Dubai can be a great place to invest and start your business. The local government has over the past two decades continuously introduced laws that encourage business setup and investment. This had led to an influx of foreigners from all over the world to relocate here and establish their businesses. This strategy has contributed to the staggering 80% expatriate population present in the Emirate.
Table of Contents
What is a Trade License?
Trade license is the primary requirement/document needed for legal business setup in Dubai. You need it to get permission to start your business in the Emirate. The legal authority that deals with this is the Department of Economic Development. To read the difference of commercial and professional license Read This Article
Upon Attainment of a License, you will be Allowed to the Following;
- Trade goods with other nations
- Participate in different commercial activities
- Advertise your services and provide them in various industries such as consultation, travel advise etc.
Trade License registration Form
How to Get a Trade License
Setting up your business in Dubai may not be too complicated but can be confusing and lengthy if you are fresh off the boat. The following are the steps that you need to take; for detailed information click here
| Process of Trade License Registration | |
|---|---|
| Select a company name | Choose the business activity |
| Fill out the application for initial approval | Gather all relevant documentation such as the Memorandum of Association. |
| Submit all the paperwork to the DED and wait for the approval | Start your business operations |
| Get the trade license | Rent out an office, acquire an address and get the tenancy contract |
| Once your application has been approved, pay the fee which is between 12,000 and 50,000 AED depending on the type of license. |
The Documents that you Require are as following;
- Application that has been completed and signed by the company’s legal representative.
- MOA with local sponsor
- DED letter that approves company name and setting up.
- Office space’s tenancy agreement
- Shareholder passport copies
This is the basic process of obtaining your trade license; it should also be mentioned that if you decide to get a general trading license, you will be able to conduct 10 different business activities.
Additional Trade License Requirements
It is also important to note that there may be some additional steps depending on where you set up. The options that are available are offshore, mainland and Free Trade Zones (FTZs). The latter option may be the most attractive if you are a foreigner as you will have complete exemption from taxes as well as 100% ownership of your company. Your trade license will be valid for a certain amount of time (1 Year, 2 Year) after that you have to renew your license as per law. Here you can see how you can renewal trade license.
The wide array of options is the reason that we recommend a business set up consultancy in Dubai. Their years of experience and familiarity with the legal regulations should ensure a smooth process. For legal information in trade license try this article
For further information and assistance on how to register your trade license, speak with our experienced consultants. Book your FREE consultation today at +971 558654072, +97143827780 or Drop us an Email on info@companysetup.ae
