Business Trade License in Dubai: Everything You Need to Know

Posted by Socialite Consultancy Services on February 26th, 2020

Setting up a new business in any country requires getting a business and trade license from the authority to start its operations under the regulations of that country. And, the UAE has no exception, if you are a foreign investor who is setting up a new company in Dubai; you must pay attention to all the business regulations and company laws in the country. Getting a business license is one such requirement in order to have a company up and running. A commercial trade license in Dubai is the most sought out business license by many foreign investors to establish their operations in the country.

To start a new business in Dubai, everyone needs to go through the normal licensing procedure to take governmental permits under business and trade regulations. The business trade license in Dubai is approved and issued by the Department of Economic Development (DED) in Dubai. The type of business license in Dubai depends on the business activity of your company. Depending on your company’s operation and activity, the Department of Economic Development issues mainly three types of trade license:

• Commercial trade license (for businesses involved in trading and other commercial enterprise activity)
• Industrial business license (for companies involved in industrial activities)
• Professional trade license (required for service-oriented operations)

Getting a business trade license in Dubai can cost you anywhere around 15000 AED - 50000 AED. It depends on many factors such as company sponsor, partnerships, location of the company, region of the business establishment, business structure, business activity, etc. One should also be aware of the fact that a business trade license in Dubai requires renewal annually as per the company law.

Here’re the top reasons why you need a trade license to do business in Dubai:

• It identifies you and your company
• It makes your business accountable for your business activities
• It protects and ensures public health and safety
• A trade license in Dubai allows you to participate in profitable measures offered by the government

Commercial trade license in Dubai is also termed as the general trade license and issued to the business owners involved in the activities like general trading, contracting, real estate, transportation, healthcare, and others as authorized by the DED.

How to get a trade license in Dubai?

You need to follow the following steps while applying for a trade license:

• Select a company name and legal structure for your business
• Define your business activities to be included in the trade license. You can include a maximum of 10 business activities per license.
• Get ready with the Memorandum and Articles of Association and other required documents
• Fill in and submit the application for initial approval
• Make the requisite payment for the license fee

Documents required for getting a General Trading License in Dubai

• A standard trade license form filled out and duly signed by the company’s legal representative
• Company’s statutory documents
• Letter with the approval of the company name
• Letter with the approval for setting up the company
• Passport copy of all the shareholders and partners

Once you are well aware of all the procedures and ready with all the documents, you are ready to apply for the trade license for your business. You can take the help of a business consultancy firm to get through the whole application process. This will help you in finding out the right business license for your activities and the documents required during the application process. A professional business consultant will help you in getting your trade license quickly and easily.