Getting a business trade license in Dubai is the first step to starting a business there. Dubai is known for its profitable economy and fantastic location, which makes it an attractive location for any entrepreneur. Before you think about starting a trade business in Dubai. You need to know the requirements, steps involved, and benefits of having a Trade license.
The Department of Economic Development (DED) in the UAE issues all free zone trade licenses. Now, you must be wondering what a trade license is. A trade license contains a list of activities a business can get along with in the UAE. In this blog, we will guide you through the process of getting a trade license, eligibility, and the requirements.
The DED Trader license in UAE enables start-ups to conduct Online business activities across social networking accounts. The DED trade license in Dubai is the sole establishment license that can be obtained by Dubai home-based businesses issued with the trade name.
“Invest in Dubai” allows you to apply for the license through their platform for a nominal fee of approximately AED 1070*, which includes license fees and knowledge and innovation fees. Additionally, you require a Dubai Chamber membership, which costs around AED 300*.
There are 3 types of Business trade licenses in Dubai:
A corporate entity in the UAE must get a commercial trade license to conduct any commercial operations. This license allows organisations to operate both within the country and internationally.
Depending on the business’s trading activities, entrepreneurs can acquire various commercial trade licenses, important for their company’s growth. From retailing and construction to public transit and property development, a commercial trade license is essential for various industries, including healthcare.
It provides management and protection for businesses, allowing for up to ten activities from the same group under a single license. This coverage includes related company practices and facilitates connections with the ROC and the Department of Economic Development. Upon registration, businesses can choose from numerous available business forms.
The Department of Economic Development (DED) issues professional licenses to individuals or businesses offering professional services to customers. These licenses attest to the company or individual’s credibility and expertise in their respective fields.
Qualified and experienced people are eligible for these licenses. Consultants, accountants, and attorneys can get a professional business license in Dubai.
legally operating and offering services to consumers and businesses throughout the UAE. Additionally, professionals can actively participate in events and opportunities related to their expertise. Furthermore, foreign entrepreneurs with a professional license can fully own their company with 100% ownership rights, enjoying the benefits of sole ownership.
Perfect examples of industrial licenses are businesses involved in manufacturing Industrial operations. This type of business requires an industrial license. After getting this license, entrepreneurs can enjoy the privileges the UAE government provides to promote industrial development and attract investments.
Businessmen can benefit from specially designed rental conditions for industrial premises, including discounted sites, to facilitate business expansion. Additionally, discounted rates for essential utilities such as power and water further incentivise industrial growth and development.
Obtaining a trade license offers multiple benefits for entrepreneurs and investors, here are some of the main advantages of getting hold of this Business license in Dubai:
Company formation in Dubai is relatively affordable and straightforward compared to other commercial hubs worldwide. Business owners must submit a comprehensive business plan, supporting documents, and estimates of the revenues.
UAE also offers multiple visa facilities through which business owners can get various visas and retain their physical presence in the Emirate. Moreover, having numerous visas helps businesses recruit a larger workforce.
Hence, depending on the size of the office, companies can apply for employee visas after getting a valid business license. Additionally, the owners can sponsor visas for dependents, including spouses, children, parents, maids, drivers, etc., and bring them to UAE.
Companies with a business license in Dubai can sell or distribute imported or exported goods in local and international markets. This allows traders to exploit all the business possibilities and gain profits on a global level.
Businesses holding a trade license are exempt from any paid-up share capital. Moreover, if their products are registered under their license, they do not have to worry about any restrictions. This eventually increases the profitability of the business.
The Business Regulation and Licensing sector of the Department of Economic Development introduced an e-trader license for entities, especially those from the Gulf countries, that want to conduct business on different social media platforms.
Businesses that operate according to the laws and regulations set by the government gain a good reputation in the market. Customers trust their brands and thus make more purchases from them. Furthermore, this facilitates the business’s exposure in the markets and builds a customer base.
UAE is almost entirely tax-free. Therefore, traders and business owners can save money on taxes and gain additional revenue that can be used for production purposes.
The following detailed guide will help you navigate the requirements and steps to obtain a trade license in Dubai.
The first step to getting a trade license in Dubai is to select a business activity. Make a list of all the activities you wish to carry out in the UAE and include them in your license application. Conducting an unregistered activity may lead to hefty consequences.
Once you have selected a business activity, choose a trade name for your business. An appropriate and unique trade name makes a better image of your brand in the market.
However, when choosing one, adhere to UAE guidelines regarding business names. Shuraa consultants can explain these guidelines in detail and ensure that you make the right selection for your enterprise.
When it comes to a business location, you have several options. First, choose a city or Emirate where you want to set up your company. Next, select a jurisdiction where you want to register your business, whether you want to start a Mainland company or a Free Zone entity.
All these choices should be made after careful thought and consideration. Shuraa experts can help you find a suitable location that is lucrative and resourceful for your commercial project.
Your business operations and accountability will be determined by the legal structure you choose for your company. Several options are available that are customised according to various business requirements. Hence, choose one that goes well with your business plan.
Fill out a license application form and submit it to the DED for approval. You also need to submit several documents relevant to your business authorisation.
Certain business activities in the UAE might require mandatory external approvals from specific government officials and Ministries. Therefore, make sure to conduct deep research before starting the business formation process.
Business owners must pay a fee when applying for a license. The fee includes the issuance cost and the license fee.
Shuraa professionals will help you get the required licenses for your trade business at every step.
The cost of a trade license in Dubai can vary widely from AED 12,500 to AED 28,000. In addition, the other factors affecting the cost of your UAE trade license include the following:
Also, remember the cost of the Trade license in Dubai will differ depending on the jurisdiction you choose. Shuraa Business Setup will help you select the appropriate location and jurisdiction for an affordable company formation.
The cost of renewing a trade license in Dubai ranges from AED 8,000 to AED 20,000. The validity of a trading license in Dubai stays for a specific period. Hence, you must renew your license responsibly to continue operating legally in the UAE. Here are the Steps for Trade License Renewal in Dubai
Getting a business trade license in Dubai might be a tough task for you to handle. In this guide, we have provided all the basic details. If you are still trying to decide how to choose a business license or are still trying to decide what name should be selected for your business, don’t worry Shuraa is here to help.
If you still have any questions or queries, contact the Shuraa Business Setup team for guidance and assistance with your business setup in Dubai. We will help you get your license and permits to set up a trade business in Dubai. Hurry up, what are you waiting for, contact us now.
