Trade License in Dubai – Types, Process, Fees and more
A trade license in Dubai is one of the first steps toward owning a business in Dubai’s economic hub.
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Business setup services in Dubai offer various options, such as mainland company formation, offshore company formation, and free zone company setup. Before you set up a business in Dubai, you must complete the entire process, from trade name registration to starting your company.
Table of Contents
- Types of Trade License
- Trade License Fees in Dubai
- Step by Step Procedure
- Getting Instant Dubai Trade License
- Getting E-Trader License in Dubai
- How to Renew Dubai Economic Department Trade License
- Advantages of Having a Trade License in Dubai
1. Types of Trade License
Business Activities Supported
There are four main types of trade licenses in Dubai. Some licenses are exclusive to specific free zones and business activities. Here are the main types:
Commercial License:
A commercial license in Dubai allows a company to conduct trade activities like buying and selling goods. Activities are limited to items listed on the license. This license is perfect for businesses involved in general trading, import, and export activities. It includes categories like retail stores, wholesale trading, and general trading activities.
Industrial License:
An industrial license permits a company to manufacture products, import raw materials, and export finished products. A physical office in Dubai is mandatory for this license. This license is suitable for businesses engaged in production, manufacturing, and industrial activities. It includes factories, assembly plants, and other manufacturing units.
Professional License:
Designed for service providers and professionals, a professional license allows 100% company ownership without needing a local sponsor. This license is ideal for individuals and firms offering professional services such as consultancy, accounting, and legal services. It includes categories like educational services, healthcare, and artistic services.
Tourism License:
Specific to companies in the tourism sector, this license has unique rules, regulations, taxes, compliance, and permissions. This license is ideal for businesses operating in the travel and tourism industry. It includes categories like travel agencies, tour operators, and hotel management.
Type of License | Activities Allowed |
Commercial License | Buying and selling goods |
Industrial License | Manufacturing products, importing raw materials, exporting finished products |
Professional License | Service provision, professional services |
Tourism License | Tourism-related activities |
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2. Trade License Fees in Dubai
DED Trade License Fee
The trade license fees in Dubai vary based on your business activities and requirements. Here is a breakdown of general costs:
- License Fee: Starts from AED 12,000
- Activity Fees: Range from AED 150 to AED 500, depending on the business activity
- Additional Fees: Include activity class guide fees, license replacement, and translation fees
Trade license fees in Dubai are an essential factor to consider when planning your business setup. The fees are determined based on several factors, including the type of business activity, the nature of the business, and the specific requirements of the trade license. Understanding these costs will help you budget effectively for your business establishment.
Fee Type | Amount (AED) |
License Fee | From 12,000 |
Activity Fees | 150 - 500 |
Additional Fees | Varies |
Note: These fees cover only the official cost of obtaining a trade license, not the entire company formation in Dubai.
Additional Costs
Apart from the basic trade license fees, there are additional costs associated with setting up a business in Dubai. These may include:
- Office Space Rent: Depending on the location and size of the office, rent can vary significantly.
- Sponsorship Fees: For mainland companies, having a local sponsor is mandatory, which involves additional costs.
- Legal and Consultancy Fees: Hiring legal and business consultancy services can help navigate the setup process but adds to the cost.
3. Step by Step Procedure
Business Setup in Dubai
The Department of Economic Development (DED) is responsible for issuing trade licenses in Dubai. The process for company formation in Dubai is designed to be straightforward and investor-friendly. Here’s a step-by-step guide to obtaining a trade license in Dubai:
1. Trade Name Registration and Initial Approval
Reserve a trading name for your company by applying to DED Dubai. If the name is available, you will receive a permit. Apply for initial permission for the business activities you will conduct using your trade license in Dubai. This step involves choosing a unique name that reflects the nature of your business. The name should comply with the naming guidelines provided by DED.
2. Company’s Memorandum of Association Notarization
Notarize the company’s Memorandum of Association (MOA) at DED Dubai. This step usually takes less than a day. File a trade license application along with the MOA. The MOA outlines the company’s structure, ownership, and operational guidelines. It is a crucial document for legal recognition of the business.
3. Submission of Documents
Submit the required documents to the DED Dubai commercial registry. If everything is in order, the company name is added to the Commercial Register. The documents are then forwarded to the Federal Ministry of Economy. This step involves verifying the legitimacy and accuracy of all submitted documents.
Step | Description |
Trade Name Registration | Reserve a trading name and obtain initial approval |
MOA Notarization | Notarize the Memorandum of Association |
Document Submission | Submit documents to DED and the Federal Ministry of Economy |
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Required Documents for Trade License in Dubai
To complete the trade license application process, the following documents are typically required:
- Completed application form
- Passport copies of shareholders and partners
- Copy of initial approval certificate
- Notarized Memorandum of Association (MOA)
- Lease agreement for the business premises
- Proof of payment for trade license fees
4. Getting Instant Dubai Trade License
Want to set up a company in Dubai quickly? There’s an option for that.
You can obtain an instant trade license in Dubai. If your business activities require a commercial or professional trade license, you can get it in five minutes. No need for a Memorandum of Association or rent contract for the initial year. This license applies to businesses that do not need external approval from the UAE government bodies other than DED.
An instant trade license in Dubai is a convenient option for entrepreneurs looking to start their business operations without delay. This type of license is ideal for businesses that do not require complex approvals and have straightforward business activities.
Feature | Description |
Time Required | Five minutes |
Documents Required | Minimal |
Applicable for | Commercial and professional activities |
No MOA or Rent Contract Needed | For the initial year |
How to Apply for an Instant Trade License
To apply for an instant trade license, follow these steps:
- Access the DED E-Service Portal: Visit the DED e-service portal or use the happiness lounges, service centers, or smart lounges.
- Submit Required Documents: Provide minimal documentation, including passport copies and initial approval certificates.
- Receive the License: Once the documents are verified, you will receive your instant trade license within minutes.
5. Getting E-Trader License in Dubai
License for Home-Based Businesses
The E-Trader license, introduced by the Department of Economic Development Dubai, allows conducting and promoting business through online mediums. This license is suitable for home-based businesses and does not require a local partner.
The E-Trader license is designed for individuals who wish to sell products or services through social media platforms and online marketplaces. This license is ideal for entrepreneurs who want to start small and gradually expand their operations.
Feature | Description |
Ownership | Single owner, 100% ownership |
Business Type | Home-based, online |
No Ejari Documents Required | No physical office needed |
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How to Apply for an E-Trader License
To apply for an E-Trader license, follow these steps:
- Register on the DED Trader Portal: Create an account on the DED Trader portal and fill in the required details.
- Provide Necessary Documents: Upload necessary documents, such as passport copies and proof of residence.
- Pay the License Fee: Complete the payment for the E-Trader license fee.
- Receive the License: Once the application is processed, you will receive your E-Trader license.
Benefits of an E-Trader License
- Low Cost: The E-Trader license is cost-effective, making it accessible for small business owners.
- Flexibility: Operate your business from home without the need for a physical office.
- Easy Renewal: The renewal process for an E-Trader license is straightforward and hassle-free.
6. How to Renew Dubai Economic Department Trade License
Renewing Trade License in Dubai
A trade license is valid for one year. Renewal is crucial to avoid expiration and penalties. Here’s how to renew your trade license in Dubai:
1. Tenancy Contract Requirement
Ensure your tenancy contract has at least one month of validity from the expiration date of your trade license. Renew the contract if necessary.
2. License Renewal Application
Apply for renewal at DED and submit the following documents:
- Typed BR/1 form
- Copy of Tenancy Contract (View the Official Tenancy Contract here.)
- Copy of current Trade License
- Passport copies of business partners and investors
3. Make the Payment
After submitting the documents and receiving approval, you will get a DED voucher for payment. Pay the fee to renew your license instantly.
Step | Description |
Tenancy Contract Requirement | Ensure tenancy contract validity |
License Renewal Application | Submit required documents |
Payment | Pay the renewal fee |
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Renewal Fees and Costs
The cost of renewing a trade license in Dubai includes several components:
- Renewal Fee: The basic fee for renewing the trade license.
- Additional Charges: May include fees for document attestation, legal services, and other administrative costs.
7. Advantages of Having a Trade License in Dubai
Benefits of a DED Trade License
The UAE aims to attract more foreign investment. A trade license in Dubai offers significant advantages:
- Low Import Duty: Reduced costs for importing goods.
- No Paid-up Capital Required: Easier for new businesses to start operations.
- 100% Repatriation: Full repatriation of capital and profits.
- Extensive Banking Benefits: Access to a wide range of banking services.
- Tax-Free Jurisdiction: No corporate or income tax, enhancing profitability.
- Gateway for Trading: Opportunities for local and international trade.
Benefit | Description |
Low Import Duty | Reduced costs for importing goods |
No Paid-up Capital Required | Easier for new businesses |
100% Repatriation | Capital and profit |
Extensive Banking Benefits | Access to a wide range of banking services |
Tax-Free Jurisdiction | No corporate or income tax |
Gateway for Trading | Local and international opportunities |
Additional Benefits
- Business Networking: Establish connections with other businesses and professionals in Dubai.
- Infrastructure: Access to world-class infrastructure and facilities.
- Market Access: Reach a diverse and growing market in Dubai and the UAE.
Why Choose Dubai for Your Business
Dubai offers a strategic location, business-friendly environment, and excellent connectivity. Here are some reasons to choose Dubai for your business:
- Strategic Location: Gateway to the Middle East, Africa, and Asia.
- Economic Stability: Strong and stable economy of Dubai with a focus on growth and innovation.
- Quality of Life: High standard of living, safety, and security.
- Supportive Government: Pro-business policies and support for entrepreneurs.
Success Stories
Many businesses have thrived in Dubai due to its supportive business environment. Here are a few examples:
- Tech Startups: Several tech startups have achieved significant growth and success in Dubai.
- Retail Giants: Global retail brands have established a strong presence in Dubai’s vibrant market.
- Tourism Ventures: The tourism sector continues to grow, attracting millions of visitors each year. Take a look at top places to visit in Dubai.
Conclusion
Obtaining a trade license in Dubai is a crucial step in establishing your business in one of the world’s most dynamic economic hubs. Whether you are setting up a commercial, industrial, professional, or tourism business, understanding the types, fees, and procedures for obtaining and renewing a trade license will help you navigate the process smoothly.
From instant trade licenses for quick setup to E-Trader licenses for home-based businesses, Dubai offers a range of options to suit various business needs. With significant advantages such as low import duties, tax-free jurisdiction, and extensive banking benefits, having a trade license in Dubai positions your business for success in a competitive global market.
Frequently Asked Questions (FAQs) on Trade License in Dubai
How much does a trade license cost in Dubai?
The cost of a trade license in Dubai varies based on your business activities and specific requirements. Generally, the costs are as follows:
Fee Type | Fees in AED |
Trade License Cost | 11,960 |
Foreign Trade Fees | 2,000 |
Corporate PRO Services | 6,000 |
Total Cost | 21,960 |
This total includes the trade license cost in Dubai, foreign trade fees, and corporate PRO services fees, making it essential to budget accordingly.
What types of trade licenses are available in Dubai?
Dubai offers four main types of trade licenses to cater to different business activities and sectors:
- Commercial License: This license is for businesses engaged in buying and selling goods, covering general trading, import, and export activities.
- Industrial License: Designed for companies involved in manufacturing products, this license also includes importing raw materials and exporting finished goods.
- Professional License: This license suits service providers and professionals, allowing for 100% company ownership without needing a local sponsor.
- Tourism License: Tailored for companies in the tourism sector, this license has specific rules, regulations, taxes, compliance, and permissions unique to the industry.
How long does it take to get a trade license in Dubai?
The time it takes to obtain a trade license in Dubai can vary depending on the type of license and the completeness of your application. Typically, it takes a few days to a week to complete the process. However, if you apply for an instant trade license in Dubai, you can receive it within five minutes, enabling you to start your business operations almost immediately.
Can I get a trade license without a physical office in Dubai?
Yes, you can obtain an E-Trader license, which is specifically designed for home-based businesses that do not require a physical office space. This license allows you to conduct and promote business through online mediums, making it an ideal choice for entrepreneurs who want to operate from home without the overhead costs associated with maintaining an office.
What documents are required to apply for a trade license in Dubai?
To apply for a trade license in Dubai, you need to submit several key documents. These include a completed application form, passport copies of shareholders and partners, a copy of the initial approval certificate, a notarized Memorandum of Association (MOA), a lease agreement for the business premises, and proof of payment for trade license fees. Ensuring all documents are accurate and complete will help expedite the application process.
How do I renew my trade license in Dubai?
Renewing your trade license in Dubai is a straightforward process. First, ensure your tenancy contract is valid for at least one month from the expiration date of your trade license. Next, submit a renewal application at the Department of Economic Development (DED) along with the required documents, including a typed BR/1 form, a copy of the tenancy contract, a copy of your current trade license, and passport copies of business partners and investors. After submitting these documents, pay the renewal fee to complete the process.
What is the validity period of a trade license in Dubai?
A trade license in Dubai is valid for one year from the date of issuance. After this period, it must be renewed annually to remain valid. Regularly renewing your trade license ensures that your business operations are compliant with local regulations and avoids any potential penalties or disruptions.
Are there any additional costs associated with a trade license in Dubai?
Yes, there are additional costs associated with obtaining and maintaining a trade license in Dubai. These costs may include office space rent, which varies depending on the location and size of the office; sponsorship fees for mainland companies, which require a local sponsor; and legal and consultancy fees, which can assist with navigating the setup and regulatory processes. It's essential to account for these additional expenses when planning your business budget.
Can I operate multiple businesses under one trade license in Dubai?
No, you cannot operate multiple distinct business activities under a single trade license in Dubai unless they fall under the same category. Each business activity typically requires its own trade license to ensure compliance with local regulations and industry standards. Therefore, if you plan to operate diverse business activities, you will need to obtain separate trade licenses for each.
What is an instant trade license in Dubai?
An instant trade license in Dubai is a convenient option for entrepreneurs who want to start their business operations quickly. This type of license can be obtained within five minutes and is ideal for businesses that do not require complex approvals or external authorizations from government bodies other than the Department of Economic Development (DED). It allows you to commence business activities almost immediately, streamlining the setup process.
How do I apply for an E-Trader license in Dubai?
To apply for an E-Trader license in Dubai, follow these steps: first, register on the DED Trader portal by creating an account and filling in the required details. Next, provide the necessary documents, such as passport copies and proof of residence. After that, complete the payment for the E-Trader license fee.
Once the application is processed, you will receive your E-Trader license, allowing you to operate your business from home or online.
What are the benefits of having a trade license in Dubai?
Having a trade license in Dubai offers numerous benefits, including low import duty, no paid-up capital required, and 100% repatriation of capital and profits. Additionally, businesses enjoy extensive banking benefits, a tax-free jurisdiction, and access to local and international trading opportunities.
These advantages make Dubai an attractive destination for entrepreneurs and investors looking to establish and grow their businesses.
Do I need a local sponsor for a professional license in Dubai?
No, you do not need a local sponsor for a professional license in Dubai. This type of license allows for 100% ownership of the company by the foreign professional or service provider. This feature makes the professional license an attractive option for individuals and firms offering professional services, as it eliminates the need for a local partner and provides full control over the business.
Can I renew my trade license online?
Yes, you can renew your trade license online through the Department of Economic Development (DED) e-service portal. The online renewal process is designed to be convenient and efficient, allowing you to complete the renewal from anywhere without the need to visit a physical office.
Simply log in to the portal, submit the required documents, and pay the renewal fee to extend the validity of your trade license.
What happens if I do not renew my trade license on time?
If you do not renew your trade license on time, it will expire, and a ban on business activities will be imposed. You may also incur penalties for late renewal, which can add to the overall cost of maintaining your business.
Additionally, an expired trade license can lead to disruptions in business operations and affect your ability to enter into new contracts or conduct transactions. Therefore, it is crucial to renew your trade license promptly to avoid these issues and ensure continuous business operations.
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Disclaimer: The information provided in this article is intended for general informational purposes only. The details mentioned are based on the best available information at the time of publication and are subject to change without notice due to possible updates in the educational policies or changes in the scheduling by the respective authorities. Readers are encouraged to consult the relevant offices directly for the most accurate and updated information.
