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Amazing Story of Dubai Trade License Myths Explored

Dubai trade license

Dubai trade license can be given on your name even if you are not physically present in the country. A new immigrant to Dubai who has no firm set up but wants to get himself registered. So he can deal with any transactions. Suppliers or importers or exporters doesn’t need to come down to UAE for Trade License.

He is no more required to go around looking for people who can vouch for him and offer recommendations, and so was the situation until recently. No more cumbersome procedures that often require inspections at various government offices or arbitrary rules forcing you to bring documents that have absolutely nothing to do with your activities of getting a trade license.

Guide For Any Applicant to Get Dubai Trade License

Truth is that all the applicant needs is an address of residence in UAE. This means that an applicant can even open a company in another country. Get himself registered there and look for an address of residence in UAE. And still be able to trade through this newly formed company.

I heard that you have to bring references with your Dubai trade license application. That you have to know someone who has been trading for years before they will license you. Well, not really. The requirement is that the person submitting the application should provide information about his commercial activities together with details of any companies.

Are You Think its Difficult?

And if you think this is too long and difficult. Try obtaining any other official document in UAE: for example if you wish to open a bank account. The list of documents required there is even longer. And that’s only the tip of an iceberg – it never ends. There are so many different types of entities or companies as well as individuals who need them or want to open bank accounts here.

In addition, Banks always request proof from your employer stating that they know you personally and check whether all your income statements match those from your pay checks at work. Do not blame Trade License department for this. They are not the only ones who require references/recommendations!

It should be noted that these rules are stricter compared to other licensing processes in UAE. For example free zone companies don’t need any recommendations when applying for a trade license. Contrary to what is required from applicants outside free zones.

Are you sure that these requirements apply for everyone?

Can the process be simplified by any means? You may think that there is not enough information provided here to form an opinion. But it does! And if you read this till now then welcome to the community of thousands of entrepreneurs who are struggling to get their businesses started.

You do not need to wait for that anymore! Those interested can already find ways of making things work without having to gather information from all over the place and without having to spend hours on end in government office.

What Are These Myths?

The biggest myth is that obtaining a trade license here is difficult time consuming and expensive. And another one which holds no ground but still repeated at every possible occasion is that approval process takes up to six months! Having said this, you should also know that if your company will follow certain points mentioned below there’s good chance of simplifying procedures.

One more thing before proceeding with actual steps – DO NOT try any shortcut methods, which look attractive but never result in one hundred percent guarantee.

What is UAE Ministry of Economy?

And what is Federal Competent Authority? That’s very easy – despite being called different names they’re the same thing! You can give them either name if applying for license under them but their official title depends on your business sector. For example, for banking sector it’s Federal Competent Authority of Banks but if you’re in consumer goods sector it’s UAE Ministry of Economy (and, yes, there is no need for you to apply to both).

How to Find These Names?

Look around the licensing guide. There are two main pages which have all information needed. Activities exempted from requiring a trade license’ and ‘government entities competent to issue trade licenses’. The first one will give you list of sectors where respective ministry/authority doesn’t process licenses at all while the second one has name of authority responsible for processing your request. Then just go through contact details page.

Do I Really Need Dubai Trade License?

Let me ask you this then – what are risks associated with starting business without trade license? In order to answer that, you would either have to be a lawyer or read all licenses available in English language which will take quite a while. I’m going with the first option and below is my short reply.

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