Why business license in Dubai is so important - Prospr

Why business license in Dubai is so important? A detailed guide 

Before you set up any business in Dubai, you need to acquire a business license, also known as a trade license. If that’s your first time starting any business, you will wonder why this business license matters and why you should get one. If that’s what you have in mind, today Prospr is going to shed light on the following:

Importance of business license in Dubai- Why Does it matter?

Before we explain why it matters, you must know what a business license is. It is a work permit that is issued by government authorities. This work permit highlights details of your company and the activities you are permitted to do in Dubai. With a business license, you can legally do business activities in the city. 

Explore different types of trade business licenses in Dubai.

Why does it matter to get a business license?

Here are some reasons:

It is a legal requirement

Whether you plan to start a small business or a large empire, you must get approval from authorities and get a work permit or trade license. If you setup a business in Dubai Mainland, the Department of Economic Development (DED) is a regulatory body that will issue you a trade license or a business license.

However, when you set up a business in Dubai Free Zones such as RAKEZ, Dubai International Academic City, Dubai Silicon Oasis, etc., the relevant free zone authorities will issue this license.

Getting a business trade license before setting up a business in Dubai is a legal requirement set by Dubai’s regulatory bodies. Doing business without a license is illegal. Even doing your business when your license is expired is regarded as illegal activity, and you will face penalties. Know more. 

Why business license in Dubai is so important - Prospr

Also learn about how to get an industrial license in RAKEZ

It builds community trust 

Another reason for getting a business license in Dubai is to win the community’s trust. Imagine you are running a clinic in Dubai and need a medical license—no patient would like to get treatment from you because they can’t trust your clinic.

Now, if you run a consultancy company and have no professional license, no client would take any session with you as they don’t find you trustworthy.

To earn the community’s trust, you need to acquire a license. This is a work permit that makes you trustworthy in Dubai. Besides, it makes you a legit business as well. Clients always check the company’s status before hiring them or using their services. 

To avoid fraud and scams in Dubai, Prospr always advises checking a company’s status before signing any deal or agreement or using their services. Here is how to check a company’s status and find out whether its license is valid.

It maintains regulatory control

Imagine anyone starting a business without having any license. It means a clinic where doctors and nurses don’t hold any medical license or a consultancy business where professionals have zero experience. So, a business without any license from regulatory authorities will create an environment of chaos and scams where you can’t trust anyone, and exploitation will be at its worst.

On the other hand, when regulatory authorities perform checks and balances on every business, you can trust the business environment and feel safe. 

Know about how to check WPS status of a company

Now, if you are a person who gets a job in a company with no valid license, you can’t hold that company accountable if they don’t pay you. Thankfully, a regulatory authority, MOHRE, keeps checks and balances on all employees and real employer-related matters, so salaries are well-protected. 

Prospr always advises job seekers to check the MOHRE Status of a company to find out whether it will be the correct move to join this company. In that way, you can avoid becoming a part of a company that doesn’t treat employees well or, in the worst case, doesn’t pay them wages or salaries on time.

Business licenses matter the most in Dubai because they protect the interests of employees, consumers, and other stakeholders. Regulatory authorities maintain full control over businesses of every kind and type running in Dubai through licenses.

If any company gets involved in fraudulent activities and does anything wrong, the Dubai government will immediately revoke its license to safeguard the interests of all stakeholders. 

Understand the differencce between Freezone trading license and Freezone ecommerce license

It unlock access to government services

When you get a business license in Dubai, you get a legal work permit. Now, you can access all the government services for a business. A company setup in Dubai mainland also allows you to bid for government projects. Now, without any business license, you won’t be able to continue doing business in Dubai. You may run a business without a permit, but once the government finds out about this, you will face lawsuits, legal actions, and penalties. 

A business setup in Dubai requires a substantial amount of money. It’s always a good idea to acquire a business license and start your company legally. You may start a business without a license, but this makes your business illegal, and foreigners can be deported and penalized for illicit activities. There is no need to jeopardize your investment when acquiring a business license in Dubai is so easy. 

Let Prospr help you acquire a business license in Dubai

Finally, you know how important it is to acquire a business license while setting up a new company in Dubai. It’s required legally from every kind of business. And without it you are not permitted to conduct any business in Dubai.

We understand how difficult it is for foreigners to navigate the rules and regulations of the UAE. It is free to feel overwhelmed and burdened with the paperwork required to register your business in Dubai, especially when our business consultants are here to assist you every step of the way. We are always there for you, from preparing all your documents to getting initial business approval to your complete business setup. Send us inquiries to hello@prosprplus.ae

Picture of Samad Ahmed

Samad Ahmed

Samad is a tech enthusiast dedicated to delivering socially responsible, ethical, and transparent products in the MENA region. With over a decade of business experience, he continues to support the entrepreneurial community as the owner of Prospr, a company specializing in business setup services across the UAE, particularly in Dubai.

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