Did you know that in the first half of 2024, trade license applications in Dubai jumped by over 30% compared to the same period last year? This impressive surge shows just how attractive Dubai has become as a business hub, not only for local entrepreneurs but also for many from the UK.
In fact, recent surveys reveal that, in 2023, the UAE saw a major influx of millionaires, with around 9,500 high-net-worth individuals leaving the UK, choosing the UAE and other destinations for their relocation.
If you’re considering establishing a business in Dubai, obtaining a trade license is a crucial first step. A trade license in Dubai grants you the legal authority to operate within the emirate, ensuring compliance with local regulations and providing access to Dubai’s dynamic market. So, let us walk you through everything you need to know about Dubai trade license cost and how to obtain one with ease.
What is a Trade License in Dubai?
A trade license in Dubai is an official document that legally permits individuals or companies to conduct business activities within the emirate. DED (Dubai Department of Economic Development) is the main authority that issues trade licenses to mainland businesses, ensuring that companies comply with all local laws and regulations.
Businesses operating in Dubai’s free zones must obtain a trade license from the specific free zone authority. Dubai trade license often comes with benefits such as 100% foreign ownership, tax exemptions. and simplified setup procedures. Without a trade license, operating a company in Dubai is illegal and can result in heavy fines, business closure, or legal actions.
Types of Trade Licenses in Dubai, UAE
Dubai offers several types of trade licenses, each designed to cater to different business activities. Here’s an overview of the main categories:
1. Commercial License
A commercial license is issued to businesses involved in trading activities, whether it’s the import, export, distribution, or sale of goods and commodities. This is the most commonly issued trade license in Dubai, especially for businesses in retail, e-commerce, and general trading.
Under a Commercial License, entrepreneurs can conduct activities such as importing and exporting goods, establishing retail stores, and providing professional services.
Key Features:
- Allows businesses to engage in buying and selling goods
- Can cover one or multiple trading activities
- Suitable for e-commerce businesses, wholesalers, and retailers
- Required for businesses involved in general trading or specific product trading
Examples of Businesses:
- Supermarkets & grocery stores
- E-commerce platforms
- Car dealerships & auto spare parts trading
- Textile and garment trading
- Electronics trading
To obtain a commercial license in Dubai, certain requirements and documentation are needed, including –
- Application form
- Proof of business ownership
- Financial statements
- No Objection Certificate (NOC) from a local sponsor
2. Professional License
A professional license is issued to individuals or companies that offer specialized services based on skills, expertise, or knowledge. This license is ideal for freelancers, consultants, and service-based businesses.
Key Features:
- Designed for service-oriented businesses
- Allows 100% foreign ownership in the mainland (with a local service agent)
- Requires specific qualifications or certifications in certain professions
- Best for freelancers, consultants, and professional service firms
Examples of Businesses:
- Legal consultants & law firms
- IT service providers
- Management consultants
- Marketing and advertising agencies
- Medical clinics and healthcare services
- Educational and training institutes
To acquire a Professional License, individuals must fulfill certain requirements, including –
- Educational certificates
- Professional qualifications
- Proof of experience
- No Objection Certificate (NOC)
3. Industrial License
An industrial license is required for businesses involved in manufacturing, processing, or industrial production. This license is essential for companies that require factory setups or production facilities.
Key Features:
- Allows businesses to engage in manufacturing, production, and assembly
- Requires approval from Dubai Municipality and environmental authorities
- May require additional factory inspections and approvals
- Ideal for businesses needing warehouses and industrial spaces
Examples of Businesses:
- Food and beverage manufacturing
- Textile and clothing factories
- Furniture production
- Metal and steel fabrication
- Packaging industries
To obtain an Industrial License, entrepreneurs must meet specific requirements and provide necessary documentation, including –
- Detailed business plan
- Proof of technical expertise
- Environmental impact assessments
- Compliance with health and safety regulations
4. Tourism License
Dubai is a global tourist hotspot, and businesses in the hospitality and tourism industry require a tourism license to operate legally.
Key Features:
- Required for businesses operating in travel and tourism
- Regulated by the Department of Economy and Tourism (DET)
- Additional approvals are required from the Dubai Tourism Authority
- Ensures compliance with tourism regulations
Examples of Businesses:
- Travel agencies & tour operators
- Hotel & holiday home rentals
- Yacht and cruise charter services
- Adventure tourism companies
What are the Documents Required to Obtain a Trade License in Dubai?
To obtain a trade license in Dubai, you need to submit specific documents based on your business type and location (Mainland or Free Zone):
- Approved company name and business structure
- Initial approval from DED
- Signed application by each corporate manager
- Memorandum of association
- Passport Copies of all managing partners
- Tenancy contract (Ejari) for proof of address
- Visa & Emirates ID, if applicable
- No Objection Certificate (NOC), if applicable
How Do I Get a Trade License in Dubai?
Getting a trade license in Dubai is a straightforward process if you follow the right steps. Here’s a step-by-step process to help you through:
1. Choose Your Business Activity
Decide on the type of business you want to run. Dubai allows a wide range of activities, and your trade license must match your selected business category.
2. Select a Business Jurisdiction
Choose between:
- Mainland: Licensed by the Dubai Department of Economic Development (DED), allowing you to operate anywhere in the UAE.
- Free Zone: Offers 100% foreign ownership, tax benefits, and simplified regulations.
- Offshore: Suitable for international businesses without a physical presence in the UAE.
3. Reserve Your Trade Name
Select a unique trade name that complies with UAE naming regulations and register it with DED or the relevant Free Zone Authority.
4. Apply for Initial Approval
Get a pre-approval certificate from the DED or Free Zone Authority to confirm that your business activity and ownership structure are permitted.
5. Find Office Space (if applicable)
Secure a suitable office space in Dubai, if required for your business activities. The location may depend on factors such as the nature of your business and zoning regulations
6. Submit Trade License Application
Complete the necessary application forms and provide the required documents to the Department of Economic Development (DED) or the relevant free zone authority. The specific documents may vary depending on the type of license you are applying for.
7. Pay Fees and Receive Your Trade License
Pay the required fees to the DED or Free Zone Authority. After processing, you will receive your official trade license.
8. Apply for Visas and Business Bank Account
Apply for UAE residence visas for yourself and your employees. Open a corporate bank account to manage business transactions.
Note: To avoid delays, ensure all paperwork is in order or seek professional assistance from Shuraa Business Setup for a hassle-free process.
Benefits of Having a Trade License in Dubai
Obtaining a trade license in Dubai comes with numerous advantages, making it an ideal destination for entrepreneurs and investors. Here are the key benefits:
1. 100% Business Ownership
Foreign investors can enjoy full ownership of their business in Dubai’s free zones and for many activities on the Mainland.
2. Business-Friendly Tax System
Unlike the UK’s 25% corporate tax, most businesses in Dubai pay 0% corporate tax, except for large companies exceeding AED 375,000 annually in profits, which are taxed at 9%.
3. Strong UK-UAE Trade Relations
The UK-UAE bilateral trade reached £21.6 billion in 2023 (Source: Gov.UK), with growing investments in technology, finance, and renewable energy. The UAE is the UK’s largest trading partner in the Middle East, making it a secure and profitable market for UK businesses.
4. No Currency Restrictions
The UAE allows free movement of funds and profit transfers with no foreign exchange restrictions, unlike some UK and European policies. Businesses can trade in multiple currencies, including GBP, USD, EUR, and AED.
5. Legal Protection & Business Credibility
A Dubai trade license enhances business credibility and ensures legal compliance, protecting your business from penalties.
6. Residency Visa & Business Banking
A trade license allows you to apply for UAE residence visas for yourself, employees, and family members. It also enables you to open a corporate bank account for smooth financial transactions.
What is the Cost of a Trade License in Dubai?
The Dubai trade license cost varies based on the business type, location (Mainland or Free Zone), and additional approvals. A trade license typically ranges from AED 15,000 to AED 50,000, depending on business activities and visa requirements. Additional costs include visa fees, office space, and government approvals for specific activities. Some Free Zones offer cost-effective packages for startups.
To get an exact quote and the best setup option, reach out to us today.
How Long Will it Take to Have a Trade License Approved?
The waiting game begins after you’ve submitted your trade license application. Fortunately, the waiting period for a Dubai trade license is not very long.
The typical turnaround time for a trade license is 2 days to 4 weeks. The precise turnaround time will depend on the required approvals and the business operations you carry out.
To ensure that your trade license is issued as soon as possible, double-check your application materials before submitting them.
Get Your Trade License With Shuraa UK
The Department of Economic Development in Dubai is where you go to get a trade license (DED). Shuraa UK is knowledgeable about the business climate in both Dubai and the other Emirates. This is a result of the numerous businesses we have established throughout the UAE. Additionally, we have helped numerous foreigners from different countries settle in the UAE.
Therefore, we have everything you require to start living in the UAE without difficulty. In addition, we will assist you with various aspects of running your business, such as day-to-day operations, in addition to obtaining the trade license for you.
Frequently Asked Questions
1. What is a trade license in Dubai?
A trade license is an official permit required to legally conduct business in Dubai. It is issued by the Department of Economic Development (DED) for Mainland businesses and by respective Free Zone authorities for Free Zone companies.
2. What are the types of trade licenses in Dubai?
The main types include Commercial License (for trading businesses), Professional License (for service-based businesses), Industrial License (for manufacturing activities), and Tourism License (for travel agencies and hospitality businesses).
3. Is a physical office required to get a Dubai trade license?
For Mainland businesses, a physical office is mandatory. Free Zones offer flexible options like Flexi-desk or virtual offices.
