Dubai Business Licensing: Types, Jurisdictions, and Application Process
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Ongoing, First published Aug 02, 2023
Starting a business in Dubai requires obtaining a business license, the type of which depends on your business nature. Licenses include Commercial for trading businesses, Professional for consultants, artists, etc., Industrial for manufacturing, E-Commerce or eTrader for online businesses (only for UAE and GCC nationals), General Trading for local and international trade operations, and IT Company License, which enjoys 0% tax rates.

You can apply for these licenses in different jurisdictions - Free Zones, Mainland, and Offshore, each with unique benefits and regulations. Free Zones, designed around specific industries, offer 100% foreign ownership, tax exemptions, and capital repatriation, but they restrict trading to within the Free Zone or outside UAE without a local distributor. Mainland companies can freely trade in local markets but must have at least 51% UAE citizen ownership. Offshore companies are for international operations, with tax benefits and 100% foreign ownership, but can't conduct business within UAE.

License application steps include deciding the business legal form, choosing a trade name adhering to UAE rules, getting initial approval from the Department of Economic Development (DED), securing office space, preparing legal documents, and applying for the license.

Business setup consultancies like Privatewolf.ae can assist in this process, ensuring paperwork is accurately completed and offering tailored advice.
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