Dubai is a city known for its brilliant nightlife and glistening waters. Yet it’s also a city known for its thriving economy and fantastic commercial prospects. Continue reading if you want to learn how to get a trade license in Dubai and follow this growing trend.
Maybe for this reason, so many entrepreneurs looking to launch a company in the United Arab Emirates select Dubai as their center of operations. More than 55,000 brand-new business licenses were issued in the last year alone.
This manual takes you step-by-step through the application process for a Dubai business license.
What is a Trade License in Dubai, UAE?
The business license is a legal document that specifies the kinds of operations a firm is permitted to conduct in the UAE. A trade license is required in Dubai for the majority of UAE activities. It is known as a Dubai DED license since it is given by the Department of Economic Development (DED), also known as DED Dubai.
In Dubai, general trading licenses are valid for a variety of pursuits. They include engaging in commercial activity including importing and exporting items.
A Dubai trade license is available to businesses in Dubai Free Zones. Professionals that provide services unique to their business can also apply for a Dubai trade license.
What are the types of Trade Licenses in Dubai?
Dubai trade permits are not all created same. There are three primary types of trade licenses: professional licenses, commercial licenses, and industrial licenses.
- Professional licenses are required for those who perform certain services.
- Obtaining a commercial license is necessary for all business participants.
- Industrial Licenses: Permits for companies doing manufacturing and industrial operations.
Before applying for any of these trade licenses, it’s crucial to make sure you have the necessary paperwork in order. Your license could not be issued on time if this is not done.
What exactly do a Free Zone, Offshore, and Mainland License mean?
Whether you are starting a business in a free zone or on the mainland will affect the type of trade license you need to apply for.
Business operations in the Dubai mainland are subject to the requirements of a mainland license. They are issued by the DED and need to be approved by several government agencies.
The authorities in a certain free zone grant licenses for free zone trade. Each license has a different set of restrictions and advantages.
An offshore incorporation certificate is required if you want to establish an offshore business in Dubai. The UAE forbids the operation of these kinds of enterprises.
What Benefits Do Trade Licenses Provide in Dubai?
Many business owners want to establish branches or organizations in the UAE because of the nation’s numerous business advantages. Here are a few of the key advantages of obtaining a trade license in Dubai.
1. Increase both domestic and foreign trade
You have a lot of opportunities to manufacture or import goods if you have a general commerce license. You have the option of sending your goods to the Dubai market or sending them abroad to earn money from other markets.
A general trade license additionally enables business owners to re-export their products. This could improve your company’s capacity for international trading in goods and services.
2. Boost your credibility
There are numerous companies that hunt for gaps in laws and rules in order to increase their profits. Customers, however, are more likely to trust businesses that take the time to abide by the law.
Additionally, the license increases the company’s visibility in the markets it serves. This aids in increasing its credibility and winning the loyalty of its clientele.
3. Several Trade Restraints
In Dubai, there are hardly any trade restrictions, which makes it a great place for business. You won’t have to worry about limitations as long as your products are registered under a general trading license.
4. Simple Setup
Issuance of a a Dubai trade license is significantly more quickly than other company licenses in the UAE. However, you ought to have no trouble getting your license as long as you have the necessary paperwork.
The processing period for Dubai trade permits is also very quick. In just a few weeks, you may normally establish a business in any free zone or on the mainland of Dubai.
Also, after you obtain your license, it is not mandatory to submit your auditing report as of now. You avoid creating a tonne of paperwork in the future by doing this.
5. Sponsorship Possibilities
The simplicity of sponsoring dependents is one of the main advantages of obtaining a trade license in Dubai. You can therefore bring your family or coworkers to Dubai.
You can assist individuals in obtaining visas if you have a trade license. This makes starting a new life or business in Dubai simpler than ever for you.
Documents required to obtain a trade license
You must provide certain papers as part of the application process for your Dubai trade license. Make sure all supporting material is neatly organised. And submitted with your application to avoid delays.
- You must first complete an application for a trade license. However, each and every manager should sign the contract in the company.
- It is also necessary to draught a Memorandum of Agreement. A attorney’s assistance is necessary to do this.
- The firm name approval should then be attached to your application. Once the DED has approved your selected business name, they will provide you with this approval.
- Finally, copies of each managing partner’s passports.
How to Get a Trade License in Dubai, UAE?
Obtaining a trading license for Dubai is not too difficult. You must complete a few straightforward actions in order to obtain your Dubai trade license.
1. Choose a company name
The first step to obtaining your trade license is to choose a suitable trade name. The UAE’s rules for choosing a company name must be followed while choosing your business name. Also, it must be a name that no other active entity is currently using.
2. Lay Up Your Legal Framework
To proceed with your application for a trade license, you must choose your company’s legal structure. The legal framework will specify how your firm run and who is responsible for it.
3. Describe Your Commercial Activities
After deciding on your company’s name and legal form, you must specify the commercial activities you intend to carry out. Each license enables a maximum of 10 activities, so be sure to mention all your activities on the license.
4. Fill out the Application Form
Filling out your application form is the following step in the procedure. Fill out the form, and then send it to the DED for your first approval.
5. Obtain Additional Approvals
You could need outside approvals for some commercial actions. Before finishing the business formation procedure, be sure to conduct your research. If not, authority will reject your trade license.
6. Collect the necessary documents
You will also need to provide several supporting documents with your license along with your completed application. Compile these documents and make sure all required signatures are on them.
7. Select a location for your business.
When it comes to the type of trade license you apply for, you have a variety of choices. You will require an actual business location in order to submit an application for a mainland trade license.
After deciding on a location for your business, you must obtain a tenancy agreement. The contract, which you will provide with the rest of your application paperwork, must include Ejari’s attestation.
8. Send in Your Application
Submit your trade license application once you have all the necessary materials and a site picked out for your firm. Submit the DED all the required paperwork to get your trade license.
9. Payment of License Fees
Keep in mind that obtaining a trade license is not free. In order to obtain your license, you must pay both the license fee itself and the issuance fee.
How much does it cost to get a trade license in Dubai?
You must be aware of the all the charges before rushing to obtain your trade license and open shop in Dubai. This will assist you in planning your licensing procedure budget and help you stay out of trouble.
Depending on the goods you plan to sell and the permits you need trade license Dubai cost varies. Following additional elements that may impact how much your trade license will cost: –
- Number of business associates
- Geographic area of the establishment.
- Structure of a business.
- Collaborations with regional sponsors.
- Type of commercial operation.
A trade license cost in Dubai will be anywhere between AED 15,000 to AED 50,000 (approx.) or even more. Cost of a business license depends on different variables such as having a company sponsor, multiple partners, business activity, the region of the business establishment, location of the company, business structure, etc.
Also, mainland businesses in Dubai and free zone companies have different trade license requirements and costs. Moreover, you also need to include the LLC trade license renewal cost in Dubai when estimating the overall expenditure. Thus, the exact cost of a trade license in Dubai can only be derived once these factors are addressed.
Read more: https://www.shuraa.com/what-is-the-cost-of-a-trade-license-in-dubai/
How long will it take to have a trade license approved?
The waiting game begins after you’ve submitted your trade license application. Fortunately, the wait period for a Dubai trade license is not that long.
The normal turnaround time for a trade license is three days to four weeks. The precise turnaround time will depend on the required approvals and the business operations you carry out.
Your turnaround time should be rather quick as long as you have all the necessary paperwork in place. Be sure to double-check your application forms before submitting them to ensure that your trade licence is early as soon as possible.
How may a trade license be renewed?
Your Dubai trade license may not remain in force indefinitely even after the approval. To continue conducting business legally in the UAE, renew the license each year.
The first step in renewing your company license is to secure the necessary permits. Your sort of business will determine the kind of permits and authorizations required.
For instance, in order to renew their business licenses, transportation businesses must receive clearance from Dubai’s Road and Transport Authority. Prior to starting the rest of the renewal process, seek clearance to speed up the procedure.
For license renewal, firms required proof in addition to written approval. In Dubai, the following paperwork is needed to renew a trading license:
- Completed renewal application.
- EJARI attested.
- Letters of authorization and permission.
- A lease agreement.
- Photograph of each business partner.
- The fee payment code for renewals.
- To obtain approval, the business owner must submit these documents to the DED.
You should review your lease agreement before submitting an application to renew your trade license. It must be valid for at least three months from the date you submit a renewal application for your license.
Obtain a Trade License for Dubai Right Now!
The key to taking advantage of the numerous commercial advantages of the UAE is obtaining a trade license in Dubai. It’s a means for your business to increase sales and make smart investments in a strengthening economy.
However, are you ready to launch your Dubai business? Contact us for , and we’ll assist you with every step of the procedure. Shuraa provides top notch business setup in UAE services. Book a free consultation with us or call us at +97144081900. You can also reach out to us on WhatsApp by dropping a message on +971507775554. For email assistance, mail your query at email@example.com.