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How to Obtain a Building Materials Trading License in Dubai

How to Obtain a Building Materials Trading License in Dubai?

How to Obtain a Building Materials Trading License in Dubai?

If you’re planning to start a business in the building materials trading industry in Dubai, it is essential to obtain the necessary licenses and permits. This article will guide you through the process of obtaining a building materials trading license in Dubai, along with a list of activities covered under this license.

What are the activities that come under building materials trading Category?

Building materials trading encompasses a wide range of activities related to the trading and supply of various construction materials. Here is an expanded list of activities that fall under the building materials trading category for obtaining a commercial license in Dubai:

Bolts, Nuts, Screws & Nails Trading

Bricks Trading

Builders’ Plastics Ware Trading

Building & Construction Materials Trading

Building Hardware & Tools Trading

Building Metal Products Trading

Cement & Gypsum Trading

Cement Products Trading

Construction Chemicals Trading

Crane Rails & Fixing Accessories Trading

False Ceilings Trading

Fibre Glass Products Trading

Fire Fighting Pipes Trading

Fire Resistant & Retardant Materials Trading

Fire Resistant Doors Trading

Fly Ash Trading

Glass & Mirrors Trading

Grease Traps Trading

Green Buildings Construction Materials Trading

Gum & Glue Trading

Gypsum Products Trading

Insulation & Protection Materials Trading

Ironmongery Trading

Lighting Poles Trading

Locks & Keys Trading

Maquettes & Models Trading

Marble & Natural Stones Trading

Non-Ferrous Metal Trading

Occupational Hygiene & Safety Requisites Trading

Paints & Coating Materials Trading

Pipes & Fittings Trading

Plastic Sheets Trading

Pre-Fabricated Houses Trading

Raised Access Computer Floors Trading

Readymix Concrete Trading

Reinforcement Steel Bars Trading

Rock Wool Trading

Ropes, Sacks & Jute Bags Trading

Sand, Gravel & Stones Trading

Sanitary Ware Trading

Scaffolds Trading

Scales & Dry Measures Trading

Special Fabrics & Fibers For Construction Trading

Steel and Basic Steel products trading

Swimming Pools Trading

Tanks & Silos Trading

Tiles & Flooring Materials Trading

Timber Trading

Water Heaters Trading

Wooden Products Trading

Workshop Hardware & Tools Trading

Understanding the process to get building materials trading license in Dubai:

To get a building materials trading license in Dubai, you need to follow a specific procedure. Here are the simple steps that help you navigate the process effectively:

Step 1: Determine the Legal Structure: Decide on the legal structure for your business, such as a sole proprietorship, partnership, or limited liability company (LLC). Each structure has its own requirements and implications, so choose the one that suits your needs. also need to select the business activity and the location you would like to have.

Step 2: Choose a Business Name: Select a unique and appropriate name for your building materials trading company, ensuring it complies with the guidelines provided by the Department of Economic Development (DED) in Dubai.

Step 3: Secure a Local Sponsor: If you’re a foreign investor, you’ll need a local sponsor or partner who holds 51% ownership of the company. The sponsor will not be actively involved in the day-to-day operations but will be a silent partner.

Step 4: Prepare the Required Documents: Gather the necessary documents, including your passport copies, visa copies, No Objection Certificate (NOC) from your current employer (if applicable), business plan, tenancy contract, and other relevant paperwork as specified by the DED.

Step 5: Submit Application: Submit your license application to the DED along with the required documents. Ensure that you fill out the application accurately and pay the necessary fees.

Step 6: Trade Name Approval: After submitting your application, you’ll receive the trade name approval from the DED. This confirms that your chosen business name is available and meets the guidelines.

Step 7: Obtain Initial Approval: Upon receiving the trade name approval, you can proceed to apply for initial approval from the DED. This step involves submitting your business plan and other required documents.

Step 8: Lease a Business Premise: Secure a suitable business premise for your building materials trading company and provide the tenancy contract to the DED as part of the licensing process.

Step 9: Final Approval and License Issuance: Once all the necessary steps are completed and your application is reviewed, you will receive the final approval from the DED. Pay the relevant fees to obtain your building materials trading license in Dubai.

The cost of a building materials trading license in Dubai varies based on the company’s size and activity, typically ranging between AED 30,000 and AED 50,000 for mainland licenses from DED. For Freezone companies, the cost starts at AED 15,000, excluding visa and service fees. It is important to consider application requirements and complexity and confirm the costs with the relevant authorities as they are subject to change.

How legal house can assist you?

Legal House offers comprehensive assistance in obtaining a building materials trading license in Dubai. With their expertise and knowledge, we can guide you through the entire process, ensuring compliance with the legal requirements and regulations. Our experienced professionals will provide accurate and up-to-date information, explaining the necessary steps and documentation needed for the license application.

Legal House can assist in preparing and organizing the required paperwork, ensuring that all documents are properly filled out and submitted on time. We will navigate any complexities that may arise, saving you time and minimizing the risk of errors or omissions that could potentially delay the licensing process. By utilizing our services you can streamline the procedure and increase the chances of obtaining your building materials trading license efficiently and effectively.


What documents are needed to get a building trading license in Dubai?

To obtain a Building Material Trade License in Dubai, the required paperwork includes submitting copies of passports, and Emirates ID of company owners, initial approval copy, confirming the trade name copy, Memorandum of Association (MOA), & Ejari or lease agreement.

What is the best location in Dubai to have a building material business?

The best location for a building material business in Dubai depends on factors such as proximity to construction hubs, accessibility to customers and suppliers, and infrastructure. Areas like Al Quoz, Jebel Ali, and Dubai Industrial City are free zones that are popular choices due to their proximity to construction activities and industrial zones.

What government approvals are needed to start a building material trading business in Dubai?

To start a building material trading business in Dubai, you will typically require approvals from the Department of Economic Development (DED) or the relevant free zone authority. This includes obtaining a commercial license, registering the trade name, and fulfilling any specific requirements set by the authorities.

How can I legally protect my business while dealing as a building material supplier in Dubai?

To legally protect your business, it is advisable to register your company and obtain the necessary licenses. You should also establish clear contracts and agreements with suppliers and customers, outlining terms and conditions, payment terms, and dispute resolution mechanisms. Additionally, consulting with legal professionals like us can help ensure compliance with local laws and regulations.

What are the capital requirements to start a trading business in Dubai, especially for construction materials?

The capital requirements for starting a trading business in Dubai vary depending on several factors, such as the type of license, the location, and the scale of operations. While there is no fixed minimum capital requirement, it is generally recommended to have sufficient funds to cover setup costs, initial inventory, rent, salaries, and other operational expenses.

What are the necessary permits and certifications required for importing building materials into Dubai?

The specific permits and certifications required for importing building materials into Dubai may vary depending on the type of materials. Generally, you will need to obtain the necessary import permits, such as a customs clearance certificate, and ensure compliance with relevant quality standards and regulations.

Are there any restrictions on the types of building materials that can be traded in Dubai?

While there are no major restrictions on trading building materials in Dubai, it is important to ensure that the materials comply with local regulations and quality standards. Certain specialized materials or products may require additional certifications or approvals.

Are there any specific regulations or permits required for the storage and warehousing of building materials in Dubai?

Depending on the scale and nature of your storage and warehousing operations, you may need to obtain specific permits, such as a trade license for warehousing or approvals from relevant authorities for compliance with safety and fire regulations.