Dubai is a bustling city that attracts entrepreneurs looking for profitable endeavors because of its ambitious skyline and strong economy. Whether running multiple businesses concurrently in this fast-paced city is feasible is a perennial question for aspirational individuals. The short answer is definitely yes, and this blog post will explore the why and how in detail, highlighting the significance of expert business setup services in Dubai.
Can I have multiple businesses under one trade license?
- A trade license serves as official authorization from the government to operate your business in Dubai according to specific guidelines. It is possible for business owners, including foreign investors, to have multiple businesses under one license, as long as the nature of these businesses aligns with the same activity. In certain cases, it is also possible to register multiple activities under a single trade license. However, it is important to note that opting for this option will incur higher costs compared to registering only one activity.
- If you are unfamiliar with the terms and conditions associated with this setup or if you want to determine the most cost-efficient arrangement for your business, seeking advice from business setup services in Dubai like Business Link is recommended. By doing so, you can gain valuable insights and guidance in meeting the legal requirements.
How to obtain a Trade License in Dubai?
- If you are interested in obtaining a trade license in Dubai, it is advisable to reach out to business setup consultants in the city. Business Link UAE takes great pride in providing top-notch services to its clients. Before submitting your trade license application, it is crucial to have a clear understanding of the various business activities you wish to pursue.
- The type of license you select will significantly impact the number of businesses you can operate in Dubai. Therefore, it is recommended to carefully consider these factors during the initial stages of establishing your business. It is important to comprehend the specific activities you plan to undertake, as this will determine the possibility of conducting multiple businesses under a single limited company based on your chosen license. Once you have determined the business activities, the next step is to select a company name.
– Choose a Business Name
- Choosing a business name may seem like a simple task, but it is quite important to understand the considerations involved before making a decision. In the UAE, there are strict rules and regulations related to business setup, so it is crucial to understand the naming conventions.
- The name you choose for your business should align with the activities you will be engaged in. The Department of Economic Development will evaluate the suitability of the name for your business, and if you are setting up in a free zone, you will require approval from the relevant authorities in the zone. It is equally important to handle all aspects of company formation in the UAE with care and to also consider applying to the municipality authority if necessary.
- Taking care of the basics is of utmost importance. When applying for a business name, ensure that the name complies with the laws in Dubai, where naming a company after the owner is prohibited.
To obtain approval for setting up a business in Dubai, it is imperative to furnish all the requisite documents. The following comprises the crucial set of documents that must be submitted:
- Application Form
- A scanned copy of the owner’s passport
- Scanned copy of the owner(s)’ photograph.
What is a dual license?
An alternative you could consider is applying for a dual license, particularly if you currently hold an onshore license. A dual license allows a company registered in a free zone to conduct business outside of the free zone’s boundaries without the need for a new office or operational base.
If you are operating on a limited budget and seeking a cost-effective business setup in Dubai, this option might be more suited to your business needs. Obtaining a dual license can help you avoid the expense of acquiring another office space and potentially reduce various expenses such as accounting, administrative, operating, and other costs for your business.
Strategies for Incorporating Multiple Companies
Incorporating multiple companies in Dubai can yield significant benefits. However, it is crucial to implement appropriate strategies to ensure a successful incorporation. The two primary strategies that can greatly facilitate multiple company incorporation are as follows:
– Creating a limited liability company (LLC)
- This approach is particularly beneficial for maintaining competitiveness in the ever-evolving landscape of UAE organizations. Consolidating all ventures under one roof streamlines operations, making it ideal for entrepreneurs seeking efficiency. Experts strongly advocate for LLCs as the most viable option for establishing a business in the UAE. This strategy not only offers significant advantages but also plays a crucial role in mitigating risks associated with diverse simultaneous business activities. However, opting for an LLC structure can provide safeguards, particularly in scenarios where financial constraints may pose challenges.
– Join a holding incorporation
- offers a secure and lawful means of integrating multiple business entities into a single entity. This approach ensures compliance with all legal procedures while also granting additional advantages in terms of governing company operations. When consolidating various business organizations, thorough vigilance is crucial. Hence, it is prudent to maintain the ability to merge diverse businesses seamlessly. Concurrently, it becomes imperative to uphold confidentiality, leverage taxation benefits, and adhere to an established security timeline.”
If you’re just starting in business or embarking on a new venture, don’t worry! Business Link UAE simplifies business setup in Dubai, freeing you to focus on what matters most for your business.