For an entrepreneur aspiring to establish a company in the United Arab Emirates (UAE), the first critical step in the business journey is obtaining a UAE business trade licence. This licence grants the legal right to conduct commercial activities within the country. There are six primary types of licences in the UAE, each catering to specific business activities. Understanding these business trade licences is crucial for choosing the one that best suits your company.
1. Commercial licence The commercial licence, also known as the general trading or business trade licence, is the most commonly issued type in the UAE's free zones. This trade licence applies to businesses involved in commercial activities like importing, exporting and trading goods. It regulates and protects companies in free zones, offering access to support structures such as startup incubators, banking assistance and trade incentives. This type of licence suits a company involved in diverse trading activities and requiring extensive support and protection for its business operations. 2. Professional licence The professional licence is tailored for skilled professionals to conduct business in specific fields. This type of business trade licence suits companies operating in service-oriented sectors such as consultancies, management services, IT services, engineering, legal services, healthcare, accounting and auditing. 3. Industrial licence The industrial licence is a business trade licence for companies involved in manufacturing and production, using natural or raw materials. This covers sectors such as food production, textiles and equipment manufacturing. To qualify, a company must operate from a physical location within a free zone.
Selecting the appropriate trade licence is a crucial step in setting up your business in the UAE. Each licence type caters to specific business activities and offers unique benefits. Understanding these options and steps can aid in establishing a thriving business in the UAE's dynamic environment. For expert guidance, consult with Ras Al Khaimah Economic Zone (RAKEZ) business set-up specialists to make the best decisions for your company's needs.
Step 1: Define your business activity In the UAE, a variety of business activities are available, including trading, manufacturing and services. Each activity requires its own specific trade licence, so clarifying your business activity before applying is essential. Step 2: Choose your business jurisdiction When you set up a company in the UAE, you must choose from three different jurisdictions: mainland, free zone and offshore. While a mainland company can conduct its business within and outside the UAE, a free zone company can not conduct its business outside its jurisdiction. Step 3: Select a business name and activity After determining your business activity and location, choose a unique business name free of trademark infringements. Step 4: Gather and submit the required documents To initiate the application process for a UAE trade licence, you will need to compile and submit several essential documents, which may include: ● A fully completed trade licence application form ● Copies of your passport and visa ● A no-objection letter from your sponsor (if applicable) ● A tenancy contract or lease agreement ● A comprehensive business plan ● Memorandum of Association (MOA) (for Limited Liability Company structures) Step 5: Fulfil financial obligations In the quest to obtain a UAE business trade licence, you will also need to cover various fees, including: ● Trade licence fees ● Commercial permit fees ● Inspection fees ● Municipality fees Get your trade licence today from Ras Al Khaimah Economic Zone (RAKEZ). To get a free business set-up consultation, call +971 7 204 111 or send your query via email to info@rakez.com.
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