Dubai is a city known for its brilliant nightlife and glistening waters. Yet it’s also a city known for its thriving economy and fantastic commercial prospects. Continue reading if you want to learn how to get a trade license in Dubai and follow this growing trend.
Maybe for this reason, so many entrepreneurs looking to launch a company in the United Arab Emirates select Dubai as their center of operations. More than 55,000 brand-new business licenses were issued in the last year alone.
This manual takes you step-by-step through the application process for a Dubai business license.
What is a Trade License in Dubai, UAE?
A Dubai Trade License, also known as a business license, is an official document issued by the Department of Economic Development (DED) that authorises a company to engage in specific activities within the UAE. This license is crucial for any entity involved in importing and exporting goods, as well as those undertaking a variety of commercial activities.
General trading licenses in Dubai offer flexibility by allowing businesses to operate in multiple sectors under a single license. These versatile licenses enable companies to engage in a broad range of trade activities without the need for multiple separate licenses.
What are the types of Trade Licenses in Dubai?
Dubai trade permits are not all created same. There are three primary types of trade licenses: professional licenses, commercial licenses, and industrial licenses.
- Professional licenses are required for those who perform certain services.
- Obtaining a commercial license is necessary for all business participants.
- Industrial Licenses: Permits for companies doing manufacturing and industrial operations.
Before applying for any of these trade licenses, it’s crucial to make sure you have the necessary paperwork in order. Your license could not be issued on time if this is not done.
What is a Mainland, Free Zone, and Offshore, License?
When starting a business in Dubai, the type of trade license you apply for will depend on whether your business operates in the mainland, a free zone, or as an offshore entity. Each type of license has different requirements, regulations, and advantages.
1. Mainland License
A mainland license allows your business to operate within the local UAE market and outside of the specific free zones. The license is issued by the Department of Economic Development (DED) and requires approval from various government authorities. Businesses in the mainland can:
- Operate across the UAE and internationally.
- Have physical offices anywhere in the UAE.
- Have local UAE national partners (if required, depending on the business type).
2. Free Zone License
A free zone license is granted by the authorities of specific free zones, each of which offers different incentives. These licenses are ideal for businesses that wish to take advantage of benefits like:
- Full foreign ownership.
- Tax exemptions.
- Simplified company registration processes.
- Easier access to international markets.
However, free zone companies are typically restricted to operating within the free zone or internationally. They cannot do business directly with the UAE mainland market unless they partner with a mainland entity.
3. Offshore License
An offshore license is for businesses that want to incorporate in the UAE but operate outside the country. Offshore companies in Dubai are generally used for asset protection, tax planning, and other international business purposes. These businesses:
- Do not conduct any physical business activities within the UAE.
- Cannot operate in the UAE mainland or free zones.
- Are often used for holding assets, intellectual property, and conducting international trade.
While offshore businesses can benefit from tax advantages, they cannot engage in business operations within the UAE market.
Each type of license has distinct advantages and is best suited for different types of businesses. Consider your business needs and operations before deciding which license type to apply for.
Benefits of Trade License in Dubai
Many business owners want to establish branches or organizations in the UAE because of the nation’s numerous business advantages. Here are a few of the key advantages of obtaining a trade license in Dubai.
1. Increase both domestic and foreign trade
You have a lot of opportunities to manufacture or import goods if you have a general commerce license. You have the option of sending your goods to the Dubai market or sending them abroad to earn money from other markets.
A general trade license additionally enables business owners to re-export their products. This could improve your company’s capacity for international trading in goods and services.
2. Boost your credibility
There are numerous companies that hunt for gaps in laws and rules in order to increase their profits. Customers, however, are more likely to trust businesses that take the time to abide by the law.
Additionally, the license increases the company’s visibility in the markets it serves. This aids in increasing its credibility and winning the loyalty of its clientele.
3. Several Trade Restraints
In Dubai, there are hardly any trade restrictions, which makes it a great place for business. You won’t have to worry about limitations as long as your products are registered under a general trading license.
4. Simple Setup
Issuance of a a Dubai trade license is significantly more quickly than other company licenses in the UAE. However, you ought to have no trouble getting your license as long as you have the necessary paperwork.
The processing period for Dubai trade permits is also very quick. In just a few weeks, you may normally establish a business in any free zone or on the mainland of Dubai.
Also, after you obtain your license, it is not mandatory to submit your auditing report as of now. You avoid creating a tonne of paperwork in the future by doing this.
5. Sponsorship Possibilities
The simplicity of sponsoring dependents is one of the main advantages of obtaining a trade license in Dubai. You can therefore bring your family or coworkers to Dubai.
You can assist individuals in obtaining visas if you have a trade license. This makes starting a new life or business in Dubai simpler than ever for you.
Documents Required to Get a Trade License in Dubai
You must provide certain papers as part of the application process for your Dubai trade license. Make sure all supporting material is neatly organised. And submitted with your application to avoid delays.
- You must first complete an application for a trade license. However, each and every manager should sign the contract in the company.
- It is also necessary to draught a Memorandum of Agreement. A attorney’s assistance is necessary to do this.
- The firm name approval should then be attached to your application. Once the DED has approved your selected business name, they will provide you with this approval.
- Finally, copies of each managing partner’s passports.
How to Get a Trade License in Dubai, UAE
Obtaining a trading license for Dubai is not too difficult. You must complete a few straightforward actions in order to obtain your Dubai trade license.
1. Choose a Company Name
The first step to obtaining your trade license is to choose a suitable trade name. The UAE’s rules for choosing a company name must be followed while choosing your business name. Also, it must be a name that no other active entity is currently using.
2. Lay Up Your Legal Framework
To proceed with your application for a trade license, you must choose your company’s legal structure. The legal framework will specify how your firm run and who is responsible for it.
3. Describe Your Commercial Activities
After deciding on your company’s name and legal form, you must specify the commercial activities you intend to carry out. Each license enables a maximum of 10 activities, so be sure to mention all your activities on the license.
4. Fill out the Application Form
Filling out your application form is the following step in the procedure. Fill out the form, and then send it to the DED for your first approval.
5. Obtain Additional Approvals
You could need outside approvals for some commercial actions. Before finishing the business formation procedure, be sure to conduct your research. If not, authority will reject your trade license.
6. Collect The Necessary Documents
You will also need to provide several supporting documents with your license along with your completed application. Compile these documents and make sure all required signatures are on them.
7. Select A Location for Your Business
When it comes to the type of trade license you apply for, you have a variety of choices. You will require an actual business location in order to submit an application for a mainland trade license.
After deciding on a location for your business, you must obtain a tenancy agreement. The contract, which you will provide with the rest of your application paperwork, must include Ejari’s attestation.
8. Send in Your Application
Submit your trade license application once you have all the necessary materials and a site picked out for your firm. Submit the DED all the required paperwork to get your trade license.
9. Payment of License Fees
Keep in mind that obtaining a trade license is not free. In order to obtain your license, you must pay both the license fee itself and the issuance fee.
How Much Does It Cost to Get a Trade License in Dubai?
You must be aware of the all the charges before rushing to obtain your trade license and open shop in Dubai. This will assist you in planning your licensing procedure budget and help you stay out of trouble.
Depending on the goods you plan to sell and the permits you need trade license Dubai cost varies. Following additional elements that may impact how much your trade license will cost: –
- Number of business associates
- Geographic area of the establishment.
- Structure of a business.
- Collaborations with regional sponsors.
- Type of commercial operation.
A trade license cost in Dubai will be anywhere between AED 15,000 to AED 50,000 (approx.) or even more. Cost of a business license depends on different variables such as having a company sponsor, multiple partners, business activity, the region of the business establishment, location of the company, business structure, etc.
Also, mainland businesses in Dubai and free zone companies have different trade license requirements and costs. Moreover, you also need to include the LLC trade license renewal cost in Dubai when estimating the overall expenditure. Thus, the exact cost of a trade license in Dubai can only be derived once these factors are addressed.
Read more: what is the cost of a trade license in dubai
How long will it take to have a trade license approved?
The waiting game begins after you’ve submitted your trade license application. Fortunately, the wait period for a Dubai trade license is not that long.
The normal turnaround time for a trade license is three days to four weeks. The precise turnaround time will depend on the required approvals and the business operations you carry out.
Your turnaround time should be rather quick as long as you have all the necessary paperwork in place. Be sure to double-check your application forms before submitting them to ensure that your trade licence is early as soon as possible.
How may a trade license be renewed?
Your Dubai trade license may not remain in force indefinitely even after the approval. To continue conducting business legally in the UAE, renew the license each year.
Approvals
The first step in renewing your company license is to secure the necessary permits. Your sort of business will determine the kind of permits and authorizations required.
For instance, in order to renew their business licenses, transportation businesses must receive clearance from Dubai’s Road and Transport Authority. Prior to starting the rest of the renewal process, seek clearance to speed up the procedure.
Documentation
For license renewal, firms required proof in addition to written approval. In Dubai, the following paperwork is needed to renew a trading license:
- Completed renewal application.
- EJARI attested.
- Letters of authorization and permission.
- A lease agreement.
- Photograph of each business partner.
- The fee payment code for renewals.
- To obtain approval, the business owner must submit these documents to the DED.
Tenancy Agreement
You should review your lease agreement before submitting an application to renew your trade license. It must be valid for at least three months from the date you submit a renewal application for your license.
Obtain a Trade License for Dubai Right Now!
The key to taking advantage of the numerous commercial advantages of the UAE is obtaining a trade license in Dubai. It’s a means for your business to increase sales and make smart investments in a strengthening economy.
However, are you ready to launch your Dubai business? Contact us for, and we’ll assist you with every step of the procedure. Shuraa provides top notch business setup in UAE services. Book a free consultation with us or call us at +97144081900. You can also reach out to us on WhatsApp by dropping a message on +971507775554. For email assistance, mail your query at [email protected].
