Dubai is the land of opportunity for businesses. There are numerous thriving industries in the Emirate that are welcome new competition. But before you can start earning profits, you must legally set up your business in Dubai. The most important step in this process is obtaining the business trade license in Dubai.
An expert business consultancy can help you through this process. Here’s everything you need to know:
Why You Need a Trade License in Dubai
A trade license is a permit that allows a business to legally operate in Dubai. It is a necessary document for each and every business that starts up. There are two types of licenses in Dubai:
- Commercial License
- Professional License
For general trading purposes, a commercial license is the most suitable. Obtaining a commercial Dubai trade license will allow you to conduct the following activities:
- Perform up to ten activities with a single commercial trade license
- Register the company as an LLC
- Secure business engagement with DED and Registrar of Companies
- Get residence visas for employees and company management
- Easily open a corporate bank account
How to Get Business Trade License
Following are the steps you need to take while registering a business trade license in Dubai.
- Select a name for the company, according to the government mandates
- Decide on the business activities
- Select whether you want a commercial or professional license. For a general trading company, prefer a commercial license.
- Complete the application and submit to Department of Economic Development (DED) for initial approval in Mainland, or to the Free Zone authority
- Collect all necessary documents, which includes:
- Completed application signed by the legal representative of the company
- Letter from DED with approval of company name and activity
- Tenancy agreement
- Passport copies of all shareholders
- Memorandum of Association with a local sponsor
- Rent out a suitable office and obtain the tenancy contract
- Seek approval of the tenancy contract from Ejari (Dubai Land Department)
- Submit paperwork and relevant documents to DED
- Wait for final approval
- If approved, pay the trade license Dubai fees
Keep in mind that these are general Dubai trade license steps for the mainland. For company set up in a free zone, you may have to seek additional approval according to the mandates of the free zone authority.
What are Dubai Trade License Fees?
The trade license fees in Dubai are typically between 12,000 and 50,000 AED, depending on a number of factors. Some of these factors include:
- Type of business structure
- Nature of business activities
- Number of shareholders
- Location of business setup (mainland or free zone)
- Company sponsors
In order to find out the exact trade license fees, according to your business conditions, we recommend asking an expert trade license service provider. They have years of experience and are able to provide accurate estimates for the trade license fees.
Dubai Trade License Renewal
Every business is subject to an annual trade license renewal. There is also a fee for the trade license renewal, which you should always be aware of. Moreover, a failure to renew the license within the stipulated time will result in additional penalties.
We are experts in company formation in the UAE. To learn more about the Dubai trade license process, fees, and renewal, contact us for a consultation.