Dubai is one of the most important global business centers, providing an ideal environment to attract companies and investors from all over the world.
A trade license is one of the basic requirements for starting any business in Dubai, whether in the free zones or in the mainland. In this article, we will take a detailed look at how to obtain a trade license in Dubai, the requirements for obtaining it, and the costs associated with it.
1. What is a trade license?
A trade license renewal Dubai is the official document issued by government agencies in Dubai, and it gives you the legal right to practice the business activity of your choice.
The types of trade licenses vary according to the nature of the activity, and the license determines the business activity that the company can practice.
2. Types of trade licenses in Dubai
There are several types of trade licenses that you can obtain in Dubai, depending on the business activity you wish to practice:
Trade License
This license is for businesses that include buying and selling goods within Dubai or exporting and importing.
Professional License
It is granted to individuals and companies that provide professional services such as consulting, engineering, and training.
Industrial License
Intended for companies that manufacture or produce within Dubai. Activities related to manufacturing, production, and distribution.
Tourism License
Is granted to companies operating in the tourism sector, such as travel agencies, hotels, and tour operators.
3. Free Zone vs. Main Zone Business License
Before applying for a business license, you must determine whether you want to set up your business in a free zone or in the mainland. Each option has different advantages and requirements:
Free Zones
Dubai’s free zones offer benefits such as 100% foreign ownership and tax exemptions. You can obtain a business license from one of the free zones if you plan to operate within these zones only.
Main Zones
If you want to operate within Dubai and outside the free zones, you need a mainland business license. This option sometimes requires a local partner who owns 51% of the company.
4. Steps to obtain a commercial license in Dubai
To obtain a commercial license in Dubai, you must follow several steps:
Choose the type of business activity
The first step is to determine the type of business activity you wish to practice. The activity must comply with one of the categories specified by the Department of Economic Development (DED).
Choose the company name
The company name must comply with local laws and not conflict with other registered names. The name must also reflect the nature of the business activity.
Submit the license application
After choosing the activity and company name, you can apply for a commercial license from the Department of Economic Development or the competent authority in the free zone.
Rent an office
Most types of commercial licenses require a physical business address. Therefore, you must rent an office or commercial space.
Obtain approvals
Depending on the kind of business activity, you might require additional approvals from the relevant authorities, like municipal or health authorities.
5. Costs of Obtaining a Trade License
The costs of obtaining a trade license vary depending on the type of activity and location. Here are some approximate estimates of some costs:
- Trade license fees: range from $3,000 to $10,000 per year, depending on the type of license and location.
- Office rent: ranges from $5,000 to $20,000 per year.
- Visa fees: approximately $1,000 to $2,500 per visa.
- Additional costs: include trade name registration fees, legal consultations, and health insurance.
6. Benefits of Obtaining a Trade License in Dubai
Obtaining a trade license in Dubai gives you many benefits:
- Tax exemptions: There are no personal income taxes, and some sectors benefit from corporate tax exemptions.
- Easy access to global markets: Dubai is a global business hub and offers great opportunities to access markets in Europe, Asia, and Africa.
- Advanced business environment: Dubai’s advanced infrastructure makes it an ideal destination for setting up a business.
7. How to Renew a Trade License
Trade licenses in Dubai are valid for one year and can be renewed annually. The renewal process is simple and involves submitting the required documents and paying the fees.
- Renewal Requirements
- Renew the office lease.
- Pay the renewal fees.
- Renew employee visas, if applicable.
Finally, when obtaining a commercial license in Dubai, you must know the necessary laws and policies for obtaining a commercial license in Dubai, and you can learn more through Tadbeer Company
