Trading License in UAE

UAE is one of the best countries for starting a business establishment. Many entrepreneurs choose Dubai, UAE as there are a lot of emerging business opportunities in the region. This article highlights the steps and process involved in Opening a Subsidiary Company in Dubai. Entrepreneurs already having a business in their home country who wish to move to Dubai and start a business entity in the region have many options to look forward to. Depending on their business requirements they can choose the right company structure. The low taxation, the improved business infrastructure, ease of doing business, reduced documentation, complete company ownership, top-class banking support, and more are few reasons why Dubai, UAE remains the top choice for business owners. Starting a Subsidiary Company in UAE Dubai is the perfect choice for Opening a Subsidiary Company for foreign investors. Opening a subsidiary is a strategic way of establishing a presence in a new market and expanding the business network easily. Registering a subsidiary in Dubai is relatively easy with a few additional attestations from the embassy and the Ministry of Foreign Affairs due to the compliance and laws. Else, the process is very straightforward and the investor can operate their branch in UAE as an independent entity driving business and contributing to the economy of UAE. Advantages of Establishing a Subsidiary Company in Dubai There are many advantages in establishing a Subsidiary Company in Dubai. Dubai offers the perfect infrastructure, economy, and governance. The business owner will have many benefits from being in Dubai. However, there are few attestation requirements and documentation to issue the trade license for the subsidiary company. Opening a Subsidiary in Dubai is lucrative to the business owner in many ways. Few of the benefits are as follows Full ownership of the company in Mainland or Free Trade Zone in the UAE Improved lifestyle, business infrastructure, and skilled labor, and more Favorable tax structure, cost effective company setup, ease of documentation Faster processing times, easy document attestation and approvals Ability to easily expand to newer markets Ability to take office space and get a bank account in UAE & more. So, there are many benefits in setting up a Subsidiary in Dubai for the business owners. They can easily expand their business to new geographies by making Dubai their base. Also, the ease of doing business in Dubai is an add-on for faster document clearance and obtaining the trade license for the company. Types of Subsidiary Companies in Dubai Subsidiary Company in Dubai is established either as a foreign company’s subsidiary or as a subsidiary of a local mainland company. There are two major business jurisdictions where foreign investors can start a subsidiary company in UAE. It is the Mainland and the Free Zone. The cost of setting up a subsidiary company in Dubai depends on varying business requirements. However, the trade license and a virtual office setup for the first year will cost approx. AED 28,000 for a services company. Also, a subsidiary can be set up with a general trading activity with a physical office. However, the cost of setting up the subsidiary company in Dubai will be significantly high for general trading with office type of business. By registering a Subsidiary company in UAE, the company can hire employees locally. It can also conduct trade operations in the region and abroad. In fact, the process of setting up a subsidiary is almost similar across the business jurisdictions as below. 1. Opening a Subsidiary in the Mainland of UAE In the mainland of UAE, the foreign company branch is set up as a new Limited Liability Company (LLC). If the foreign company wants to extensively expand in the UAE market, starting it as a new LLC Company is the ideal option for enhanced flexibility. Setting up a Foreign Company Subsidiary as an LLC Following are the steps for setting up a foreign company subsidiary as a Limited Liability Company in Dubai. Get the Parent Company Documents and the board resolution calling upon establishing a Subsidiary Company in UAE attested by the UAE Embassy in the home country. Get the Aforesaid attested Parent Company Documents Counter-Attested by the Ministry of Foreign Affairs Submit the Attested Company Documents and Board Resolution of the Parent Company to the Licensing Authority to start the subsidiary company’s incorporation process Reserve a company name and choose the business activities for your subsidiary company in uae Apply for the registration to the Department of Economic Development and submit the documents of the shareholders Make the required payment for obtaining the trade license Get the Memorandum of Association from the DED along with the Trade license Register the company with the Chamber of Commerce of the respective Emirate Open a Corporate Bank Account in UAE Apply for an establishment card for the company for applying visas for employees Benefits of Setting Up a Subsidiary in UAE Mainland Opening a subsidiary as a Limited Liability Company is beneficial for the parent company as they will not have to incur any liability. As a result, the subsidiary can act as an individual entity driving business in UAE. An LLC Company in UAE will have more flexibility such as hiring new employees, expanding the business by adding more office spaces, taking a warehouse, opening retail outlets, and more. Thus, being in the mainland of UAE the company can easily expand in the local market. It can as well as focus on the rest of GCC by building a robust distribution network in the region. 2. Opening a Subsidiary in the Free Zones of UAE Setting up a subsidiary company in UAE is beneficial for the investor as it is a global business center. Furthermore, UAE has a robust business networking setup for investors to easily grow their business. The Free Zones form a vital role in the business ecosystem of the UAE. Hence, most foreign investors prefer setting up their business in the Free Zones due to the ample business benefits and tax savings.

Branch Office in Dubai is a popular business structure entrepreneurs from abroad prefer when they are looking to expand to the UAE. This article highlights the steps in setting up a branch office in the UAE. Often entrepreneurs are doubtful about ways to expand their business to the UAE. Opening a Branch Office of their company overseas is the most direct way for the business owner to maintain the ownership intact. Branch Office in Dubai So, a Branch Office is a fully own entity of the parent company but functionally it has its own characteristics. A Branch Office in Dubai, UAE can indulge in local business operations in the region. Additionally, through the branch office, the parent company can bring in their products and services to Dubai, UAE. They can hire employees in UAE, appoint a director or Managing Director to oversee the international operations by making Dubai the base. Moreover, a branch company in Dubai will enjoy all benefits offered by the specific licensing authority. They can take office space in Dubai, open bank accounts, and do business seamlessly in the region. Advantages of opening Branch office in Dubai Dubai is a perfect choice for foreign investors and entrepreneurs to start their company’s branch. Starting a branch office in Dubai is a hassle-free option if you hire a business consultants. Above all, there are numerous business advantages in setting up a new branch company in Dubai. As a global business hub, Dubai has a lot to offer investors. It has one of the best business infrastructure for entrepreneurs to easily expand their business to the UAE markets and beyond. 1. Get 100% Foreign Ownership The branch office is not a separate legal entity but as an extension of the parent company. Hence enjoy 100% ownership in the branch office and conduct the same business activities as the parent company. 2. Rent an Office Anywhere in UAE The branch office can be setup anywhere in Dubai as per the business requirements of the company shareholders. The company can opt for renting office space at a lower cost in Dubai Mainland to keep the administrative cost low. For organizations that do not require an office space at the center of the city, they can opt for offices with low rent anywhere in UAE. 3. Trade-in Mainland of UAE Setting up a branch office in the mainland of Dubai enables the company to actively trade-in the local markets of UAE. Branch Office allows a business to trade in the mainland of Dubai directly without the requirement of a local distributor, or agent. 4. Tax Benefits UAE has Zero Corporate and Income Tax, and Companies can gain maximum benefits out of this tax regime. By setting up a Branch Office in Dubai, the company can leverage the Double Taxation Avoidance Agreement (DTAA) and save tax in the home country. 5. Audit Report Requirement Auditing a large company with daily financial transactions is tedious. Setting up the Branch Office will help in legally tracking all the transactions between the branch and the parent company. 6. Low Administrative Cost The overall cost of opening a new branch is lower than setting up a new company in multiple countries. In UAE there is no requirement for branch offices to maintain audit reports. Also, taking a small office for your branch in Dubai will keep the administrative and costs low. 7. Cost-Effective Route to New Markets Setting up a Branch Office provides an easy way to enter a new market. The running cost of a branch office in Dubai is relatively lower than setting up a new company as a whole. Why Establish a Branch office in Dubai? So, a Branch office will help the business owner in many ways. It will help them easily start their business operations in Dubai. There are few procedures to follow for opening of a Branch office in Dubai. The branch office will have a separate trade license with the activities listed. They can provide seamless services to the customers across UAE and other regions by establishing a branch office in Dubai. A branch company in Dubai can operate independently and manage the business operations overseas. They can conduct business operations, prepare invoices, hire employees and more. Procedure to Open a Branch Office of a Free Zone or Mainland Company in Dubai There are certain procedures to open a branch office of a Free Zone or Mainland Company in Dubai. The Investor must get certain approvals and attestations from the respective authorities. Internally, the board of Directors, of the company must come to an agreement on opening a new branch in UAE. Then, get the documents attested from the UAE Embassy and counter-attested from the Ministry of Foreign Affairs in UAE. 1. Approval from the Board of Directors The approval from the board of directors is the first step. They must agree to the proposal of setting up a new branch company as part of the company’s expansion plans. They must pass the board resolution and sign to agree to set up the new branch company in UAE. The Board of Directors can appoint one director to carry out the setting up of the branch company and oversee the operations. 2. Branch Office Registration Following the board resolution, the company can proceed with branch registration. The Company can follow the above-represented steps to secure its business license and register the branch in mainland of Dubai. Aurion will assist you with end-to-end business support services to register your company’s branch office in Dubai in the most comfortable way. For a Free Zone Company with a service License category, the cost of setting up a branch office in Dubai is Approx. AED 30,000. The branch office will have the same name as the Parent Company with ‘Branch’ as the Suffix. It is entitled to conduct all the business activities of the parent company. Types of Branch Offices You Can Operate in UAE? A branch office in UAE can be set up two ways. FIrstly, with the Department

UAE is one of the top-rated Trade and Commerce location in the world. Foreign investors prefer getting a company license in UAE due to the numerous business benefits offered by the country for conducting global trade. There are many business license categories in UAE such as Trading Licenses, Service License, Freelance License, and more. The Trading License is the most common and preferred by investors to conduct trading of special goods and items such as foodstuff, chemicals, etc. Also, there is a demand for Freelance License in UAE among individuals to start a business. For starting any company in UAE it is mandatory to obtain a Trading License from the Free Zone or the mainland. Investors can choose a wide range of business activities and avail the business infrastructure facilities of the Free Zone or Mainland Business jurisdiction. What is a Company License in UAE? A Company License in UAE is required for investors to conduct any form of business activity in the region. There are three major types of Company Licenses in UAE – The Trading License, Services License, Manufacturing/ Industrial License. Company Licenses in UAE can be obtained either through the Free Trade Zones or the Mainland. There is a wide range of business activities available in the UAE across the two business jurisdiction. Depending on the specific business activity the investor must obtain the Company License. The Cost of a Company License varies depending on Free Zone location, office space, and visa quota requirements. What is a Trading License in UAE? A trading License in UAE enables investors to legally conduct business in the region. There is a long list of permitted activities that investors can opt for doing business. A General Trading License will permit the investor to trade in multiple business categories under the same trade license. Also, It has enormous business advantages for investors and is one of the most sought-after business license categories in the UAE. Trading License Costs vary across the business jurisdictions and depend on the nature of the business. Investors can get a trade license in Dubai for a cost of AED11,900 for a Zero Visa Quota company. How to Obtain a Trading License in UAE? A trading License in UAE is an essential requirement for business owners to start a company in UAE. There are certain procedures to obtain a trading license in UAE. Investors can trade in specific items as well as various permitted items by obtaining the General Trading License from UAE’s two major business jurisdictions. Obtain the Trading License from the Free Zones or Mainland of UAE by paying the fee. Depending on the nature of business activities, choose the right business jurisdiction. Expert Business Consultants like AURION will assist investors to arrive at the right business jurisdiction for their company to operate and grow profitably. 1. Trading License from Mainland of UAE Obtain the Trading License from the UAE Mainland by submitting the documents to the Department of Economic Development for the respective Emirate. There is a well-structured process for obtaining the Trading License from the UAE mainland. Steps in obtaining the Trading License in UAE Mainland Following are the steps involved in obtaining the Trading License in UAE Mainland. Investors can easily set up their company by obtaining a trading license from the mainland of UAE. Choose the right business activity and business license type for the company. Also, finalize the trade name and get approval from the DED. Submit the application form and other documents like the passport copy, shareholder details, and make the required payment for obtaining the trade license. Choose the office space required and prepare the tenancy contract. Aurion will assist you with choosing the right office space depending on your exact business requirements and budget constraints. For special business activities like food trading, heavy equipment trading, etc., there are special approvals required from the municipality and respective authorities Apply for the UAE Residence Visa and open a corporate bank account for the company. 2. Trading License from Free Zone Obtaining a Trading License from Free Zone is an alternative for investors. For global investors and business owners aiming at international business and foreign operations, the Free Zone is an ideal place to build the business. There are multiple options for the companies to open a Free Zone company and obtain a trading license in UAE. The 40 plus Free Trade Zones offer a host of business setup packages. The 100% foreign ownership remains the advantage for Free Zones. Also, the low-cost company formation packages make it an investor favorite choice. Furthermore, the absence of corporate taxation in UAE and special VAT benefits for certain Free Zones, makes UAE Free Zones the perfect choice for businesses. Investors can get a trade license and set up a 1 visa quota company in UAE’s top Free Zone for a cost of AED 17,900. Avail of special discount packages for company setup in UAE from AURION. Connect with us right away! What is a Service License in UAE? Service License in UAE allows investors to conduct any professional business services such as consultancy, legal advisory, software development, tax and accounting services, and more. Individuals in the professional category can apply for a Services License in UAE from the business jurisdictions depending on the availability of their specific business activity. For most of the Free Trade Zones in UAE, there is no requirement of having an office space for a services company. However, having a physical office space is ideal for a services company in UAE to take a bank account for the company and add credibility. What is an Industrial License in UAE? Large Manufacturers and companies that produce goods in UAE must apply for an industrial license. It will provide the legal provision to make an item in UAE. Industrial License is one of the most popular business license categories. It is a highly capital-driven sector with large investments in manufacturing units, warehouses, and transport facilities. Our expert team will advise investors

General Trading License in UAE is the most in-demand business license by global investors. IT enables them to conduct various trade operations such as export, import, distribution, storage, and re-exports from UAE. The investor will have the flexibility to trade in a variety of goods in the local UAE market, GCC region, and the rest of the world. Henceforth, the scope of a General Trading License in UAE is huge. Specific licenses that only allow to trade of specified goods, but the general trading license can accommodate more variety of goods under the single trade license. General Trading License in UAE – Key Highlights With the trade of goods ranging from foodstuffs to electronics, the company can trade a vast number of items under the same Business License type. Investors prefer to set up a Limited Liability Company on the mainland and obtain a General Trading License in UAE to target the local market. Additionally, The company can conduct trade operations in GCC and international regions as well. Free Zone General Trading License in UAE is the right fit for businesses that aim to expand their market into new geographies. Especially for those who operate in overseas, export, and re-export sectors. Free Zones have their benefits in facilitating global trade operations due to the easy access to Airports, Seaports, and other infrastructures. Thus, it helps businesses seamlessly connect with the rest of the world. Obtaining the General Trading License in UAE – Steps Explained To obtain a General Trading License in UAE there are certain steps. It starts from selecting the right trade name for the company to obtaining the trade license. The investor has to choose a trading name for the company and a business type. Limited Liability Company is the most common business type in the Mainland of UAE. The next step is choosing the right business activities for the company. It is an important step as the business is dependent on the chosen business activities. A General Trading License can have up to 10 activities under the same license in UAE. Apply for General Trading License from the Department of Economic Development (DED) for opening a Limited Liability Company. Else, submit the documents to the respective Free Zone for obtaining the General Trading License from them. Certain business activities under general trading (medical devices, heavy equipment, used cars, spare parts, foodstuff, etc.,) would require special approvals. Submit all the required documents and clearances to the concerned authorities ( DED or Free Zone based on your decision). Limited Liability Company in UAE Mainland LLC Company setup allows 100% ex-pat ownership. There is no requirement for a UAE National as a partner for setting up a company in the Mainland of UAE. The company can have 2 to 50 shareholders. Partner agreement has to be made legally and must comply with the UAE business laws. Once you receive the initial approvals, look for a business location, and prepare the tenancy contract for renting the office space. Upon submission of the tenancy contract to the DED, and payment of the fees you will be issued the General Trading License. The steps in issuing a General Trading License from any of the Free Zones in the UAE are also quite similar. There will be 100% foreign ownership which is the major highlight for the popularity of Free Zones among foreign investors. What are the Advantages of Setting up a Limited Liability (LLC) General Trading Company in Dubai? 1. Zero Taxation Policy There is no corporate or personal income tax in the UAE. However, there is a 5% VAT on all transactions initiated within the region. Also depending on where the business is established, there are few exceptions in the VAT levied. Read more on VAT Registration in UAE here. 2. Flexibility in Hiring A mainland company has more flexibility in terms of adding employees to your company. Employee visas in the mainland of UAE are based on office size and the selected business activity. 3. No Requirement of Minimum Capital There is no requirement for any paid-up capital required to be shown for LLC Company Formation in the Mainland of UAE. Hence, the process of LLC Company Setup is more streamlined and easy. 4. Easy Company Registration Process There are minimum documentation and processes involved in the issuance of a General Trading License and setting up an LLC Company in the Mainland of UAE. The process of LLC Company Setup in UAE takes less than a week and your General Trading License and new company documents will be in your hand. 5. Top-Class Infrastructure UAE is known for its world-class infrastructure and business support ecosystem. It has got some of the worlds-best office spaces and locations for company setup. The secure banking network, Government support, and world-class amenities make it the perfect location for business sustainability. 6. Doing Business Anywhere in the UAE LLC Business Setup enables you to operate anywhere in the UAE. Based on your requirements and budget you can choose an office space and facilitate trade operations using your trade license and newly formed LLC Company. General Trading License from Free Zones of UAE A General Trading License from the Free Zones of UAE is also an equally prospective option for foreign investors. There are enormous business benefits to obtaining a General Trading License from the UAE Free Zones. Choosing a General Trading License under a Free Zone If the investor is keen on the overseas market, export, and re-exports, a Free Zone General Trading License would be the right fit for the business to flourish easily, Free Zones have their benefits in facilitating global trade operations due to the easy access to Airports, Seaports, and other infrastructures. Thus, it helps your business to seamlessly connect with the rest of the world. Free Zone Benefits 100 % foreign Ownership, 100% profit repatriation, Fully-furnished office spaces, No customs duty on imports, In-house customs check, Custom-made warehousing facilities, Easy access to Airports & Seaports, and many more, Export companies aiming at

Trade License in UAE

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