Getting a trade license in Dubai is maybe the most vital part of company formation in Dubai. The most selected kind of business license is the trade license, also indicated as the commercial license, which signifies most of the activities that can be moved across the UAE. The Trade License Dubai is accredited by the Department of Economic Development (DED) in Dubai. A trade or business license is not only a rule in Dubai; it is something of a necessity. The license determines the nature of your business activity and legitimizes your company.
Start Any Business (SAB) is one of the leading business setup consultancy firms in Dubai that help entrepreneurs from all across the world establish their businesses in this dynamic industry. Our experts understand that the procedure for obtaining a trade license in Dubai involves acquiring approvals from the administration and the economic department. This is why we assist you with all the documentation preparation, approvals, and more to help you get a simplified and quick business setup in Dubai.
What is a Business License in Dubai?
In Dubai, a business license gives the enterprise a legal identity. It clarifies the legal standing of each trading corporation or business that operates in a specific area. Additionally, it guarantees that the company accepts full responsibility for its actions. Eventually, it handles, safeguards, and categorizes the company’s legal cases.
Difference between A Trade License & Business License in Dubai
Since these terms are synonymous, it might be challenging to understand their true meanings. Some name it as a business license in Dubai, whereas others say a trade license. After establishing a company in Dubai, investors generally receive a certificate known as a business license or trade license.
Why Do You Need A Trade License To Do Business in Dubai?
A trade license is a license that authorizes the business as a legitimate body. Business licenses are assigned to businesses to set up responsibility for business activity in the region. It also classifies, secures, and protects the interests of the operations of the business. If you need to trade legally, getting a trade license is needed. Business licenses will ensure that the business is administered in acquiescence with the Commercial Companies Act of the UAE. This shows why it is so important for you to ensure that you also acquire your trade license renewal in Dubai on time.
How to Get Trade License Dubai in 2025
Types of trade licenses in Dubai are – Professional trade licenses. Commercial trade licenses. General trade licenses and industrial trade licenses. However, to get a trade license in Dubai, here is a comprehensive procedure that one needs to follow:
To get a trade license in Dubai, follow these steps:
- Classify your business:- The Department of Economic Development (DED) or the free zone offers a classification list. You must specify the relevant classification for your business.
- Selecting a business name:- When picking a business name, it describes your business activity and guarantees it sticks to the government instructions.
- Selecting the appropriate legal structure:-The legal structure of your company is just as vital as your trade name. The legal structure largely varies depending on the number of stockholders you have in your company or business and the jurisdiction you select to run your business.
- Rent or buy office space:-Select an office space that accommodates your budget and business needs and ensures you can easily support your employees.
- How much you require to invest:- According to your company, you must have an opinion of your venture.
- Receive initial approvals from the government:- It is a basic step for getting a trade license.
Advantages Of Trade License In Dubai?
- Tax exemption: Most of the nation indicates huge taxes on the import, production, and selling of many goods. It is one of Dubai and UAE’s best incentives, and it is almost released from all kinds of taxes.
- Simple procedure: The general business license dubai is lucrative and relatively smooth to accomplish. As compared to many other kinds of long registration procedures, you can acquire your business license in a few days from DED after submitting the needed documents. After that, you can set up your business in free zones, Dubai mainland, or any other part of the UAE.
- Smooth sponsoring to dependents: Another massive benefit of this business license is that it makes it simpler for traders to apply for visas for their employees and also for their dependents. These entrepreneurs can sponsor their dependents, after which it becomes smoother for them to get a UAE visa.
- Motivate traders to invest: Validity and honesty are not something that occurs out of light air. To get such advantages, an order must act in the law’s way and stick to all laws without fail. Such duties can also help the business protect ample properties from external parties keen to include extra funds to get an economic advantage.
Types of Trade License in Dubai
There are four primary kinds of business licenses in Dubai and also across the UAE, such as Commercial license, Professional license, Industrial license, and Tourism license.
Commercial Trade License: A commercial trade license is assigned to a business comprised of any variety of commercial business activity. Both general entrepreneurs and also experts traders can avail of a commercial license in Dubai and all over UAE. A commercial business license can be granted to a company comprised of trades related to goods, commodities, and services.
Industrial Trade License: Industrial trade licenses are issued to organizations that convert natural resources or alter raw materials. This change can be in terms of the edifice and look with the goal of creating or producing new goods, semi-manufactured commodities, or even fully produced products. The industrial business license restricts the company from having substantial storage inside the country.
Professional License: Professionals and experts require a professional trade license. A service-oriented company relies on a professional’s skill. That’s the reason to have a business setup in UAE, the professionals and experts require to obtain a professional license in Dubai or other emirates of Dubai.
Tourism License: Tourism trade licenses Dubai and across the UAE are a requirement for businesses included in the travel and tourism sector. The UAE is a leading tourism hub and has a huge interest in businesses associated with tourism. The tourism trade in the UAE will also be given by consolidated licenses for commercial and tourism enterprises.
How Much Does a Trade License Cost in Dubai?
The cost of setting up a business in Dubai varies depending on your business type, needs, location. For example, you may require to set up a company in the Dubai mainland or set up a new business, is one of the free zones, or form an offshore company. The kinds of licenses are different for each type of business setup. There are three kinds of a license issued in the UAE: professional, tourism, commercial, and industrial licenses. Depending on your activity, there may be additional charges for activity and some needed approvals from the government that may be charged at a separate fee.
Business License Validity in Dubai
A business license in Dubai can be valid for up to two years, but most UAE enterprises choose to apply for a one-year license, which they then renew annually before it expires. There are fines and penalties associated with any delay in renewing a business license. For example, operating without a valid license has a punishment of AED 5000, and failing to renew your license carries a fee of AED 250. In Dubai, there is a 30-day grace period for renewing a business license.
Trade License Renewal in Dubai
In Dubai, every organization must have a trade license to operate their company, making it a compulsory method to renew the license each year. It is the Department of Economic Development (DED) that seems into the licensing method in Dubai. Renewing licenses is a complex procedure and requires plenty of documentation. In addition, licenses must be renewed timely, or else it may begin to incur fines, penalties, and even a business ban.
It is very vital for businesses to renew their licenses because termination can even spoil your whole company. Businesses will be halted by cutting the license, and even your transaction can be seized, and visas and partners posted by the business will no longer be valid. For the presence of any business, trade licenses are mandatory; that is why companies select someone, particularly for this purpose. Start Any Business (SAB) is an extremely reputed business setup in Dubai company that provides high-quality services. Our team makes sure to offer you complete help in trade license renewal in Dubai.
Steps For Trade License Renewal in Dubai
- Make sure you have a legitimate ownership contract attested with EJARI with the required documents at hand.
- Apply for renewal of license with the Department of Economic Development (external approval sometimes required as per your kind of business)
- Make the payment according to the payment statement provided by DED. Basically, a payment voucher will be offered within 3-4 working days, and when the processing is finished, you shall get a renewed trading license almost immediately.
Documents Required For Trade License Renewal in Dubai
- Copy of your trade license
- Copy of your tenancy contract
- License renewal form (BR/1)
- Passport copies of all partners
- EJARI certificate
The documents may vary based on where your particular company is nestled or registered. If your company is registered within Dubai Free Zone instead of Mainland Dubai, then you may need to submit the following:
- Copy of the original trade license
- Audit report (if required)
- P.O Box confirmation
- Passport copy of the shareholder
How Start Any Business (SAB) Can Help?
Applying for a business license in Dubai is not difficult if you have the appropriate support. Seeking professional guidance can be beneficial if you wish to navigate the procedure without any errors or mistakes.
Your one-stop solution for comprehensive licensing assistance is Start Any Business (SAB) in UAE. Our team of experts works hard to provide you with the most outstanding services and complete answers to frequently asked questions. We will assist you in carefully choosing the appropriate license type for your company and completing an application free of errors. Get in touch now.
Frequently Asked Questions on Trade License in Dubai (FAQs)
The cost of obtaining a trade license in Dubai can differ depending on several factors such as the type of license, business activities, and the jurisdiction in which you establish your company. Generally, the cost can range from AED 5,000 to AED 50,000 or more.
To get a trade license in the UAE, you need to follow these general steps-
a. Determine the type of business activity and legal structure for your company.
b. Choose a trade name and register it with the relevant authorities.
c. Prepare the required documents, such as a business plan, lease agreement, and memorandum of association.
d. Submit your application and required documents to the Department of Economic Development (DED) or the relevant free zone authority.
e. Pay the necessary fees and obtain the trade license upon approval.
The types of trade licenses in the UAE can vary depending on the jurisdiction. However, common types include commercial licenses for trading activities, professional licenses for providing services, and industrial licenses for manufacturing or industrial activities.
The best trade license in Dubai depends on the nature of your business and the industry you operate in. It is essential to consider factors such as market demand, competition, and regulatory requirements to determine the most suitable trade license for your business.
The cost of trade licenses varies, and the cheapest option depends on the jurisdiction and type of license. Free zones in the UAE often offer cost-effective solutions for startups and small businesses, with packages tailored to specific industries and reduced fees.
A Dubai trade license is typically valid for one year. However, it can be renewed annually by fulfilling the renewal requirements and paying the applicable fees.
The required documents for a trade license in the UAE may vary based on the jurisdiction and type of license. Generally, the essential documents include –
● Application form
● Passport copies of shareholders and partners
● No objection certificate (NOC) from the sponsor, if applicable
● Memorandum of Association (MOA) or Local Service Agent Agreement
● Lease agreement or tenancy contract
● Business plan
● Any additional documents specific to the activity or jurisdiction
To renew your trade license in Dubai, you typically need to –
● Submit the license renewal application to the relevant authority.
● Provide any required supporting documents, such as lease agreements and NOCs.
● Pay the renewal fees and any fines, if applicable.
● Complete the renewal process within the specified timeframe to avoid penalties.
The cost of trade license renewal in Dubai can vary depending on factors such as the type of license and the jurisdiction. Renewal fees can range from a few hundred to several thousand dirhams.
If a trade license is not renewed within the specified timeframe, it becomes expired. Operating a business with an expired trade license is illegal, and penalties can be imposed, including fines and potential legal consequences.
Penalties for non-renewal of a trade license in Dubai can vary depending on the specific circumstances and jurisdiction. Typically, penalties can include fines, restrictions on business activities, and potential legal actions.
To cancel an expired trade license in Dubai, you generally need to –
● Settle any outstanding dues or fines.
● Submit a license cancellation application to the relevant authority.
● Provide the required supporting documents, such as NOCs and clearance certificates.
● Follow the specified cancellation procedures as per the jurisdiction’s regulations.
No, you typically cannot renew your visa if your trade license has expired. A valid trade license is generally required to maintain a valid visa in the UAE. It is crucial to ensure the timely renewal of both your trade license and visa to avoid any complications.
