Whether you are planning to launch a setup in your home country or you are seeking to establish a startup in a foreign country, obtaining a few legal approvals is mandatory before you start functioning and serving. Fulfilling these legal requirements is equally important as possessing funds and infrastructure. Irrespective of its size, every business needs some form of approval or permit from the federal government to avoid being charged for not fulfilling the legal requirements. In addition to executing equipment, infrastructure, and staffing needs, you need to fulfill criteria to become a licensed and registered company.
Below I am briefly describing business licensing and company registration to guide upcoming entrepreneur about the mandatory legal requirements.
What is business licensing?
Depending on the country, city, and type of trade and industry you belong, you will need to register your corporation. Commercial setups dealing any kind of trade, commerce, craftsman, profession or a service provider offering specific services are entailed to obtain a license. Ideally, entrepreneurs are told to complete the commercial licensing procedure one month before starting its operation. Obtaining a license is a mandatory need for all local and foreign investors and owners. Besides this, there is kind of professions and craftsmanship that require special skills and licensing. Instead of being a legal requirement, licensing also authorize entrepreneurs to open up a bank account with their company name while allowing them to trade with the same name.
What is company registration?
Company registration is also a mandatory requirement for all local and foreign entrepreneurs willing to operate in the territory. You may either register your firm with your official trade name or you can also quote a digital number, governmental authorities issued after registering your firm. But if you want to make a local limited company, you will have to propose a suitable enterprise name. The name should be unique and should not be used earlier at least in the geographical boundary you have chosen to run your setup. Applicants must fulfill all the requirements according to the local ordinance. Once the application is approved, a certificate is issued mentioning the name and registration number and entitled business owners to use this name in future for branding and trading purposes.
What is the role of license and company registration?
You might be interested in launching a venture and recently completed the process of company licensing and registration and looking forward to starting your business operations, you will encounter another legal requirement called tax registration. However, territories allow tax-free trading opportunities in the free zone, you will have to complete tax registration if you want to establish an office city centre. Federal Government, issue an employer ID number to entrepreneurs who possess the sole ownership of their firm. In contrast to a new number is issued to the LLC and Proprietor structures. In order to obtain a tax registration for your organization, you will have to complete the primary licensing and registration requirements.
Summary: Business licensing, trademark and company registration in Dubai are a few necessities every entrepreneur has to accomplish to enjoy running a setup without risking their future.