What is The Cost of a Trade License in Dubai

A business license in Dubai is one of the initial steps toward your goal of owning a business in the most prominent economic hub of the world. The business setup services in Dubai allow various options for individuals, such as mainland company formation in Dubai, offshore company formation in Dubai, and free zone company setup in Dubai. Before you set up a business in Dubai, you must go through the complete process, starting with trade name registration in Dubai and ending as your company starts functioning. In the whole process, you need to obtain a trade license in Dubai as per your business activities and preferred company structure.

What is a trade license in Dubai?

When starting a company in Dubai, UAE, you must have specific permissions to conduct business activities. A trade license in Dubai enables you to engage in various activities in the UAE. This license is issued by the Department of Economic Development (DED), also known as DED Dubai, and is commonly referred to as a Dubai DED license.

It is also known as a general trade license, and also it supports the following activities:

  • This license is the gateway for importing and exporting material to and from the UAE for the company formation in Dubai's mainland or free zone.
  • A license in Dubai will allow you to sell goods and services in the various parts of the Emirates.
  • It is also necessary for professional services such as healthcare art galleries.

Types of Trade License

There are four major trade licenses. However, a few are exclusive to specific free zones and business activities. The following information will familiarize you with each type now.

Commercial License:
The commercial trade license in Dubai allows a company to do business activities like buying and selling goods. You can only engage in the activities related to the items specified on the license.

Industrial License:
This license lets a company manufacture products, import the raw materials, and export the finished product. If you're applying for an industrial license, ensure you have a physical office in Dubai, as it is a requirement.

Professional License:
This license is specifically for service providers and professionals. The key advantage is that you don't need a local sponsor, allowing you to have 100% ownership of your company.

Tourism License:
Dubai places particular importance on tourism, and there's a separate license for companies involved in this sector. This sector has rules, regulations, taxes, compliance, and permissions.

Cost of Trade License in Dubai

DED Trade License Fee

The fees for a trade license in Dubai depend on your business activities and needs. However, looking at the general charges can give you an idea of the total cost.

The License Fee begins at AED 12,000. Activity fees range from AED 150 to 500, depending on the type of business activity. Additional expenses include activity class guide fees, license replacement, license translation fees, and more.

It's important to note that this fee covers only the official cost of obtaining the trade license, not the entire process of forming a company in Dubai.

Step-by-Step Procedure

Setting Up a Business in Dubai

The DED (Dubai Economic Department) issues a trade license in Dubai, overseeing the licensing and classification of business activities in Dubai's local market.

As the UAE encourages foreign investment, the process of company formation in Dubai is designed to be straightforward, with favorable registration costs and procedures for everyone.

Trade Name Registration in Dubai and Initial Approval:

Begin by applying to the DED to reserve a trading name for your company. If the name is available, the permit is issued. Additionally, you need to seek initial approval for the business activities you plan to conduct under your Dubai trade license.

Company's Memorandum of Association Notarization:

To obtain a trade license in Dubai, notarizing the company's Memorandum of Association (MOA) is essential. This can be done in less than a day at DED Dubai, along with filing a trade license application.

Submission of Documents:

Document submission is necessary to obtain a Dubai trade license and register with the Dubai Chamber of Councils. Visit the commercial registry at the DED Dubai to submit the required original documents. The company's name is added to the Commercial Register if the documents are complete and legitimate. Subsequently, these documents and the MOA and trade license application form are sent to the Federal Ministry of Economy.

Getting Instant Dubai Trade License

Can't wait to set up a company in Dubai? Luckily, there's an option.

You might expect a long wait before your company is up and running. However, there's an alternative – you can obtain a Dubai Economic Department trade license instantly. In short, if your business requires a commercial or professional trade license, you can get it in just five minutes. You don't need a Memorandum of Association (MOA) or a rental contract for the first year. Remember that this license is limited to businesses in Dubai that don't require external approval, meaning approval from government bodies other than the Department of Economic Development (DED).

With minimal documentation, you can apply through the DED's e-service portal, Happiness Lounge, service centers, or smart lounges.

Getting an E-Trader License in Dubai

License for Home-Based Businesses

The E-Trader license is unique in its way. It is introduced by the Department of Economic Development in Dubai, allowing businesses to operate and promote themselves online. This license is specifically for home-based businesses, making it convenient for business owners who don't need local partners.

Only a single owner can have 100% ownership of the company with a DED Trader License. The E-Trader License doesn't require submitting ejari documents since a physical office space is unnecessary for this type of license.

How to Renew Dubai Economic Department Trade License

A requirement of the Tenancy Contract

Trade License is only valid for one year, and thus, its Renewal is required. If you do not perform Renewal under the valid period, your license will immediately expire, and a ban on business activities will be imposed. A license penalty may be charged for the Renewal of an expired trade. Therefore, Renewal is as essential as getting a DED Trade License. Go through the detailed process to make sure you get your license renewed.

Tenancy Contract Requirement

To comply with regulations, you must possess a tenancy contract with a minimum validity of one month from the Dubai Trade License's expiration date. If your tenancy contract lacks the necessary validity, it must be renewed before proceeding.

License Renewal Application

For continuous business operations in Dubai, initiate the license renewal process by applying to the Department of Economic Development (DED) and submitting the required documents. The process is straightforward, and the following documents are needed:

  • Completed BR/1 form
  • Copy of Tenancy Contract
  • Copy of current Trade License
  • Passport copies of business partners and investors

Payment Procedure

You will receive a DED voucher for payment upon submitting the required documents and verifying their authenticity. Fulfill the payment, and your license will be promptly renewed.

Connect with Centriz Corporate Services

To get the customized cost of a trade license in Dubai, talk to our consultants at Centriz Corporate Services. You can speak with our business setup experts for FREE to learn about the most suitable and commercial trade license costs in Dubai. We provide end-to-end business guidance related to licensing, banking, cost estimation, investment planning, LLC trade license renewal in Dubai, and much more. So, what's the wait for? Get in touch with Centriz today!