Trading license in Dubai
In this article we will elaborate over the most relevant steps on how to create a company in Dubai.
Dubai happens to be one of the most conducive and serene environments to set up a business as it has been economically developed with huge demand for goods.
Research has it that, Dubai has proven to rapidly grow and improve in all ramifications including its economic position in the world and its support for the growth of new businesses.
As of today, we can believe the number of new businesses to be much higher because of the simple start-up, easy operations, and lots of support for Small Business Enterprises by their government.
All these benefits that come with having a business in Dubai have attracted more people to have their businesses and companies set up in the country. One of the top business set-up companies in the UAE is Masar Al Ameen and they can guide you on company formation.
Hence, before you can run a legal business or company in Dubai, you need to obtain a trading license to enable you to operate a smooth buying and selling of all kinds.
So if you are a foreigner who wishes to set up a new business and trade in Dubai, then you are so fortunate to have found yourself reading from one of the most informative websites around the globe.
In this amazing article, you are going to know what a trading license in Dubai is all about, how to get it and the cost of getting this license, and also the benefits of having a trading license for your business in Dubai.
Let’s get started.
What is a trading license?
A trading license is a document issued by the Department of Economic Development(DED) to individuals who want to start up a business in Dubai to allow them to operate a legal buying and selling of products and services.
This trade license also known as a business license document issued by the DED described what activities or services a business or company will trade on.
Hence, if you crave to do legal business in the Emirates – you must have a trade license.
A trading license is necessary and mandatory for every business or company in Dubai.
Types of trading licenses available in Dubai
There are 3 trading licenses in Dubai:
1. Industrial trade license
This is the kind of trade license is issued to individuals or companies in Dubai which involves the manufacturing of products in the region.
An Industrial trade license allowed you to sell, packet finished commodities, export & import raw materials, etc.
2. Commercial trade license
This is for businesses that wish to operate or involve in business activities such as buying and selling of goods, brokerage, import & export of finished products, and lots more.
3. Professional trade license
A professional trade license is for businesses that render their services to other people in the country.
Such businesses include – health care, consultants, digital market services, etc.
However, If you secure a setup on the mainland, you are free to sell to the government and even take contracts.
What does it cost to get a trading license in Dubai?
The cost of a trading license in Dubai depends on the type of business you want to operate and your business activities.
The basic trade license costs between AED 6,000 to AED 9,000.
However, the cheapest trade license in the Emirates is issued by SPC free zone.
But if you have many trading activities that regulate under you in different industries, then you can go for a general trade license which will cover all your businesses. To the voucher for the general trading activity that starts from AED 15,000, you need to add another AED 15,000 to proceed with any buying and selling process.
How to get a trading license in Dubai?
Getting a trade license is simple and quite an easy process if you follow the right steps.
Read below the,
6 tips to get a trading license in Dubai
Here they are:
1. You must provide all the documents needed.
Before you could be issued a trading license in Dubai – you have to make sure you provide all the vital documents needed for the transaction.
2. Select a business or trade name.
You must have a unique name for your new business. So it’s important you draft this out even before time. In this case, you have to choose a business name that is unique and a name no other businesses bear.
3. Prepare the Memorandum of Association (MOA).
This is one of the documents issued by the Dubai government which you must also submit if you want to get a trading license in Dubai.
4. Choosing your business activities.
Here, you need to decide what activities and services you want to render or provide.
5. Choose a good site for your business.
This is necessary also. Before you will be issued a trade license in the region you must have chosen a good location for the smooth running of your business.
6. Fill out your application forms.
While filling out this form make sure you provide and fill in all the right details to avoid issues that can lead to delays in your trading license process.
Below are the documents to be submitted:
- Affirmation of business or company name authorized letter from the Department of Economic Development.
- Scanned copies of passports.
- A signed license application.
- Your business name certificate.
- Your Emirates Identification card.
- Memorandum of Association.
- Submitting and paying the essential fees.
After you must have filled all requirements, you will have to pay some fees before you could be allowed to submit your application.
Know that the trade license validation is one year. After 1 year, you have to renew your trading license.
As stated above, getting a trading license in Dubai doesn’t take much time. Once your documents are genuinely filled, you paid all vital dues, your trade license can be issued to you in 10 days or more.
5 top benefits of having a trade license in Dubai.
Some of the great benefits of having a trading license in Dubai are:
1. Having a trade license in Dubai enables your business to operate freely within Dubai and in other Emirates.
2. No currency restrictions.
3. Repatriation of 100% of profits.
4. Full Custom tax exemption.
5. If you have multiple trading activities in the same or different marketings, you can choose a general trade that covers everything.
Acquiring a trading license in Dubai enables a smooth operation of all businesses you can think of starting in the region.
Companies or businesses formed in Dubai are encouraged to get a trading license to be able to indulge in any buying and selling of commodities.
According to experts, Dubai is the home of several leading start-ups and SMEs.
And recently, the Dubai government has initiated a new scheme to make obtaining a trading license easier to get.
Now, with this new easy scheme set by their government, you can get a trading license in Dubai yourself when you follow these steps by steps tips stated above.
But if you are a foreigner who just moved into the country with limited knowledge of their way of life and how to get your trade license, then you need to seek the hands of professionals Masar AI Ameen – they will assist you from beginning to end till you get a trading license.
We wish you all the best in your new business start-up journey!