Trade license in Dubai
Obtaining a Dubai Trade license is the most important step in the process of forming a company in the UAE. It is very easy to get a business license and start a business in Dubai if you know the right people here.
However, setting up a company in Dubai can be complicated for newcomers. This is because of the steps involved in obtaining a business license in Dubai. You know that a business license is also called a business license.
The Department of Economic Development (DED) in Dubai is responsible for handling new business registrations here. This means that in order to obtain a business license in Dubai, you need to deal with the authorities at the DED.
If you are a foreigner with limited knowledge of the Middle East, its customs and dialects, this can be a challenge for you.
Specialists in company setup consultants have years of experience building a company in Dubai. They can help you get a business license and start your own business in Dubai without interruption.
As a result of starting several businesses across the UAE, they have developed the required networks and connections to facilitate the entire process of obtaining a business license in Dubai.
Before you get into the details of getting a business license in Dubai, you need to know about the different types of business licenses available for business in the UAE.
The Dubai government is constantly striving to make business setup as smooth and easy as possible. Therefore, it has recently introduced a new initiative to make it easier to obtain a Dubai business license. This is known as an instant trade license in Dubai.
With this instant trading license facility in Dubai, you don’t even need an office to start a business.
What Are the Types of Trade License in Dubai?
There are basically four types of business licenses in Dubai. You can find more about different economic jurisdictions in Dubai. However, apart from these other special trade licenses, these four are the most popular trade licenses in Dubai. These are the four trade licenses you will find in Dubai Mainland.
Here are four types of business licenses in Dubai:
1. Commercial License In Dubai
Commercial trade licenses in Dubai are for businesses that want to carry out commercial activities, including buying and selling goods. Some of these business activities include commercial products, import products, export products, rental activities, brokerage activities, etc.
Even if you want to do business outside the UAE but your business is in Dubai, you still need a business license to run your business.
2. Professional License In Dubai
Professional business licensing in Dubai focuses on business activities, including selling your services to other people or businesses.
If you have a professional license in Dubai Mainland, you can sell your services to the government and get lucrative government contracts.
Some business activities permitted by a professional license include auditing, healthcare services, consulting services, digital marketing services, and more.
3. Industrial Trade License Dubai
The Industrial Trade License in Dubai is for businesses that want to carry out business activities, including manufacturing products within the country. One of the requirements for obtaining an industrial commercial license is that you must own an office space in the country.
Some of the business activities permitted by the Industrial Trade License include import of raw materials, processing of raw materials, packaging of finished products, sale of finished products, export of finished products, etc.
4. Commercial Tourism License
The Dubai Tourism License is for businesses that want to carry out business activities, including tourism planning and management. This is a relatively new trade license in the UAE compared to the rest of the trade licenses available here.
The government introduced the license to better manage the tourism industry in the UAE. Businesses like travel agencies, businesses in the hospitality sector and tour operators etc. You just need to get a tourism license in Dubai UAE.
What is the procedure for obtaining a Trade license in Dubai?
If you have previous experience of starting a business in the UAE, you can easily get a business license in Dubai. However, if you are new, it is advisable to seek expert help before entering the field alone. If you want to go for it yourself, you can follow our guide which is divided into ten digestive stages.
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Here are ten easy steps you can take to get a business license in Dubai:
1. Select Economic Jurisdiction.
When you start in the UAE, the first thing you have to decide is what economic area you want to work in. Dubai is dominated by mainland, free zones and offshore companies.
2. Select The Company Structure.
The next step is to decide on the structure of the company. The legal framework of your company will determine the rules and regulations to which it will be applied in the future, so choose it carefully.
3. Select Business Activities.
The business activities you want to do here in Dubai will determine the business license you need to apply for. Select all the business activities you want to do because you can’t do any of the activities you didn’t choose before.
4. Get Initial Approval.
Having made all three decisions, it is time to seek initial approval from the Department of Economic Development in Dubai. You need to fill out an application form that they will provide.
5. Get An Office Space.
You need to get office space because you need a tenancy agreement and EJARI to get a commercial license from DED. If you do not need a physical office space, you can opt for a virtual office.
6. Prepare MOA.
The Memorandum of Association (MOA) is an important part of the document. It is recommended that you seek the help of legal experts when drafting this document.
7. Get External Approval.
Officials from the Department of Economic Development in Dubai will mention a few external approvals that you need to get from various government agencies and agencies.
8. Submit Documents To DED.
There are some important documents that are required by the DED. Here are the documents you need to submit to DED:
- Copies of passports of all shareholders.
- Letter of initial approval from DED.
- Filled the DED application form.
- Memorandum of Association.
- Tenancy agreement and EJARI.
These are general documents, and may require some more depending on the business activities you choose to perform.
9. Complete The Final Application
After all the previous steps are completed, you need to submit the documents and complete the final application from the Department of Economic Development in Dubai.
10. Pay Dubai Trade License Fees
Once you complete all the procedures and the DED accepts your application, Now you need to pay the required fees and you can get the Dubai trade license you applied for.
What documents should be submitted for Dubai Trade License?
For a Dubai business license, very few documents are required. When applying online through the e-channel portal, you need an Emeritus ID to create an account before completing the process.
If you are applying through the Service Center, the following documents are required:
- Copies of passports of all licensed parties (partners and managers)
- A copy of the resident visa and NOC (if applicable).
- A copy of your visa (if applicable).
What are the benefits of getting a business license in Dubai?
Dubai has been at the forefront of startup culture in the 21st century. This is because Dubai authorities have a long-term plan to change the country’s economic landscape.
As a result, there are many benefits to having a business license in Dubai right now. That is why for the past decade, businessmen and investors from all over the world have been flocking to Dubai and the rest of the UAE.
You do not need to start a brand new business to get a business license in Dubai. Alternatively, if you already have a business in your home country, you can easily start a branch or organization in Dubai.
In addition, the process of obtaining a business license in Dubai is very easy. As a result, the benefits of obtaining a business license in Dubai are much easier.
Benefits of Obtaining A Business License In Dubai
There are many benefits to obtaining a business license in Dubai. However, the process of obtaining a business license in Dubai can be daunting for first-time visitors, even if the process itself is very straightforward.
This is because UAE has a different culture and there own Arabic language that most of the foreigners are not accustomed to. This is where company setup consultants come to help you with the process.
The benefits of obtaining a business license in Dubai are:
1. Promote Sales Through Local And International Trade.
Dubai focuses heavily on imports and exports, which is evident when you consider all exports and imported free zones. This means that the authorities themselves focus on ensuring that goods and services can move freely inside and outside the country. In addition, there are no tariffs on exports and imports, except for some strategically important items.
With a generic trade license in Dubai, you can export, and import, and go anywhere in the world. It allows businesses to acquire high potential when opening a branch or organization in Dubai.
2. Improve Brand Image And Reputation
The business scene in Dubai is very safe and secure. As a result, you gain credibility, and your business can easily win the trust of your investors, customers, clients, and other business associates.
In addition, your business is considered legal after obtaining a business license in Dubai, which further enhances your reputation.
When you get a business license in Dubai, your business gets more exposure in the market. As a result, your business gets more networking opportunities and profitable connections. As a result, your business gets a high brand image.
3. Exemption From Taxes And Other Tax Incentives
One of the main reasons why so many people go to Dubai to start a business or to invest is because the tax benefits can be reaped here. For example, there is no personal tax in Dubai. This means that all profits and other income from your investment will not be taxed in any way.
Dubai recently announced a tax on corporate income. However, this is only for large corporations that exceed a certain income threshold. Still, owning it is out of reach of the average person.
4. Limited Trade Restrictions
Dubai is a great place to do business because trade restrictions are very limited. This is because as long as the goods you are trying to buy and sell come under a generic trade license, you don’t have to worry. In addition, the UAE will have good trade relations with almost all countries in the world.
The only limited items are goods that are considered illegal in most parts of the world. This means that these goods are potentially limited and illegal in other countries from which you would like to export or import.
5. Investment And Sponsorship Opportunities
If you want to start a business here in Dubai but have limited start-up capital to operate, you don’t have to worry. In addition to affordable start-up costs, there are many investors and local sponsors here in Dubai who will be happy to invest in your business if you provide a solid business plan.
Once you get a business license in Dubai, you can easily get your visa. In addition, as a Dubai Trade License Holder, you can also sponsor visas for close family members and some of your employees.
6. Easy Business Setup
Last but not least, starting a business in Dubai is easy. This makes it easier for you to enjoy the benefits of getting a business license in Dubai. In addition, there are many office space options for business people with different budget ranges.
The availability of company setup consultants makes the process of setting up a business in Dubai almost minimal, even if it is your first time. As a result, you can easily start a business here and reap the benefits of a business license in Dubai.
What is the fee for a commercial license Dubai?
Commercial license Dubai fees are very cheap. However, the actual cost of obtaining a commercial license will depend on a number of factors. For a medium-sized enterprise, for example, the cost of obtaining a business license in Dubai would be approximately 20,000 AED, which varies from approximately USD 5,000. Alternatively, it would be much cheaper for a small business.
These are the factors that will determine the cost of obtaining a business license in Dubai:
- Business type
- Trade license
- Type of office space
- Business Framework (Legal Framework)
- Availability of local sponsor
- Choice of (mainland or free zone) economic jurisdiction
What Is An Instant Trade License In Dubai?
Immediate trade licenses have been introduced in Dubai in an effort to boost the UAE’s economy. It allows business people to get a professional or commercial license within 5 minutes! With a quick business license, these are the benefits:
Benefits Of Instant Trade License
- No physical office required.
- Memorandum of Association is not required.
- No trade name registration required for the first year.
- Can be completed in 5 minutes.
These documents are not required for the first year. It can be submitted during the renewal of the trade license.
Company setup consultants in Dubai can save you the hassle of renting an office space and getting in touch with tenants as we partner with Spider Business Center, offering specialized serviced offices.
How To Get Dubai Instant Trade License
The process of applying for an instant business license in Dubai is very quick and easy. The application can be completed online using the e-channel portal or by visiting the service center:
Select your business activities. Make sure the business activities you want are legitimate through the Department of Economic Development (DED).
Choose your company name. The name must also be associated with the DED guidelines.
Submit your application. This can be done either through the online e-channel portal or by visiting the service center.
This process is very quick and easy and should be done within 5 minutes. You just need to provide the below required information:
- Partners and managers
- Trade name
- Commercial Registry
The fee for an instant business license in Dubai is very low. In fact, our service fee for an instant license in Dubai is only AED 16,000.
Keep in mind that instant licenses are available for businesses that are conducting activities that do not require external approval.
Application Submission Requirement / Criteria
Your application must have the following factors and details to be considered valid;
- Business activities
- Stakeholders and owners
- Company name
- Commercial Registry
Documents Required For An Instant Business License In Dubai
One of the many benefits of getting an instant license is that it requires very little documentation.
- Copies and licenses of company shareholders’ passports
- A copy of the resident visa if you are a resident
- Completed application form
- On the other hand, if you choose to apply through the online portal; All you need is an Emirati ID to create an online account and submit the required information.
Frequently Asked Questions on Business License in Dubai
Q)-1 How much does a business license cost in Dubai?
The cost of a commercial license in Dubai varies between AED 8,000 and AED 10,000. The cost of your trading license in Dubai will depend on the business activities you want to do here. General business licenses in Dubai only start with AED 9,200.
Q)-2 How do I open a business license in Dubai?
You can get a business license from the Department of Economic Development (DED) in Dubai. This is because they are the governing body responsible for issuing business licenses in Dubai.
As a result, you can get a business license for your business directly from the Department of Economic Development in Dubai. However, if this is your first time in Dubai, it is highly recommended that you seek help from professionals.
The company setup consultants specialize in business scenarios in Dubai and the rest of the UAE. This is because they have started numerous businesses throughout the UAE. In addition, he has helped various foreigners from around the world to start in the UAE.
As a result, they have everything you need to get started in the UAE without hesitation. In addition to getting a business license for you, they will also help you with various aspects of your business, such as day-to-day operations.
Q)-3 How can I get a trade license in Dubai?
Commercial licenses in Dubai are issued by the Department of Economic Development (DED) Authority. He is responsible for registering and handling new businesses in the city. You can get your own trading license by following the business setup process. Or, you can get help from professional company setup consultants.
Q)-4 Do I need a business license in Dubai?
To legally trade goods and services in Dubai, you need a business license in Dubai. There are three well-known business licenses in the UAE. They are commercial trade licenses, professional trade licenses, and industrial trade licenses.
Q)-5 What is an instant trade license in Dubai?
Instant License in Dubai allows you to get instant commercial or professional business license in Dubai. You can legally carry out your business activities in Dubai with an instant business license. It will take time for you to establish your company while conducting your business activities in the city.
For example, you don’t need to register your trade name to get an instant trade license because registering a trade name is a lengthy process.
Q)-6 How many types of business licenses are there in Dubai?
There are four types of business licenses in mainland Dubai. They have commercial trade licenses, professional trade licenses, industrial trade licenses, and tourist trade licenses in Dubai. The business license you need to get will depend on the business activities you want to do in Dubai.
These are the business activities you can do with each of the four business licenses in Dubai:
Commercial Commercial License
Commercial trade licenses are for businesses that want to specialize in buying and selling goods. In addition, you can sell some services that do not require a higher education with a business license.
Professional Business License
Professional business licenses are for businesses that want to provide their services in Dubai. However, a professional license requires you to provide the necessary educational and professional certificates.
Industrial Commercial License
Industrial trade licenses are for companies that want to manufacture and sell goods in the United Arab Emirates. In addition, they can import raw materials, assemble, package and export finished products with this license.
Commercial Tourism License
Commercial tourism licenses are for businesses that want to provide, buy and sell tickets for tourism services in the UAE.
Q)-7 How much Dubai Trade license will Cost?
There are various aspects of starting a business in Dubai, including the process of obtaining a business license. And because every business is different, so will their needs. As a result, the cost of obtaining a business license in Dubai and starting a business here will vary from one example to another.
However, to estimate the ballpark, you can start a business and get a commercial license in Dubai for at least AED 15,000. Furthermore, an upper limit of AED 50,000 can be set but in reality, there is no initial capital upper limit that you can start with.
To get a business license in Dubai, you must meet certain requirements. For example, before the Department of Economic Development in Dubai issues a business license for you, you must obtain office space for your business.
Now the cost of getting this office space will depend on you and your business. This is because there are different types of office spaces in Dubai that cater to different types of business needs.
For example, if your business doesn’t need any physical space to operate, you can get a virtual office at a very affordable price. This means that the total cost of obtaining a business license in Dubai will be lower for you.
Q)-8 What is the cheapest trade license in UAE?
Sharjah Media City offers the cheapest commercial license in the UAE. This is known as a professional media license, and it allows 13 listed business activities. Licenses can be obtained for at least AED 5,750.
However, you can add more kind of business activities in your trade license you need to pay AED 1,000 for per activity. In addition, you can easily get the cheapest business license in UAE from company setup consultants.
Q)-9 Is it difficult to get a business license in Dubai?
It depends on the business license you want to get and your experience starting a business in the UAE. With the help of expert business consultants in the UAE, it is very easy to get a business license and start your own business in Dubai.
Q)-10 Do I need to apply for a business license if I open a branch office in Dubai?
Yes, foreign companies also need to obtain a business license before they can carry out their respective activities in the UAE through a branch office.