Dubai Trade License
The UAE has made huge strides in developing the region’s business environment, creating a market that offers incentives and business-positive regulations for investors of all types. But before you can form your company, you’ll need to secure a Dubai trade license. A trade license in Dubai permits you to legally conduct business in the UAE and take advantage of all the benefits this region provides.
The UAE government has designed the business licensing system to be straightforward, but if you’re an ex-pat or are unfamiliar with the process, you might need help knowing where to start. In this blog, we’ll cover important aspects of securing a Dubai trade license, including various types of licensing and the benefits they provide.
Types of Business Licenses in Dubai
A trade license is an official document that allows individuals or companies to conduct business legally within the UAE. Business licenses in Dubai are typically broken down into the following categories:
1. Professional License
Individuals or companies offering consulting, accounting, legal, and engineering services require a professional license. This license is issued by the Dubai Economic Department (DED) and allows the holder to conduct business within the Emirate of Dubai.
2. Commercial or Trade License
A commercial or trade license is the most common type of business license in Dubai. It is typically given to companies engaged in trading activities such as buying and selling goods, allowing them to carry out commercial activities within the Emirate of Dubai.
3. Industrial License
An industrial license covers companies involved in manufacturing or industrial activities. Issued by the DED, this license allows the holder to set up and operate an industrial facility or industrial-based business within the Emirate of Dubai.
4. Tourism License
A tourism license is required for companies engaged in tourism activities, such as travel agencies, tour operators, and hotels. This license is issued by the Department of Tourism and Commerce Marketing (DTCM) and allows the holder to conduct tourism activities within the Emirate of Dubai.
The Benefits of Getting a Trade License in Dubai
Obtaining your trade license in the UAE comes with a wide selection of advantages. From relaxed regulations that make owning and operating in the region easy and financially rewarding to tax policies that make returning more profit to your home nation easy, there’s a ton to love about running a business in the Emirates. Let’s look at just a few benefits you can find here:
1. Tax Benefits
One of the major benefits of obtaining a trade license in Dubai is the tax benefits. The UAE is known for its low tax rates and tax-free zones, making it an attractive business destination. Companies holding a trade license can take advantage of these tax benefits and save significant money on their taxes.
2. Easy Setup Process
The Dubai government has streamlined the process of setting up a business in Dubai, making it easier for entrepreneurs to start their businesses. With the help of a business setup consultant, the entire process of obtaining a trade license can be completed within a few weeks.
3. Minimal Trade Restrictions
The UAE has a liberal economy and minimal trade restrictions, ensuring that companies holding a trade license can conduct business with minimal restrictions and barriers. This makes it easier for businesses to expand their operations and access new markets.
4. Access to Local and International Trade
The UAE is strategically located between Europe, Asia, and Africa, making it ideal for businesses looking to access local and international trade.
5. Establish Credibility
Obtaining a trade license in Dubai helps to establish credibility and legitimacy for your business. It shows potential customers and investors that your business is operating legally and that you are committed to following the rules and regulations of the UAE. This can attract new customers and investors, which can help to grow your business.
Documents Required to Secure Dubai Trade License
While the business setup process is designed to be accessible and approachable, you’ll still be required to perform ample research and due diligence to ensure the procedure goes smoothly. A big part of that will be supplying the required documentation. These documents include the following:
One of the essential documents required to obtain a trade license in Dubai is a copy of your passport. The passport copy should be clear and include all pages, including the personal information page, the visa page, and other relevant pages.
UAE Residence Visa Copy
To obtain a trade licenses in Dubai, you must have a valid UAE residence visa. A copy of your UAE residence visa is required to complete the application process.
Emirates ID Copy
Another document required to obtain a trade license in Dubai is a copy of your Emirates ID. The Emirates ID is a national identification card issued by the UAE government, and all residents must carry it at all times.
Memorandum of Association
An MOA is a legal document that outlines the structure and operations of a company, including the company’s objectives, activities, capital requirements, and the rights and responsibilities of the company’s shareholders and directors.
No Objection Certificate (NOC)
If you are employed in the UAE, you must obtain a No Objection Certificate (NOC) from your employer before applying for a trade license. The NOC is a document issued by your employer that confirms that they have no objection to you starting a business in the UAE.
A detailed business plan is also required to obtain a trade license in Dubai. The business plan should outline the nature of your business, the products or services you will offer, your target market, and your financial projections.
Proof of Address
Proof of address is also required to obtain a trade license in Dubai. This can be in the form of a rental agreement or a utility bill.
How to Obtain a Dubai Trade License
Dubai is a thriving business hub with a growing economy and an attractive business environment. But before starting your business in Dubai, you need to obtain your trade license. Here are the steps to obtain a trade license in Dubai:
1. Create a Business Plan
The first step to obtaining a trade license in Dubai is to create a detailed business plan. Your business plan should outline your business objectives, target market, financial projections, and the products or services you will offer.
2. Choose a Business Activity and Location
Once you have a business plan, you must choose a business activity and location. Your location will depend on the type of business you want to start and the jurisdiction that best suits your needs.
3. Choose a Trade Name
Choosing a trade name is vital in obtaining a trade license in Dubai. The trade name should be unique and not already registered in the UAE.
4. Define Your Legal Structure
You will need to define your legal structure when applying for a trade license in Dubai. This can be a sole proprietorship, a partnership, or a limited liability company (LLC).
5. Complete Application
After defining your legal structure, you must complete the trade license application. This can be done online or in person at the Department of Economic Development (DED).
6. Secure Additional Approvals
Depending on the nature of your business, you may need to secure additional approvals from other government departments before obtaining a trade license.
7. Gather Required Documents
You will need to gather all the required documents before submitting your trade license application. These documents include a copy of your passport, UAE residence visa, Emirates ID, NOC (if employed), an MOA, and more.
8. Pay Fees and Obtain License
After submitting your trade license application and paying the trade license Dubai fees, you will receive your trade license. The trade license is valid for one year and needs to be renewed annually.
How Much Does It Cost to Secure a Trade License in Dubai?
Dubai trade license cost can be challenging to narrow down as it can vary significantly based on your business activity and the jurisdiction in which you incorporate. However, you can expect trade license costs to range between AED 15,000 and AED 50,000, depending on your activity and the size of your business. Additional factors that may influence your overall cost may include:
•Number of Business Partners
The number of business partners in a company can impact the cost of obtaining a business license in Dubai. The more partners involved, the higher the fees.
•Region of Establishment
The cost of a business license can vary based on the establishment’s location. The price may be higher for businesses established in high-end areas such as Dubai Marina, Downtown Dubai, and Jumeirah.
• Business Structures
The cost of a business license in Dubai also depends on the company’s legal structure. For example, the cost of establishing an LLC is higher than that of a sole proprietorship.
• Partnerships with Local Sponsors
To establish a business in Dubai, foreign investors sometimes need to partner with a local sponsor. The cost of this sponsorship can impact the overall cost of a business license in Dubai.
• Type of Business Activity
The type of business activity determines the cost of a business license in Dubai. Some business activities require additional approvals, which can increase the cost of obtaining a business license.
Ready to Get Your Business License? MSZ Consultancy Can Help
Are you a business owner looking to establish or grow your business in the UAE? MSZ Consultancy can help! We offer a range of services, including trade license renewal in Dubai, company registration, visa processing, accounting, bookkeeping, and more. We’ll handle all the paperwork and legal requirements, allowing you to focus on running and growing your business.
Our team of experts has years of experience working with clients in a range of industries, including retail, hospitality, and finance. We understand each industry’s unique challenges and opportunities and can help you make the most of your investments.
If you’re ready to establish your business and make the most of your investments, call MSZ Consultancy at +971 52 544 1248 ! We’ll provide you with a free quote and a playbook on how we can help your business find the success it deserves!