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The UAE has always been a notch above other countries in the Middle East in providing ease of setting up and facilitating businesses through its well-established free zones.
Licenses are easy to obtain and can be renewed annually as long as the lease agreement is valid and come in different types according to the activity of the company, as follows:
• Commercial trade license – For companies not based in the UAE but require import, export, distribution and storage of their specific products. They can only sell their products in the UAE through a local service agent (LSA).
• Industrial license – For companies that manufacture, process or assemble their own products. Manufacturing and production are subject to certain requirements like area for operations, electricity, water and manpower as well as the environmental aspect of the project. The company needs an LSA to sell their products here.
• Service license – Issued to companies in the fields of banking, consulting, contracting and many others. Each company has to abide by the requirements of the governing body in their specific industry.
• Warehousing license – This license entitles the investor, which only requires warehousing facilities, to use the warehouse for distribution, storage and packaging of goods.
There are also industry specific zones in the country which provide business licenses for certain sectors
• A free zone business retains 100% ownership
• Licenses are easily obtained and renewed annually
• Some licenses require LSAs to sell products in UAE
Source: Zenifer Khaleel, Special to Classifieds
The writer is a freelancer