Understanding Business Activities in UAE
Business activity can be referred as any operation whether commercial, industrial or professional carried out by an entity with the intent of generating output. It includes trading, manufacturing, services and other economic activities that require license from the regulatory authority. So a business set up consultant in UAE can help you out in the setting up of a business, licensing, and legal compliance and in proper strategic planning. For the smooth operation and growth of a business they provide expert guidance on Free Zone, Mainland or for the offshore businesses.
The aim of this blog is to
provide comprehensive guide for operating business in UAE to ensure clarity and
compliance.
Types of Business
Activities in UAE
In UAE, business activities have been
categorized as Commercial, Professional and Industrial activities. However
Department of Economic Development (DED) has broadly categorized these
activities including the specific activities or licensing.
l Commercial
Activities
Commercial activities in UAE
refers to any business operation involving
Buying, selling, trading and distribution of goods and services for
profit. Such activities require commercial license issued by the Department of
Economic Development for free zone authorities. Key sectors of the commercial
activities include:
ü General Trading: It includes import
and export of various goods, wholesale and retail distribution of products and
operating trading companies across the multiple industries.
ü Retail and E-Commerce:
It
includes physical store and shopping centers, online stores and consumer
electronics, household goods and the fashion industry.
ü Real Estate and
Property Management: Buying, selling and leasing of residential and
commercial properties come under this category. The property management and
brokerage services can also be the part of this.
ü Hospitality and Tourism:
It
includes hotels, resorts, travel agencies, event management, entertainment
services and the vacation rentals.
ü Logistics and Transportation:
Freight
forwarding, warehousing services, courier, delivery services, supply chain and
distribution management are included in this.
ü Food and Beverage Trading:
Restaurants,
catering services, wholesale and retail services of packaged foods and
beverages with the distribution of food products are included in this.
For all such commercial activities commercial license is mandatory
whether you are operating a business in the Mainland or within the free zones.
For any of the assistance it is recommended to be in contact business setup
services and consultants in UAE.
l Professional
Activities
Professional activities in UAE involve specialized services based on
skills, expertise or intellectual abilities in spite of trading goods. It requires
a professional license for the administrative purposes in the Mainland, UAE.
The First Check Consultants is the mainland business
setup consultants in Dubai who can help and assist you in setting up the
professional business in UAE. Various key sectors of professional activities
are,
ü Consultancy Services:
It
includes services like management consulting in UAE, financial
consultancy or legal consultancy services.
ü IT Services: Services like software
development, digital marketing, cyber security services, etc. are included in
this.
ü Healthcare Services:
Medical
clinics, rehabilitation services, wellness centers and medical consultancy
services are include here.
ü Education and Training:
It
includes coaching centes, language training institutes, online learning
platforms, etc.
ü Engineering and
Technical Services: Engineering services like civil, mechanical and
electrical, architecture and construction project management consultancy,
etc. Are included in this.
ü Beauty Care Services:
It
includes salon and spa business, fitness training and personal coaching, etc.
l Industrial
Activities
For getting the industrial licensing for the industrial activities
approval is required from the regulatory bodies like Ministry of Industry and
Advanced Technology. The key sectors included in industrial activities are,
ü Manufacturing and Production:
Includes
food and beverage processing, textile industry, plastic manufacturing industry.
ü Automotive Industry:
It
includes heavy machinery, automobile and spare parts manufacturing, marine and
ship building industries.
ü Environmental Industries:
It
includes solar and wind energy, waste management industry and treatment plants.
ü Electronics Industries:
Activities
like home appliances manufacturing, electrical equipment manufacturing comes
under this category.
The UAE supports industrial growth through the free zones, tax benefits
and government incentives for the advanced manufacturing and sustainability
projects.
Compliance Requirements for Establishing Business Activities in UAE
1. Take the
appropriate business license from the Department of Economic Development.
2. Register the name
of business with the relevant authority.
3. Select the business
structure as the Mainland, Free Zone Company or Offshore Entity.
4. If required take
the government approvals from DHA, MoIAT or other regulatory bodies.
5. Secure a office
space and register the tenancy contract for mainland business.
6. Comply with the
UIAE Corporate Tax and VAT if they exceed the revenue threshold.
7. File ESR to prove
substantial business operation in the UAE.
8. Register with MOHRE
and GDRFA for hiring employees.
9. Business must
comply with AML and disclose UBO details to prevent financial crimes.
Wrap-up
The First Check Consultants offers business
setup services and consultants in UAE which helps the entrepreneurs in company
formation, licensing and regulatory compliance with the market
insights to grow your business and success in UAE’s competitive environment.
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