Trade License Dubai-A Comprehensive Guide for New Entrepreneurs in 2024

Do you dream of conducting a business in Dubai and growing in this trillions economy? If yes, you must also know that a trade license Dubai is among the basic requirements for business activities here. This legal document permits you to perform various business activities in this world’s financial hub. A general trading license ensures you have met all the requirements and formalities necessary to operate a business. Usually, UAE trade licenses are flexible and allow business owners to trade in various goods and services. However, searching for the market gap before starting any business is advisable to get more profits.

What is A Trade License Dubai?

A trade license Dubai is a document issued by the Department of Economic Development that specifies which business activities an entrepreneur can engage in. These activities may include import, export, and certain commercial activities. You can consult business setup services in Dubai to seek further guidance about mainland company formation in Dubai, offshore company formation in Dubai, and free zone company setup. Usually, it is requested by the entrepreneur to get approval from the authorities to practice business activities in the Emirates. The trade license is a gateway to import and export goods and items and set up a company.

Types of General Trading Licenses in Dubai

Depending on the business activity you want to perform in Dubai, there are several types of trading licenses. These are:

• Commercial Trading License
• Industrial Trade License
• Professional Licenses
• Tourism Licenses
• Agricultural Trading Licenses
• Freelance License

Commercial Trading License

A commercial trading license in Dubai is granted to those companies which intend to trade goods and commodities. Many other services, like real estate and car rentals, are also covered under commercial trade licenses. Remember that a company can only buy and sell goods mentioned in the license.

Industrial Trade License

If a company owns a physical office in Dubai and wants to manufacture some products, it should seek an industrial license. The businesses registered under industrial license can manufacture items, import raw materials required for manufacturing, and export the finished products.

Professional Licenses

Do you know that you cannot provide any service in the Emirates without having a professional license? Professional licenses are the basic requirements for offering or selling any service in Dubai. Individuals or businesses having professional trading licenses in Dubai do not need any sponsor for visa and residency issues. They are 100% owners of their business.

Tourism Licenses

Being a global business hub, Dubai offers a separate category called a tourism license. Dubai tourism licenses are granted to companies engaged in tourism. Remember that a tourism license’s rules, regulations, and taxes differ from other license types.

Agricultural Trading License

An agricultural license is mandatory for companies that opt to cultivate lands and crops, build greenhouses, and offer agriculture consultancy services in the UAE. These businesses cannot take part in other business activities.

Freelance License

Recently, the UAE Department of Economic Development (DED) launched a new type of trade license Dubai named freelance license. The freelance community in the Emirates is growing rapidly, which requires individuals to land in Dubai with a freelance trade license and carry out their freelancing careers.

Advantages of Trade License Dubai

A general trading license in Dubai offers several advantages. This is why many businesses worldwide are setting up their branches in Dubai. Some of the benefits of a UAE trade license are:

Boosts Trade

As trading licenses allow entrepreneurs to manufacture products and import raw materials, these are a good source of boosting trade activities. You can export finished goods to local and international markets and maximize profits.

Increases Credibility

The credibility of a business or a company is vital for building the trust of its customers and gaining more sales and profits. Obtaining a trade license Dubai increases the credibility of your business in customers’ eyes. Moreover, it increases your company’s visibility in your target markets and provokes people to buy your brand.

Tax Benefits

Tax benefits for businesses make Dubai a favorite destination for companies that intend to launch their branches outside their parent countries. Obtaining a trade license Dubai enables businesses to take advantage of these tax reliefs. There are many free zones in the Emirates where you can set up your business within a few days.

 A Few Trade Restrictions

Registering a product under your trade license removes trade restrictions from it. In Dubai, there exist only a few trade restrictions. You can export your products locally as well as in the international market.

Simple and Quick Business Setup

Setting up a business in Dubai is simpler and easier if you have a trade license. Also, obtaining a trade license in Dubai is much faster than obtaining any other license. You can set up a business within a few days if you have proper documentation to obtain a Dubai trading license. There is no need to submit audit reports after you have an Emirates trading license.

Sponsorship Facilities

A trading license Dubai provides you with a sponsorship facility. You can bring your friends, family members, and even employees to Dubai after your business is registered under a trade license. You can also guide others in the visa application process and make their establishing a business in Dubai easier.

Documents Required to Get UAE Trade License

Like many other licenses, a trade license Dubai requires you to submit certain documents. Having these documents certainly saves your as well as authorities time. These documents include the following:

How to Get a Trade License in Dubai?

Obtaining a trade license Dubai is a straightforward process that involves a few simple steps. These are:

• The first step is choosing a unique business name. Remember to follow the UAE guidelines to choose a compliant name.
• Define your business’s legal structure that should suit your business and its liabilities.
• Specify the business activities your company intends to perform because each type of trade license allows you to perform a maximum of 10 business activities.
• Complete the application form and submit it to the Department of Economic Development for initial approval.
• Remember that some activities may need additional approvals. So, never forget to have these approvals in advance.
• Arrange all the required documents and ensure that these are properly signed.
• Choose a suitable location to set up your business, as it is a requirement for the mainland trade license. Obtain a tenancy contract and get an attested copy from Ejari.
• After collecting all the required documents and choosing a business location, it is time to submit your application for a trade license Dubai to the Department of Economic Development.
•  Pay the license fees, and you are done. You will get a DED trade license within a week. You can go with Dubai trade license verification through the eServices portal of DED.

How to Apply for an Instant Trade License Dubai?

You can apply for an instant trade license if your business activities do not require approvals other than DED. Usually, instant trade licenses are granted to those seeking commercial or professional trade licenses. No documentation is required to apply for these licenses. Instead, you can apply it from the eServices portal of the Department of Economic Development. An instant trading license can also be applied through happiness lounges, service centers, and smart lounges by submitting minimal documents.

How to Get an E-Trade License Dubai?

An e-trade license Dubai is allowed for those businesses that do not require a physical location. Usually, these businesses are owned by individuals with 100% company ownership on their names. An e-trade license allows business owners to conduct and promote their businesses through different online mediums. There is no need to submit ejari documents and no need for local partners in it.

Dubai Trade License Cost

Determining the exact Dubai Trade License cost is almost impossible as it varies with many factors. Some of the factors vital for determining trade license costs include:

Usually, Dubai trade license cost varies between 15000-50000 AED. However, the cost of obtaining a trade license in the Dubai free zone may be different.

Trade License Renewal Dubai

Do you know that the trade license Dubai is valid for one year? Therefore, its renewal before expiry is mandatory to avoid a ban on business activities and a license penalty for late renewals. The detailed process for DED trade license renewal is as follows:

Tenancy Contract

A tenancy contract is one of the basic requirements to renew trade license online Dubai. Remember that you can apply to renew your UAE trade license only if your tenancy contract has at least one month of validity. If it is expired, you will be required to obtain a new tenancy contract, and then apply for renewal of trade license Dubai.

Submit Renewal Application

After obtaining a new tenancy contract, you must submit a trade license renewal application. You will have to submit the following documents at DED.

• BR/1 form typed
• Copy of your tenancy contract
• A valid copy of your old or expired trade license
• Copies of the passports of business partners and investors.

Fee Payment

After your trade license renewal application is approved, you will receive a fee payment voucher from DED. You will instantly receive a renewed trade license Dubai after payment.

Frequently Asked Questions (FAQs)