If you plan to start a new business venture in Dubai, then one important document that you need to procure is a Dubai Trade License (DTFL). A license is required for all commercial activities in Dubai. A business that wishes to set up a commercial unit in Dubai needs to apply for a license from the Dubai trade affairs office. The office of the foreign exchange market deals with all official matters related to Dubai trade. These matters include issuing trade licenses.
There are different types of Dubai trade licenses available. When applying for a Dubai trade license, the authorized authority of the freeze will issue the license. The main characteristic of the commercial trading license issued for a free-zone business is that it is only to be used for undertaking commercial or trading activities in the free zone. Commercial activities carried out outside the free zone are not considered as being conducted in the free zone.
The procedure for the issue of a Dubai trade license and the subsequent renewal of the same is done under the terms and conditions of the Dubai Electricity and Water Public Works Department (DEWP). It is important to note that a business that has obtained a Dubai trade license will remain in operation for the specified duration. The specified duration of operation is referred to as the license tenure. This is a period of one year and is normally renewed after the expiry of the said term. If the business is unable to operate for any reason, then the license is to be renewed according to the rules stipulated by the Dubai government.
There are two types of Dubai trade licenses that are relevant to foreign investors. These are the Non-immigrant visa numbers that are required for the eligibility of eligible foreign individuals to enter the country for a period of stay and work. The second type is the Employment visa number that is required for the eligibility of the eligible foreign workers to work in the emirate. Both these licenses can be renewed upon the expiry of their respective periods of validity.
For a company formation in Dubai, the Companies Registration number is required as evidence that the company is legal and is operating as it should. The Dubai government requires the installation of a commercial machine in order to start a business. The machine is used to obtain the Company Registration number and for another business purpose. For this reason, the company formation process takes quite some time. Once the company registration number has been produced and the machinery has been installed, the concerned individual can then apply for a Dubai trade license.
For any individual to become a resident of Dubai, he/she must also get a Dubai trade license. The Dubai government issues many licenses, but those who hold the most important ones are the permanent resident card, business visa, and work permit. Dubai permits foreigners to work in many different fields in order to boost the economy of the emirate. However, the presence of a legal business in Dubai does not mean that the foreigner will immediately become a citizen of the country. This is because the procedure for citizenship is long and requires many stages of processing before it is granted. The work permits however are easier to acquire as there are no restrictions on the duration of employment or working in the country.
One of the benefits of Dubai company formation is that foreigners can be appointed as the company directors. For example, foreigners can be appointed as the new manager of a particular division or branch in order for him/her to gain experience in dealing with different kinds of transactions. Furthermore, foreign investors who hold a Dubai trade license can also open a bank account in Dubai. Foreigners are also allowed to purchase property in Dubai.
These are just some of the advantages of having a Dubai trade license. If you are planning to start your own business in Dubai, you need to have a license first to start doing business in the emirate. This is necessary to avoid being charged with revenue and tax fraud. There are certain requirements needed to be fulfilled by a foreign company wishing to open an office in Dubai. All of these are required in order to conduct your business activities.