Dubai is a city known for its glittering nightlife and sparkling oceans. But it’s also a city known for its thriving economy and fantastic trading opportunities. For this reason, many entrepreneurs looking to launch a company in the United Arab Emirates select Dubai as their base of operations.
More than 55,000 brand-new business Licenses were issued in the last year alone. Continue reading if you want to learn how to get a trade License in Dubai and follow this growing trend. This manual takes you step-by-step through the application process for a Dubai business license.
What Is a Dubai Trade License?
The business license is a legal document that specifies the kinds of operations a company is permitted to conduct in the UAE. The Department of Economic Development is responsible for issuing each trade License.
In Dubai, general trading Licenses are valid for a variety of pursuits. These include carrying out commercial activities and importing and exporting goods.
A Dubai trade License is available to businesses in Dubai Free Zones. Professionals who provide services unique to their industry can also apply for a Dubai trade license.
Types of Trade License in UAE
Dubai trade licenses are not all created equally. There are four main categories of licenses available to you:
1. Commercial License
One of the most common licenses is the Commercial License. This license allows businesses to engage in commercial activities within the emirate. The scope of a Commercial License is broad, covering a wide range of business activities such as trading, retail, and general services.
Under a Commercial License, entrepreneurs can conduct activities such as importing and exporting goods, establishing retail stores, and providing professional services.
To obtain a Commercial License, 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
In addition to the Commercial License, entrepreneurs in Dubai can also consider obtaining a Professional License to establish their business. A Professional License is suitable for individuals or companies offering specialized professional services such as consultancy, accounting, legal, engineering, and healthcare services.
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
For entrepreneurs looking to establish manufacturing or industrial-based businesses in Dubai, obtaining an Industrial License is a key requirement. An Industrial License allows businesses to engage in activities related to manufacturing, production, and industrial operations.
Under this license, entrepreneurs can set up factories, warehouses, and production facilities. Activities permitted under an Industrial License include manufacturing goods, processing raw materials, and conducting industrial research and development.
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
Benefits of Trade Licenses in Dubai
Many business owners choose to establish branches or organizations in the UAE because of the nation’s numerous business advantages. Here are a few of the main advantages of obtaining a trade license in Dubai:
1. Boost both domestic and foreign trade
You have a lot of opportunities to manufacture or import goods if you have a general trading license. You have the option of sending your goods to the Dubai market or sending them abroad to earn money from other markets.
A general trade license additionally enables business owners to re-export their products. This could improve your company’s capacity for international trade in goods and services.
2. Boost your credibility
There are numerous companies that look for gaps in laws and rules in order to increase their profits. Customers, however, are more likely to trust businesses that take the time to abide by the law.
Additionally, the license increases the company’s visibility in the markets it serves. This aids in increasing its credibility and winning the loyalty of its clientele.
3. Hassle-free setup
A Dubai trade license can be obtained much more quickly than other business licenses in the UAE. You ought to have no trouble getting your license if you have the necessary paperwork.
The processing time for Dubai trade licenses is also very quick. In just a few weeks, you can typically establish a business in any free zone or on the mainland of Dubai.
Additionally, once you have your license, you are not required to submit auditing reports. You avoid creating a ton of paperwork in the future by doing this.
Documents required for trade license in Dubai
To get a trade license in Dubai, you follow some document requirements below:
- 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 for proof of address.
How Do I Get a Dubai Trade License?
Getting a UAE trade license is a relatively straightforward process. Here are the simple steps to obtain your trade license in Dubai:
- Choose a Business Name
- Define Your Legal Structure
- Define Business Activities
- Complete the Application Form
- Obtain Additional Approvals
- Gather Required Documents
- Choose a Business Location
- Submit Your Application
- Pay Licensing Fees
What is the Cost of a Trade License in Dubai?
You must be aware of the costs involved before rushing to obtain your trade license and start your business in Dubai. This will assist you in planning your licensing process budget and help you stay out of trouble.
Depending on the goods you plan to sell and the approvals you need to obtain, the cost of the trade license is AED 15,000 to AED 50,000. Other elements that may impact how much your trade license will cost are as follows:
- Number of business associates.
- Location of the business.
- Business edifices.
- Type of commercial activity.
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 three days to four weeks. The precise turnaround time will depend on the required approvals and the business operations you carry out.
Your turnaround time should be quick as long as you have all the necessary paperwork in place. 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
The Department of Economic Development in Dubai is where you go to get a trade license (DED). Shuraa Business Setup 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.