Trade License in Dubai UAE

Trade License in Dubai, UAE: Everything You Need to Know

Dubai is one of the most sought-after business destinations in the world. It is a popular choice for entrepreneurs looking to set up their business. Dubai is one of the world’s top business destinations. A trade license is essential for entrepreneurs to operate legally in the emirate. A trade license in Dubai is a legal document that allows businesses to work in the city. The Department of Economic Development (DED) issues this license, which is mandatory for all businesses. It specifies :

a) The activities that a business is authorized to carry out,

b) The legal structure of the business, and

c) The location of its operations.

Moreover, a valid trade license ensures a business operates legally in Dubai and avoids legal or financial penalties. Its purpose legally permits an individual or company to conduct business activities within the emirate. It provides authorization to trade goods or services and is a mandatory requirement for all businesses operating in Dubai. The license also ensures that the company complies with the rules and regulations set by the DED.

Types of Trade Licenses in Dubai, UAE

1. Commercial Trade License:  This license is for businesses buying and selling goods, such as import and export, wholesale, and retail. It allows the company to conduct commercial activities within Dubai and the UAE.
2.  Professional Trade License: This license is for individuals or businesses offering professional services, such as consultancy, accounting, legal, and engineering. Additionally, it allows the business to provide these services within Dubai and the UAE.
3.  Industrial Trade License: This type of license is for businesses engaged in manufacturing activities. It allows the company to produce and manufacture goods within Dubai and the UAE.
4.  Tourism Trade License: This license is for businesses engaged in tourism and travel-related activities, such as travel agencies, tour operators, and hotels. It also allows the company to operate in the tourism sector within Dubai and the UAE.
5.  E-commerce Trade License: This is a relatively new license type introduced by the Dubai Department of Economic Development in 2017. It also allows businesses to engage in online trading activities, such as selling products or services through e-commerce platforms in Dubai and the UAE.

Each license type has its requirements, fees, and validity period, and entrepreneurs must choose the appropriate license type based on their business activities.

Benefits of getting a Trade License in Dubai:

1. Legal Protection: A trade license provides legal protection for businesses to operate within the regulations set by the government.
2.  Access to Business Opportunities: A trade license enables businesses to participate in tenders and apply for contracts in Dubai and other parts of the UAE.
3.  Establishing Bank Accounts: Banks require a trade license for businesses to open a corporate bank account in Dubai.
4.  Visa Eligibility: Entrepreneurs holding a trade license can request residency visas for themselves and their employees.
5.  Tax Exemptions: Businesses with a trade license are eligible for tax exemptions on specific activities, making it easier to expand their operations.
6.  Brand Credibility: A trade license enhances the credibility of a business and its brand, making it easier to attract investors and partners.
7.  Easy Access to Funding: A trade license makes obtaining loans and funding from banks and financial institutions easier for businesses.
8.  Attract more investors: A trade license increases the attractiveness of your business to potential investors and partners, showing that your business is legitimate and registered.
9.  Increased profitability: A trade license allows you to leverage tax benefits and other incentives provided by the government of Dubai, which can increase your business’s profitability.

Documents Required:

1. Application form for the trade license
2.  Passport copies of the company’s shareholders and managers
3.  Visa copies of the shareholders and managers
4.  No-Objection Certificate (NOC) from the sponsor (if applicable)
5.  Memorandum of Association (MOA) 
6. Articles of Association (AOA)
7.  Tenancy contract for the company’s office space
8.  Dubai Municipality approval for the company’s premises (if applicable)
9.  Dubai Economic Department (DED) approval for the trade name and activity

Process Required for Trade License in Dubai :

The process to obtain a trade license in Dubai involves several steps:

1. Determine the type of license required.
2.  Select a business activity.
3.  Choose a legal form for the business.
4.  Decide on a trade name and get it approved.
5.  Acquire initial approval from the Department of Economic Development (DED)
6.  Sign a lease agreement for an office space.
7.  Get the tenancy contract attested.
8.  Submit the required documents to the DED.
9.  Obtain the final approval and pay the required fees.
10.  Collect the trade license from the DED.

It is important to note that the process may vary depending on the license type and business activity. Seeking the guidance of Business Diaries can ensure a smooth and hassle-free process.

The total cost of getting a trade license in Dubai varies based on the license type and the nature of the business. However, it usually includes fees for name reservation, initial approval, license issuance, registration, and inspection. Other costs may include visa fees, office rent, and professional consulting and also legal services fees. Budgeting for these costs and planning accordingly is essential to ensure a smooth and successful license application process.

The overall cost of obtaining a trade license in Dubai varies based on the license type and the specific requirements. Generally, the cost can range from AED 5,000 to AED 20,000 or more, including initial approval, registration, licensing, leasing office space, visa fees, and other miscellaneous expenses.

Trade License In Dubai With BUSINESS DIARIES :

Getting a trade license in Dubai can be a complicated and time-consuming process. That’s why many businesses turn to professional consultants like Business Diaries to help them navigate the process.

Business Diaries provides comprehensive services, from guiding you through the application process to delivering continuous support and advice, ensuring that your business adheres to all relevant regulations. One of the key benefits of working with Business Diaries is our expertise in navigating Dubai’s often complex legal and regulatory landscape. Thus, we are here to help you grasp the specific requirements of your business and ensure that you have all the documentation and licenses to operate legally in the UAE.

Also read: Trade License in Dubai: A Guide to Obtaining and Renewing