Are you thinking about starting a business in Dubai? There is no better time than now! The economy in the UAE is booming, and there are several big events planned in the city for 2021 that are expected to bring in even more business to the area. So, if you’re ready to get your business started, you’ve picked a great time to take part in the UAE’s growth.
The first big step you’ll have to take is to apply for your business license. We’ve put some information together for how you can get the process started and what you’ll need along the way. It’s a pretty easy process, but we can help make it even easier! Let MSZ Consultancy help get your business license in Dubai and get your business going.
What is a Dubai Trade License?
A trade license is the most important part of your company, because, without it, your company is not considered legal. You may hear this referred to as a trade license or a commercial license, but they are both the same thing.
This license is what designates what type of activities can be carried out throughout the UAE. There are different types of business licenses that you can apply for depending on what type of activity you plan on doing for your business. However, most activities can be carried out under a general trade license. If you’re not sure what type of license you need, that’s what we are here for! MSZ Consultancy will help you find the exact license you need to make your business legal.
Advantages of Obtaining a Trade License in Dubai
Foreign investors have several license options in Dubai, but there are several advantages of getting a trade license for your business:
• Easy to apply for
A trade license is extremely easy to get. After you apply, it only takes about five working days to get the license in your hands.
• Inexpensive option
Not only is this license quick, but it’s also cheap. It usually costs between 30,000 and 40,000 AED. That may seem like a bit, but it’s actually one of the cheapest compared to the other licenses that are out there.
• More business opportunities
This license allows local companies to enter into national and international trading.
• Holding companies
A trade license permits the establishment of holding companies in Dubai. This is a great option for foreign investors.
What Are the Steps to Obtaining a Trade License in Dubai?
Getting a trade license in Dubai is quick and simple. Here are the steps you need to take to make sure you can easily get your license:
- Reserve your company name and apply for the approval
- Get the company’s Memorandum of Association of DED notarized
- File the required company documents
- Apply for the establishment card at the Ministry of Labor
- Register native workers with the Ministry of Labor
- Register native workers with the General Authority for Pension and Social Security
The Documents Required for Business License in Dubai
The Dubai Economic Department is responsible for the final approval for your trade license in Dubai. But before you get the final approval, there’s a long list of documents that you will have to turn into the Trade License and Commercial Registration Department.
Here’s a look at the documents you will need:
- The trade license application filled out and signed by your company’s legal representative
- The original and copy of the company’s statutory documents
- Company name approval
- The DED’s letter of approval for the company setup.
What Are the Types of Dubai Trade License Available?
Trade licenses are characterized into four types. Like we mentioned earlier, the type of license you need will depend on the type of business activity you plan on having.
Here are the license categories that are available for investors in Dubai:
• Commercial license
This license is issued to a business that plans on doing trading activities like buying and selling goods. You will only be able to do this for the items that are mentioned in the license.
• Industrial license
An industrial license is issued to a company that plans to engage in any type of manufacturing or industrial activity. There are a couple of requirements for this license: you can only manufacture the items that you get the license for and you will be required to have a physical office in the UAE.
• Professional license
This license is given to service providers and professionals. The main advantage of this license is that you don’t need a local sponsor and get to have 100% ownership of the company.
• Tourism license
Dubai is known around the world as a tourist destination due to its impressive architecture, museums, luxury shopping, golden beaches, and more. To help companies take part in this growing economy, Dubai has a separate license for the tourism sector. If you plan on engaging in tourism and travel, then you’ll need to apply for this license.
Trade License Renewal Dubai Process
Each year you’ll have to get your trade license renewed. This will ensure that you agree with the rules of the government.
Here are the steps you will have to go through for the renewal process:
1. Renew your tenancy contract
Make sure your tenancy contract is renewed before you start the trade license renewal process. This is a very important step because you can’t get your trade license renewed if your tenancy contract is out of date. You’ll have to get this done through the Real Estate Regulatory Authority
2. Complete the license renewal application
You’ll need to submit an application for your license to be renewed. You can do this at the DED.
3. Submit the required paperwork to the DED
- A typed BR/1 form
- Copy of renewed Tenancy Contract
- Copy of current Trade License
- Passport copies of business partners and investors
4. Make the required payment
After all the required paperwork is submitted, you’ll receive a voucher from the DED for your payment. You’ll have to pay the trade license Dubai fees for the renewal then you will instantly get your license renewed.
Get Your Business License in Dubai with the Help of MSZ Consultancy
By now, you know how important it is to get your trade license in Dubai. It’s also important that you don’t skip any of the required steps, so there aren’t any delays in getting your license issued.
At MSZ Consultancy, we can help guide you through the entire process to make sure there aren’t any issues when it comes to trade license approvals and renewals. We are experts in all aspects of business formation in the UAE and can help make sure you successfully get your license to form your company in Dubai. Don’t wait! Call us today at +971 52 544 1248 to see how we can help your business get started and watch it grow!