Obtaining the trade license Dubai is one of the most important steps in the process of company formation in the UAE for that matter. Obtaining a business trade license and starting a business in Dubai is very easy if you know the right people here.
However, company formation in Dubai may seem complicated to newcomers. This is because of the steps involved in obtaining the trade license in Dubai. you know what, trade license is also called Business license.
The Department of Economic Development (DED) in Dubai is responsible for handling the registration of new business here. This means that to obtain the trade license in Dubai, you need to deal with the authorities in the DED.
If you are a foreigner who has limited knowledge about the Middle East, its customs, and dialects, then this might prove challenging to you.
The experts at Company Setup Consultants have years of experience with the company formation in Dubai. They can help you obtain the trade license and start your business in Dubai without any hiccups.
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As a result of starting numerous businesses all over the UAE, they have developed the required networks and connections to streamline the entire process of obtaining the trade license Dubai.
Before getting into details about obtaining a business license in Dubai, you need to know about the different types of business licenses available for businesses in uae.
The Dubai government is constantly making efforts to make business setup as smooth and easy as possible. Hence, it has recently introduced a new initiative to make obtaining the Dubai trade license even easier. This is known as the Instant Trade License in Dubai.
With this instant trade license Dubai facility, you do not even require an office in order to start a business.
What Are the Types of Business License in Dubai?
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:
1. Commercial 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.
2. Professional License
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.
3. Industrial Trade License
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.
4. Tourism Trade License
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.
What are the Procedure to Get Trade License in Dubai?
You can obtain a trade license in Dubai easily if you have previous experience starting businesses in the UAE. However, if you are new, it is suggested you seek help from the experts before diving into the fray alone. If you want to go for it by yourself, you can follow our guide that is divided into ten digestible steps.
Here are ten easy steps you can follow to obtain the trade license in Dubai:
1. Select Economic Jurisdiction
The first decision you need to take when starting out in the UAE is to select which economic jurisdiction you want to operate in. The economic jurisdictions in Dubai are the Mainland, Free Zones, and Offshore Company.
2. Select Company Structure
The next step is to decide the company structure. Your company’s legal structure will determine the rules and regulations it is subjected to in the future, so select it carefully.
3. Select Business Activities
The business activities you want to perform here in Dubai will determine the trade license you need to apply for. Select all the business activities you want to perform because you cannot perform any activity you did not select beforehand.
4. Get the Initial Approvals
After you have made these three decisions, it is time to get the initial approval from the Department of Economic Development in Dubai. You need to fill an application form that they will provide.
5. Get an Office Space
You need to get an office space because the tenancy contract and EJARI are needed to get the trade license from the DED. You can opt for a virtual office if you do not have a need for a physical office space.
6. Prepare the MOA
The Memorandum of Association (MOA) is an important piece of document. It is suggested you get help from legal experts when drafting this document.
7. Get the External Approvals
The officials at the Department of Economic Development in Dubai will mention a few external approvals that you need to get from different government bodies and agencies.
8. Submit the Documents to the DED
There are a few important documents that are mandatory from the DED. Here are the documents that you need to submit to the DED:
- Copies of all the shareholders’ passports.
- The initial approval letter from the DED.
- Filled up the DED application form.
- The Memorandum of Association.
- The tenancy contract and EJARI.
These are the common documents, and some more may be required depending on the business activities you choose to perform.
9. Complete the Final Application
After all the previous steps are completed, you need to submit the documents and complete the final application from the Department of Economic Development in Dubai.
10. Pay the Fees
Once all the procedures are completed and the DED accepts your application, you need to pay the fees and receive the trade license you applied for.
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What Documents to be Submitted for Dubai Trade License
For the Dubai 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:
- 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).
What are the Benefits of Getting a Trade License in Dubai?
Dubai has been at the forefront of the startup culture in the 21st century. This is because the authorities in Dubai have a long-term plan of changing the economic landscape of the country.
As a result, there are a lot of benefits to getting a trade license in Dubai right now. That is why entrepreneurs and investors from all over the world are flocking to Dubai and the rest of the emirates for the past decade.
You do not need to start a brand-new business to obtain a trade license in Dubai. Alternatively, if you already have a business in your home country, then you can start a branch or an organization in Dubai easily.
Additionally, the process of obtaining a trade license in Dubai is very easy as well. As the result, the benefits of getting a trade license in Dubai are very easy to obtain.
Benefits of Getting a Trade License in Dubai
There are a lot of benefits of getting a trade license in Dubai. However, the process of obtaining a trade license in Dubai can be intimidating for first-timers, even if the process itself is pretty straightforward.
This is because Dubai has a new culture and language that foreigners are not accustomed to. This is where Company Setup Consultants come in to assist you through the process.
Here are the benefits of getting a trade license in Dubai:
1. Boost sales through local and international trade
Dubai focuses on import and export a lot which is apparent when you take all of the export and import curated free zones into account. This means that the authorities themselves focus on ensuring that goods and services can flow freely in and out of the country. Additionally, there are no tariffs on exports and imports except for a few strategically important goods.
With a general trading license in Dubai, you can export, and import goes to and from anywhere in the world. This lets businesses have superior versatility when opening a branch or organization in Dubai.
2. Enhance brand image and credibility
The business scene in Dubai is very secure and safe. As a result, you get credibility, and your business can easily win the trust of your investors, clients, customers, and other business associates.
Additionally, your business is considered legal after you have obtained a trade license in Dubai, which further boosts your credibility.
When you obtain a trade license in Dubai, your business gets more exposure in the market. This in turn gives your business more networking opportunities and lucrative connections. As a result, your business gains a superior brand image.
3. Exemption of taxes and other tax benefits
One of the main reasons so many people move to Dubai to start a business or make investments is because of the tax benefits that can be found here. For example, there are no personal taxes in Dubai. This means that all the dividends and other incomes from your investments will not be taxed in any way.
Dubai recently announced taxes on corporate incomes. However, it is only for big corporations that exceed a specific income threshold. Even then, the tax rate on corporate income is one of the lowest in the world.
4. Limited trade restrictions
Dubai is the ideal place for a business because there are very limited trade restrictions here. This is because as long as the goods you are trying to buy and sell fall under the general trading license, then you do not have anything to worry about. In addition to this, the UAE has good trade relations will almost all the countries in the world.
The only restricted goods are the goods that are considered illegal in the majority of the world. This means that these goods are probably restricted and illegal in other countries that you would want to export to or import from.
5. Investment and sponsorship opportunities
If you want to start a business here in Dubai but have limited starting capital to work with, then you do not have anything to worry about. In addition to an affordable starting cost, there are a lot of investors and local sponsors here in Dubai who will gladly invest in your business if you provide a solid business plan.
When you obtain a trade license in Dubai, you can easily get your own visa. In addition to this, as a Dubai trade license holder, you can also sponsor the visa of your close family members and some of your employees.
6. Easy business setup
Last but not the least, it is very easy to start a business in Dubai. This makes it easier for you to enjoy the benefits of getting a trade license in Dubai. In addition to this, there is a wide variety of options for office space here for entrepreneurs with a varying budget range.
The availability of Company Setup Consultants makes the business setup process in Dubai almost trivial even if this is your first time. As a result, you can easily start a business here and get the benefits of a trade license in Dubai.
What is Trade License Dubai Fees?
Trade license Dubai fees is very affordable. However, the actual cost of obtaining the trade license will depend on various factors. For example, for a mid-sized enterprise, the cost of obtaining the trade license in Dubai will be around 20,000 AED, which converts to approximately USD 5,000. Alternatively, it will be much cheaper for a small-sized business.
Here are the factors that will determine the cost of obtaining a trade license in Dubai:
- Business Nature
- Trade license
- Type of office space
- Business structure (legal structure)
- Availability of local sponsor
- Choice of economic jurisdiction (mainland or free zone)
What is the Instant Trade License in Dubai?
The Instant trade license in Dubai has been introduced as an effort to boost the UAE economy. It allows business people to obtain a professional or commercial trade license within 5 minutes! With an instant trade license, these are the following benefits:
Benefits of Instant Trade License
- Does not require a physical office
- Does not require memorandum of association
- Trade name registration not required for the first year
- Can be completed within 5 minutes
- No need to present the above mentioned documents for the first year. It can be submitted during trade license renewal.
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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:
- 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
One of the many benefits of acquiring an instant license is that there is very minimal documentation required.
- Passport copies of shareholders of the company and license
- A residence visa copy if you are a resident
- Completed application form
On the other hand, if you choose to apply through the online portal; all you will need is an Emirate ID to create an online account and submit the required information.
Frequently Asked Question on Trade License in Dubai
How much does a trade license cost in Dubai?
The cost of a trade license in Dubai varies in the range of AED 8,000 to AED 10,000. The cost of your trading license in Dubai will depend on the business activities you mean to perform here. The general trading license in Dubai starts from AED 9,200 only.
How can I Open a trade license in Dubai?
You can obtain a trade license in Dubai from the Department of Economic Development (DED). This is because they are the governing body that holds the responsibility of handing out business trade licenses in Dubai.
As a result, you can obtain the trade license for your business directly from the Department of Economic Development in Dubai. However, if this is your first time in Dubai, then it is highly suggested that you seek assistance from professionals.
Company Setup Consultants are experts in the business scene of Dubai and the rest of the Emirates as well. This is because they have started countless businesses all over the UAE. Additionally, they have assisted various foreigners from all corners of the world to get started in the UAE.
As a result, they have everything you need to get started in the UAE without any hiccup. Additionally, besides obtaining the trade license for you, they will also help you in various aspects of your business like the day-to-day operations.
How can I get a trading license in Dubai?
Trade license in Dubai is provided by the Department of Economic Development(DED) Authority. They are responsible for registering and handling new businesses in the city. You can get your trading license yourself by following the business setup process. Or, you can seek the assistance of professional Company Setup Consultants.
Do I need a trade license in Dubai?
To legally trade goods and services in Dubai, you need a business trade license 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 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.
How Many Types of Trade Licenses are there in Dubai?
There are four types of business trade licenses in mainland Dubai. They are the commercial trade license in Dubai, professional trade license, industrial trade license, and tourism trade license. The trade license that you need to obtain will depend on the business activities you want o to perform in Dubai.
Here are the business activities you can perform with each of the four trade licenses in Dubai:
Commercial trade license
The commercial trade license is for businesses that want to specialize in buying and selling goods. Additionally, you can also sell a few services that do not require higher education with the commercial trade license.
Professional trade license
The professional trade license is for businesses that want to provide their services in Dubai. However, the professional license requires you to provide the necessary educational and professional certificates.
Industrial trade license
The industrial trade license is for businesses that want to manufacture and sell goods in the UAE. Additionally, they can import raw materials, assemble, package, and export finished products with this license as well.
Tourism trade license
The tourism trade license is for businesses that want to provide tourism services, buy, and sell tickets in the UAE.
How much does it cost to get a trade license in Dubai?
There are various aspects of starting a business in Dubai including the process of obtaining a trade license. And since every business is different, their requirements will be different. Consequently, the cost of obtaining a trade license in Dubai and starting a business here will vary from one instance to the next.
However, to give an approximate ballpark, you can start a business and obtain a trade license in Dubai for as low as AED 15,000. Additionally, an upper limit can be set at AED 50,000 but in reality, there is no upper limit to the amount of starting capital you can start with.
To obtain a trade license in Dubai you need to fulfill a couple of mandatory requirements. For example, you must obtain office space for your business before the Department of Economic Development in Dubai will issue a trade license for you.
Now the cost of obtaining this office space will depend on you and your business. This is because there are various types of office spaces in Dubai that serves the requirements of various types of businesses.
For instance, if your business does not need a physical space of operation then you can obtain a virtual office for a very cheap cost. This in turn means that the total cost of obtaining a trade license in Dubai will be lower for you.
Which is the Cheapest Trade License in UAE?
The cheapest trade license in the UAE is provided by Sharjah Media City. It is known as the professional media license, and it allows 13 listed business activities. The license can be obtained for as low as AED 5,750.
However, you can add more business activities to the license for AED 1,000 per activity. Additionally, you can easily obtain the cheapest trade license in UAE from Company Setup Consultants. Contact us today and hit the ground running.
Is it hard to obtain a trade license in Dubai?
That depends on the trade license you want to obtain and your experience starting businesses in the UAE. With the help of expert business consultants in the UAE, it is very easy to obtain a trade license and start your business in Dubai.
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.