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How to Get a Trade License in Dubai (Operate Your Legal Business in UAE)

Supportive government policies, a favourable business environment, tax incentives, world-class infrastructure, and emerging markets are all entrepreneurs need. No wonder Dubai fulfils them all. However, before you start your commercial activities here, you need to get a trade license in Dubai. 

But How?

Don’t worry; in today’s detailed guide, we will discuss the step-by-step process to help you get your trade license in Dubai. So, let’s find out together. 

What is a Trade License in Dubai?

A trade license is also known as a business trade license in dubai. It is essentially a permit issued by the Department of Economic Development (DED) that authorizes a company to operate and conduct specific business activities within the United Arab Emirates (UAE). Any business must have one, whether you’re involved in trading goods, providing services, or manufacturing products.

There are different types of trade/business licenses depending on your business activity, such as commercial, industrial, or professional licenses.

So, let’s dig in and find out how you can get a trade license in Dubai and operate your business here legally.

Steps to Obtain a General Trade License in Dubai:

Step 1: Choose your trading business location

The first crucial step involves choosing your business location in Dubai. There are three main options: the mainland, a free zone, or an offshore location. The mainland offers full ownership and unrestricted operation within the UAE, but you’ll likely need a local sponsor (with some exceptions). Free zones provide benefits like tax breaks and simplified setup but may limit your ability to operate outside the zone and have ownership restrictions. Offshore registration allows company formation outside the UAE but restricts your ability to conduct business within the country.

Step 2: Define your company structure

You’ll then need to determine the structure of your business. We suggest selecting a relevant and unique trade name to reflect your business. Next, decide on your legal structure, which could be a sole proprietorship, a limited liability corporation (LLC), a branch or an affiliate of a foreign firm. The ownership and liability implications of each structure are different, so you should choose the one that best fits your needs.

Step 3: Choose business activities

The third step to getting a trade license in Dubai involves selecting the specific business activities your company will undertake. These activities will be listed on your trade license and determine the fees you’ll need to pay. The DED website provides a list of approved activities to help you choose.

Step 4: Apply for a license 

Once you’ve made these initial decisions, you can move on to applying for the license. This involves submitting an initial application to the DED that outlines your chosen location, legal structure, and business activities.

Step 5: Obtain approvals

In some cases, depending on the activities you’ve chosen, you might need to obtain additional approvals from specific government entities. It’s important to identify any necessary approvals early on to avoid delays in the process.

Step 6: Necessary documentation

The next step involves gathering all the required documents, such as passports, visas, your company’s Memorandum of Association (MOA), and any business plans you may have. The specific documents required may vary depending on your situation, so it’s advisable to consult with the DED or a business formation specialist for a complete list.

Step 7: Tenancy contract 

If you’re planning to operate on the mainland and not within a free zone, you’ll need to secure a tenancy contract for your business location. This is a legal agreement between you and the landlord outlining the terms of your occupancy.

Step 8: Final application to DED

Once you have obtained any necessary approvals and gathered all the required documents, including the tenancy contract, if applicable, you can submit your final application to the DED.

Step 9: Fees and payments

The final steps involve paying the required license fees, which are determined by your chosen activities and location, and submitting the original copies of all your documents to the DED. Once they have processed everything, they will issue your trade license, which will allow you to operate your business in Dubai legally.

What Is the Cost of a Trade License in Dubai?

The cost of obtaining a trade license in Dubai isn’t a fixed amount and can vary depending on several factors, such as business activities, location, and legal structure. Additionally, the number of business partners, legal structure, and partnerships with local sponsors can also affect the total Dubai license cost.

However, there’s a general range to give you an idea:

  • The base license fee starts around AED 12,000 (approximately $3,200).
  • However, the total cost can range anywhere from AED 15,000 to AED 50,000 (around $4,000 to $13,600) or even more in some cases.

How Long Does It Take to Obtain a Trade License in Dubai?

Once you submit your application to get a trade license in Dubai, there is just a little wait you need to do, ranging from three to four working weeks. 

The approval time is relatively short as compared to the other types of licenses. Generally, the exact turnaround time depends on a few key factors, such as:

  • Completeness of application,
  • Approval requirements, 
  • Business activities,
  • And location.

That’s why, to reduce this approval time frame, all you can do is apply early, choose business activities that require fewer approvals and last but not least, ensure all your documents are up to the mark. 

Tips to Instantly Get a Trade License in UAE:

  1. Search for programs that offer fast-tracked trade licenses in certain Emirates. For example, Dubai’s Department of Economic Development provides such a program.
  2. The streamlined processes in free zones allow for quicker turnarounds than on the Dubai mainland company formation. Look for free zones offering instant licensing options.
  3. Avoid delays by completing and submitting all required documents in advance. This includes copies of passports, visas, plans for business, and any necessary approvals.
  4. Many Emirates accept online applications via dedicated eServices portals. This can be a faster process than traditional in-person applications.
  5. Consult specialists in business formation in the UAE. They will guide you, check that your application is correct, and may even expedite the approval process.

Get Your Trading License in Dubai With IgniteZone:

Get benefits from the expertise of expert professionals and get your trading license in Dubai with IgniteZone. We help you choose the favourable business activity and simplify the process with our specialist guidance. 

So, contact IgniteZone today and save yourself from all the approval and turn your business dreams into a reality!

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