What is Trade License?
Trade License in Dubai: As an entrepreneur, one of the most integral elements of business is getting a trade licence in Sharjah Free Zone. Operating as a business entity can become tumultuous without a trade licence that is appropriate for your business. Company registration in the UAE is among the first steps of establishing a business.
At SPC Free Zone, we understand the importance of Trade License in Dubai, and that’s why we bring Freezone business setup packages that best suit your needs. If you are a businessperson looking forward to establishing a business in Sharjah, read on.
In this blog, we will explore
- Why do you need a trade licence?
- What are the most affordable trade licences?
- Why choose SPC Free Zone?
Why Get a Trade Licence?
A trade license is a legal document that allows an individual or a company to conduct business activities within the United Arab Emirates (UAE). The licence is issued by the Department of Economic Development (DED) and is mandatory for setting up a business in the UAE. Obtaining a trade licence is the first step towards establishing a legal business entity in the country. It is a prerequisite for opening a business bank account, registering for taxes, and obtaining other licences.
The process of obtaining a trade licence in the UAE varies depending on the type of business and the location. Different trade licence s are available, including commercial, industrial and professional licence s, each with specific requirements and fees.
For example, the DED requires the company to have a physical office space for mainland companies, while for free zone companies, a virtual office space is sufficient.
It is important to comply with the regulations set by the DED to operate a business legally and avoid penalties. In addition, it is also important to renew the trade licence annually to maintain the business’s legal status. Failure to obtain a trade licence or renew it on time can result in fines and penalties.
In essence, obtaining a trade licence in the UAE is necessary for establishing a legal business entity in the country. It is important to comply with the regulations set by the DED and renew the licence annually to avoid penalties.
Types of Affordable Trade License
The United Arab Emirates (UAE) has several different types of trade licence s, including:
#1. Commercial licence
This licence is required for businesses involved in trading or commercial activities, such as retail, wholesale, and import/export. The cost and implications for a commercial licence in the UAE can vary depending on the specific location and nature of the business.
The fees for obtaining a commercial licence in the UAE can vary depending on the specific location and nature of the business. For example, in Dubai, UAE, the fees for a commercial licence can range from AED 15,000 to AED 50,000, depending on the type of activity and the office space size.
To obtain a commercial licence in the UAE, businesses must have physical office space. This can be a commercial building or a rented office space.
#2. Industrial licence
This licence is required for businesses involved in manufacturing, production, or assembly. The cost and implications of obtaining an industrial licence in the United Arab Emirates (UAE) will vary depending on the type of industry and location of the business.
Generally, the process involves obtaining approvals and permits from various government agencies, such as the Department of Economic Development (DED) and the Ministry of Economy.
Businesses will typically be required to provide documentation, such as proof of ownership of the industrial land or facility, as well as detailed plans for the construction and operation of the facility. In terms of costs, businesses will typically be required to pay a variety of fees, such as application fees, licensing fees, and fees for inspections and certifications. The cost will also depend on the size of the facility and the type of business.
#3. Professional licence
This licence is required for businesses involved in providing services, such as consulting, engineering, and design. The cost and requirements for obtaining a professional licence in the United Arab Emirates (UAE) vary depending on the profession.
Generally, you will need to have the necessary qualifications and meet any experience requirements for the profession you are seeking to be licenced in. You may also need to pass any relevant exams or tests.
#4. Tourism Licence
This licence is required for businesses involved in the tourism industry, such as hotels, travel agencies, and tour operators. The cost of a tourism licence in the United Arab Emirates (UAE) can vary depending on the type of licence and the specific requirements of the emirate where you are applying for the licence. Some estimates for the cost of a tourism licence in the UAE range from AED 20,000 to AED 100,000, but this may be subject to change and may not include additional fees such as administrative costs or professional service fees.
#5. E-commerce licence
This licence is required for businesses involved in online trading and e-commerce activities. In the United Arab Emirates, e-commerce businesses are required to have a commercial licence and must register with the Department of Economic Development (DED).
The cost of obtaining a commercial licence can vary depending on the type of business and the emirate in which it is located. In general, the cost can range from a few thousand dirhams to tens of thousands of dirhams.
Why choose SPC Free Zone?
At SPC Free Zone, we offer businesses the lucrative opportunity of choosing from a wide array of options. Forms specifying the trade licence type you need to tailor a plan that best meets your business needs, SPC Free Zone is ready to assist you at every step.
Ready to establish your business in the free zone of Sharjah? Get in touch with our customer representatives today!
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