Table of Contents
- Types of Trade License
- Commercial License:
- Industrial License:
- Professional License:
- Tourism License:
- 1. Trade Name Registration in Dubai and Obtaining Initial Approval:
- 2. Company’s Memorandum of Association Notarization:
- 3. Submission of Documents:
- Getting Instant Dubai Trade License
- Getting E-Trader License in Dubai
- How to Renew Dubai Economic Department Trade License
- 1. A requirement of the Tenancy Contract
- 2. License Renewal Application
- 3. Make the Payment
- Advantages of having a Trade License in Dubai
While setting up a company in Dubai, UAE, you need to have specific permissions for conducting business activities. A trade license in Dubai allows you to conduct most of the activities in the UAE. It is issued by the Department of Economic Development (DED), popularly known as DED Dubai, and thus, can be called a Dubai DED license.
It is also known as a general trade license, and also it supports the following activities:
- For the company formation in Dubai mainland or free zone, this license serves as the gateway of importing and exporting material to and from UAE.
- A license in Dubai will allow you to sell goods as well as services in the various parts of the emirates.
- It is also necessary for professional services such as healthcare and art galleries, etc.
Dubai Trade License Fees at a Glance
| Fee Component | Typical Range | Notes |
|---|---|---|
| Trade license fee | Starting from AED 12,000 | Base government license fee; varies by license type and business activity. |
| Activity fee | AED 150 – 500 per activity | Charged per business activity added to your license. |
| Trade name reservation | Contact us | One-time fee to reserve your company name. |
| Initial approval | Contact us | Government fee for initial activity approval. |
| MOA notarization | Contact us | Required for most mainland company structures. |
| License renewal (annual) | Contact us | Trade licenses are valid for one year and must be renewed annually. |
| Late renewal penalty | Contact us | Applies if the license is not renewed before expiry — the page currently only says a penalty “may be charged” with no figure. |
Types of Trade License
There are majorly four trade licenses. However, there are a few exclusive ones only for specific free zones and business activities. The following information will make you familiar with each type now.
Commercial License:
The commercial license in Dubai allows a company to conduct trade activities such as buying as well as selling goods. You can only perform the activities for the items mentioned on the license.
Industrial License:
This license allows the company to manufacture products, import the raw material required for the product, and export the finished product. When you seek an industrial license, make sure you have a physical office in Dubai as it is mandatory.
Professional License:
This license is, particularly for the service providers as well as professionals. The main advantage of this license is you don’t need to have a local sponsor; you can have 100% company ownership.
Tourism License:
As Dubai exclusively values Tourism, it has a separate license for companies engaging in the tourism sector. Therefore, this sector has different rules, regulations, taxes, compliance, and permissions.
Step by Step Procedure
DED takes responsibility for issuing Dubai’s trade license. Therefore, the DED Dubai guides the licensing and business activity classification in the local market of Dubai.
As the UAE always welcomes foreign investment, the company formation in Dubai must be effortless. For that reason, company registration costs and procedures are favorable for everyone.
1. Trade Name Registration in Dubai and Obtaining Initial Approval:
First, you must reserve a trading name for your company by applying to DED Dubai. Nonetheless, if the company name is available, the permit will be provided. In addition, you need to apply for initial permission for the business activities; you will conduct using your Dubai trade license.
2. Company’s Memorandum of Association Notarization:
In order to obtain a trade license in Dubai, it is necessary to conduct a notarization of the company’s MOA. One can do notarization in less than a day at DED Dubai. One needs to file a trade license application along with it.
3. Submission of Documents:
Document submission is not only required for getting a Dubai trade license but also for membership registration with the Dubai Chamber of councils. To submit the required original document, the applicant must visit the commercial registry at the DED Dubai.
However, if the documents are complete and legit, the name of the company is added to the Commercial Register. Then these documents, MOA, and trade license application form are forwarded to the Federal Ministry of Economy.
Getting Instant Dubai Trade License
You must be expecting that there would be a long wait before your company starts functioning. Though the process seems to be time-consuming, there is an alternative.
It is, therefore, possible to obtain Dubai economic department trade license instantly. To summarise, if your business activities require a commercial trade license or professional trade license, you can immediately get it in five minutes.
It doesn’t even require MOA or the rent contract for the initial year. However, this license is limited to the business setup in Dubai, whose activities don’t require external approval, i.e., approval from government bodies other than DED.
You can apply through DED’s e-service portal, happiness lounge, service centers, as well as smart lounges with minimal documents.
Getting E-Trader License in Dubai
An e-trader license has some significantly special features. The Department of Economic Development Dubai has introduced this E-Trader license. This license allows conducting as well as promoting the business through online mediums.
However, there can be only home-based businesses owning this license. Therefore, it is suitable for business owners who don’t require local partners.
Only a single owner can own a DED Trader License, so one needs to have 100% ownership of the company. Further, E-Trader License does not require submission of ejari documents as physical office space is not required for this type of license.
How to Renew Dubai Economic Department Trade License
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 important as getting a DED Trade License. Go through the detailed process to make sure you get your license renewed.
1. A requirement of the Tenancy Contract
It is necessary to have a tenancy contract that has at least one month of validity from the expiration date of the Dubai Trade License. If your tenancy contract does not have the required validity period, you need to get that renewed first.
2. License Renewal Application
For doing business in Dubai, you need to renew the license by applying for renewal at DED and submitting the required documents. The process is facile, and you need to submit the following documents mentioned below :
- A typed BR/1 form
- Copy of Tenancy Contract
- Copy of current Trade License
- Passport copies of business partners and investors
3. Make the Payment
After the documents are submitted and the authenticity is approved, you receive a DED voucher for making the payment. You need to make the payment, and then you will instantly get your license renewed.
Advantages of having a Trade License in Dubai
As UAE is directed towards bringing more and more foreign direct investment, the DED trade license provides huge advantages to investors and company owners.
- Import duty is low
- Paid-up capital is not necessary
- 100% repatriation not only on capital but also on profit
- A wide range of banking benefits
- Tax-free jurisdiction
- Provides gateway for local as well as an international trading
FAQs
What duties must a company fulfill after getting a trade license in Dubai?
A company needs to apply for the establishment card, register native workers with the Labor Ministry, and register native workers with the General Authority of Pension and Social Security.
Is having separate trade licenses in Dubai for different product categories required?
No, you can conduct business activities for different products through one single Dubai trade license issued by the Dubai Economic Department.
Is it mandatory to obtain a trade license even for companies opening a branch in Dubai?
Is there any need to obtain other licenses besides getting a trade license in Dubai?
Yes, DED Dubai only provides a trade license for certain business activities. You may need permission from other government authorities depending on your business activities – check the official DED website for specifics.
How much does a trade license cost in Dubai?
A Dubai trade license starts from AED 12,000 for the base government fee, plus AED 150–500 per business activity. Total cost depends on your license type, number of activities, and any additional approvals required.
How much does it cost to renew a Dubai trade license?
How long does it take to get a trade license in Dubai?
Standard processing depends on your business activity and whether external government approvals are required. Businesses with activities that don’t require external approval may qualify for the Instant Dubai Trade License, issued in as little as five minutes.
Which trade license type is right for my business?
It depends on your activity: choose a Commercial License for trading/buying and selling goods, an Industrial License for manufacturing, a Professional License for services (with no local sponsor required), or a Tourism License for tourism-sector activities.
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