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The glorious city of Dubai, UAE has successfully retained its position in the global business market. It has provided many business opportunities to young starters to fully grown business organization. If you’re a foreign investor and want to set up a new business in Dubai, then you must comply with all the rules and regulation of Dubai government. One of the most initial steps is obtaining a Trade license as it reflects all the business activities that you can carry out in Dubai.
If a company wishes to import/export products or clothes like electronics, clothes, accessories, furniture, raw materials, etc. It can apply for a trade license in Dubai. If you have multiple trading activities then general trade license covers it all. Some products like Alcohol, medicines, guns, cars, etc are not included in the trade license, as they require some high-level authorizations and clearances from UAE municipals. Your business activities determine your approval from relevant authorities. For example:
The Department of Economic Development (DED) is responsible for handling the Trade license in Dubai, UAE. In some rare cases, the Dubai Chamber of Commerce is also involved in the registration procedure.
There are tons of great benefits you can avail from a trading license in Dubai. Following are the highlighted ones;
There are 3 types of trade license available in Dubai that you can register for. These are;
A commercial license is issued to the companies that are involved in trading activities. This generally includes all kinds of business activities. However, if you want to trade within the UAE, then the creation of Mainland Limited Liability Company will best suit you. For this, you’re required to have a local sponsor. If your business involves trading outside the UAE, then you can establish a company in Dubai Free Zones. In this case, you’re not required to have a local sponsor and you have complete ownership of your business. Free Zone companies can also partner with Mainland companies and sell their products and services with the country.
Business activities included in Commercial License are;
Industrial license is issued to the companies that are involved in the manufacturing of products. In order to obtain an industrial license, you’re required to have a physical office space in Dubai Mainland or Free zone.
Business activities included in Industrial License are;
Professional License is required by professionals, artisans, service providers, and craftsman. You’re required to have a local sponsor for this license but you have complete ownership of your business.
Business activities included in Professional License are;
The documentation required for trade license is different for every business activities. In a general way, the following documents are must required;
With a valid trade license, one can do business in Dubai. While submitting the request for trade license to the concerned authority, the following legal requirements are applicable;
The cost of a trade license is entirely dependant on the type of business activities you’re performing in the region. The initial cost of Mainland and Free zones are also different. The cost may include terms like;
To get you started with the process, here are some good points that you should know.
Apart from these, there are various financial and banking facilities available for personal and corporate purposes. One of the best advantages of having a trade license in Dubai is that you don’t have to pay any taxes. You can also apply for multiple visas once you meet the required criteria. A company with a trade license in Dubai can enjoy 100% repatriations of profits and capital. Due to these opportunities, businesses in Dubai has expanded to record-breaking measures.
At setup Dubai Business, we offer complete assistance for incorporating a new company and other business-related services. We offer the combination of our deep knowledge and experience in the field of business, to set up your company in a hassle-free environment. Our services range from the local sponsor, PRO services, Office premises, Visa and License registration and other company ser up services. Have any inquiry regarding our services and trade license registration process in Dubai, Contact us and one of our representatives will call you back.
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