Trade License Issuance and Renewals in Dubai, UAE
Dubai warmly embraces foreign investments, making it an ideal destination for initiating business ventures. A vital prerequisite to embarking on a business journey in Dubai is obtaining a trade license – the cornerstone document. Dubai provides a range of business models tailored for foreign investors. Overseeing business activities beyond the free zones falls under the scope of the Department of Economic Development, the regulating authority in this realm.
The Department of Economic Development (DED) bears crucial responsibilities encompassing licensing, classification of permissible business activities within Dubai, and facilitating the issuance of trade licenses for conducting business within the local market. DED operates through various centers to ensure the seamless provision of licensing services.
Trade License Application and Renewal in Dubai
Dubai warmly embraces foreign investments, making it an ideal destination for initiating business ventures. A vital prerequisite to embarking on a business journey in Dubai is obtaining a trade license – the cornerstone document. Dubai provides a range of business models tailored for foreign investors. Overseeing business activities beyond the free zones falls under the purview of the Department of Economic Development, the regulating authority in this realm.
The Department of Economic Development (DED) bears crucial responsibilities encompassing licensing, classification of permissible business activities within Dubai, and facilitating the issuance of trade licenses for conducting business within the local market. DED operates through various centers to ensure the seamless provision of licensing services.
Steps to Secure a Trade License in Dubai
- Reserve the company name and apply for preliminary approval.
- Notarize the company's Memorandum of Association at DED.
- Complete the company's documentation.
- Apply for the establishment card at the Ministry of Labor.
- Enrol native workers with the Ministry of Labor.
- Register native workers with the General Authority for Pension and Social Security.
Trade licenses have been categorized into four types to be issued in Dubai, UAE. Depending on the nature of the intended business activity, the Department of Economic Development (DED) will issue a license in one of these categories:
- Commercial License
- Industrial License
- Professional License
- Tourism
Commercial License
A commercial license is to be issued to an entity that will engage in any trading activity like buying and selling goods. Activities are confined to those specified in the License.
Industrial License
An Industrial License is to be issued to an entity that will engage in manufacturing or any industrial activity. A physical office in the UAE is mandatory, and manufacturing is limited to items covered by the License.
Professional License
The Professional License is granted to service providers, professionals, etc., ensuring 100% ownership of the company. The following are the type of businesses that requires a professional license:
- Law firms
- Management consultancy
- Educational institutions
- Information technology services
- Auditing companies
- Accounting companies
- Marketing consultancy
- Medical services
Tourism licenses
Tourism licenses are to be issued to companies or individuals willing to engage in the business of tourism and travel.
Dubai Business license registration and approval process
- Approval from the UAE Central Bank is a prerequisite for licensing banks and other financial institutions.
- Manufacturing companies require approval from the Finance and Industry Ministry.
- Entities involved in insurance and related sectors need approval from the Economy and Commerce Ministry.
- Licensing for medical and pharmaceutical products necessitates approval from the Health Ministry.
- Companies in gas or oil production require additional endorsements and approvals from other government agencies.
- Business registration in Dubai, UAE, also necessitates engagement with the Dubai Chamber of Commerce and Industry.
Dubai is an inviting platform for foreign investors, offering streamlined processes for obtaining and renewing trade licenses and fostering an environment conducive to business growth.
