A trade license in the UAE can be your first step towards becoming a business owner in the world’s most significant economic hub. Individuals who wish to set up their business in the UAE can have a mainland company formation, an offshore company formation, and a free zone company setup.
A trade license is a principal document that allows you to conduct your business activities legally in the UAE. Selecting a trade license that aligns with your business activities and company structure is essential for the smooth functioning of your business.
This Blog will cover all the fundamental information on trade license in the UAE.
Different types of trade licenses in the UAE
There are four major types of trade license in the UAE. However, certain free zones offer exclusive trade licenses for business activities. Below mention are the four types of trade licenses available in the UAE:
Commercial license
Businesses that conduct trade activities such as buying and selling goods can apply for a commercial license.
Industrial License
Businesses that manufacture products import raw materials, and export the finished product are eligible for an industrial license. Applying for an industrial permit requires firms to have a physical office in Dubai.
Professional license
A professional license authorises individuals or companies to provide specific professional services within the UAE.
Tourism License
A tourism license is required by companies that operate in the travel and tourism sectors of Dubai and the UAE. Many people are drawn to this expanding industry due to Dubai’s influx of tourists each year. As a result, Dubai is seeing a rise in the demand for tourism licenses.
Advantages of trade license in the UAE
Several business owners are choosing to set up branches and organisations in the UAE due to the numerous advantages it offers to entrepreneurs. Here is a list of the benefits that a UAE trade license provides:
- Low import duty.
- Paid-up capital is not compulsory.
- 100% repatriations on capital and profit.
- Banking benefits.
- Tax Benefits.
- Access to local as well as international trading.
- Increased credibility.
- Abundant opportunities
UAE trade license: Step-by-step guide
The UAE is renowned for promoting foreign investment and simplifying company formation. Consequently, the UAE government ensure that the company registration costs and procedures are favourable for everyone. The Department of Economic Development guides the licensing process and is responsible for issuing Dubai’s trade license. Here is a step-by-step guide on how to acquire a trade license in the UAE.
- Trade name and initial approval: Applying to the DED to reserve a trading name for your business is the first step towards obtaining a trade license. Furthermore, you must obtain first authorisation for your business operations.
- Notarizing the company’s Memorandum of Association: The notarisation of the company’s MOA is a prerequisite for obtaining a trading license in Dubai.
- Document submission: The submission of documents is required for both membership registration with the Dubai Chamber of Councils and the issuance of a Dubai trade license. The necessary original paperwork must be submitted to the commercial registry at the DED Dubai.
How to renew your trade license in the UAE
The validity of a trade license in the UAE is just one year, and its renewal is required. Individuals who do not renew their license within the valid period will face a ban on their business activities. Individuals with an expired license will have to pay a specific penalty to the government. Thus, renewal is as essential as acquiring a trade license. Here is a step-by-step guide on how to renew your trade license in the UAE:
1. A Tenancy contract: It is necessary to have a tenancy contract with at least a month of validity from the expiration date of the trade license. If your tenancy contract expires, you must renew it before applying for renewal.
2. Application for License renewal: You can renew your license by applying to the Department of Economic Development. You need to submit the following documents for renewal:
- A BR/ 1 form.
- Copy of tenancy contract.
- Current trade license copy.
- Business partner’s passport copies.
3. Make the payment: After successfully submitting and authenticating documents, you will receive a payment voucher from the Department of Economic Development. As you proceed with the payment you will instantly get your license renewed.
Cost of trade license in UAE / Dubai
The cost of a trade license in Dubai varies according to the business activities and requirements. The starting price for a trade license in the free zone is AED 14,900*, whereas it is AED 25,500* for Dubai mainland. In addition, there are costs associated with activity class guides, license replacement, license translation, etc.
Please note that these are only estimates; the final cost will depend on your needs. Get in touch with our experts at DUBIZ for a thorough cost estimate.
Get your trade license in the UAE today!
A trade license in Dubai is the key to benefiting from the various advantages that the UAE provides. It allows you to conduct your business activities in the UAE legally. It paves the way to boost your company’s revenues.
Aiming to set up your business in the UAE? Contact our team at DUBIZ, who will assist you at every step of the way.
