Trade license in Dubai UAE

Importance of a Trade License in Dubai

The glorious city of Dubai, UAE, has successfully retained its position in the global business market. It has provided many business opportunities to young startups and fully grown business organizations. If you’re a foreign investor and want a new business setup in Dubai, then you must comply with all the rules and regulations of the Dubai government. One of the most initial steps is obtaining a trade license in Dubai, as it reflects all the business activities that you can carry out in Dubai.

Dubai Trade License and Approvals

If a company wishes to import/export products like electronics, clothes, accessories, furniture, raw materials, etc., it can apply for a Dubai trade license. If you have multiple trading activities, then a general trade license renewal Dubai covers it all. Some products like alcohol, medicines, guns, and cars are not included in the Dubai trade register, as they require high-level authorizations and clearances from UAE municipals. Your business activities determine your approval from relevant authorities.

For example:

• Financial Institutions require approval from the Central Bank.
• Insurance agencies require approval from the Ministry of Economy and Commerce.
• Medical services require approval from the Ministry of Health.
• Food-related services require approval from the Food Department of Municipal.
• Manufacturing firms require approval from the Ministry of Finance and Industry.
• Education-related services require approval from the Knowledge and Human Development Authority.

The Department of Economic Development (DED) is responsible for handling the Dubai economy trade license. In some rare cases, the Dubai Chamber of Commerce is also involved in the registration procedure.

Benefits of Trade License in Dubai

There are many benefits you can avail from obtaining a trade license in Dubai.

Some of the key advantages include:

• Local and international trading opportunities
• Hassle-free registration process
• No mandatory auditing requirements
• Low import duty
• Wide range of banking facilities
• No currency restrictions

Types of Trade Licenses in Dubai

There are three types of trade licenses in Dubai that you can register for:

Commercial License

A commercial license is issued to companies involved in trading activities. This generally includes all kinds of business operations. However, if you want to trade within the UAE, then setting up a company in Dubai as a Mainland Limited Liability Company will best suit you. In this case, you need a local sponsor. If your business involves trading outside the UAE, then you can establish a company in a Free Zone, where you have complete ownership.

Business activities included in a Commercial License:

1. • Import and Export
   • Car rental services
   • Electronics trading
   • Trading of raw materials
   • Logistics firms
   • Brokerage firms

Industrial License

An industrial license is issued to companies involved in manufacturing. To obtain this, you must have a physical office space in Dubai Mainland or a Free Zone.

Business activities included in an Industrial License:

1. • Manufacturing of furniture
   • Metal casing
   • Packaging
   • Food products manufacturing

Professional License

A professional license is required by professionals, artisans, service providers, and craftsmen. Although you need a local service agent, you retain complete ownership of your business.

Business activities included in a Professional License:

1. • Marketing and management consultancy
   • Medicine-related businesses
   • Information technology companies
   • Law firms
   • Accounting and auditing companies
   • Educational institutes

Documents Required for Trade License in Dubai

The documentation required for a trade license in Dubai varies based on business activities.

Generally, the following documents are mandatory:

• License application form
• Memorandum of Association
• Company name approval
• Passport and visa copies of partners

Process for Obtaining a Trade License in Dubai

With a valid Dubai trade license, one can do business in Dubai. When submitting a request for a new trade license in Dubai, the following steps apply:

• Select your business category.
• Decide your business-related activities.
• Apply for initial approval.
• Create a business plan.
• Approve your trading name.
• Submit the application to the relevant department.
• Select business premises and get approval from authorities.
• Prepare the Memorandum of Association and other legal documents.
• Pay the required trade license Dubai fees.

Cost of Trade License in Dubai

The trade license in UAE cost depends on the type of business activities you perform. The initial cost varies between Mainland and Free Zones.

The cost factors may include:

• Typing and legal translation of documents
• Local sponsorship fee
• Consultancy fee
• Business address registration
• Local sponsor’s court appearance
• Trade license renewal cost Dubai
• Application cost of the license

Trade License Renewal in Dubai

The trade license renewal in Dubai is essential for businesses to continue operations legally. The company license renewal Dubai process requires submitting the renewal application, updating necessary documents, and paying the trade license renewal cost Dubai.

Why Get a Trade License in Dubai?

To help you get started, here are some reasons why a license for business in Dubai is beneficial:

• The application process is simple.
• The setup cost is reasonable.
• You can establish your business anywhere in Dubai.
• Fewer restrictions for business expansion.
• Easier to sponsor dependents.
• Participation in government initiatives.
• Ability to engage in commercial activities.

Additionally, businesses holding a trade license in Dubai benefit from various financial and banking services. One of the biggest advantages is the tax-free environment, allowing companies to enjoy 100% profit repatriation. These benefits have contributed to the rapid expansion of businesses in Dubai.

At Setup Dubai Business, we offer complete assistance for Dubai business setup and company formation. Our services include local sponsorship, PRO services, office premises, visa and license registration, and other trade license services in Dubai. If you have any inquiries regarding the new company setup in Dubai, contact us, and one of our representatives will assist you.