Open a business license in Dubai

In Dubai, the process of obtaining and opening a business license in Dubai has a strong reputation thanks to the vibrant and developed economic environment that the emirate offers. Dubai is considered one of the most prominent global centers for business and investment, attracting international companies and investors thanks to its advanced infrastructure, open legislative policies, and simple bureaucratic procedures.

The process of obtaining a commercial license in Dubai begins with specific and organized steps aimed at facilitating entry into markets and starting businesses effectively. It requires the investor to choose the right type of business activity, whether it is services, manufacturing, trade, or technological innovation. After that, the legal type of the company is determined and the appropriate business location is determined, with the need to submit the required documents such as the business plan, passport, lease contract, or proof of site ownership.

Thanks to open investment policies and government facilities, investors are able to establish their businesses quickly and easily, which enhances economic activity and contributes to Dubai’s position as a global business destination. This process reflects Dubai’s commitment to promoting innovation and economic sustainability, and providing growth opportunities for both local and international investors.

Advantages of opening a commercial license in Dubai

Opening a business license in Dubai has a number of advantages that make it an ideal choice for entrepreneurs and investors, both local and global. Here are some of these features:

Advanced infrastructure: Dubai has a world-class advanced infrastructure, allowing companies to access the latest technologies and modern logistics infrastructure, which enhances the efficiency of business operations.

Adequate investment policies: Dubai has appropriate and flexible investment policies towards investors, which encourages the establishment and expansion of businesses easily and conveniently, in addition to reducing bureaucracy and facilitating administrative procedures.

Advanced and transparent business laws: The legal system in Dubai is characterized by transparency and objectivity, ensuring the protection of rights and compliance with international laws, and facilitating understanding of the rules and regulations that regulate businesses.

Distinctive strategic location: Dubai is strategically located at the intersection between East and West, which facilitates access to various markets in the Middle East, Asia and Africa, and enhances opportunities for international trade and economic growth.

A vibrant business environment: Dubai is characterized by a vibrant and diverse business environment, where global and local companies can interact and innovate, and benefit from exchanging ideas and experiences with a variety of economic sectors.

Facilities for immigration and residency: Dubai’s residency system provides facilities for foreign investors and employees, making it easy for immigrant employees and their families to settle and work in the emirate.

Costs of opening a business license in Dubai

Opening a business license in Dubai requires certain costs that vary based on several factors, including the type of business activity and the legal structure of the company, along with the required administrative and legal procedures. Dubai is one of the emerging global markets that offers great business opportunities, but new investors should be aware of the costs associated with starting a business there. Here are the basic costs for opening a business license in Dubai :
Licensing and registration fees: The process of opening a license requires paying licensing and registration fees, which vary according to the type of activity and the legal structure of the company. These fees can range from several thousand to tens of thousands of UAE dirhams.

Rental and location costs: The investor must provide a suitable place to conduct the business, whether it is an office, shop or industrial space. Rental costs vary depending on location, size and region, and these costs can make up a significant portion of the overall costs.

Labor hire costs and wages: Businesses must pay wages to employees and hired labor. Wage costs vary depending on the type of work, level of experience and job role.

Administrative and operational expenses: These costs include daily expenses such as office costs, electricity, water, communications, maintenance, health insurance and social insurance.

Taxes and government fees: These costs include value added tax (VAT) if applicable to the business, and other government fees that may involve filing periodically or annually.

Laws for opening a business license in Dubai

Opening a business license in Dubai requires compliance with a set of laws and regulations that regulate business activities and protect the rights of investors. Here are some key points of these laws:

Commercial and Corporate Law: Dubai commercial law defines the corporate structures available, such as sole proprietorship, limited liability company, and other partnerships. The law requires that all companies be registered and comply with local laws.

Licenses and Permits: The licenses and permits required vary depending on the type of business. Investors must obtain the necessary approvals from the relevant government authorities such as the Department of Economic Development in Dubai.

Tax Legislation: Value Added Tax (VAT) in Dubai applies to some business activities and services, and companies must ensure full compliance with tax legislation.

Intellectual Property Rights: Dubai provides protection for the intellectual property rights of companies and individuals, and requires companies to respect the intellectual property rights of others and refrain from infringements.

Legal protection and contracts: Companies must enter into appropriate contracts with customers, suppliers and business partners, clearly defining obligations and rights.

Labor and Employment Policies: Dubai regulates the labor market with laws that protect the rights of workers and employees, and determine working conditions, legal wages, minimum wages, and contract terms.

Permits and licenses to open a business license in Dubai

In Dubai, investors wishing to open a business license must obtain several permits and licenses depending on the type of business chosen. These permits and licenses vary depending on the nature of the activity and location, and it requires dealing with the competent government authorities to obtain them in a comprehensive and organized manner. Here are some key points about basic permits and licenses:

Commercial activity permit: The investor must determine the type of commercial activity he wishes to practice and obtain prior permission from the competent authority. The type of permit is determined based on the activity, such as general trade, professional services, industry, e-commerce, and others.

Building and Use Permit: If the company must use an office or building for commercial purposes, a building and use permit must be obtained from the Department of Urban Planning and Development.

Health and safety licenses: Some commercial activities require special licenses related to health and safety, such as restaurants, medical and industrial facilities.

Environment and industry licenses: Some industrial sectors and factories may require obtaining environment and industry licenses from competent bodies to comply with environmental and health standards.

E-commerce licenses: If the company works in the field of e-commerce, it must comply with e-commerce legislation and obtain the required licenses.

Media and advertising licenses: Some commercial activities involving advertising and media may require obtaining special licenses from the media and communications authorities in Dubai.

Steps to open a commercial license in Dubai

Opening a business license in Dubai requires taking a number of specific steps, which include the following administrative and legal procedures:

Determine the type of business activity: The investor must determine the type of business activity he wishes to practice, whether it is general trade, professional services, industry, or other.

Choosing the legal structure of the company: The investor must choose the appropriate legal structure of the company, such as a sole proprietorship, limited liability company, or joint stock company, according to the needs of the business and future expectations.

Company name registration: The investor must register the company name with the Dubai Economic Development Department (DED), and the name must be compatible with local regulations and legislation.

Submitting the required documents: The necessary documents must be submitted to the Department of Economic Development, such as the business plan, passport, lease contract or proof of site ownership, and any other documents related to the business activity.

Obtaining the necessary approvals: After submitting the documents, you must wait to obtain the necessary approvals from the competent authorities such as the Department of Economic Development and other government agencies if necessary.

Providing the necessary capital: Opening a business license may require providing the necessary capital to start the business, and capital requirements can vary depending on the type of activity and the legal structure of the company.

Completing the legal procedures: The investor must complete all legal procedures necessary to establish the company, including signing the necessary contracts and ensuring compliance with local laws.

Issuance of licenses and permits: After all conditions and approvals are met, the necessary business license and permits are issued, allowing the company to begin practicing its business activity legally.

Conditions for opening a commercial license in Dubai

Opening a business license in Dubai requires compliance with several basic conditions that ensure the safety of the business and its compliance with local laws and regulations. Here are the main conditions for opening a business license in Dubai:

Type of business activity: The type of business activity that the investor wishes to practice must be determined. The type of activity varies when it comes to general trade, professional services, manufacturing, or other, and it requires choosing the appropriate activity to achieve future goals.

Legal structure of the company: The appropriate legal structure for the company must be chosen, such as a sole proprietorship, limited liability company, or joint stock company. The choice of structure depends on several factors including financial, administrative and tax responsibility.

Government approvals: The necessary approvals must be obtained from the relevant government authorities, such as the Dubai Economic Development Department (DED) and other entities that may be related to the company’s activity. These approvals include building and use permits and other necessary licenses.

Necessary capital: The necessary capital must be provided to legally start the business. Capital requirements vary according to the type of activity and the legal structure of the company, and the availability of this capital must be ensured before submitting the application.

Alternative location: A suitable location must be provided to conduct the business activity, whether it is an office, a commercial store, or an industrial space. The site must comply with local environmental, planning and logical requirements.

Required Documents: The necessary documents must be submitted to the Department of Economic Development, such as the business plan, passport, lease contract or proof of site ownership, and any other documents related to the business activity and submitted correctly and completely.

Necessary insurances: Some commercial activities may require additional insurances as a condition for obtaining a commercial license, such as civil liability insurance or health and labor insurances.

Our company’s role in opening a commercial license in Dubai

Opening a commercial license in Dubai in cooperation with Itqan Company represents an important strategic step for investors seeking to start their business in the Emirate of Dubai in a legal and organized manner. Itqan Company is a reliable partner specialized in providing the necessary support and guidance to investors during the process of obtaining a commercial license, which contributes to effectively simplifying and accelerating procedures.

In cooperation with Itqan Company, investors can benefit from its experience in the legal and administrative field, which enables them to make the right decisions regarding the type of business activity and the legal structure of the company. The company also helps in collecting and submitting the necessary documents to the relevant government agencies, and obtaining the necessary approvals in a smooth and effective manner.

After completing all procedures and ensuring compliance with all conditions, the company obtains its commercial license, allowing it to begin practicing its business activity confidently, legally and regulated in Dubai, which in turn opens the door to success and growth in the local and global market.

Therefore, cooperation with Itqan Company represents a crucial strategic step for investors seeking to stabilize and expand their businesses in Dubai, and this cooperation enhances opportunities to achieve business goals successfully and effectively in the growing UAE market.

Frequently asked questions about opening a business license in Dubai