Getting a trade license in Dubai is one of the first steps to fulfill your dream of owning a business in one of the world’s most prominent economic hubs. The Department of Economic Development is responsible for issuing each trade license in Dubai. The business setup services in Dubai offer different choices for individuals, including setting up a company in the mainland, establishing an offshore company, or opting for a free zone company setup.
Before starting a business in Dubai, it is important to go through the entire process, beginning with registering your trade name in Dubai and concluding with the commencement of your company’s operations.
In this process, obtaining a Dubai trade license is a crucial step that aligns with your business activities and chosen company structure. Now, let’s understand what a trade license actually is.
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What Is a Dubai Trade License?
A trade license in Dubai is an official document that grants you the legal authority to conduct business activities within the city. It is a permit issued by the relevant government authorities, indicating that you have met all the requirements and regulations necessary to operate a business in Dubai.
General trading licenses in Dubai are versatile and allow for a wide range of activities. These licenses enable individuals to engage in various business operations, such as importing and exporting goods, as well as conducting commercial activities.
Companies operating within Dubai Free Zones have the opportunity to obtain a trade license. Additionally, professionals who provide industry-specific services are also eligible to apply for a Dubai trade license.
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What Are the Types of Trade Licenses in Dubai, UAE?
There are mainly four types of business license in Dubai. You may find more depending on the different economic jurisdictions in Dubai. However, regardless of those other specialized trade licenses, these four are the most popular trade licenses in Dubai. They are the four trade licenses you will find in Dubai Mainland.
Here are the four types of trade licenses in Dubai, UAE:
| Commercial Trade License | Professional Trade License | Industrial Trade License | Tourism Trade License |
|---|---|---|---|
| The commercial trade license in Dubai is for businesses that want to perform business activities that involve buying and selling goods. Some of these business activities include trading products, importing products, exporting products, rental activities, brokerage activities, etc. Even if you want to trade outside the UAE but your business is located in Dubai, you still need the commercial trade license to operate your business. | The professional business license in Dubai is focused on businesses activities that involve selling their services to other people or businesses. If you hold a professional license in Dubai Mainland, then you can sell your services to the government and take on lucrative government contracts. Some business activities allowed by the professional license include auditing, healthcare services, consultancy services, digital marketing services, etc. | The industrial trade license in Dubai is for businesses that want to perform business activities that involve manufacturing products inside the country. One of the requirements of obtaining the industrial trade license is that you need to own physical office space in the country. Some of the business activities allowed by the industrial trade license include importing raw materials, processing raw materials, packaging the finished products, selling the finished products, exporting the finished products, etc. | The tourism license in Dubai is for businesses that want to perform business activities that involve planning and organizing tours. This is a relatively new business trade license in the UAE compared to the rest of the trade licenses available here. The government introduced this license to better regulate the tourism industry in the UAE. Businesses such as travel agencies, businesses in the hospitality industry, tour operators, etc. need to obtain a tourism license in the UAE. |
How Do I Get a Dubai Trade License?
Getting a Dubai trade license is a relatively straightforward process. Here are the simple steps to obtain your Dubai trade license:
1. Choose a Business Name
The Initial Step to Obtain a Trading License in Dubai to Select a unique and compliant trade name according to UAE guidelines.
2. Define Your Legal Structure
Determine the legal structure that best suits your business and its liabilities.
3. Define Business Activities
Clearly specify the activities you plan to undertake, noting that each license allows a maximum of ten activities.
4. Complete the Application Form
Fill out the application form and submit it to the Department of Economic Development (DED) for initial approval.
5. Obtain Additional Approvals
Certain activities may require external approvals, so ensure you have the necessary permissions in place.
6. Gather Required Documents
Compile the required documents and ensure they are properly signed and authenticated.
7. Choose a Business Location
Decide on a suitable location for your business, as a physical address is required for a mainland trade license. Obtain a tenancy contract and get it attested by Ejari.
8. Submit Your Application
Once all materials are prepared and a business location is secured, submit your trade license application to the DED.
9. Pay Licensing Fees
Make the necessary payments for issuance and license fees to complete the process and obtain your trade license.
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What Documents Required to Get Your UAE Trade License
For the UAE trade license ,there is very minimal documentation required. When applying online via the e-channel portal, you simply require the Emirate ID to create an account before completing the process.
If you are applying via service center, the following documents are required:
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- Copies of the passports for all the license parties (partners and managers)
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- A copy of residence visa and NOC (if applicable).
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- A copy of your visa (if applicable).
Advantages of having a Trade License in Dubai
Having a trade license in Dubai offers numerous advantages for businesses, making it a crucial step for entrepreneurs. Some of the key advantages include:
1. Legitimacy:
A trade license gives your business legal recognition and credibility, building trust with customers, partners, and investors.
2. Market Access:
With a trade license, you can freely access the vast and lucrative markets in Dubai and the UAE.
3. Global Hub
Dubai serves as a global business hub, and a trade license allows you to tap into its international trade network.
4. Tax Benefits:
Certain business sectors enjoy tax exemptions, and a trade license allows you to avail these benefits.
5. Financial Services:
Having a trade license enables you to open a business bank account, secure loans, and access financial services.
6. Hiring Employees:
A trade license allows you to legally hire employees and sponsor their visas, supporting your workforce needs.
7. Government Tenders:
Licensed businesses can participate in government tenders and public procurement opportunities.
8. Import and Export:
You can engage in import and export activities, benefiting from Dubai’s strategic location and excellent logistics infrastructure.
9. Brand Building:
Operating with a trade license enhances your brand’s reputation and image in the competitive market.
10. Protection:
The license offers legal protection and recourse in case of disputes, safeguarding your business interests.
11. Business Expansion:
A trade license opens doors for business expansion, setting the stage for growth and increased profitability.
12. Networking Opportunities:
You gain access to various business events, networking platforms, and trade exhibitions in Dubai.
13. Diverse Business Opportunities:
Dubai supports a wide range of business activities, allowing you to explore various sectors.
14. Ease of Doing Business:
The government has streamlined processes for obtaining licenses, making it easier to start and run a business.
15. Entrepreneurial Environment:
Dubai fosters an entrepreneurial spirit and supports startups and SMEs with various incentives and initiatives.
Read Also: How to Get E-commerce License in Dubai
What is the cost of Obtaining a Trade License in Dubai?
Dubai trade license fees is very affordable. The cost of a trade license in Dubai can vary based on several factors, including the nature of the goods you intend to sell and the necessary approvals required. Additional factors that can influence the cost include:
Here are the factors that will determine the cost of obtaining a trade license in Dubai:
- Number of Business Partners
- Region of Establishment
- Business Structures
- Partnerships with Local Sponsors
- Type of Business Activity
How Long Does It Take to Obtain a Trade License Dubai?
Once you have successfully submitted your trade license application, the anticipation begins. The good news is that the waiting period for a Dubai trade license is relatively short.
Typically, it takes between three days to four weeks to receive approval for your trade license. The exact duration depends on various factors, including the required approvals and the specific business activities you intend to undertake.
To expedite the process and ensure a swift approval, it is essential to ensure that all your documentation is complete and accurate. Take the time to carefully review your application materials before submitting them, ensuring that nothing is missing or incorrect. By doing so, you can increase the likelihood of a prompt issuance of your trade license.
What is the Instant Trade License in Dubai?
Instant License in Dubai is a type of trade license that can be obtained within minutes by individuals or entities involved in commercial or professional business activities. The process of obtaining an instant license is relatively simple with the help of expert guidance. This type of license is ideal for those looking to start their business operations quickly and efficiently.
Benefits of Instant Trade License
- Issued in 5-10 minutes.
- Same day issuance
- Start conducting business immediately.
- MOA not required for the first year
- Trade name registration not required for the first year
- No rent contract required for the first year.
- Online or In-person Application.
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How to Get Instant Trade License in Dubai
The application process for the instant trade license in Dubai is extremely quick and simple. The application can be completed online using the e-channel portal or can be done by visiting a service center:
- Select your business activities. Make sure that your intended business activities are permissible by the Department of Economic Development (DED)
- Choose your company name. The name should also be aligned with the DED guidelines
- Submit your application. This can be done either online via the e-channel portal or by visiting a service center.
The process is very quick and simple and should be done within 5 minutes. You will be required to provide the following information:
- Activities
- Partners and managers
- Trade name
- Commercial registry
The instant trade license in Dubai fees are very economical. In fact, the cost of our service fee for the Instant License in Dubai is just AED 16,000.
Keep in mind that the Instant License is available for businesses conducting activities that do not require external approvals.
Application Submission Requirement/Criteria
Your application must contain the below-mentioned factors and details to be considered valid;
- Business activities
- Stakeholders and owners
- Company name
- Commercial registry
Documents Required for an Instant Trade License in Dubai
If you choose to apply at a service center, you will need to provide:
- Copies of the passports for all the license parties (partners and managers)
- A copy of residence visa and NOC (if applicable).
- A copy of your visa (if applicable)
It is possible to incorporate several business types under the Instant License, these include:
- Limited Liability Company
- One Person L.L.C.
- Sole Proprietorship
- Civil Company
Frequently Asked Question on Trade License in Dubai
How much does it cost to get trade license in Dubai?
The cost of obtaining a trade license Dubai start from AED 8,050 to AED 32,000 can vary depending on several factors such as the type of license, the nature of the business activity, the legal structure of the company, and the location of the business.
What is the cheapest trade license in Dubai?
IFZA Free Zone’s license is the cheapest business trade license in Dubai without visas at a cost of AED 12,900. They offer a cost-effective company license in Dubai, which includes a license without visas, at a price of AED 11,900. This offer is regarded as the best and most affordable free zone license option for businesses in Dubai for the year 2023.
How can I get a trading license in Dubai?
trade license Dubai or business license Dubai is provided by the Department of Economic Development(DED) Authority. They are responsible for registering and handling new businesses in the city. You have the option to obtain your own trade license by following the business setup process outlined by the DED. Alternatively, you can opt to seek assistance from professional business setup consultants who can guide you through the process.
Do I need a trade license in Dubai?
Yes, we need a Business trade license in Dubai to legally trade goods and services in Dubai. There are three popular business trade license in UAE. They are the commercial trade license, professional trade license, and industrial trade license.
What is the Instant Trade License in Dubai?
The instant license Trade in Dubai lets you obtain a commercial or professional trade license in Dubai instantly. You can perform your business activities legally with the instant trade license in Dubai. it will take your time to set up your company while performing your business activities in the city.
For example, you do not need to register your trade name to obtain the instant trade license because registering a trading name is a lengthy process.
What is the cheapest free zone trade license in Dubai?
As of 2024, the International Free Zone Authority (IFZA) is considered to offer one of the most affordable trade licenses in Dubai. They provide a cost-effective company license option without the inclusion of visas, at a rate of AED 11,900. This option has gained recognition as a cost-efficient choice for those seeking to establish their business presence within a Dubai free zone. However, please note that pricing and offerings can change, so it’s advised to visit IFZA’s official website or directly contact them for the most accurate and up-to-date information on trade license costs and services.
Which trade License is best in Dubai?
The general trading license in Dubai or business license, commonly known as the Commercial License, is the most commonly applied for and issued type of trade license in Dubai’s Free Zones. This type of license is suitable for businesses engaged in commercial and trade activities in Dubai and the UAE.
What are the different types of trade licenses in Dubai?
The three main types of trade licenses in Dubai are the Commercial, Industrial, and Professional License. However, depending on the nature of the business activity, there are several other types of licenses that may be applicable.
How long is trade license valid in Dubai
A trade license in Dubai is typically issued for a period of one year and requires renewal upon expiration. Failure to renew the license within the valid period will result in the immediate expiration of the license and a ban on business activities. It is important to ensure timely renewal of the trade license to avoid any disruptions in business operations.
Read Also: How to Start General Trading Company in Dubai
Who needs a trade license in UAE?
In the UAE, a trade license is required by any individual or company engaging in commercial or industrial activities. This includes all types of businesses, from small-scale sole proprietorships to large corporations. The trade license serves as a legal document that permits the business to operate in the country and ensures compliance with the laws and regulations set by the relevant authorities.
What is the difference between instant license and normal license in Dubai?
The primary difference between an Instant License and a Normal License is that Instant License applicants do not need to go through the processes of registering their trade name, creating a Memorandum of Association (MOA), or obtaining a tenancy agreement. This simplifies and accelerates the Instant License process, requiring less documentation and fewer prerequisites. This approach allows entrepreneurs to launch their business operations quickly and with lower initial costs. However, it’s essential to understand that certain business activities may not qualify for an Instant License and require a Normal License instead.
Which free zone is cheaper in UAE?
The Sharjah Media City Free Zone, situated in Sharjah, is the most cheapest free zone in the UAE. You can get a media license from SHAMS Free Zone for only AED 5,800, and a basic trade license is priced at AED 8,050.
Do I need to apply for a trade license if I open a branch office in Dubai?
Yes, foreign companies also need to obtain trade licenses before they can perform their respective activities in the UAE through a branch office.
What is the total cost for trade license?
Having acquired foundational knowledge about trade licenses, it’s important to understand trade license fees in the region. Generally, trade license costs in Dubai can span a range from approximately AED 15,000 to AED 50,000 or potentially exceed this range.
Read More: How to Get Free Zone License in Dubai
How can I get company trade license?
Acquiring a company trade license involves a straightforward process that includes the following steps:
- Select a Business Name
- Define Your Legal Structure
- Define Your Business Activities
- Complete the Application Form
- Get Additional Approvals
- Gather Required Documents
- Choose Your Business Location
- Submit Your Application
- Pay Your Licensing Fees
For comprehensive support with your business needs, whether it’s company setup in Dubai or finding a fully furnished office space for rent, our experienced consultants are here to assist you. We also offer expert guidance on the golden visa application process and trademark services. To speak with our team, call us at +971 582595164, send a WhatsApp message for chat queries on +971 582595164, or email us at info@companysetup.ae.
