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How to Get Dubai Trade License?

Learn Step by Step Guide to Get Dubai Trade License

by dubaibusinessadvisors
Dubai Trade License

A trade licence is a fundamental requirement one needs to start a business in Dubai or Business Setup in Dubai. Designating what activities, a company can carry out in the UAE, the trade or business licence is a legal document issued by the Department of Economic Development (DED). General trading licences allow several activities in Dubai, including importing and exporting goods, as well as performing commercial activities. Depending on the chosen business activity and sector, trade licences in Dubai are mainly of three categories – Commercial Trade Licence, Industrial Trade Licence and Professional (or Service) Trade Licence.

The Process of Getting a Dubai Trade Licence

Obtaining the desired Dubai trade license requires the applicant to submit the application along with all the relevant documents to the licence-issuing authority. Be informed that the trade licence application is duly signed by all the company managers. You’ll also need to draft a Memorandum of Association (MoA) with the help of a legal representative. Plus, the company name approval given by the DED must also be attached to the application along with several other documents, including the passport copies of all the managing partners. Sounding too much to do? Not actually if you walk step by step and complete the business setup process adhering to the policies and procedures. And be a good entrepreneur!! … We mean stay vigilant, get acquainted with the UAE rules and regulations, know the business setup process in advance, don’t get lured by short-term benefits, and most importantly take the right decisions! Here’s your tiny guide to acquiring the Dubai trade licence:

Select jurisdiction for business incorporation in Dubai

Who will be your trade licence issuing authority in Dubai is known only after you pick your jurisdiction for business registration. Choose between Dubai mainland and the Dubai free zone to determine the next steps toward obtaining the trade licence and business formation in the UAE. The location decision can make or break your business, therefore you want to consider your business requirements as well as pros and cons of each jurisdiction before settling down on any one jurisdiction in Dubai.

Choose an appropriate business name

Give your company a name that doesn’t bother the UAE government and any other existing businesses. Come up with at least three unique names, adhering to UAE trade name guidelines to increase the trade name approval possibility.

Finalise the company’s legal structure

Define the corporate structure to provide clarity on myriad aspects to everyone interested in your establishment. The legal structure of your company will have a noteworthy impact on various areas that are crucial to your business such as payment of tax, control over the business, and legal liability. So pick one carefully. Your business formation specialist in Dubai helps you opt for the most suitable corporate legal structure.

Determine the business activities your company will conduct

After the company’s name and legal structure are decided, you have to specify the business activities that you are planning to carry out under your trade licence. Here, you must note that each licence permits a maximum of ten activities. You would want to list out all intended activities on the same licence, so you don’t need one more.

Obtain the initial approval from DED

Complete your application form and submit it to the DED with relevant documents such as a passport copy, visa copy and external approvals from ministries corresponding to your business to get initial approval, which is one of the dynamic e-services offered by DED to its users and is a prerequisite for obtaining the business in Dubai. Basically, it is a kind of no objection certificate from the UAE Government giving a green signal to the investor to proceed with the next steps of business incorporation in the Emirate, not the business activity. Foreign investors are required to seek approval from the General Directorate of Residency and Foreigners’ Affairs before applying for the initial approval. It can be requested simultaneously with the trade name approval application. Your initial approval application must be accompanied by additional approvals (from government and non-government entities concerning the intended business activity), if applicable. Be informed that you can request only one initial approval at a time.

Collect additional approvals

Some activities such as the activities related to legal affairs, security affairs and financial securities & commodities need special approvals. Research if your chosen business activities need external approvals from authorities. If the required additional approvals are not furnished, your trade licence application may be rejected. You don’t have to worry about it if you are already working with a qualified business setup professional in Dubai.

Finalise your business location in the chosen jurisdiction

Your Dubai mainland business has to have a physical address. In the case of a Dubai free zone business licence, you have several options when it comes to choosing office space. The tenancy contract and Ejari received after the commercial premise is finalised must be submitted along with the other business formation documents to the licensing authority while applying for the trade licence.

Gather required documents to attach with the licence application

In addition to DED’s business name approval letter, DED’s letter attesting approval for setting up a company, the firm’s commercial lease documents, MoA, and the company’s statutory documents (original as well as copy), you have to submit to DED all the other required documents shareholder’s details (copies of passports of every shareholder along with details), etc. along with your completed application form for licence issuance. Ensure that all necessary signatures are present before the final submission of the application.

Pay the fee and collect your trade licence

A DED payment voucher is generated after online, after successful submission of the Dubai trade licence application. The business owner receives it within three to four working days for use at the time of fee payment once the licence is approved. All you have to do after getting the approval confirmation, just pay the fees and collect your trade licence.

The cost of obtaining trade licence in Dubai

The cost of a DED trade licence in Dubai swings between AED 620 and AED 2,000, depending on the chosen business activity. If all the other expenses such as the attestation costs for legal papers and the office space rent are taken into account, the licence cost might go beyond AED 50,000. Our business setup specialists in Dubai can determine the exact cost of getting the desired trade licence if they know your requirements.

Meet Your Trade Licence Experts in Dubai

If not for appropriate documentation in a well-organized manner, your trade licence request approval might get delayed and to avoid the same you want to work with an experienced business setup advisor in Dubai such as Adam Global. Also, know that our corporate services in Dubai are not limited to just trade licence assistance. We are a one-stop-shop for all your pre- and post-business setup needs, whether it is regarding trade licences & permits, day-to-day business operations, investor visas, golden visas, corporate secretary services, VAT, corporate tax, intellectual property or office fit-out. Anything business is our business!

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