22 August, 2023

How to obtain a Trade License in Dubai: Steps & Requirements

Trade License in Dubai

Do you want to set up your business in Dubai but don’t know how or where to start? If this is your case, you are at the right place. Obtaining a trade license is one of the first steps that you should follow. This can be done by following the below mentioned steps or by taking help from a business setup consultant. This blog will talk about all the information needed for getting a trade license in the UAE.

Dubai attracts people from all over the world to get their businesses setup here. The place is regarded as the business and investment hub worldwide and can be a good place for those who are just getting started or want to expand their already built business to new places in the world.

What is a Trade License?

A trade license lets you do your business legally in the UAE. It can be obtained for freezone or mainland and allows trade related activities. In the case of a mainland license in Dubai, the DED issues the license while for free zones, it is the respective freezone’s authority. It is essential to follow the rules and regulations associated with the license to ensure that you do your business in a legally secure way.

Types of Trade Licenses in Dubai

There are three main types of trade licenses in Dubai. They are:

  1. Commercial License – This allows your business to carry out trade activities like import and export, retail, and general trading activities.
  2. Industrial License- It allows you to manufacture goods and products and do other industry related activities.
  3. Professional License – This allows you to provide professional services to your clients such as opening a consultancy.

Why go for a trade license in Dubai?

A trade license is a must for any business wanting to operate in Dubai. Obtaining a trade license has many benefits. Some of the key benefits are:

  1. Trust: A trade license proves that your business is legal and increases the customer trust in your business.
  2. Strategic location: You can take advantage of the strategic location of Dubai. This provides you with an opportunity to connect with businesses from all over the world.
  3. Tax benefits: Dubai provides tax exemptions in a few cases. In others, the taxes set here are lower than those around the world which makes this place an excellent choice.
  4. Flexibility: You can carry out a number of business activities under a single license.
  5. Open a bank account: You can open a bank account and get access to financing options
  6. Infrastructure: Opening a bank account provides you access to the world class infrastructure in Dubai.

What are the steps to obtain a trade licence in Dubai?

Obtaining a trade license in Dubai involves a few simple steps. The steps are mentioned below:

  1. Choose the type of license- Choose the type of license you want to apply for. Keep in mind the business activity that you want to provide.
  2. Choose a name for your company – Choose a name for your company that describes it. It should be unique and available for registration. Follow the laws of naming as mentioned by the government.
  3. Get approvals – Submit the form, documents and fees to the authorities and get the approvals. You may also need additional approval based on the business activity.
  4. Get an office space- Get a suitable office space for your business according to the activity.
  5. Final Approval – Get final approval and get your license ready to get started.
  6. Corporate Bank Account – Open a corporate bank account in dubai with a local bank or a foreign branch to get your funds sorted and get help from financial aid and services.

How Much Does It Cost to Get a Trade License in Dubai?

The cost of a trade license in Dubai depends on a number or variables. However, the cost ranges from AED 5000 to AED 30000 and can also exceed the same. There are additional costs such as that of the fees for visa, sponsors and office spaces. It is therefore important to do thorough research and plan accordingly. If you wish to know the cost of your needs, you can get help from a business setup consultant. You can also head to the RadiantBiz cost calculator which will help you get the exact cost of your unique business setup so that you can proceed by planning accordingly.

How Do I Renew a Trade License?

Renewing a trade license in Dubai is a crucial process for any business looking to continue operating legally in the city. The process for renewing a trade license in Dubai can be completed online or in-person at the Department of Economic Development (DED). You need to gather the necessary documents, check for any fees or fines, submit your application, pay the fee and then wait for approval. Once you have the approval, you can get your renewed trade license.

Tips for Obtaining a Trade License in Dubai

Here are some tips to make the process of obtaining a trade license in Dubai easier and smoother:

  1. Hire a Local Agent – Hiring a local agent or sponsor can help you understand the process and ensure compliance with laws and regulations.
  2. Research and Plan Ahead – Before starting the process, research and plan ahead to ensure that you have all the necessary documents and information.
  3. Consider the Free Zone Options- Dubai Free zones business setup offers various incentives and benefits for businesses, including 100% ownership, tax exemptions, and more.

How can RadiantBiz help?

RadiantBiz can help you set up your business with years of experience in the industry. Our company formation agents will help you formulate a specialised plan for your business and get you the recognition you deserve. With us, you can focus on the things you love the most while we take care of those where we expertise.

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Phone Number : +971 552 347 124