Any foreign investor starting a business in Dubai, United Arab Emirates, must be aware of the requirements of the Company Law, which outlines all the steps necessary to get a company up and running. To conduct business in the UAE, an investor must also acquire a business license, which details the activities the enterprise will engage in.
Get a Trade License in Dubai
One of the most welcoming places on earth for foreign investors is Dubai. In recent years, the emirate has made it simpler than ever for businesspeople to perform business in the UAE.
Business owners can benefit from the UAE's 0% corporate and personal income tax rate as well as the fact that, in the majority of cases, they are now free to maintain 100% ownership of their businesses. The long-term visa, which enables foreigners to stay in the UAE for long periods and possibly retire here at the end of their careers, is one of the most recent changes.
Even non-residents can establish a business in the United Arab Emirates and operate it from anywhere in the world with the right support.
Quick Information
Who needs a trade license for business in Dubai?
Foreign and local investors who want to start a business in Dubai.
Legally liable for issuing business licenses.
DED (Department of Economic Development)
"Opportunities don't happen.
You create them." – CEO Devine Grace
Types of trade licenses
– Commercial,
– Industrial,
– Professional,
– For tourism
Activities that require a commercial license
– Import and export
– Sale of goods
– Services
Activities that require a professional business license
– Accounting,
– IT
– Education
– Marketing
– Management
– Healthcare
Documents for obtaining a trade license.
– Articles of Association
– Rental lease,
– Approved trade name from DED
Trade license required for branches (YES/NO)
YES
Timeframe for trade license issuance
A few weeks
Validity of a trade license
Yes
Average cost of a trade license
Between AED 30,000 and AED 50,000, depending on the activities.
Possibility of changing the trading license (YES/NO)
Yes
We provide support to obtain a trade license.
Yes
We can represent foreign investors.
Yes
The following licenses are available for application by Dubai businesses:
The trade license, also known as the commercial license in Dubai.
The industrial license.
The professional license.
Corporate 1948 https://www.corporate1948.com/ can provide detailed information on each type of business license required in the UAE, including the general trading license. We can also help with the registration of a company in Dubai, which includes obtaining a trade license if one is required. Speak with us about obtaining a UAE trade license.
FAQS
Who issues the Dubai trade license?
The most important aspect of company formation in Dubai is obtaining a business license. The trade license, also known as the commercial license, is the most commonly used type of business permit in Dubai, and it designates the majority of the activities that can be carried out throughout the UAE. The Dubai Department of Economic Development (DED) issues the trade license.
This business permit, also known as a general trading license in Dubai, can be used for the following activities:
- It is typically requested by trading companies with a Dubai registration for the import and export of goods.
- For conducting different kinds of commercial activities, like the sale of goods and services in Dubai
- For experts providing services in a particular industry.
How to obtain a general trading license in Dubai?
To obtain a general trading license in Dubai, the company's incorporation documents must specify the company's activity, which must be related to the trading field. It is also worth noting that most activities in Dubai and the UAE in general can be carried out under a general trade license.
To obtain a trade license in Dubai, first choose a trading name, then prepare the Memorandum and Articles of Association and file them with the DED for initial approval. A rental agreement is also required as proof of the Dubai company's registered address. The application for a commercial license in Dubai can then be submitted.
Companies that import and export can obtain a general trading license in Dubai. A company in Dubai can trade goods such as electronics, food, textiles, furniture, or equipment. This means establishing an import and export company for which a DED general trading license is issued. It should be noted that such a license cannot be issued to companies engaged in import and export activities involving cars, medicine, chemicals, or alcohol. There are specific requirements to meet in this direction, as well as approvals from various governmental and municipal authorities. The Ejari-attested tenancy contract, as well as the Memorandum of Association, are among the required documents for obtaining a trading license in Dubai. DED will confirm the
Foreign investors who establish businesses in other countries should be aware that different types of business permits and licenses are required by local laws. In Canada, for example, a company can be registered at the federal, provincial, or territorial levels. Each province and territory has its own set of registration requirements.
The professional trade license in Dubai
A professional trade license is a type of business permit that is typically issued in one of the following industries:
Accounting and finances
Management
IT
Healthcare
Education
Advertising
Marketing etc
The professional trade license has numerous advantages, one of which is that it can be obtained by sole proprietors in Dubai. When obtained by a sole trader, it also grants the right to full foreign ownership. It should be noted that in order to have full foreign ownership over the sole proprietorship, foreign citizens applying for a trade license must first become residents of Dubai.
Our Dubai company formation consultants can provide additional information on how to apply for a professional trade license in this city, one of its free zones, or another emirate in the UAE. More information is also available in the following infographic, which we have prepared for you:
Advantages of obtaining a trade license in Dubai
When it comes to starting a business in Dubai, foreign investors have several licensing options. The trade license has many advantages over other licenses, including the fact that it is relatively easy and quick to obtain, with minimal paperwork requirements. In Dubai, the general trading license is usually issued within five working days.
Another advantage of the Dubai trade license is that it is one of the most affordable; the typical fee for such a license ranges between 30,000 and 40,000 AED, depending on several factors. Furthermore, the trade license allows local businesses to engage in national and international trading activities.
The ability to establish holding companies in Dubai is a lesser-known benefit of the commercial license in Dubai. In other words, foreign investors who are interested in establishing holding companies in Dubai can do so by acquiring a trade license.
If foreign investors want to establish holding companies in this emirate or another one in the United Arab Emirates, our Dubai company formation representatives can assist them. Additionally, our experts can provide you with all the information you need regarding a trade license in the UAE.
Documents related to obtaining a Dubai trade license.
When applying for a trade license in Dubai, the following documents must be presented to the DED's Trade License and Commercial Registration Department:
a standard application form which must be filled out and signed by the company’s legal representative.
The company’s statutory documents, both in original and copy.
The DED’s letter with the approval of the company name.
The DED’s letter attesting the approval for setting up the company.
The tenancy agreement.
All shareholders’ details (copies after their passports).
FAQ on the trade license in Dubai
Here are some of the most frequently asked questions about the Dubai trade license:
1. Is it possible for a foreigner to obtain a trade license in Dubai?
Yes, foreign investors can obtain trade licenses in Dubai if they register their companies here.
2. If my company sells a variety of products in Dubai, do I need a trade license for each category of goods?
No, if you want to sell goods in Dubai, the general trading license will cover all of your company's activities.
3. Do I need to obtain a trade license in order to open a branch office in Dubai?
Yes, foreign companies that open branches in Dubai must also apply for trade licenses if their activities are related to industries that require such a license.
4. Can I change my trade license for a different kind of permit?
Yes, the business may change its license if the situation calls for it.
5. If I have a trade license in Dubai, do I need additional licenses for other activities?
If the activities you want to perform are not covered by the trade license, then you will indeed need additional licenses.
6. Is it going to be difficult to get a business license in Dubai?
In Dubai, there aren't any difficulties with obtaining a trade license. DED will issue the required trade license for your Dubai business if all the paperwork is accepted.
7. Who requires a general business license?
A general trading license is necessary for businesses that import and export goods like electronics, textiles, furniture, food, and furniture, to name a few. This type of license is issued by the same Department of Economic Development after the required paperwork is received. Find out how we can help by speaking with our team of experts.
8. Is a Memorandum of Association necessary to apply for a license?
The Memorandum of Association is a required document when applying for a business license, yes. To prevent any potential rejection, it is crucial to prepare the documents with the assistance of a specialist.
9. How quickly can I get a business license in Dubai?
Normally, a trade license can be issued fairly quickly if the documents are accepted. The formalities are simple and enable business owners to launch their ventures quickly.
10. Do I require assistance from a knowledgeable agent?
Yes, it is highly advised to have the assistance of a professional who can manage the requirements for obtaining a trade license. If this topic interests you, we advise speaking with one of our Dubai company formation agents to get advice and support.
Contact 0553919480 or visit www.corporate1948.com for assistance with company registration and trade licensing procedures.
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