operations.
For a professional trade license, having a physical office space is generally mandatory. However, certain free zones in the UAE allow businesses to opt for “flexi-desk” or “virtual office” arrangements, which provide a cost-effective way to meet the office space requirement.
A professional trade license and a commercial trade license differ primarily in the types of activities they cover:
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Professional Trade License: This license is for individuals providing professional services such as consultancy, accounting, legal services, medical services, etc. It does not involve trading in physical goods.
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Commercial Trade License: This license is required for businesses engaged in trading physical goods, such as import/export, wholesale, and retail.
In most cases, non-UAE nationals are required to have a local sponsor (UAE national) holding at least 51% ownership in the business. However, there are specific free zones in the UAE that allow 100% foreign ownership for certain professional activities. It’s important to research and select the appropriate jurisdiction that aligns with your ownership preferences.
Get UAE Professional Trade License!
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