UAE has a diverse economy largely based on oil exports, and the government’s efforts to diversify its revenue streams have led it to pursue an aggressive strategy of investing in other sectors. The Persian Gulf region is one of the most important investment areas for foreign investors, especially after discovering several economic zones, including Dubai, which attracts local and international companies that wish to invest in and operate within these special economic zones.
Such a business-friendly environment encourages locals and foreigners to establish businesses in this region; however, it is crucial to get hold of any documents required by local authorities before establishing any business. An example would be getting licensed if you want your business or industrial activity to operate within any Arabic country. One such country is United Arab Emirates (UAE) which has a diverse economy largely based on oil exports. The government’s efforts to diversify its revenue streams have led it to pursue an aggressive strategy of investing in other sectors.
This article provides an insight into how you can get a license if you want your business to operate in this region.
Size Matters: You start by looking at the size! What would be your budget? Typically the costs involved are a fixed cost (excluding any payments or fees payable to the authorities) of between AED 15000-30000 per annum for any purpose. If you plan to build a trade or industrial activity worth more than AED1 million or have more than ten employees, you will be required to pay an annual fee in the range of AED 150,000 to AED 250,000. You may also be required to pay additional fees depending on the purpose of your business. It is important to note here that, as part of obtaining a license, you will have to present a detailed plan specifying what you intend to do with the premises and show that it matches the requirements for your anticipated activities or investment.
The Need for a License: Before you establish your business in UAE, it is important to determine what activities may need a license. In UAE, you will be required to obtain a trade license if you intend to carry out business activities. Carrying out any business activity without a trade license is punishable by fines and imprisonment.