A trade license is required for anyone who wants to engage in any kind of commercial activity. This license is issued by the Department of Economic Development (DED), which is part of the Government of Dubai. There are many companies and individuals that provide Dubai trading licenses. The process to obtain a trade license in Dubai is relatively straightforward because all licenses fall under the same visa type, the commercial establishment visa which is a single-entry or multiple-entry and valid for one or three years, respectively. There are several types of trading licenses available in Dubai:
General Trading License – This type of license allows you to carry out all types of transactions except those related to real estate.
Free Zone Trading License – This type of license allows you to import, export, distribute and sell goods in free zones such as Jebel Ali Free Zone (JAFZA).DIC, DMC, DAFZA, etc. A free zone trader can also sell products outside the free zone as long as they are not sold within the emirate of Dubai.
What is the process to get a trade license in Dubai?
Getting a trade license in Dubai is a relatively simple process. We’ll go through the steps you need to take to get one, so you can start trading goods or services. Before you should aware of the following below.
1. What types of businesses are allowed in that category. (activity of your business)
2. What kind of trade license do you need? (commercial license/general trading license in Dubai, Dubai professional license, industrial license, e trader license Dubai/e commerce license Dubai DED and tourism trade license.
3. Where to apply for a trade license in Dubai?
4. How long it will take to receive a business license in Dubai?
5. What does the trade license in Dubai cost?
Common Trade License Process in UAE:
To start a business in Dubai, you must have a trading license or permit. This allows you to conduct business activities as per laws and regulations set by the government. However, there are some factors that need to be considered when applying for a trade license in Dubai:
Economic jurisdiction – this refers to the area where you can conduct your business legally. Dubai has three main jurisdictions that you can start freely .ie Freezone, mainland, and offshore.
Company legal entity type – there are three types of company legal entity types: General Partnership (GP), Limited Liability Partnership (LLP), and Limited Liability Company (LLC). The choice depends on your type of business and how much capital you need to start up your business venture.
List out business activities – there are different categories under which businesses operate such as wholesale trade; retail trade; manufacturing industry; transportation; warehousing activity; financial, etc. read more here for professional service activities.
Get pre-approval from DED before applying for a trade license: The DED provides pre approvals for all applicants who wish to apply for a trade license in Dubai; however, these initial approvals take some time, and hence it is advisable that one should get them as early as possible so. it is important that you first get pre-approval from DED on what business activities you can go into and what licenses are required for each activity. If you fail to get pre-approval from DED, then your application would be rejected even if all other requirements are met.
Virtual Office: You can also start your business operations without getting an actual office space by using a virtual office space provider like business centers which provides fully furnished offices that come with all amenities and services at affordable prices so that entrepreneurs don’t have to waste time searching for suitable office space options before they can begin their business operations. This also reduces costs, especially if you’re just starting out and don’t have enough capital yet.
Legal Documentation: Consult with a lawyer or legal consulting firm like us can draft a Memorandum of Association and Articles of Association and power of attorney for your company. They also will help you create these legal documents that outline how ownership is distributed among shareholders and other important information.
And finally… submit all your documents along with payment for fees to Dubai economic development office in order to receive your trading license!
What are the documents required to get a Dubai DED Trade license?
In order to apply for a trade license, you will need:
- A copy of your passport with your residence visa on it
- A copy of the lease agreement or ownership certificate for the premises where you want to operate your business
- A copy of your company registration certificate.
- The names and contact details of at least two shareholders or directors of your company
If you’re looking to set up a business in Dubai, getting your trade license is a big deal. It’s not just the paperwork, it’s also the approval process and getting everything in order.
But don’t worry, Business Setup Dubai can help you get started with your trade license application, also do renewing trade license in Dubai, the Cancellation process, Visa assistance, and business bank account opening. but if you need more information about the process or want to discuss your situation in more detail, don’t hesitate to contact us today!
