Dubai Trade License and Its Benefits

Many foreign investors, upon establishing a business in Dubai, have many trading options when beginning a new venture in this city-state. The Dubai trade license is one of the most common business documents required for any trade you wish to engage in Dubai. The trade license comes highly recommended by local authorities and businessmen, both locally and abroad, due to its myriad of benefits. The document is issued by the Dubai government to foreign investors who wish to open a commercial enterprise in the UAE. If your aim is to open a business that primarily deals with the purchasing and selling of goods and services from all over the world, the trade license is your ticket to doing so.

When applying for a Dubai company formation, it is mandatory for you to follow all the stipulated laws and regulations pertaining to company formation. This includes obtaining a Dubai Trade License (DOT) as well. However, this is not a prerequisite for holding a valid business permit in Dubai. For instance, a Dubai company formation which is solely for the purpose of holding a foreign trading company will not require a DOT. Likewise, an individual who is only allowed to hold a license for a single trade or activity in Dubai may apply for a multiple-trade Dubai Company Formation without a DOT, thus circumventing the need to secure a separate trading license.

As mentioned previously, if your aim is to open a commercial enterprise dealing with the purchase and sale of goods and services from all over the world, you will require a business license. There are many requirements that one must fulfill before receiving a business license. Before you can start trading in Dubai, you must apply for an ISA or an International Securities Exchange Business License. This proves that you are an authorized financial entity by the government of Dubai. Upon receipt of the ISA, you will be able to open a local office for your business, which is known as a trading office. Once established, you can commence trading as a foreign investor.

Many people who are new to the business of investment have difficulty understanding the complex rules and regulations governing investment. For instance, one must understand the rules regarding the transfer of ownership of property and the rules on the tenancy contract. The latter is especially important in the case of investors who intend to run businesses independently. One of the main reasons why investors need to understand this type of law is because they are required to pay taxes on the income gained from business activities. In addition, it helps them track payments made to government authorities as well as to the Dubai government for grants and other types of licenses.

Another significant area of expertise that is required of investors who wish to conduct business in Dubai is the knowledge of free zones and special economic zones. All foreign investors who intend to run businesses in Dubai need to visit the free zones provided by the Dubai authorities. Irrespective of the nature of your business activities, you will be able to benefit from the free zones, which provide various commercial properties with excellent rates of return.

There are many ways in which you can benefit from the free zones. One of the most beneficial ways is ownership of property. There are various types of property available for sale in Dubai; you can select the one that you think is perfect for your business. However, you should understand that the property you purchase in the free zone company will be at a lower rate of return. For instance, if you want to purchase an apartment for business use, you will have to pay a lesser amount of money than what you would have paid for a similar apartment in a different location in Dubai.

It is very important for investors to know about Dubai company laws in order to establish their own business. The company laws ensure that foreign entrepreneurs enjoy the same privileges offered to domestic entrepreneurs. There are various legal formalities that are involved in order to open a business in Dubai. The Dubai trade license is a crucial factor in all these formalities. This particular license is issued by the Dubai Supreme Court and has to be renewed on an annual basis.

The latest legislation in this regard is the Memorandum and the Moa. The Moa is a document which states that the original investor of the free zone business is entitled to the return of his investment in the event that he fails to comply with the obligations provided for under the Memorandum and the Moa. The other important piece of information which needs to be mentioned in the Moa is that the investors are not obliged to pay the income tax on the income earned from the operations of the companies in the free zone. An individual interested in purchasing a Dubai trade license or in starting his own company can easily find a suitable attorney using the services of the law firms dealing in cases related to personal law and corporate law.