Among the required documentation that is necessary to set up an effective business in Dubai is the trade license. Applying for it is one of the main steps you should take in order to complete your company setup process, and you can ask for your trade license in Dubai if you follow our tips and recommendations.

In this article, you will learn everything you should know about this document to be able to operate your business in the Dubai emirate. Here you will be able to find relevant information about it, the different types of trade licenses that exist in Dubai, and the process you must complete to obtain it. Let’s observe:

1. What is the trade license you will need to operate your company in Dubai?

2. Can both Dubai free zone companies and Dubai mainland companies obtain the trade license?

3. How many types of licenses exist for Dubai companies?

4. What advantages can you obtain by obtaining the trade license in the Dubai emirate?

5. What steps should you follow in order to obtain the trade license in Dubai?

6. Documents you will need to complete your application for the trade license in Dubai.

7. Fees in Dubai for the trade license registration.

8. What is the required process to renew your trade license in Dubai?

9. How can Connectfz help you obtain more information about the trade license in Dubai?

1. What is the trade license you will need to operate your company in Dubai?

Trade licenses are essential documents that will legitimize your company and allow it to operate in the location in which your company is; in this case, it would be in Dubai. Obtaining the trade license in Dubai is one of the steps that you will have to follow in order to establish your business in the city, and here we will provide you the information you need to know about it.

This license is also known as the commercial license and has the main function of designating most of the activities that can be carried out across the United Arab Emirates. The government authority that issues the trade license in the Dubai emirate is the Department of Economic Development (DED), which means that all the documents you will submit to apply for the license must be submitted to this department.

Many business activities can be performed by your company if you obtain a trade license, according to the Dubai Economic Department Trade License activity list, including the following ones:

• Importing and exporting goods, which is the main activity of all trading companies located and registered in Dubai.
• Carrying out several types of commercial activities, including the sale of goods, products, and services in the city.
• The general trade license can be requested and obtained by those professionals who offer their services in a specific industry, and also by companies that are registered in Dubai free zones.

Depending on the type of business activities that your company will perform in Dubai, you can apply for several types of trade licenses, which will allow you to carry out your company’s functions and be more profitable and successful. Keep reading to learn more about the different types of trade licenses that you can find in Dubai.

2. Can both Dubai free zone companies and Dubai mainland companies obtain the trade license?

The answer would be yes since the requirements that are applicable to open a mainland company in Dubai are the same to open a Dubai free zone company. In the case of free zone companies, the trade license will be issued by the pertinent free zone authority in charge, and in the case of mainland companies, the license will be issued by the DED (Department of Economic Department).

Here you can read our recommended guidelines regarding the successful company setup process in the UAE.

3. How many types of licenses exist for Dubai companies?

There are three main types of licenses that you can apply for to finish establishing your company in Dubai, starting with the trade license or commercial license. As mentioned before, this type of license has the function of allowing your business to perform industrial, commercial, and consulting activities. Other licenses available for you are:

• Professional License: if you are a foreign entrepreneur or investor, this license will allow 100% ownership for you, and you will be able to obtain the advantage of a sole proprietorship. This license is usually for industries like management, accounting and finances, IT, healthcare, education, advertising, marketing, among others.
• Industrial License: with this license, your company will be able to import raw material, manufacturing, and exporting finished products.

3.1. Different trade licenses for specific industries.

Depending on the type of industry, the license can be provided by different authorities, and here are some examples:

• Insurance companies must obtain their licenses from the Ministry of Economy and Commerce.
• Pharmaceutical and medical product companies must obtain their licenses from the Ministry of Health.
• Financial institutions (such as banks) must obtain the necessary licenses from the Central Bank of the UAE.
• Manufacturing business companies must obtain their licenses from the Ministry of Finance and Industry.
• Commercial businesses in the United Arab Emirates must obtain their licenses from the Chamber of Commerce and Industry.

4. What advantages can you obtain by obtaining the trade license in the Dubai emirate?

Although foreign investors can apply for any of the available business licenses to start running their companies in the country, the trade license in Dubai offers a wide range of advantages compared to the other business licenses. The main advantage that the trade license offers is that it is easier to obtain and requires less paperwork, which makes the application process less time-consuming. Among other remarkable advantages that you get from it are the following ones:

• The trade license in the Dubai emirate is usually issued within 5 working days after submitting your application.
• It is the cheapest business license in Dubai. The fee that the trade license requires ranges between AED 30,000 and AED 40,000. However, the cost may vary depending on several relevant aspects that need to be considered before the investor applies for the license.
• The trade license permits local companies to enter into national and international trading activities effectively.
• The trade license also permits the establishment of holding companies in the city, which means that foreign investors who are interested in setting up holding companies in Dubai can apply for a trade license for this purpose.

Here you can learn about free zone companies running their businesses in Dubai Mainland.

5. What steps should you follow in order to obtain the trade license in Dubai?

If you are interested in having your own trade license, here you can learn how to get a trade license in Dubai to start operating your company. Follow these steps to obtain your license:

• Designate the category of your business. You can choose between several categories, including commercial, professional, industrial, or any other.
• Determine the main business activity that your company will perform along with adjacent business activities.
• Choose the most suitable trading name for your business and gather the necessary documentation to apply for the license.
• Submit your application to the DED (Department of Economic Development) and wait for the initial approval.
• Register the trade name with the pertinent departments after getting the initial approval.
• Rent or lease business premises according to the license you are applying for.
• Gather required documents like approvals from government authorities and submit the final application with the fees.

Here you can learn more information about the General Trading License in Dubai and how you can obtain it.

6. Documents you will need to complete your application for the trade license in Dubai.

Several documents will be required and presented to the Trade License and Commercial Registration Department within the Department of Economic Development (DED), which are necessary to obtain your trade license in Dubai. The following documents are the ones you must gather and present to the previously mentioned department of the DED:

• The original and a copy of your company’s statutory documents.
• A standard application form filled out and signed by the company’s legal representative.
• A letter from the Department of Economic Development with the approval of the company name.
• A letter from the Department of Economic Development attesting the approval for setting up the company.
• All shareholders’ details including copies of their passports.
• The tenancy agreement.

Here you can learn about the steps you should follow in order to set up a foreign company branch in the UAE.

7. Fees in Dubai for the trade license registration.

All fees will depend on several elements, including the type of company, the type of licenses that the investor will require, the location in which the company will be established, the business activities that the company will perform in the country, and many other details. There are two main types of companies that can obtain the license, which are:

• Free zone companies: in this case, the free zone trade license cost in Dubai would be around AED 11,500.
• Mainland companies: on the other hand, the mainland trade license cost in Dubai would be around AED 15,900.

Here you can learn more information about import and export procedures in Dubai free zones.

8. What is the required process to renew your trade license in Dubai?

It will be necessary for all Dubai companies and enterprises to complete the trade license renewal process annually. Having all of the legal documents up-to-date is essential to keep operating in the country, and here we will present to you the steps you must follow to renew your trade license in Dubai:

• Make sure to have a tenancy agreement with a validity of at least one month.
• Then you will be able to apply for a license renewal at the Department of Economic Development.
• Acquire the transaction number of the payment voucher that will be provided by the Department of Economic Development.
• Submit your application with all the required documents.
• Obtain the license approval and pay the trade license renewal fees by using the payment voucher.

If it is required, you can change your sponsor and business address when the time for the license renewal comes. As for the renewal fees, here is a list of them according to the type of license:

• Mainland trade license renewal fees: AED 8,000 – AED 1,000.
• Sponsor fees: AED 3,000.
• Sustainability cost: AED 2,000.

Here you can learn about the new initiative of the Department of Economic Development that allows Dubai free zone companies to do business in Dubai Mainland.

9. How can Connectfz help you obtain more information about the trade license in Dubai?

When you decide to start building your own company in the United Arab Emirates, the most common suggestion you should take into consideration is requesting a business setup partner to make the setup process more efficient and faster, and the best partner that you can have is the Connectfz team.

With our professional support and services, you can speed up the setup process considerably, including the process you must complete to obtain your trade license in Dubai. We can provide you with the information you need, some useful tips you should follow, and the necessary resources to achieve your goals and set up your company successfully.

In addition, you will be able to find a wide range of useful services that you might need in the future to make your company more efficient and profitable, including HR consultancy services, payroll services, staff outsourcing and recruitment services, banking services, visa and government services, and many others that you might consider necessary for your business.

Would you like to contact Connectfz to obtain more information about how to obtain a Trade License in Dubai? If you have any question, do not hesitate to call us on +97143316688 or email us at info@connectfz.ae, and you will talk to one of our representatives that will gladly answer all of your questions.