Dubai Trade License
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A Dubai trade license
The most important document you need to obtain to be legally entitled to set up a business. Basically, it is a document that specifies the activities you are legally authorized to undertake.Options for Dubai Trade License in Free Zones
Types of Dubai Trade Licenses
A license is issued based on the business activities you undertake. Notably, some free zones allow a combination of different types of activities on one license. Below we have mentioned the most common types of Dubai business licenses:| Free Zone Company | Mainland Company | |
| Ownership | 100% foreign ownership | 100% foreign ownership for most activities. Certain activities may have a requirement of a Local Sponsor or Local Service Agent |
| License Issuing Authority | The free zone authority | The Department of Economic Development |
| Visa Quota | Visa quota depends on the package selected and is subject to the free zone authority | Visa quota allocated based on the office size |
| Trading Scope | Can only trade within the free zone where the company is incorporated and with other free zones. Can trade internationally Cannot trade directly with UAE mainland companies. | Can trade anywhere in the UAE Can trade internationally |
| Audit Requirements | Audit requirements depend on the free zone where it is incorporated | Yearly financial audits are mandatory |
| Business Activities | Can undertake activities permitted by the free zone authority. Certain free zones are industry-specific. For instance, you can mostly undertake financial activities in a financial free zone. | Can choose from over 2000 activities permitted by the DED. |
Options for Trade License in Mainland
Options for Business Activities in Offshore
Why Obtain a Business License in Dubai
In terms of legal entities, you can have different types of company formations in Dubai, UAE. Here are the most common legal forms for business setup in Dubai:Comply with regulations
A business permit is a must-have for the legal operation of any business in Dubai. Conducting any form of business in Dubai without a valid license can have severe consequences.Leverage benefits of Dubai’s business ecosystem
As the first step in your business setup journey, obtaining a license opens up doors for you to take advantage of one of the world’s leading commercial hubs. A city like Dubai gives you an ideal environment, regulations, customer segment, and numerous other benefits to start and succeed with your venture.Obtain visas
Once you are issued a trade license in Dubai, you can proceed to obtain a residency visa for yourself. As a UAE resident, you can reside in any of the seven Emirates while managing your business.Sponsor dependents
You have the opportunity to sponsor your dependents including your spouse, children, parents, and maids. However, it may be necessary to comply with certain eligibility criteria for sponsoring dependents.Cost of a Dubai Trade License
The fee for a business license depends on the jurisdiction where your venture will be set up. As an example, you will be charged differently for a Dubai free zone business and a mainland business. That’s not all. The license prices also depend on the type and the number of activities chosen. For example, an e-commerce license cost in Dubai will vary from the general trading license price. Besides, whether you opt for a physical office space or not largely influences the cost of your permit.How to Obtain a Business License in Dubai
Below is the outlined process for business registration and licensing in Dubai. It must be noted that the process is different for free zone and mainland jurisdictions.Process for Free zones
- Reservation of trade name
- Submissions of applications and documents
- Issuance of license
Process for Mainland
- Reservation of trade name
- Initial approval from DED
- Preparation of Memorandum of Association (MoA) and Local Service Agent (LSA) agreement
- Issuance of rental agreement
- External approval from government bodies
- Issuance of business license
Documents Required for a Dubai Trade License
Free zones
For individual shareholder(s) and manager(s):
- Reservation of trade name
- Submissions of applications and documents
- Issuance of license
For corporate shareholder(s):
- Incorporation certificate
- Board Resolution
- Trade license (for an existing company)
- MOA and AOA
Mainland
- The below documents must be submitted to the DED during the license issuance process:
- Initial approval receipt
- Duly attested copy of the tenancy contract
- Duly attested MoA
- Duly attested Local Service Agent (LSA) agreement
- External approvals from other government bodies
Timelines for a Dubai Trade License
Just like the license costs, the timelines also vary from one jurisdiction to another. However, the good thing to know is that this processing time is usually short and can be a few days to a few weeks. Dubai is known globally for its fast and efficient systems, and this is no different when it comes to trade license issuance. Be it the Department of Economic Development or the free zone authorities, you can quickly avail of a business permit with minimal hassle.Obtaining a License Without Office Space
Securing workspaces is a common concern for anyone looking to pursue entrepreneurship in Dubai. However, it is very much possible to start and run a business without actually owning or leasing an office space. If you are looking for a Dubai business license without office space, it is advisable to start your business in a free zone.Trade License Renewal in Dubai
As per the UAE’s regulations, you are required to renew your permit periodically. The renewal process is usually pretty straightforward and requires you to produce certain documents and pay a fee. The period for the renewal of your license depends on the validity of the permit you opted for. For instance, if you obtain a 3-year permit, you are not required to renew it during the first three (3) years. Renewing your Dubai trade license is mandatory, and not adhering to this regulation can have severe consequences such as fines, blacklisting, and restrictions on expanding the business.Frequently Asked Questions
Find answers to the most common questions about business licenses.
The fee depends on the jurisdiction issuing it. The pricing depends on the jurisdiction issuing it and the type of permit you choose. Some free zones may charge a license fee based on the number and type of business activities added to the license. Meydan Free Zone offers a highly competitive cost for a Dubai business license.
Yes, with a business setup service provider like InZone, you can renew your license through a completely online process.
The most advisable approach to secure a business permit is to apply through a business setup service provider. Such a consultant can seamlessly guide you through all the steps involved in the license application and processing.
Meydan Free Zone offers a general trading business license at a modest starting price of AED 12,500.
The cost for Dubai business license renewal depends on the jurisdiction, validity period, and the type of license. For certain free zones, the cost is almost the same as the original price that you paid for the license. If you opt for multi-year renewals, you can avail of a discounted renewal fee for your Dubai trade license.
With Meydan Free Zone, you can start a professional or general trading business at a starting price of AED 12,500.
External approvals refer to authorizations given by government bodies to undertake certain business activities. For example, a pharmaceutical product business would require approval from The Ministry of Health & Prevention while a transport business would need approval from the Road and Transport Authority (RTA).
If you are wondering how to check your trade license in Dubai, here is the answer. All you need to do is visit the official government websites and within a few clicks, you will be able to access license details such as the business name, activity, validity, etc.
You must apply for a license that will cover the business activity you are looking to offer. Based on your operations, you can choose from professional, commercial, and industrial licenses. One must bear in mind that there are additional licenses offered by some free zones such as e-commerce and freelancer license.
In general, a trade license refers to a business license in Dubai. The most common forms of a trade license are professional, commercial, and industrial. This means that a commercial license is actually a type of trade license. A commercial license is also known as a general trading license, and is issued for business operations that involve activities such as import/export/re-export.
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