Trade License in Dubai : All about it.
Dubai is one of the world’s most dynamic business hubs, offering unparalleled opportunities for entrepreneurs and investors. A trade license is essential for conducting business activities in the emirate, and understanding the process can set you on the path to success.
Why Do You Need a Trade License in the UAE?
Trade license is more than a legal document; it is your gateway to success in the UAE business ecosystem. Here are the benefits:
- Legal Compliance
- Credibility and Legitimacy
- Wide Trading Opportunities
- Sponsor Dependents
- Government Support
Licensing requirements in the UAE
Types of Trade Licenses in the UAE
The UAE offers three primary types of trade licenses based on your business activities:
Commercial License
A commercial license is ideal for businesses involved in the buying and selling of goods. It covers a wide range of activities, including:
- Imports and exports
- General trading
- Real estate brokerage
- Logistics and transport
- Rental and leasing services
If your business deals with goods trading, a commercial license is a must.
Professional License
For service-oriented businesses, a professional license is essential. It allows for 100% ownership while requiring a local service agent for administrative purposes. Businesses that typically require a professional license include:
- Management consultancies
- Legal firms
- Auditing and accounting services
- Marketing and design agencies
Industrial License
This license is required for businesses engaged in manufacturing or industrial activities. It mandates having a physical office or warehouse in the UAE. Common activities under this license include:
- Manufacturing of goods
- Packaging and assembly
- Product casing and furnishing
Timeline
Steps to Obtain a Trade License in the UAE
The process of getting a trade license involves several steps:
01.
Very important
Check if you are allowed to setup a business abroad
Certain countries have restricted or has kept complex reporting mechanisms to control and to keep in check foreign investments made by its residents. Being a founder setting up abroad, you have to have full knowledge that you are complying to those home jurisdictional compliances while setting up in the UAE.
Note: Certain countries prevent setting up a foreign company and or impose hefty penalties for violation.
02.
Choose a Business Name
Select a unique trade name that aligns with UAE naming conventions. Ensure it reflects your business activities and is not offensive or religiously sensitive.
03.
Define Your Business Activities
Clearly outline your business activities as these determine the type of license you’ll need.
04.
Determine Your Legal Structure
Choose the legal entity for your business, such as a sole proprietorship, limited liability company (LLC), or branch office.
05.
Complete the Application Form
Submit your trade license application with the relevant authority, whether it’s DED or a free zone.
06.
Get Additional Approvals
For certain business activities, approvals from other UAE government bodies may be required.
07.
Prepare Required Documents
Gather essential documentation, including:
- Passport copies of shareholders/partners
- Emirates ID for UAE residents
- Lease agreement for a business premises or virtual office
- Memorandum of Association (if applicable)
- Business plan
08.
Submit Your Application and Pay Fees
Submit your complete application to the appropriate authority and pay the applicable fees. Trade license costs in the UAE typically start from AED 25,500*, but they vary based on the emirate and license type.
