Why You Need A License To Do Business?

1. Why You Need A License To Do Business? Setting up a business is a herculean task. Amidst all the excitement, one might even sometimes forget to apply for permits and licenses that are essential for legally operating their business. It is evident that the cost of opening a business is high. One can get assistance from corporate services providers to have a clear idea about the business setup cost in Dubai. They can also hire such service providers to get the necessary permits since the correct official documents allow the authorities with the following: •To put the business on the map – legally •To make sure that the entrepreneur is accountable for their business actions •To keep the workforce of the business legally protected all the while ensuring the safety of the environment and the people residing near the business house •To keep tabs on the taxes paid by the business owner to the authorities A business venture that does not have all the necessary documents to operate is left in the woods without legal protection. If found and audited by the state or federal authorities, a business can be subjected to expensive lawsuits. On top of that, they can also be asked to pay hefty penalties that can lead to financially ruining the venture even before it got established.

2. The disadvantages of running a business without proper documentation are discussed in brief in the following sections: •One cannot even begin to think of business expansion if their business doesn’t have the necessary documents •The authorities can seal your business for an indefinite period •Lawsuits, penalties and in extreme cases, incarceration can follow if an entrepreneur runs a business without proper permits/licenses Here is a glossary of the common permits, licenses and tax registrations an entrepreneur might need to apply for before they start their venture. Bear this in mind that this is for reference only. Based on the type and category of one’s business, the official documents one needs to have at their disposal may or may not be bound to the list mentioned below: •Local government or federal government issued a business license •A permit from the health department (in case the venture is associated with hospitality sector) •Sales tax registration •Permit to sell products/services •NOC from the police as well as fire department (business category subjective), etc. In the end, one might ask the question that, ‘what are the licenses their business might need in order to operate smoothly? Well, they are not alone that came forward with this query. Any entrepreneur with an aim to establish their own company spends a lot of their time with leading corporate services providers that offer professional license in Dubai. One can also take the traditional route and contact the authorities themselves but they should bear this in mind that it would be a long haul. Government offices are known for their lengthy processes. It is best to seek the services of corporate service providers for best results.