A Trade license in Dubai is a mandatory requirement for establishing and running your business in the city or anywhere in the UAE. It’s easy to get enticed to establish a new enterprise in Dubai owing to the skyrocketing growth of its economy, proximity to the developing markets, and enormous demand for goods and services.
However, as a foreign investor, you need to have your trade license approved by the government of the UAE to conduct any business activities in the Dubai mainland or free zone.
It is the Department of Economic Development that issues the Dubai trade license. When applying for the trade license, you will be required to complete different procedures to obtain the license. For this reason, it is important to know the details of the application process and types of trade licenses in Dubai so that you can avoid any delays and hindrances.
What is a Trade License?
A trade license in Dubai is approved by the Department of Economic Development for your trade operations and running your business. Once you obtain it, you are free to sell any of the goods that are generally permissible by the UAE govt.
On the other hand, some products such as alcohol, cars, medical products, weapons, etc require special permission by the government to be sold. While they too require a trading license, it’s usually a specific type of trading license such as a Commercial Trade License.
Any type of trading license gives you the following benefits-- Freedom to trade within the UAE and Emirates
- Golden opportunity to come out as a key player in the UAE market
- Be an authentic business establishment and conduct trade operations seamlessly
Steps to Get a Trade License in UAE
Obtaining a trade license in the UAE is a hassle-free process. With a few documents by your side and your business information, you can obtain your trade license.
1. Choose a Trade Name
Start by choosing a trade name for your company. Make sure that you do use any offensive terms that might lead to a rejection of your trade license. Similarly, you must also choose a legal structure for your company.
2. Decide on Your Business Activities
While applying for a UAE trade license make sure you define your business activities clearly. Mention all the products or services you are planning to sell along with their respective channels.
3. Receive Primary Approval
Fill in the application form on the online portal to receive primary approval on your Dubai trade license.
4. Get Any Exterior Approvals Required
In case you are planning to sell products that require any special approvals, go ahead and apply for a special trade license. You must carefully research whether the product you want to sell requires any special approval.
5. Choose a Business Location
You must mention the location of your business establishment in the trade license application. For this reason, decide if you want to sell on the mainland, free zone, or offshore. Upon making a choice you also need to get your tenancy contract signed and confirmed by the Ejari.
6. Submit Your Application to the DED
Submit your application form to the Department of Economic Development for approval. This is one of the concluding steps of your application process for a trade license.
7. Pay for Your Trade License
The final step in your DED trade license application is payment. You have to pay for your license online upon receiving a token from the DED department.
Cost of Trade License in Dubai
Typically, the cost of a trade license in Dubai ranges from AED 15,000 to AED 50,000. Factors influencing this cost depend on multiple business partners, business activity, region of establishment, and the structure of your business, among others.
To know more about exactly how much is a trade license costs in Dubai contact Shuraa business Setup consultant and will be happy to assist you.Similarly, the cost and process of trade licenses in the mainland and free zones are different. While the Department of Economic Development is responsible for trade licenses in the mainland, an independent authority is responsible for free zone trading compliances.
Get Your Trade License with Shuraa
Obtaining your Dubai trade license can be a critical step in shaping your business. We understand that a lot of nuances have to be taken care of in the process. With our team of expert business consultants, you get the right advice on obtaining your trade license in Dubai across your business location, budget, and industry.
