Are you setting your sights on starting a business in the United Arab Emirates (UAE)? The UAE offers a thriving business environment with plenty of opportunities for entrepreneurs. But before you dive in, you’ll need to secure a trade license.
This blog post will be your one-stop guide to obtaining a trade license in Dubai. We’ll walk you through everything from selecting your business activities to gathering the required documents and submitting your application.
By the end, you’ll be well-equipped to get your UAE business up and running smoothly.
What is a Trade License?
A trade license is essentially a permit a business needs from the government to operate legally. Think of it as an official thumbs-up that says your business is good to go. Here’s a quick breakdown of what a trade license does:
- Legalises your operations: It allows you to conduct specific business activities within a certain area. Without it, you could be facing fines or even forced closure.
- Shows legitimacy: A trade license acts like a badge of credibility. It assures potential customers, investors, and partners that you’re a real and authorised business.
- Ensures compliance: The license often signifies that you’ve met specific safety and regulatory standards set by the government.
How to Apply for Trade License in Dubai
Through Service Centres
Here are the steps you need to follow to apply for a trade license:
- Visit a Dubai Economy service centre: Go to one of the service centres in person. They have trained staff to assist you with the application process.
- Send the requirements by email: If you prefer, email the necessary documents and information to the service centre. They will provide you with the correct email address to use.
- Make the payment: Pay the required fees for the license. You can choose from different payment methods provided by the service centre. They will guide you on how to complete the payment.
- Obtain the license: Once you have submitted the requirements and paid, the service centre will process your application. If everything is in order, you will be issued the trade license.
Through the Invest Dubai Platform
If you already have an initial approval:
- Specify location details: Provide specific information about the location where your business will operate.
- Send legal documents: Share the necessary legal documents, such as the memorandum of association, with the concerned partners. They will need to sign these documents electronically, so make sure all partners are registered on the platform.
- Make the payment: Pay the required fees for the license using one of the available payment methods.
- Obtain the final license: Once you have completed the steps and made the payment, you will receive the final license and any related documents.
If you don’t yet have an initial approval:
- Select main business activity: Choose the primary activity and any additional activities associated with your business.
- Add license parties and their details: Provide information about the partners, managers, and local service agents (if applicable), including addresses, contact information, identification numbers, and their roles and ownership shares in the company.
- Add Ultimate Beneficiary Owners: Include details about the ultimate beneficiaries of the company.
- Confirm details: Verify that all the information provided is accurate.
- Make the payment: Pay the necessary fees using one of the available payment methods.
- Obtain the initial approval: You will receive the initial approval once you have completed the requirements and made the payment.
- Specify location details: Provide specific information about the location where your business will operate.
- Send legal documents: Share the necessary documents with the concerned partners, such as the memorandum of association. They must sign these documents electronically, so ensure all partners are registered on the platform.
- Make the payment: Pay the required fees for the license using one of the available payment methods.
- Obtain the final license: Once you have completed the steps and paid, you will receive the final license and any related documents.
Types of Trade Licenses in Dubai
There are different types of trade licenses that you can get if you want to start a business. Let’s break them down into simpler terms:
Normal Trade License
This license requires you to have a Memorandum of Association (a document that shows the details of your business) and a site lease contract (a contract for the place where you will run your business). You can get these documents either electronically or by doing it manually.
Instant Trade License
This license is really quick to get. In just five minutes, you can get it if your business activities don’t need any external approvals. With this license, you can also get a virtual site for the first year. Along with the license, you’ll also get some additional services:
- Dubai Chamber Membership- This allows you to become a member of the Dubai Chamber of Commerce, which is an organisation that supports businesses.
- Establishment Card: You’ll get a card from the General Directorate of Residency and Foreign Affairs. It helps with your residency status in Dubai.
- Establishment Card from The Ministry of Human Resources and Emiratization: This card allows you to hire employees. You’ll receive a text message confirming that your card is approved, and a file will be opened for you to employ up to 3 employees.
This instant license is available for businesses like Limited Liability Company, Sole Establishment, and Civil Company.
DED Trader License
This license is for people who want to run a business from their own home in Dubai. You can apply for this license through the “Invest in Dubai” platform. To get this license, you’ll need to pay a fee of AED 1070, which includes license fees and knowledge and innovation fees. You’ll also need to pay AED 300 for Dubai Chamber membership fees.
Trade License Service Fees
- License registration fee: AED 600
- Knowledge Dirham fee: AED 10
- Innovation Dirham Fee: AED 10
- Trade name advertisements: AED 350
- Service request form: AED 50
- Foreign trade name fees: from AED 1000 to AED 3000
- General trading activity fees: AED 15,000
- Investment activity fees: AED 15,000
- Real estate activities fees: from AED 5000 to AED 25,000
- Business center fees: AED 25,000
- Building contracting activities fees: AED 10,000
- DED trader License: AED 1,070 + AED 300 Dubai Chamber fees
- Intelaq license: AED 1,070
- Memorandum of Association fee/service agent contract:
- AED 300 for the signature of each of the parties to the document for attestation of the signatures on the document valued does not exceed one hundred thousand Dirhams.
- 0.5% of the value of the document with a maximum of AED 15,000 for attestation of the signatures on the document valued exceeds one hundred thousand Dirhams
- AED 500 to postpone the transaction completion after the registration to the next day as requested by one of the partners.
- AED 500 if the partners sign the document in different service centres.
- AED 100 for each partner signing the document electronically.
Trade License Application Requirements
- Normal License: Approvals of other government agencies on the activity, if necessary.
*If the service is provided through Dubai Economy’s service centres, please send the requirements to the centre’s email.
- Instant License: Unified number or ID number
- DED Trader License: ID number
FAQs
How long will it take to complete the application process?
Expected Service Completion Time
- Normal License: 10 minutes/normal
- Instant license: five minutes
- DED trader license: five minutes
How long is the expected waiting time?
The expected waiting time for this process is around 7 minutes.
How long is this license valid?
The license is valid for 1-2 years.
Is a trade license mandatory in Dubai?
Yes, a trade license is mandatory in the UAE for any individual or company engaging in commercial or industrial activities. This applies to all business types, from small shops and freelancers to large corporations.
Do small businesses need a trade license in the UAE?
Absolutely, there are no exceptions! In the UAE, all businesses, regardless of size, need a trade license to operate legally. This includes even small businesses and home-based businesses.
