Get a trade license in Dubai: A step-by-step guide

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:

For Your Company to Operate in Dubai, What License will you Need?

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 Business 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.

The commercial license allows most activities to be carried out in the UAE. In Dubai, trade licenses are issued by the Department of Economic Development (DED).

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.

Can Dubai mainland and free zone companies obtain trade licenses?

The answer would be yes since the requirements that are applicable to start business in Dubai mainland are the same to open a Dubai free zone company. The free zone authority will issue a trade license, and the DED (Department of Economic Department).

How Many Types of Licenses Exist for Dubai Companies?

In order to complete the establishment of your company in Dubai, you must apply for three types of licenses. This license allows your business to conduct 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.

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.

What Advantages can you obtain by Obtaining the Trade License in Dubai?

While foreign investors can apply for any of the available business licenses in Dubai, the trade license has significant advantages over others.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.
• In addition to establishing holding companies, foreign investors can apply for a trade license to set up holding companies in Dubai.

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.

Documents You Will Need to Complete Your Application for the Trade License in Dubai.

To obtain a trade license in Dubai, you must present several documents to the Trade License and Commercial Registration Department within the Department of Economic Development (DED). 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.

Fees in Dubai for the Trade License Registration.

There are several factors that determine fees, including the type of company, licenses needed by the investor, and the company’s location. 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.

How Do you Renew your Dubai Trade License?

It will be necessary for all Dubai companies and enterprises to complete the 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.

How can Connectfz Help you Obtain more information about the Trade License in Dubai?

By using our professional support and services, you can speed up the setup process considerably, including obtaining your Dubai trade license. In order to set up your company successfully, we can provide you with the information, tips, and resources you need.

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 UAE Business Consultancy, Visa Service in UAE, 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.