Trade License in Dubai, UAE

A trade license is a legal requirement for business activities in the UAE. It grants permission to engage in specified commercial endeavours within the region. Whether establishing a new venture or expanding your business, obtaining a trade license is crucial for compliance and growth.

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Are you considering launching your business in Dubai, UAE? One of the fundamental requirements for establishing a company here is obtaining a trade license. A trade license in the UAE legitimizes your business activities and signifies your compliance with the legal frameworks governing business operations in the UAE. Every organization in the nation requires government clearance to begin operations, so trade licenses granted by the Department of Economic Development (DED) are required. While applying for a license, selecting the appropriate licensing type for your organization 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 necessary. The license type 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 straightforward as long as you know the requirements for operating a business in the UAE. Dhanguard will provide you with expert opinions regarding Trade Licenses in the UAE.

What is a Trade License?

A trade license in the UAE  is an official document issued by Dubai's Department of Economic Development (DED) that permits business entities to conduct various commercial activities within the region.

A Dubai Trade License: What Is It?

A business's permitted operations in the United Arab Emirates are specified in its license. The Department of Economic Development is the agency that grants each trade license.

In Dubai, general trading permits can be used for various purposes. These encompass both the import and export of goods and conducting business.

Advantages of  a Trade License in the UAE

Due to its various business benefits, numerous businesses are establishing branches or organizations in the UAE. Trade License in the UAE has several advantages, some of them are:

Expand both domestic and foreign trade

A Trade License in the UAE opens up a world of possibilities for manufacturing and importing products. Depending on your goods, you can profitably export them overseas or sell them on the Dubai local market.

Strengthen Credibility

Businesses that follow the law are more likely to win the trust of their customers because laws and regulations are sometimes misused by those seeking to make a more significant profit. A trade license in the UAE increases the company's exposure in the marketplaces in which it competes. As a result, the company gains credibility and trust.

Setup is easy

As long as you have the required paperwork, obtaining a Dubai trade license is far quicker than getting other company permits in the United Arab Emirates. In a matter of weeks, a firm can typically be established in any of Dubai's free zones or on the mainland. In addition, you are not required to provide auditing reports after you receive your license. You'll save a ton of time and effort on paperwork down the road as a result.

What Types of Trade Licenses are Available in the UAE?

There are three primary licensing classifications from which to select:

  • Professional License: This permits experts to provide particular services
  • Commercial License: A commercial is required for everyone engaging in commerce.
  • Industrial License: Licenses for companies conducting manufacturing and industrial activities are known as industrial licenses.

Now, let's fully comprehend the types of Trade license in the UAE:

Commercial 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. The starting cost for commercial trade license in the UAE starts from AED 12,000*.

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 must clearly grasp 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 category of a commercial 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 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 organizations having a commercial license.
  • Companies with a commercial license can pick any site in Dubai.
  • Financial transactions, turnover, and profit and loss reporting are simpler than with other types of licenses.
  • When a company obtains a commercial 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.

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 salons, Repair services, and so on are examples of professional license services in Dubai and the UAE.

In summary, a professional license authorizes 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.

What is the Purpose of a 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. This Trade license in the UAE 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 center, 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 Licence

Some key Facts about a Professional Licence are as follows:

  • 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 of this. Furthermore, the country's visionary government's supporting policies have resulted in winners throughout the years.
  • The Department of Economic Development is in charge of the processing and issuing of Professional Licenses in Dubai and the UAE (DED). For all of your Professional License requirements in Dubai, UAE, contact DED.

Our expert team at Dhanguard will 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.

Professional License in Dubai – How Much Does It Cost?

A DED professional license in Dubai costs between AED 7,000* to AED 15,000*. 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
  • The service charge for administrative purposes
  • Agent commissions
  • Trade name fees
  • Market fee based on tenancy
  • Cultural fees levied by the government, etc.

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.

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:

  • 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 prioritized 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 starting cost might be around AED 10,000*. 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 setup fees and other expenses.

Online Trade License in the UAE

Dubai startups can do business online and through social media accounts through a DED Trader license. The license attempts to direct merchants in the proper direction for entering the business world. Dubai Economy aims to control and improve the convenience of conducting business online with the DED Trader license. No matter where you are, you can obtain a DED Trader license online by going to the DED website and following a few easy steps:

  • Create a username and password.
  • Enter the project/business's address and social media accounts.
  • Choose the activity and trade name.
  • Pay online.
  • Print the license.

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 % 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

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 of approved activities and will be able to recommend those that are most appropriate for your company. Connect with Dhanguard to make the process easy
  • The next 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. Dhanguard can assist you in adhering to them.
  • You may now apply for your trade license in the UAE 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, Dhanguard 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 owners or owner's 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. The UAE Trade License Fee begins at AED 12,000*. Having said that, the costs of a UAE trade license are determined on 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 extra UAE trade license visas, there are no additional UAE trade license charges to consider.

Cheapest Trade License in UAE

The cost of obtaining a trade license in the UAE varies on the type of license and the business activities you wish to engage in. While several factors contribute to the cost, the main factor  depends on where you are going to establish your business whether Mainland or Freezones. IFZA, RAKEZ, SHAMS, Meydan, and other free zones are among those in the United Arab Emirates that offer the cheapest trade licenses. Dhanguard has teamed up with these free zones to facilitate your experience.

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.

  • The tenancy contract must be valid during the period of the new trade license.
  • 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 licensing requirements, from compiling the essential paperwork to submitting them to the appropriate offices. Obtaining a trade license in the UAE is the first step in establishing a business ; 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 an 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 for economic activity in the region. It also categorizes, preserves, and secures the company's proceedings. A trade license is required if your firm wants 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 licensing businesses in the UAE. 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 licensing 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's 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 the required 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 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 licenses in the UAE with minimum paperwork. With the guidance of our professional team of consultants, you will get your Trade License in the UAE easily. Connect with us today!

Frequently Asked Questions

A trade license is an official document permitting businesses to operate legally. In the UAE, it's crucial as it establishes the legality of your business operations and ensures compliance with local regulations.

There are primarily three types: Professional, Commercial, and Industrial licenses. They cater to business activities, from service-oriented professions to trading commodities and manufacturing.

The duration varies based on the nature of your business, required permissions, and completeness of documentation. Typically, it can range from a few days to several weeks.

The Department of Economic Development (DED) is the governmental body responsible for issuing trade licenses in Dubai. They handle the application process for onshore or mainland businesses.

Essential documents include:

A filled application form.

Passport copies of the owner(s).

Passport-sized photos.

A detailed business plan.

Possibly specific industry-related certifications..

Any alterations or additions to your business activities usually require an amendment to your existing trade license, ensuring compliance with regulations.

Yes, trade licenses must be renewed annually. The renewal process includes updating necessary documents, ensuring compliance, and paying the renewal fees to maintain legal status for business operations.