Trade License in Dubai, UAE
How to get your Trade License in Dubai?

As entrepreneurs from all over the world flock to the nation to take advantage of the country's tax-free environment, it is critical that they understand the procedures involved in establishing a business in the UAE. Every company organisation in the nation requires government clearance to begin operations, which is why trade licenses granted by the Department of Economic Development (DED) are required. Trade licenses are classified into four groups based on the many sorts of company activity. While applying for a license is not without complications, selecting the appropriate licencing type for your organisation is quite simple. If you provide professional services, for example, you should apply for a professional services license; if you produce items, you should apply for an industrial license; and if your firm trades commodities, you should apply for a commercial license if one is necessary. The type of license that is appropriate for you will be determined by the nature of your business and its operations. Whichever license you select, the application procedure is usually short and simple, as long as you are aware with the requirements for operating a business in the UAE. Dhanguard Business will provide you with expert opinion regarding Trade License in UAE.

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Types of UAE trade licenses

The work industry in Dubai necessitates four major permits. In Dubai, businesses can apply for any of the following licenses:

Professional license

In Dubai, UAE, a professional license is a sort of license that allows professionals to start a business in the Emirates. A professional license holder, unlike other trade license holders, can do business in certain sectors; Carpentry, Artisanship, Consultancy services, Printing and Publishing, Beauty saloons, Repair services, and so on are examples of professional license services in Dubai and the UAE.

In summary, a professional license authorises a person or a single-ownership firm to engage in any profession in which he or she provides services based on intellectual or creative ability. However, if the corporation has more than one owner, it is referred to as a civil company.

You may have many questions about the cost of a professional license in Dubai, as well as the issuance, requirements, and so on. We have assisted customers in establishing professional entities at the place of their choice. Furthermore, our professional staff will share their skills and experience with clients in order for them to get the most benefits from the professional firm.

What is the Purpose of Professional License?

The aim of a Professional License is obvious from its name – indeed, it is intended for professionals and businesses that engage in professional or service-oriented activities. The license is granted to an individual or a company who wishes to demonstrate or provide their intellectual or artistic abilities. Yes, it may be a talent demonstrated in a specific trade or sector, such as artisanship.

In order to start a professional business that provides services to consumers in the UAE, you must first get a professional license. It might be a professional training facility, an art centre, or anything else. The license will indicate that you are formally permitted to carry out the aforementioned activities. Your company will also be included in the authority's paperwork. Furthermore, it will be useful in the event of any legal issues or disagreements.

Facts about a Professional License

When it comes to a foreign investor's ownership rights, a Professional License clearly outperforms a Commercial and Industrial License. Foreign investors have 100 percent ownership of the company, making them eligible for sole proprietorship. Professional licenses in the UAE are awarded after validating the applicant's educational eligibility and skill area. As a result, persons with insufficient qualifications are barred from establishing a professional firm in the UAE.

The number of expats deciding to establish a professional company in Dubai/ UAE has increased dramatically in recent years. The optimal growth opportunities provided by one of the world's most modern cities, Dubai, have been the primary cause in this. Furthermore, the country's visionary government's supporting policies have resulted in winners throughout the years.

Even if the investor has 100 percent ownership rights, obtaining a local service agent is required to complete the legal procedures. The local service agent has no claims or rights regarding the company's stock or operation.

The investor must pay an annual service fee in order to use the agent's services.

The Department of Economic Development is in charge of the processing and issue of Professional Licenses in Dubai and the UAE (DED). For all of your Professional License requirements in Dubai, UAE, contact DED. Our expert team will be able to handle the request quickly and provide the professional license. We will also provide you with appropriate guidance to assist you in making sound judgments.

Initial Professional License approval

Prepare a detailed description of the business activity involved in order to receive preliminary approval for a professional license in Dubai. Assign a service representative to complete the official paperwork in a timely and methodical manner. You can now seek preliminary permission from the Department of Economic Development (DED). Find and reserve an appropriate trade name for your company. Following the submission of documents, the DED grants final approval.

Documents Required for Obtaining a Professional License in Dubai

Duly completed application form Passport copy of the owner/partner Naturalization book of partner (copy) Expatriate partners require a letter of authorization from the sponsor. (Not applicable if the companion has a Tourist/Visit Visa — a UID number suffices) The responsible authorities grant the Initial Approval based on the company activity and operation.

You must submit your application to the DED together with certificates and documentation showing your professional competence and expertise (if any). Before obtaining a professional license in the UAE, DED personnel will review the certificates and other documentation.

Professional License in Dubai – How Much Does It Cost?

In Dubai, the total cost of obtaining a Professional License is AED 10,310. The cost of a professional license in Dubai may vary from time to time. The overall price includes different service costs, which are as follows

  • Fees for Licensing
  • Service charge for administrative purposes
  • Agent commissions
  • Trade name fees
  • Market fee based on tenancy
  • Cultural fees levied by the government, etc.

Commercial or trade license

Companies in Dubai, UAE must obtain a valid Commercial License in order to acquire and sell commodities or goods or engage in trade activities. So, if you want to start a firm related to trading in Dubai, simply apply for a Commercial License — it's that simple. Three jurisdictions grant commercial licenses in the UAE. Any of the three options are available to the investor. Prior to filing for a Commercial License, the investor should select the most practical site.

Dubai's Strategic Position

The "strategic position of Dubai" is one of the most significant benefits for any business or trade enterprise. Dubai is one of Asia's busiest trading centres. It has excellent international air and maritime connections. Dubai International Airport, the world's third busiest, serves as an international gateway to both Asia and Africa. Dubai features world-class seaports such as Port Rashid, Jebel Ali, and Al Hamriya that handle both passenger and freight traffic. Dubai is a trader's paradise due to its well-planned and business-friendly transportation infrastructure.

Business Activities that come under Commercial License

Prior to applying for a business license in Dubai, one must decide on the trade operations that will be carried out under the license. Before establishing a business in Dubai, you need have a clear grasp of the kind or category of your business activity. Commercial License covers business operations such as purchasing and selling as well as some service-oriented endeavours. The following are the key activities that fall under the purview of a business license in Dubai, UAE.

  • Logistics
  • Import and export
  • Tourism and Travel
  • Import and Export
  • Brokerage
  • Product-oriented sales (electronics, construction, shops, stores etc)
  • Real Estate
  • Rental business

After settling on your firm's trading activity, select and register a business trade name. Following that, you must submit the necessary paperwork to the Department of Economic Development and the UAE Federal Ministry of Economy in order to obtain a business license in the nation.

The Benefits of a UAE Commercial License

Obtaining a commercial license in Dubai is easier than obtaining many other sorts of company licenses. Furthermore, the commercial license has various advantages. A commercial license allows a company entity to engage in a variety of activities.

The following are the benefits of obtaining a commercial license in the UAE:

  • It enables the firm to trade many products.
  • The company can conduct business in any region of the UAE. As a result, the marketplaces around the country are being used to their full potential.
  • Auditing is not required for business license renewal.
  • The firm can apply for employment visas in order to hire international workers.
  • Foreign commercial activity and trading are permitted for business organisations having a commercial license.
  • Companies with a commercial license can pick any site in Dubai.
  • Financial transactions, turnover, profit and loss reporting is simpler than with other types of licenses.
  • When a company obtains a business license in Dubai, opening a corporate bank account is simple.
  • Companies with a commercial license in the Free Zone can repatriate their whole profit. These are also free from taxation.

Industrial License

Dubai's sophisticated and well-organized seaports and airports successfully meet the industrial sector's rising demands. The industrial sector makes the fullest use of this logistical advantage. Transport of raw materials, replacement parts for equipment, machinery, and exchange of commodities, as well as all other linked operations, can be carried out easily and cost-effectively. The UAE's industrial sector grew by 31% in the previous decade, and it is expected to rise somewhat further by 2027. Dubai's industrial sector grew by 6% over the previous decade and is a significant contributor to the GDP.

Activities that fall under the Category of Industrial Production

Industrial production encompasses all manufacturing-related operations that are carried out in a systematic manner on a piece of land. The following are some of the key activities that fall under the category of industrial production:

  • Manufacturing of textile
  • Paper Production
  • Petroleum products manufacturing
  • Metal casting
  • Food production
  • Manufacture of equipment and appliances

Industrial License Firms' Privileges

The authorities in the UAE have granted several rights to enterprises that have obtained an industrial license. It is hoped that this will help to promote industries and attract more investment in the sector.

The following are the benefits of having an industrial license in Dubai:

  • Terms for renting industrial space that have been specifically designed to benefit the investor.
  • For the purpose of developing your enterprise, the government will grant land at a reduced or no cost.
  • Discounted prices for electricity, water, and other necessities.
  • Guidance based on the methods of similar sectors to improve your industry.
  • Innovative items may be eligible for a loan at a lower interest rate.
  • If your product is likely to boost the national economy, the government will provide financial assistance during the R&D process.
  • Exceptional quality items will be prioritised by the UAE government during official procurement.

What is the cost of an industrial license in the United Arab Emirates?

The cost of acquiring an industrial license and establishing an industry in Dubai, UAE is determined by whether your firm is located on the mainland or in a free zone, as well as other pertinent considerations. Depending on the sort of industry you're starting, you may require extra permissions and registrations. The overall cost might be around AED 25,000. However, due to changes in existing pricing guidelines, this may change from time to time.

Starting a business in the Free Zone jurisdiction would be more cost-effective, given the initial set-up fees and other expenses

General Trade License

Businesses that trade, export, or import items must get a general trade license. This license should be granted to items such as electronics, furniture, and food. This license allows businesses to conduct local business within the UAE. Furthermore, it enables you to deal with marketplaces all around the world. General trading licenses in the UAE enable enterprises to deal in a variety of items. This implies that a company can export, trade, and import a wide range of products such as toys, building materials, and cosmetics.

These Licenses are issued by the Department of Economic Development (DED), a government agency. It assists individuals and corporate entities that want to launch a company on the Dubai mainland. Every company requires specific permission from the relevant ministries. In addition, it must be approved by other competent institutions. DED encourages new company development, renewals, and increased earnings

The Advantages of a General Trading License in Dubai

  • Permits the commerce of several products with a single license;
  • Allows 100 percent repatriation of earnings and capital;
  • Make use of any office space in Dubai;
  • Aids in obtaining a simple employment visa;
  • An uncomplicated legal procedure;
  • Use whatever currency you like;
  • Easy to install;
  • 100% direct and tax-free.

Specific Industry Trade licenses

  • Financial institutions, such as banks, must get the necessary licenses from the UAE Central Bank.
  • The Ministry of Economy and Commerce issues licenses to insurance companies.
  • Manufacturing companies must get permits from the Ministry of Finance and Industry.
  • Pharmaceutical and medical product companies must get Ministry of Health permits.
  • The Chamber of Commerce and Industry should provide licenses to commercial firms in the UAE.

Getting a trade license is the same as registering a business with the government. However, before applying for a trade license, you must first decide what sort of business you want to start, choose a name for the company, and have the Memorandum and Articles of Association ready to be presented to the Department of Economic Development (DED). Our business consulting professionals at Dhanguard can assist you in resolving the quandary of determining the sort of company activity to be carried out.

Why should you conduct business in the UAE?

Aside from the ease of doing business in the UAE, there are a number of additional compelling reasons to do so.

The Emirates benefits from a strategic location in the centre of the Middle East, making it ideal for doing business with people from all over the world. This, along with the country's cutting-edge infrastructure, makes it one of the world's most prominent business destinations.

In addition to a booming business landscape and a very favourable environment for entrepreneurs, the UAE has an extremely appealing tax policy - which stays at zero percent on both personal and corporate income.

There are additional advantages for businesses who opt to establish themselves in free zones such as Fujairah Creative City. Establish your business here and you will not only pay no income tax, but you will also be exempt from all customs duties. Furthermore, unlike in many other nations, company owners in UAE free zones have complete flexibility to repatriate all invested cash and earnings. There are no monetary controls or restrictions in place.

How can I apply for a Trade license in the UAE?

Before you apply for a trade license, you must first identify your company activity or activities. Depending on the license you select, you may be able to mention more than one on your application.

It's a good idea to engage with a business formation provider at this point to ensure you include every activity you want to carry out. Such professionals are aware with approved activities and will be able to recommend those that are most appropriate for your company.

The following step is to select a company name. This is not a simple undertaking, regardless of where you choose to conduct business. However, there are a few added things to bear in mind here in the Emirates. The UAE has a set of stringent, yet simple, name conventions. Again, a company setup professional can assist you in adhering to them.

You may now apply for your trade license after deciding on a firm name and operations. This application can be filed directly to the Department of Economic Development (DED) or municipality of the emirate in which you intend to establish your business, or to the management authority of your preferred free zone.

In either case, a company formation specialist may assist you with this stage, even managing the full application procedure on your behalf.

You are normally just required to give a few facts and some basic paperwork, whether you make your application yourself or through a company formation agency, such as:

  • Fully filled out application form;
  • A copy of the intended owner's or owners' passport
  • Two passport-sized colour pictures.

Understanding Trade License costs in the UAE

The particular prices you must pay to receive your UAE trade license will vary depending on the kind and size of your business, as well as where you choose to set up shop.

Having said that, the costs of a UAE trade license are comparable whether you choose to set up in a free zone or on the UAE mainland.

Unless you plan to take on mainland premises or seek for extra UAE trade license visas, there are no additional UAE trade license charges to consider.

Understanding Trade License costs in the UAE

The particular prices you must pay to receive your UAE trade license will vary depending on the kind and size of your business, as well as where you choose to set up shop.

Having said that, the costs of a UAE trade license are comparable whether you choose to set up in a free zone or on the UAE mainland.

Unless you plan to take on mainland premises or seek for extra UAE trade license visas, there are no additional UAE trade license charges to consider.

Renewal of a Trade License in Dubai

Every year, all businesses in Dubai must renew their trade licenses. Licenses are legal permissions that allow enterprises to operate in accordance with UAE business rules. The license must also comply with regulatory regulations. This step can help your company develop quicker and generate more income.

Renewal of a Trade License

  • The tenancy contract must be valid during the period of trade license renewal.
  • When it comes time to renew your lease contract, make sure you acquire permission from Ejari, the Real Estate Regulatory Authority.

Obtaining and renewing trade licenses necessitates a large amount of documentation and paper labour. Our business formation specialists look forward to assisting you in completing the trade licencing requirements, from compiling the essential paperwork to submitting them to the appropriate offices. Obtaining a trade license is the first step in establishing a business in the UAE; we at Dhanguard want to give your ambitions wings and support you in all your undertakings.

Why is a Trade license required to conduct business in Dubai?

In Dubai, a trade license serves as identity for the firm. A trade license is a document that confirms your company's legal status. Companies are granted trade licenses in order to maintain accountability of economic activity in the region. It also categorises, preserves, and secures the company's proceedings.

A trade license is required if your firm want to trade lawfully. Trade licenses guarantee that your firm operates in conformity with the UAE Commercial Companies Law. Furthermore, obtaining a Trade license in Dubai allows you to do business freely and in conformity with regulatory rules.

Knowing the correct trade license for your business may also differ based on your industry, business activity, business structure, jurisdiction, and so on. As a result, you should first discuss your needs with a business formation professional before deciding on a trade license in Dubai. You will save money and time as a result of this.

Where can I get a Trade License in Dubai?

The Department of Economic Development (DED) is a government agency in charge of licencing businesses in Dubai. If you want to do business in Dubai, either onshore or on the mainland, you must apply for a trade license with the DED. There are various documents and paperwork involved in the licencing procedure, which may also include other legislative agencies.

How long will it take to obtain a trade license in Dubai?

Obtaining a trade license in Dubai might take anything from three days to several weeks. The time it takes to obtain a trade license is dependent on your company activity, the permissions necessary from governmental and non-governmental bodies, and so on. A trading license can be given in three days if you have all of the necessary documentation.

Why Choose Dhanguard?

While applying for a UAE trade license is not too complicated, it does need some prior understanding of the procedure. Furthermore, it is crucial to note that the application procedure is only simple if your trade license application is full and error-free at the time of submission.

We can assist you whether you want to create a corporation in Dubai, obtain a free zone license, or start a small business in Dubai. We handle everything from visa applications (including UAE investor visas) to administrative responsibilities, leaving you free to focus on your business.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides faster and hassle-free Trade License with minimum paper work. With the guidance of our professional team of consultants you will get General trading license, Freelance license, Etrader license, Event Management License, Travel Agency license in Mainland and Freezone in UAE.