HQ: Floor 8 & 9, City Tower 2, Sheikh Zayed Road, Dubai, UAE

HQ: Floor 8 & 9, City Tower 2, Sheikh Zayed Road, Dubai, UAE

trade license dubai

Understanding the Importance of a Trade License in Dubai’s Business Landscape

People in business love Dubai for its booming industries and glamorous commercial prospects. This is the reason why many entrepreneurs are eager to launch their businesses in this nation. Studies indicate that about 50,000 trade permits were issued in Dubai. This is due to the fact that a trade license Dubai is the essential document for beginning a company in the area.

In this article, we will be talking about trade license Dubai and the importance of it in the business landscape. Therefore, you can find useful details about it, the many kinds of trade licenses that are available in Dubai, and the steps you must take to obtain one here. Consequently, let us begin!

Trade License Categories and Business Activities in Dubai

trade license dubai

The trade license Dubai is a document that specifies the activities that every corporation in the UAE may carry out. The Department of Economic Development, or DED, also issues new trade licenses in Dubai. As a result, all company licenses in Dubai are valid for a wide range of commercial activities.

The import and export of goods as well as business activities are covered by this license. On the other hand, you discover that businesses in free zones can apply for business licenses in Dubai. Professionals that provide certain niche services in the sector may also apply for this license.

Here are some of the trade license Dubai categories and business activities you can perform:

Commercial license:

  • Communications and broadcasting.
  • Audio and video recordings.
  • Passenger transportation.
  • Also, car rental.
  • Brokerage business.
  • Product trading and distribution.
  • Theaters and cinemas.
  • Facility administration.
  • Rental services.
  • Postal service.
  • Selling and buying livestock.
  • Investment.
  • Insurance.
  • Office space rent.
  • Electronic equipment rent.
  • Perfumery.
  • Services for packing.
  • Property investment.
  • Motor vehicle trading.
  • Motorcycle trading.
  • Cleaning and surveillance services.
  • Finally, supermarket and stores.

Industrial license:

  • Manufacturing.
  • Machines and appliances.
  • Food processing.
  • Wood products.
  • Steel fabrication.
  • Generation/Transmission of electricity.
  • Fabrication of textiles.
  • Fabrication of products.
  • Petroleum products production.
  • Motorcycles and spare parts.
  • Chemical manufacturing.
  • Precious stone cutting.
  • Garment and rug.
  • In addition, ship construction.
  • Waste collection plus disposal.
  • Plastics manufacturing.
  • Glass repair plus lens cutting.
  • Eyeglasses production.
  • Leather products manufacturing.
  • Paper products manufacturing.

Professional license:

  • Finance and accounting consultancy.
  • Soil and agriculture consultancy.
  • Animal welfare society.
  • Forum of businesspeople.
  • Business advisory council.
  • Management consultancy.
  • Facilities management organization.
  • Marketing and information.
  • Hospitals facilities.
  • Rehabilitation facilities.
  • Insurance consultancy.
  • Beauty salons.
  • Legal assistance.
  • Translation and typing.
  • Representative offices.
  • Social clubs.
  • Lastly, social work activities.

What Documents Required for Trade License Application in Dubai?

To obtain a trade license UAE, you will have to gather a number of necessary documents. These are some examples:

  • Application form.
  • Valid passport.
  • Headshot pictures.
  • Emirates ID.

You must provide these documents quickly in order to properly receive the business license. All of those papers must be properly organized, and you must submit them before the deadline. As a result, there will not be any additional delays in the delivery of your trade license Dubai.

To obtain the proper license for your business, you must:

  • Firstly, select the name of your business. This name must adhere to the local laws about the names of establishments in the area. Consequently, it must not include any profanity and must not be in use by other business.
  • Then, you must set a legal structure. Your business can be an LLC, a partnership, a subsidiary, or any other type of company. Therefore, you must define your type of firm so you can set a structure.
  • Consequently, you must select the business activity that will go with your trade license Dubai.
  • After obtaining the proper documents, you must complete the application form and send it to the proper authorities.
  • Then, you will have to select a proper location for your business and pay the proper fees.

Eligibility Criteria for Obtaining a Trade License

Almost all investors can obtain the trade license Dubai, the eligibility criteria states that:

  • Entrepreneurs need to be over the legal age.
  • Investors should have the necessary money to begin in the area.
  • No history with the law.
  • The business must be under adherence.

Benefits and Advantages of Having a Trade License in Dubai

Because of the UAE’s numerous commercial advantages, many business owners have dreams of opening a business in the Mainland. You may view all the advantages of getting a Dubai trade license in this area as an entrepreneur:

  • Entry to the market: You are able to produce certain goods and then import them if you hold a trade license of any type in Dubai. As a result, you can market your products overseas and make money from other countries. Moreover, you can exchange goods and services in the Dubai market.
  • Improve business credibility: Businesses that strictly adhere to the law get the respect of their suppliers and clients. Additionally, obtaining a trade license Dubai makes your business more accessible to a variety of markets. As an outcome, you gain credibility and other clients’ trust..
  • Enjoy tax benefits: The payment of corporation taxes is one of the most significant costs that confront businesses. Dubai does not levy production and revenue taxes that most countries require investors to pay. Starting a company in Dubai provides the opportunity to improve income by spending less in taxes.
  • Quick setup: In comparison to other UAE paperwork, getting a company permit in Dubai takes substantially less time. But, it is crucial to remember that you need the appropriate papers in order for this to happen. Additionally, processing happens quite quickly. You will often get access to a trade permit in Dubai in a few weeks, regardless of where you choose to settle.
  • More sponsorship opportunities: Having a trade license in Dubai makes it simple to sponsor your dependents, which is another major benefit. In other words, obtaining a family visa for a relative or a work visa for an employee is fairly simple. Due to this, starting a company in Dubai is relatively easy.

Trade License Fees and Costs in Dubai: A Breakdown

The trading license is no different from other official documents in that fees must be made when requesting them. Therefore, you must pay the trade license cost Dubai to finish the trade license process Dubai before receiving it. When they deliver it to you, you are liable for both the item and the delivery.

The sort of goods you wish to sell and the preliminary approvals you need to process will affect the cost of the trade license Dubai. The final cost of this permit may also be influenced by other factors, among them.

  • The company’s geographic location of origin.
    • The complete list of trading partners.
    • Business structure type.
    • The number of partnerships with local sponsors.
    • The scope and range of the business activity..

In spite of this, the cost of a trade license Dubai is reportedly between 15,000 – 50,000 AED. The prices in free zones UAE will be different from those in areas on the mainland, so it’s important to keep that in mind.

The cost of the services, on the other hand, varies according to the kind of business you conduct and can vary between AED 150 to 500. There are other needs, nevertheless, for which you must pay. These include the costs relating to activity class guides, license translation and replacement fees, etc.

Consequences of Trade License Expiration in Dubai

There are numerous ways to renew a commercial license in Dubai, according to Dubai Economic Development (DED). Additionally, business establishment firms in Dubai provide quick and simple ways to license renewal Dubai. However, there are occasions where businesses continue to fail to renew their business licenses and face severe consequences.

Here are some of the consequences that businesses can face if they do not renew the license:

  • Monetary penalty:

Economic Development Dubai is the entity in charge of overseeing the license procedure. Due to the authority’s use of high-tech features including an online and text renewal system, business people in Dubai can quickly renew their trade licenses. However, there are times when business owners fail to renew their licenses and are subject to a number of forfeitures, including the AED 5,000 fine for operating a business without a license, the AED 250 fee for failing to renew within the time limit specified, and the AED 2,000 fine for opening another location for a current license with no permission (fines appear on the DED website).

  • Blacklisting of business:

Companies who carry on with their business operations without renewing their trade licenses run the risk of being blacklisted. A firm being blacklisted would have to cease all transactional activities; any visas and sponsorships under the corporation would be revoked; and there is also a chance that the investor or entrepreneur might have to leave the nation.

  • Restrict business expansion:

Even though small company license renewals are done annually, occasionally businesspeople forget when the license has to be renewed. A month’s delay may be worse as these small enterprises would then be prohibited from expanding. If there are proposals for corporate development, suspension, or liquidation, it is crucial for the company to have a spotless record.

Different Types of Trade Licenses Available in Dubai

trade license dubai

There are four main licenses available in Dubai. For certain specific economic operations and free zones, there are special licenses available. Let us see:

  • Professional license: This is a permit issued to professionals in charge of offering particular services in Dubai.
  • Commercial license: Anyone engaging in Dubai trade needs to have one of these permits. The business license in Dubai enables organizations to engage in various commercial operations.
  • Industrial license: The corporation will engage in a variety of operations, like product manufacturing, thanks to this license. You will also be able to bring in any raw material necessary to create this product. Consequently, after this product’s manufacturing concludes, you may export it.
  • Tourism license: Dubai gives a specific license for those businesses who are eventually working in the hospitality sector since it appreciates tourism in a special way. As a result, this unique sector has many different regulations, conformity, taxes, and permissions.
  • Free zone license: You should be aware that the type of business license you apply for will vary depending on where you intend to launch your enterprise. Depending on whether you launch your company in a free zone or on the mainland, things may alter. The mainland license will be usable by businesses that are based in Dubai. The DED authorizes this and numerous government organizations must offer their consent.

On the other hand, awarding business licenses falls under the purview of the authorities inside a specific free zone. Different limitations and benefits may apply depending on the license. If you want to start an offshore company in Dubai, you must have an offshore incorporation license. It is crucial to understand that these companies will not be permitted to operate inside the UAE.

Lastly, if you want support to obtain your business license get in touch with us.

The Complete Guide for LLC Company Formation in Dubai

Connect Group is here to help you at every step of your business journey in the UAE with ease.

Connect Group Contact Our Experts

Need assistance? Feel free to share your concerns.


    Relative Articles
    See more
    Human Resource

    Leave salary calculation in the UAE – Need to Know

    The leave salary calculation in UAE of vacation pay is governing by certain regulations and principles. Leave salary calculation in the UAE, is based on the regular salary and regular wage items. It is important to consult the applicable collective…

    June 3, 2024
    Read More

    The Legal and Regulatory Landscape of PEO Services

    Overview of PEO Services In the Middle East, businesses are leveraging PEO services to streamline their business processes. From payroll process to leveraging cloud-based HR software, companies are now depending on PEO services to do the task on their behalf….

    June 3, 2024
    Read More
    Visa services

    What Are The Procedure To Get A Dubai Freelance Visa In 2024

    The freelancing community has been rising with its full glory. It is equally popular and blooming in Dubai. This comes with outstanding opportunities to grow digitally as a nation. However, if you are new to founding a freelancing business and…

    May 22, 2024
    Read More