A Detailed Guide to Getting a Trade License in Dubai
As you dream of setting up your own business in Dubai – the most popular business hub of the Gulf; one of the prime requirements that come up is getting a trade license in Dubai. It is an integral part of company formation in the UAE and there is a long process involved that must finalize the place of work, nature of business, etc.
You must obtain an original trade license from the Department of Economic Development (DED). DED is the main authority that offers licenses to businesses in Dubai. Getting the license provides your business with an organized structure for better regulation and avail best of returns and benefits.
What is a Dubai Trade License?
A trade license is a service requested by the business owner for getting an official document by which he/she can start executing business activities on a legal note in Dubai. It authorizes the activities that the organisation will carry out. The activities could be varied and of different nature, depending upon the genre of work.
The trading license can be used for activities like import and export of goods, sale, and services of goods. It can also be utilized for carrying out different commercial activities and professional services in different industry segments. It can be got by organizations registered in Dubai free zones and by professionals working in a specific industry zone.
Types of Trade License in Dubai
It is meant for general trading and specialized trading businesses. It permits an organization to carry on trade activities like buying/selling of goods. This activity can happen with only those products that are mentioned in the license.
It is meant for service-related businesses. It is offers to enterprises involved in professional or service-oriented activities like doctors, artisans etc. Here, you don’t need to have a local sponsor, it could be completely owned by the company.
It is meant for manufacturing goods. It is offered to organisations involved in manufacturing or industrial activities, importing of raw material, exporting finished items.
It is meant for the travel and tour industry. It is a need for organizations involved in the hospitality and tourism sector. The associated rules and regulations are different for this sector.
Major Benefits of Having a Trading License in Dubai
The DED trade license brings about multiple benefits in Dubai, here are the major ones:
- Tax free jurisdiction and tax benefits
- Boost to local and international trading
- No need for paid-up capital
- Lower import duty
- Builds up credibility and trust of clients
- Competency to trade and sell commodities around the globe
- Less restrictions on trade and hence more freedom to do business
- Easy to set up and start off, saving on time and efforts
- Less paperwork and faster process
- Easy to sponsor dependents (family members, employees etc.)
- Reasonable license fee hence more approachable
- Permits establishment of holding companies
Key Documents Needed for a Trade License in Dubai
While applying for a trade license in Dubai, following are the documents that must be kept accurate and ready for further processing:
- Standard trade license application form to be filled by the legal representative of the organisation
- Memorandum of Association
- Statutory documents of the organisation – in original and copy
- DED’s document for company name approval and approval for starting the company
- Shareholder details
- Tenancy agreement
- Special license, if needed
How to Get a Trading License in Dubai?
Below mentioned are simple steps to obtain a trading license in Dubai:
- Select a business trading name that adheres to the region’s guidelines
- Choose your business activities that must get covered in the license
- Define the legal structure of your company with a proper hierarchy
- Fill the standard application form and submit to DED for initial approval
- Get all relevant approvals, as needed, from appropriate authorities
- Collect all necessary documents with necessary stamps and signatures
- Select a location, if it is mainland, you will need one with a tenancy contract
- Submit the application with all supporting documents to DED
- Pay associated licensing fees to receive your trade license
Steps for Renewal of Trade License
When it comes to renewing a trade license in Dubai, here are the easy steps to be carried out:
- Have a valid tenancy contract
- Renew license application
- Make relevant license fee payment
Obtain Your Trade License with Ease
Dubai, as known, is the heart of the Gulf and starting off a business in Dubai is an aspiration for many. Obtaining the trade license comes as one of the foremost tasks to go on for a successful business front. It comes out as a complicated tasks for novices. Getting the license and kicking off the business in Dubai comes out easy and effective if there is appropriate guidance of experts.
We at Horizon Biz Consultancy are all set to guide you and run you through the entire process of obtaining the trade license and setup your business in Dubai. We are experienced consultants and a group of expert financial consultants and accountants based in UAE to serve a multitude of organizations across GCC.
We intend to leverage our expertise and support businesspersons by offering the best of our services in the areas of company formation, taxation, licensing, accounting, financial consulting.
Share with us all your requirements, give us all necessary documents, sit back and rest!
We will manage all your license needs, communication with authorities and get needed approvals. Get in touch and leave the rest to us!