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 mandate companies to procure a trade license in Dubai in order to operate legally and competently.
Types of Trade Licenses in UAE
There are exclusively three types of trade licenses approved and issued by the Department of Economic Development (DED) in UAE –
1. Commercial license
Business entities established with the aim to buy or sell commodities can obtain a commercial license in UAE. This allows them to conduct trading both in and out of their jurisdiction. The business activities covered under this license are goods and commodities trading, import and export, real estate business, logistics enterprises, and more.
2. Industrial license
Establishments undertaking industry-oriented initiatives in UAE need an industrial license to operate. Some of the prominent business activities included in an Industrial License are aluminum manufacture, oil, and petroleum industry, etc.
3. Professional license
The professional license is yet another type of business license that is issued to individuals who are skilled in a particular profession like teachers, lawyers, carpentry, etc., and are willing to practice the same to earn an income. Similarly, service-focused companies like consultancy services, accounting firms, healthcare services, etc. can apply for a professional license in UAE.
Shuraa’s team of experts has decades of experience in assisting small and medium enterprises to achieve their licenses and mandatory permits. They serve as a bridge between the investor and the government authorities facilitating effective communication between them. Moreover, they also send timely reminders regarding the expiry of the license to avoid fines and penalties.
Benefits of getting a trading license in 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 UAE?
There are a few simple steps to get your trade license in Dubai. They are explained below –
1. Business name
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.
2. Legal structure
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.
3. Well-defined 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.
4. 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.
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. License fee
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 UAE.
Cost of trade license in UAE
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, basically, the cost of a trade license in Dubai varies depending on the business activities you perform and the approvals you need to get. 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 business 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.