Business Trade License in Dubai

Every free zone trade license in UAE is issued by the Department of Economic Development, and it serves as a document outlining the activities a corporation may undertake in the UAE. Besides its picturesque vistas and vibrant nightlife, Dubai is renowned for its business-friendly environment and robust support for enterprises. Additionally, its perpetual demand for goods, ease of conducting business, and proximity to emerging markets render it a highly coveted destination for startups. However, companies are mandated by the government to obtain a trade license in Dubai to operate legally and efficiently.

What is a Trade License in Dubai?

The UAE DED Trader license enables startups in the UAE to conduct online business activities across social networking accounts. A DED trade license in Dubai is a sole establishment license obtainable by Dubai home-based businesses under the issued trade name. “Invest in Dubai” facilitates the license application through their platform, with a nominal fee of approximately AED 1070*, covering license fees and knowledge and innovation fees. Additionally, Dubai Chamber membership, costing around AED 300*, is required.

Types of Business Trade Licenses in Dubai (UAE)

There are three primary categories of business licenses in Dubai and the UAE.

1. Commercial License : In Dubai and the UAE, a commercial trade license is necessary for corporate entities to conduct any commercial operations. This license enables organizations to operate both domestically and internationally. Depending on the business’s trading activities, entrepreneurs can obtain various types of commercial trade licenses crucial for their company’s growth. From retailing and construction to public transit and property development, a commercial trade license is essential across various industries, including healthcare.
   The advantages of obtaining this license are manifold, it provides management and protection for businesses, allows for up to ten activities from the same group under a single license, covers multiple related company practices, and facilitates connections with the ROC and Department of Economic Development. Upon registration, businesses have the flexibility to choose from numerous available business forms.

2. Professional License : In Dubai, acquiring a professional license from the Department of Economic Development (DED) is vital for individuals or businesses providing professional services to customers. This license serves as a testament to the firm’s or individual’s credibility and expertise in their respective profession or field. Only those with proven qualifications and experience can be granted such licenses. Whether consultants, accountants, attorneys, or other professionals, anyone looking to establish a business in their respective field can obtain a professional business license in Dubai.
   The advantages of acquiring such a license are numerous, including the ability to legally operate and offer services to consumers and businesses throughout the UAE. Additionally, professionals can actively participate in events and opportunities related to their field of expertise. Furthermore, foreign entrepreneurs with a professional license can fully own their company with 100% ownership rights, enjoying the benefits of sole ownership.

3. Industrial License : In Dubai, businesses involved in manufacturing or industrial operations require an industrial trade license, which comes with several advantages. Obtaining this license allows enterprises to enjoy privileges provided by the UAE government to promote industrial development and attract investments.
   Entrepreneurs can benefit from specially designed rental conditions for industrial premises, including discounted sites to facilitate business expansion. Additionally, discounted rates for essential utilities such as power and water further incentivize industrial growth and development.

Benefits of Getting a Trade License in Dubai, UAE

A trade license in Dubai comes with many benefits that businesses procuring this license can avail. Some major benefits include:

1. Affordable and Easy Business Setup
   Company formation in Dubai is relatively affordable and straightforward compared to other commercial hubs worldwide. Business owners must submit a comprehensive business plan along with all supporting documents and revenue estimates.

2. Multiple Visa Facility
   UAE offers multiple visa facilities through which business owners can obtain various visas, retaining their physical presence in the Emirate. Moreover, having multiple visas helps businesses recruit more workforce. Depending on the office size, companies can apply for employee visas after obtaining a valid business license. Additionally, owners can sponsor visas for dependents, including spouses, children, parents, maids, drivers, etc., bringing them to the UAE.

3. Boost Local and International Trade
   Companies with a trade license in Dubai can sell or distribute imported or exported goods in local as well as international markets, exploiting all business possibilities and gaining profits globally.

4. Fewer Trade Restrictions
   Businesses holding a trade license are exempted from any paid-up share capital. Moreover, if their products are registered under their license, they do not have to worry about any restrictions, increasing the profitability of the business.

5. E-Trading Facility
   The Business Regulation and Licensing sector of the Department of Economic Development introduced an e-trader license for entities, especially from the Gulf countries, conducting business on different social media platforms.

6. Enhances Business Integrity
   Businesses that operate in accordance with government laws and regulations tend to gain a good reputation in the market. This builds trust among customers, leading to more purchases and market exposure.

7. Tax Benefits
   UAE is almost entirely tax-free, allowing traders and business owners to save money on taxes and gain additional revenue for production purposes.

How to Get a Trade License in Dubai, UAE

There are a few simple steps to get your trade license in Dubai:

1. Select Business Activities
   Make a list of all activities you wish to carry out in the UAE and include them in your license application. Conducting unregistered activities may lead to hefty consequences.

2. Choose a Trade Name for Your Business
   An appropriate and unique trade name enhances your brand in the market. While choosing one, adhere to UAE guidelines regarding business names.

3. Choose Your Business Location
   Select a city or Emirate where you want to set up your company and a jurisdiction where you want to register your business, whether you want to establish a Mainland company, a Free Zone entity, etc.

4. Complete Your Application
   Your business operations and accountability will be determined by the legal structure you choose for your company. Choose one that aligns with your business plan.

5. Application Form
   Fill out a license application form and submit it to the DED for approval. Submit the required documents relevant to your business authorization.

6. Additional Approvals
   Certain business activities in the UAE might require mandatory external approvals from specific government officials and Ministries. Conduct deep research before entering the business formation process.

7. Pay the Fees
   Pay a fee while applying for a license, covering the cost of issuance and the license fee itself. Rozhan Group professionals will guide you through every step of your license acquisition journey, providing one-on-one mentorship and guidance on clearing legal proceedings and growing your business in the UAE.

Cost of a Business Trade License in Dubai

Before obtaining your company license in Dubai, it’s important to understand the prices you need to pay throughout the process. This will help you manage your budget and avoid setbacks. The cost of a UAE trade license varies depending on the business activities and approvals required. The License Fee starts from AED 12,000. Factors affecting the cost include the number of shareholders/partners, location of establishment, corporate structure, and type of business activity. Rozhan Group Business Setup will help you select the appropriate location and jurisdiction for an affordable company formation.

Renewal of Trade License in Dubai

The validity of a trading license in Dubai lasts for a specific period, requiring responsible renewal to continue operating legally in the UAE. The renewal process covers obtaining approvals and authorizations from relevant authorities, gathering necessary documents, and checking the validity of the Tenancy Contract.

Get in touch with the team at Rozhan Group for guidance and assistance with your business setup in Dubai.