Trade License in Dubai is required for businesses, which involve the selling of goods or services. The Trade License is issued by the Dubai DED (Department of Economic Development) and the license should be renewed every year to allow the company to continue its business.
All companies, which want to start their business in Dubai, need a trade license from DED prior to any other licenses or permits. DED is the organization responsible for issuing trade licenses and all types of licenses for several commercial activities, including import and export, wholesale and retail, industrial and commercial, laboratories and testing centers, workshops, etc. The Trade License is mandatory for all companies operating within the Emirate of Dubai, including foreign-owned entities and individuals who are not residents of the UAE but have an office or branch in Dubai. This includes companies that have a physical presence in Dubai or those who conduct their business via the internet or telephone orders placed by customers located outside Dubai.
Different types of trade licenses in Dubai:
The trade license in Dubai is an important document that you must have if you are planning to start a business setup in Dubai. The trade license is divided into four categories. they are:
The Commercial License is granted for general trading businesses(known as a general trading license in Dubai), such as grocery stores, restaurants, and retail shops. This license is generally required for any business that sells goods or services to the public.
A Professional License is required by service-related businesses that provide ancillary services to other businesses or individuals, such as accountants, lawyers, and insurance agents.
An Industrial License is required for manufacturing goods in Dubai. This includes things like factories and construction companies that manufacture products. It also applies to production companies that produce food products or beverages. If you want to start a new business that requires an industrial license, then you will need to submit some documents such as a feasibility study and a bank guarantee certificate from one of the local banks in the UAE.
A Tourism License is required for travel and tours in Dubai. This includes tour operators who take tourists around the city and show them the best sights.
In general, the basic business trade licenses in Dubai are:
- Food business trade license (hotels/cafes/restaurants/foodcourts/teashops/fast food mobile services etc.)
- Online business trade license
- Ecommerce business trade license
- Retails business trade license
- Import and export business trade license
- Wholesale trade license.
- Rental service like car trade license
- Manufacture, packaging trade license.
- Consultancy trade license
- Medical trade license
The process to get a trade license in UAE:
The process of getting a trade license in the United Arab Emirates is very straightforward. There are no specific requirements to obtain a trade license, but you will need to provide information about your business, including the type and scope of your business.
In order to get started on the trade license process, you’ll first need to find out which area in Dubai, Abu Dhabi, Sharjah, Fujairah, Ajman or Ras Al Khaimah is best suited for your business. The next step is submitting an application for approval by the relevant government department of commerce with all the details of your company and product/service offering.
Step 1: Obtain a copy of your company’s registration from the Ministry of Economy and Commerce.
Step 2: Apply for a trade license and submit your application to the DED in Dubai, Abu Dhabi, or Sharjah. You can also apply online on the Emirates Banks website using the ‘Trade License Application’ option. If you are applying online, you will be required to attach a scanned copy of your company registration certificate.
Step 3: Submit your application form along with other required documents such as company profile, audited accounts, business plan, and financial statements. You will also need an official stamp from a Notary Public or Justice of Peace certifying that these documents are authentic copies of their originals, this can be obtained from any legal firm like us.
Documents required for new trade license in Dubai:
To apply for a trade license in Dubai, you must submit the following documents:
- Passport copies
- Tenancy contract
- Moa (Memorandum of Association)
- Ejari (Registration Certificate)
- Passport size photos
- Business partners relevant documents
- Trademark copy
- Trade License copy(for cancellation or modification changes)
- No objection letter for changing name or cancellation or changing sponsor etc.
Along with the above documents, an old trade license copy is required for trade license renewal in UAE.
Amendment of Trade License Categorised into :
- Changing trade name
- Changing local sponsor
- Adding or removing the partners
- Changing the business activity (Add/remove )
- Changing the Business Location
- Amendment of Investment
Cancellation of trade license in Dubai:
There are many reasons for canceling a trade license, such as if the business is no longer active or if it has been sold to another person, or if it has been merged with another company. The following section will outline the process for canceling a trade license and what steps must be taken to ensure that all legal requirements have been met.
The first step in canceling your trade license is to make sure that you have not renewed it. If you have renewed your trade license then you will need to wait until the end of its term before you can cancel it. You should also contact the relevant authority (like ded gov ae) to let them know that you intend to cancel your trade license. This can be done by filling out an online form or emailing them directly. Once they have received notification from you they will write back confirming that they have received this information and that they will now begin processing your request.
In order for them to proceed with processing your cancellation request, they will require proof of identity and proof of address documents from both yourself and any other person who holds an interest in the business (such as shareholders). These documents should include passport photographs; driving licenses, etc.
Dubai government trade license departments:
Below are the departments involved in the trade license approvals in Dubai, UAE:
- Dubai Chamber of Commerce and Industry(for the Business registration process) DCCAI
- Food Department of Municipality(for food business)
- Knowledge and Human Development Authority(for education-related firms)
- Ministry of Economy and Commerce(for insurance firms)
- Ministry of Finance and Industry(for manufacturing firms)
- Ministry of Health MOHAP(for medical or hospital or pharmacy business)
- UAE Central Bank(for banks and other financial firms)
- Department of Economic Development (Dubai DED)(for trade license issuance)
Dubai has many free zones that are a major attraction for investors who want to set up a business in the country. The free zones have been developed as an effort to enhance Dubai’s competitiveness, attract foreign investments and create job opportunities for the Emirati nationals. The Free Zone trade license is one of the most popularly sought-after licenses in the United Arab Emirates, especially in the Dubai International Financial Centre.
We can help you with all the steps involved in getting your trade license: from applying for the license itself to obtaining all the necessary documents and registering your business with the Department of Economic Development (DED). We are also able to help you with a trade license for sales in Dubai, trade license renewal, and cancellation process.
Apart from Dubai we also help you in obtaining an Abu Dhabi trade license, Ajman trade license, Sharjah trade license, Fujairah trade license, Ras Al Khaimah trade license, and Umm Al Quwain trade license.
- What is the cost of obtaining a Trade License in Dubai ?
- The cost of obtaining a trade license in Dubai varies depending on the type of business activity, the size of the company, and the location of the business. The fees can range from a few thousand dirhams to tens of thousands of dirhams. Additionally, there may be additional costs associated with visa applications, sponsor fees, and other administrative expenses.
- What are the common mistakes to avoid when applying for a Trade License in Dubai ?
- When applying for a trade license in Dubai, there are some common mistakes that many people make. Avoiding these mistakes can save you time, money, and hassle in the long run. Here are some of the most common mistakes to avoid when applying for a trade license in Dubai:
Not researching the requirements: Dubai has specific requirements for each type of trade license, and it’s important to research these requirements thoroughly before applying. Not doing so can result in your application being rejected.
Choosing the wrong business activity: When applying for a trade license, you’ll need to choose a specific business activity. Make sure you choose the correct one, as this can impact the type of license you’ll receive and the fees you’ll need to pay.
Failing to provide all the required documents: Make sure you have all the necessary documents before submitting your application. This can include a copy of your passport, visa, Emirates ID, and other documentation specific to your business.
Not having a physical office: Dubai requires that all businesses have a physical office or workspace. Make sure you have a physical address where you can conduct business before applying for a trade license.
Not renewing your license on time: Once you have a trade license, it’s important to renew it on time to avoid penalties and fines. Make sure you keep track of your renewal date and submit your application early to avoid any delays.
Failing to understand the fees: There are fees associated with obtaining and renewing a trade license in Dubai. Make sure you understand the fees and budget accordingly to avoid any surprises.
Not seeking professional help: If you’re unsure about the process of obtaining a trade license in Dubai, it’s always a good idea to seek professional help. Working with a consultant or advisor like us can help you avoid mistakes and navigate the process more efficiently.