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Business Trade License in Dubai

Business Trade License in Dubai

The Department of Economic Development issues every free zone trade license in UAE, and a Trade License is a document that specifies which activities a corporation may engage in in the UAE. Apart from sparkling oceans and glittering nightlife, Dubai is celebrated for its favorable environment and extensive support for businesses. Moreover, the perpetual demand for goods, ease of doing business, and proximity to developing markets make it one of the most sought-after locations for start-ups. However, the government mandates companies to procure a trade license in Dubai in order to operate legally and competently. 

What is a Trade License in Dubai?

The UAE DED Trader license enables start-ups in the UAE to conduct Online business activities across social networking accounts. DED trade license in Dubai: It is a 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 with a nominal fee of approx. AED 1070* which includes license fees and knowledge and innovation fees. Additionally, you require Dubai Chamber membership which costs you around AED 300*.

Types of business trade licenses in Dubai (UAE)

There are three primary categories of business licenses in Dubai and throughout the UAE.

1. Commercial license

In Dubai and the UAE, a corporate entity must obtain a commercial trade license to conduct any commercial operations. This license allows organizations to operate both within the country and internationally. Depending on the business’s trading activities, entrepreneurs can acquire various types of commercial trade licenses, crucial 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.

The advantages of obtaining this license are manifold: it provides management and protection for businesses, allows for up to ten activities from same group under a single license, covers multiple related company practices, and facilitates connections with the ROC and Department of Economic Development. Upon registration, businesses have the flexibility to choose from numerous available business forms.

Commercial license activities in Dubai

  1. Raw Materials Trading
  2. Investment in Commercial Enterprises & Management
  3. Grains, Cereals & Legumes Trading
  4. Adhesives Trading
  5. Goods Wholesalers
  6. Automobiles.
  7. Computer Systems and Communication Equipment.
  8. Contracting.
  9. Foodstuffs.
  10. Furniture.
  11. Medical and Surgical Equipment.
  12. Readymade Garments.
  13. Software.

2. Professional license

In Dubai, obtaining a professional license from the Department of Economic Development (DED) is essential for individuals or businesses providing professional services to customers. This license serves as a testament to the firm’s or individual’s credibility and expertise in their respective profession or field. Only those with proven qualifications and experience can be granted such licenses. Whether it be consultants, accountants, attorneys, or other professionals, anyone looking to establish a business in their respective field can obtain a professional business license in Dubai.

The advantages of acquiring such a license are numerous, including the ability to legally operate and offer services to consumers and businesses throughout the UAE. Additionally, professionals can actively participate in events and opportunities related to their field of expertise. Furthermore, foreign entrepreneurs with a professional license can fully own their company with 100% ownership rights, enjoying the benefits of sole ownership.

Professional license activities in Dubai

  1. Information Technology Network Services
  2. Marketing Services Via Social Media
  3. Computer Systems & Communication Equipment Software Design
  4. Information Technology Consultants
  5. Accountants, Auditors, and Financial Advisors.
  6. Advertising Professionals.
  7. Entertainment Artists.
  8. Architectural Consultants.
  9. Teachers and Educational Professionals.
  10. Business Consultants.
  11. Lawyers and Legal Advisors.

3. Industrial License

In Dubai, businesses involved in manufacturing or industrial operations require an industrial trade license, which comes with several advantages. Obtaining this license allows enterprises to enjoy privileges provided by the UAE government to promote industrial development and attract investments.

Entrepreneurs 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 incentivize industrial growth and development.

Industrial license activities in Dubai

  1. Gold and precious stone cutting manufacturing
  2. Manufacturing and maintenance of light aircraft
  3. Processing of meat
  4. Production of batteries
  5. Creating various home appliances
  6. Assembling air conditioning units
  7. Manufacturing of advertising and ornamental models
  8. Petroleum products manufacturing
  9. Structural steel, steel workshops, and tools
  10. Processing of raw materials

Benefits of getting a trade license in Dubai, UAE 

A trade license in Dubai comes with many benefits that can be availed by businesses procuring this license. Some of the major benefits of getting hold of this license are – 

1. Affordable and easy business setup 

Company formation in Dubai is relatively affordable and straightforward compared to other commercial hubs in the world. Business owners must submit a comprehensive business plan along with all the supporting documents and estimates of the revenues.  

2. Multiple visa facility 

UAE also offers multiple visa facilities through which business owners can obtain various visas and retain their physical presence in the Emirate. Moreover, having multiple visas helps businesses to recruit more workforce.  

Hence, depending on the size of the office, companies can apply for employee visas after getting a valid business license. Additionally, the owners also get to sponsor visas for dependents including spouses, children, parents, maids, drivers, etc. and bring them to UAE. 

3. Boost local and international trade 

Companies with a trade license in Dubai can sell or distribute imported or exported goods in local as well as international markets. This way traders can exploit all the business possibilities and gain profits on a global level. 

4. Fewer trade restrictions 

Businesses holding a trade license are exempted 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. 

5. E-trading facility 

The Business Regulation and Licensing sector of the Department of Economic Development introduced an e-trader license for those entities, especially from the Gulf countries, that want to conduct business on different social media platforms. 

6. Enhances business integrity 

Businesses that operate in accordance with the laws and regulations set by the government tend to gain a good reputation in the market. Customers trust their brands and thus make more purchases from them. Furthermore, it facilitates the business’s exposure in the markets and builds a customer base. 

7. Tax benefits 

UAE is almost entirely tax-free. Therefore, traders and business owners are able to save money on taxes and gain additional revenue which can be further used for production purposes. 

How to get a Trade License in Dubai, UAE

There are a few simple steps to get your trade license in Dubai. They are explained below – 

1. Select Business Activities

Make a list of all the activities that you wish to carry out in the UAE and ensure to clearly include them in your license application. Conducting an unregistered activity may lead to hefty consequences.   

2.  Choose a trade name for your business

An appropriate and unique trade name enhances your brand in the market. However, while choosing one, make sure to adhere to UAE guidelines regarding business names. Shuraa consultants can explain to you in detail everything about these guidelines and ensure that you make the right selection for your enterprise. 

3. Choose your business location

When it comes to a business location, you have several options to choose from. Firstly, 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 establish a Mainland company, 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. 

4. Complete your application

your business operations and accountability will be determined by the legal structure you choose for your company. There are several options available that are customized specially according to various business requirements. Hence, choose one that goes well with your business plan. 

5. Application form 

Fill out a license application form and submit it to the DED for approval. You also need to submit quite a few documents relevant to your business authorization.   

6. Additional approvals 

Certain business activities in UAE might require mandatory external approvals, from specific government officials and Ministries. Therefore, make sure to conduct deep research before getting into the business formation process. 

7. Pay the Fees 

Business owners have to pay a fee while applying for a license. It includes the cost of issuance as well as the license fee itself. 

Shuraa professionals will help you in every step of your license acquisition journey. They will provide you with one-on-one mentorship and guidance on how to clear the legal proceedings and grow your business in the UAE. 

Cost of a business trade license in Dubai

Before you rush into getting your company license in Dubai, it’s important to know what prices you will need to pay during the whole process. This will help you manage your budget and avoid any possible setbacks. 

So, the cost of a UAE trade license varies depending on the business activities you perform and the approvals you need to get. The License Fee starts from AED 12,000. In addition, the other factors affecting the cost of your UAE trade license include the following – 

  • Number of shareholders/partners 
  • Location of establishment 
  • Corporate structure 
  • Type of business activity 

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.   

Renewal of trade license in Dubai 

The validity of a trading license in Dubai stays for a specific time period. Hence, you need to responsibly renew your license in order to continue operating in the UAE legally. The process of trade license renewal covers the following aspects – 

  • Get the right approvals and authorizations from the relevant authorities. For example, if you are operating a transport company, get approval from Dubai’s Road and Transport Authority for your license renewal. 
  • Gather the documents necessary for renewal and submit them to the DED for approval. 
  • Check your Tenancy Contract and make sure it is valid for no less than three months from the date you apply for renewal. 

Grab your Business trade license in Dubai today! 

Get in touch with the team of Shuraa Business Setup for guidance and assistance for your business setup in Dubai. 

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