How to obtain subsidiary trade license in Dubai?
A subsidiary trade license is a type of trade license that allows a foreign company to operate a branch office in Dubai. The subsidiary must be wholly owned by the parent company, and it must be registered with the Dubai Department of Economic Development.
1. Choose a Legal Structure: Before starting the licensing process, you need to decide on the legal structure of your business. In Dubai, you can opt for a mainland company, free zone company, or offshore company. Each option has its own benefits and restrictions, so it is important to research and make an informed decision based on your business requirements.
2. Choose a Location: Depending on the legal structure chosen, you will need to select a suitable location for your business. If you opt for a mainland company, you can set up your business in any commercial area of Dubai. Free zones are specific areas with dedicated facilities for various industries, offering additional benefits like 100% foreign ownership and tax incentives. Offshore companies are registered outside Dubai but can have business activities in the Emirate.
3. Choose a Trade Name: Another vital step is to choose a trade name for your business. Make sure the name aligns with your business activity and adheres to certain guidelines set by the Department of Economic Development (DED). The trade name should not violate any trademark or registered name and should not contain any offensive or harmful language.
4. Prepare Required Documents: To submit the application, you will need to gather certain documents. The exact documents may vary depending on the legal structure and type of license, but some general requirements include:
- Completed application form
- Passport copies and visa page of the shareholders
- Memorandum of Association (for mainland companies)
- No Objection Certificate (NOC) from current sponsor (for mainland companies)
- Proof of partnership or share capital (for mainland companies)
- Business plan and feasibility study
- Copy of lease agreement or tenancy contract
- Other additional documents as requested by the relevant authority
5. Submit the Application and Pay Fees: After preparing the required documents, submit the application to the relevant authority along with the required fees. The fees will vary depending on the type of license, legal structure, and location.
6. Review and Approval Process: Once the application is submitted, it will go through a review process by the relevant authority. They will assess the application and the submitted documents to ensure compliance with the regulations and requirements. This process may take a few weeks to complete.
7. Obtain Approvals: Upon successful review and approval of the application, you will receive the necessary approvals from the relevant authority. These may include a trade license, company registration certificate, investor visa, labor card, and other relevant permits based on your business requirements.
8. Lease Agreement and Office Setup: After obtaining the approvals, you will need to sign a lease agreement for your office or business premises. This is a mandatory requirement for obtaining a trade license. Ensure that the lease agreement complies with the guidelines set by the authorities.
9. Open a Corporate Bank Account: To operate your business effectively, you will need to open a corporate bank account in Dubai. Different banks have different requirements, but you will usually need to provide the necessary legal documents, proof of residence, and minimum deposit as per the bank’s policies.
10. Proceed with Visa Application: If you plan to hire employees, you will need to apply for their work visas. This process involves submitting the necessary documents to the relevant immigration authority. The employees will need to undergo medical tests and provide additional documents as per the visa application requirements.
Conclusion:
Obtaining a subsidiary trade license in Dubai can be a complex process. However, by following these tips, you can ensure that you are well-prepared and that you have a good chance of success. To more about all the formalities and latest regulations for trade license contact BizDaddy