Dubai, a place vastly known for its beauty and shiny nightlife, is also home to growing businesses and amazing trading opportunities. This is probably why you see multiple business owners worldwide showing interest in setting up a business here with Dubai as the base. As facts have it, over 55,000 business licenses had been issued alone in the past year.
Foreign investors wishing to set up a business in Dubai need to consider the company law requirements covering the entire process of starting a company in Dubai. The business license also needs attention because it will reflect the business’s operations in the UAE.
We, at idea bizone, offer complete information and guidance about every type of UAE business license, including the trading license in Dubai.
What is Dubai Trade License?
A document defining the activities that a company is allowed to conduct in UAE is known as a business license. The Department of Economic Development (DED) is responsible for issuing these licenses.
In Dubai, a general trading license is valid for different activities such as importing and exporting goods and conducting various commercial activities. Dubai Free Zone companies are permitted to get a trade license in Dubai. Professionals offering industry-related services can also apply to get one. Once you get the trade license, you have the freedom to sell any goods permitted by the government of the UAE.
Alternatively, some products like cars, alcohol, weapons, medical products, etc., need special government permission to sell. While they require a trading license too, it tends to be a specific one like a commercial trade license.
At Ideabizone, we are all prepared to help you get the Dubai trade license you need through a hassle-free process.
Types of Trade Licenses in Dubai
Dubai offers several licenses for businesses, but not all are made equal. The four basic license classes are described below.
1. Trade or Commercial License
Commercial licenses are one of the most widely used licenses in mainland Dubai. These are issued to the companies engaged in trade and commercial activities in the country. Businesses covered under this license include general trade like export, import, and trade permitted commodities and goods. Other activities covered under this license include beverages, food, leather products, auto accessories, etc.
2. Professional License
A professional license allows companies and individuals to engage in the professions they are skilled in depending on their qualifications of education. Some activities covered under this license include carpentry, artisanship, publishing, and printing, beauty salons, medical services, repair services, consultancy services, security services, etc. This license allows 100% business ownership for foreign investors.
4. Industrial License
An industrial license is issued for those individuals and companies wanting to establish a manufacturing or industrial activity in the country. This license allows business people to arrange and process products with imported or local raw materials. Industrial rights are needed for manufacturing textile, food, metals, paper, engines and equipment, and petroleum products.
5. Tourism License
A tourism license is another license issued for people and businesses involved in Dubai’s tourism sector. Companies offering tourism activities like guest houses, hotel renting, travel agencies, cruise boat rental, tourist camps, etc., must get a tourism trade license.
Obtaining the relevant trade license in Dubai is essential in setting up your business in the UAE. We understand the difficulty of the process, so our skilled team of experts will be here to help you through the trade license acquisition process while considering the budget, industry, and location.
Offshore, Free Zone, and Mainland License
The trade license you need to apply for will differ depending on what company you want to start, a mainland or a free zone business.
A Dubai mainland license is for businesses operating in mainland Dubai. The issuance of this license requires several government approvals, and the DED is responsible for issuing these licenses. With a mainland Dubai LLC trade license, you may get international clients as well as clients from within the UAE. This license allows you to conduct business in the local market and outside the country with no restrictions.
Free zone licenses are the ones issued by the specific free zone authorities. Free zone licenses cover companies of every size, from small to large multinational companies. Companies with a prior existence internationally or nationally can also set up a branch or move their operations with this license.
If in Dubai, you’ll need to have the certificate of offshore incorporation to start an offshore company. Businesses of this type aren’t permitted to function within the limits of the UAE. This license allows non-resident offshore companies to perform business from outside the UAE. RAK and JAFZA are the two jurisdictions offering the formation of offshore companies in the UAE.
Documents Required to Get a Trade License
When applying for a trade license in Dubai, you need to submit the following documents to the Trade License Commercial Registration Department in the DED.
- The company’s legal representative must fill out and sign the standard application form.
- A copy and the original statutory document of the company
- The letter of approval of the company’s name by the DED
- The letter confirming DED’s consent to set up the company
- Tenancy agreement
- All the details of the shareholder (Copies of their passports)
- The MOA, Memorandum of Association with a legal representative’s help
To avoid delays in getting your license, always submit all the documents in time in a well-organized manner.
Our expert team of consultants at idea bizone will help with document collection and organization, ensuring you get your trade license without any delays.
How to Get a Trade License in Dubai?
With idea bizone, getting your Dubai trade license through a simple, hassle-free process is easy. With the necessary information at hand and a few documents, you are all set to go. Follow this process to get your Dubai trade license.
1. Select a Trade/Company Name
The process of getting a trade license starts with selecting the company/trade name. You must choose a suitable title in line with UAE company name guidelines. Choose a unique name that any other active company hasn’t taken.
2. Identify Your Company’s Legal Structure
To continue with the trade license application process, you will need to define your business’s legal structure. This structure determines how the industry will work and who will be liable for your company.
3. Identify Your Business’s Activities
After deciding upon the legal structure and trade name, you need to determine the activities you wish to conduct with your business. At this stage, make sure to mention all the activities you plan for your business. You should know that every license allows up to 10 activities.
4. Fill out Your Application Form to Get Initial Approval
After completing the steps above, you must fill out the license application form. The form is filed on the online portal. Submit your form to get the initial approval from the DED.
5. Get the Required Additional Approvals
Several activities require external approvals as well. If you are selling products that need special permissions, do research before completing the process. Otherwise, there are chances of the trade license being rejected.
6. Collect All the Required Documents
Apart from the completed license application form, you also will have to submit some documents. Make sure you have these documents collected in one place with the necessary signatures.
7. Select the Location for Your Business
Regarding the business location, there are several options to choose from based on what license you’re applying for. The mainland trade license requires the person to have a physical business location. You must decide whether you want to set your business in the free zone, mainland, or offshore. Once the site for your business is selected, you must get the tenancy contract confirmed and signed by Ejari.
8. Submit Application to DED
With all things at hand, having decided upon the business location, you are now prepared to submit the trade license application. You must submit everything to the Department of Economic Development, DED, to receive the approval. This is one of the final steps of getting a Dubai trade license.
9. Make the Licensing Fee Payment
Finally, pay the issuance fee for the license to receive it. Pay online after receiving the token from DED.
Getting a Dubai trade license can be daunting if you don’t have help from the right source. With our skilled team always ready to help, you can rely on us to make the process easy.
Approvals
- For issuing licenses from financial institutions like banks, you need UAE Central Bank’s approval.
- The Finance and Industry Ministry’s approval is needed for license issuance of manufacturing companies.
- For license issuance of companies working in insurance and related firms, the Economy and Commerce Industries approval is needed.
- For license issuance of medical and pharmaceutical products, the Health Ministry’s approval is a must.
- Companies working on oil or gas production need additional approvals and endorsements from other agencies of the government.
Fees & Payments
Before you get the Dubai trade license to start a business in the UAE, you must know the cost you have to pay. The trade license cost varies based on the goods you want to sell and the approvals needed. Other factors include the establishment region, business partners, business structure, business activity type, and local sponsor partnership.
For the most part, a trade license in Dubai costs between AED 15,000 to 50,000. The cost will vary based on the place; for example, the price of a trade license in the mainland and the free zone will vary.
Renewals
A Dubai trade license won’t last forever. You will have to renew your license yearly to continue running your business in the UAE. For renewal, you need to get the necessary approvals based on what industry you’re doing. Besides the approval, you must hand in the necessary documents and the tenancy contract.
At Ideabizone, we are here to help you with the entire process of getting the approvals needed for getting your trade license and if you need to get it renewed.
FAQs
Can a foreigner get a Dubai trading license?
Absolutely yes, foreign investors can get Dubai trade licenses if their companies are registered there.
Can I change my trade license to another permit?
Yes, if need be, the company is allowed to change the business license as needed.
How much will it cost to renew my Dubai trade license?
To renew a Dubai trade license, you may need to pay somewhere between 8,000 AED to 15,000 AED for the standard renewal.
What is the earliest time I can get my trade license?
In most cases, the trade license is issued rapidly as soon as the documents are accepted. The straightforward process allows your business to be set up quickly and easily.
Do I need help from a particular agent?
Yes, it is often recommended that you get support from a specialist to help you with the process of getting a trade license. You can trust idea bizone to handle the work for you.
