Commonly recognized as the business hub of the Middle East, the UAE has significant contributions to the world economy. The most essential part of the registration of a business in Dubai is acquiring a trade license. This process of trade license is not only a formality but a requirement. There are many factors involved, from knowing the different types of licenses to selecting the right license for your business. For anyone wanting to do business in Dubai, taking these variables into account is crucial.
Why is a trade license essential for all business owners?
Trade licenses in Dubai determine the nature of your business activities and legitimize your company. Registration requires certain fees and while it can be a bit expensive, acquiring the license has its own advantages. Trade licenses in Dubai give your company a proper identity, as it is a permit that validates the business legally. Trade licenses are issued to businesses to establish accountability for their activities in the area. Obtaining a trade license in Dubai permits your company to operate legally and in compliance with the rules implemented by the regulatory authorities. Acquiring a trade license in Dubai also provides several benefits. As there are no income taxes, if you are thinking of starting a professional practice in Dubai, you will own 100% of the company, regardless of whether it is in the free zone or mainland Dubai.
Categories of Trade License
The Department of Economic Development (DED) is the statutory body that regulates and controls the licensing procedures for an entity in Dubai, with the institutional support from the Dubai Chamber of Commerce & Industry. The DED has categorized businesses into several categories, according to their business activities. The basic requirement for all business activity in Dubai is one of the following three categories of licenses:
- Commercial licenses covering all kinds of trading activity
- Professional licenses covering professions, services, craftsmen, and artisans
- Industrial licenses for establishing industrial or manufacturing activity
Some special licenses such as Business Operation Permit, Entrepreneurial Business License, etc. are also issued, subject to certain criteria.
How to Find Business Activity and License type?
Find your desired business activity and check which license type it comes under. Visit eservices.dubaided.gov.ae/ and Type any activity i.e Garments, Trading, Restaurant, Grocery Store, Food Supply or any activity and hit Search, you will find complete list of activities with License Type on the right most column.
Requirements to obtain a trade license
In order to meet the legal requirements of all concerned government authorities and acquire a trade license in Dubai, it is first necessary to follow the steps outlined below to guarantee maximum commercial benefit for the business owner.
|Requirements to obtain a trade license|
|Determine all the related business activities to be included within each business license (Maximum 10 per license)||Designate the category which the business falls into- commercial, industrial, and/or professional|
|Make a decision as to your business’ appropriate legal status in UAE||Select an appropriate trading name for the business.|
|Submit an application to the Department for initial approval||Register a trading name after receiving initial approval (If you have not previously reserved a trading name)|
|Lease business premises and obtain approval from the Authority.||Prepare all required documents, such as a memorandum of association and approvals from other relevant government authorities which may be necessary to each case.|
|Pay the required fees.||Submit a further application to the Department to obtain the final license.|
Documents to be submitted for a trade license
To acquire a trade license in Dubai, you will need to prepare and submit some documents along with registration fees. The main documents required to obtain a trade license in Dubai are:
|Documents to be submitted for a trade license|
|Office space Ejari|
Trade License Registration fees in Dubai
Trade License cost varied form type of license.
Mianland Trade License Cost in Dubai = 15,900 AED
Freezone Trade License Cost in Dubai = 11,500 AED
Steps to Renew Trade license
In order to continue conducting business in Dubai, one needs to renew the Trade License when required. When it is time for your Dubai trade license renewal, you can change your sponsor and business address, if required. The following steps can be taken for the renewal of trade licenses in Dubai.
- Have a tenancy contract with a validity of at least 1 month
- Apply for a license renewal at the DED
- Acquire the transaction number of payment voucher provided by the DED
- Submit the application with all the required documents
- Get license approval
- Pay the trade license renewal fees using the payment voucher
Any renowned business consultancy firm can help you to get your business license in Dubai constructively. Whenever you need to know the right kind of license for your business, a business consultancy firm can help you acquire the license and give reminders for renewal of the license. It can get you through the whole procedure, including handling fees and other charges, and help you to obtain a trading license instantly. To cut down every difficulty, consult with your ideal business consultancy firm. Company Setup is one such business consultancy firm that provides all of the above mentioned services.
Trade License renewal Fees
Like of trade license registration, the renewal license also varies from license type.
- Mianland Trade License Renewal = 8000 AED – 1000 AED
- Sponsor Fees = 3000 AED
- Sustainability cost = 2000 AED
Freezone Trade License Renewal =
For further information and assistance on how to register your company in the UAE, speak with our experienced consultants. Book your FREE consultation today at +971 558654072