Business Setup in UAE/Dubai

Business Trading Licenses in Dubai, UAE

June 01, 2021

UAE is a shining beacon of opportunity when it comes to foreign investments and business. With the different kinds of operational zones for the business, a stable business environment marks one of the fastest-growing business-oriented geographies in the world. Investors planning to set up a company in UAE should understand the various requirements of business and company laws that are required for business operations in Dubai. Department of Economic Development in Dubai (DED) provides trading or business license in Dubai, UAE to business owners. Every business in the UAE has been categorized under various licenses, providing prominence as per their entrepreneurial activities.

A business license in Dubai helps in creating a structure of the business as well as helps in attaining several benefits. Obtaining a business license in Dubai, UAE is the most prominent part of setting up a business in UAE.

Also known as the general trade license, it can be used for the following activities:

  1. Import & export of goods, requested by registered trade companies in Dubai
  2. Carrying out various commercial activities such as the sale of goods & services
  3. Professional services in a specific industry

How to obtain a trade or business license in Dubai, UAE?

To obtain a trade license/general trade license, the incorporation documents of the activity of the company related to the trading field should be provided by the company. Most of the activities in Dubai can be counted under the general trade license.

To obtain a trade or business license in Dubai, one should first select a trading name and have the memorandum and articles of association prepared and filed with DED for initial approval. A rental agreement is required as proof of residence of the registered address of the company of Dubai, following which the application for the trade license can be filed.

Steps to guide company renewal of trade license in Dubai, UAE:

A trade license is one of the necessities of operating in Dubai as a business person. Certain steps are to be followed in the process:

  • Valid tenancy contract
  • Renewing license application
  • Making the payment

Types of business licenses in Dubai, UAE:

  • Commercial License: Covers the various types of general trading and specialized trading activities
  • Professional License: provided to entrepreneurs who may be engaged in other services such as teaching, craftsmanship, artisans, etc.
  • Industrial License: Provided to establishment involved in an industrial or manufacturing entity
  • Tourism License: Requirement for businesses involved in tourism and hospitality sectors

Types of trade or business license in Dubai, UAE for different business jurisdictions:

UAE Mainland: The enterprises that come under commercial, professional, and individual establishment are registered under Dubai Economic Department (DED) and, recognized as Dubai Mainland License. The mainland license serves to help you enjoy the maximum freedom and versatility to develop your business.

UAE Offshore: Dubai Offshore is ideal for a tax and cost-effective structure for foreign entrepreneurs to manage offshore wealth, real estate, and hotels. These are known as non-resident companies allowing foreign businesses to trade without any administrative obligations. They are not issued an operating license. Only a certificate of incorporation is provided.

UAE Free Zone: UAE free zones are designed and operated according to the different types of industries and businesses. Dubai’s Free zones have attracted a large number of companies and foreign direct investments. An independent free zone authority (FZA) governs each zone and is responsible for issuing FTZ operating licenses and helping entrepreneurs with establishing a business in the FTZ.

Benefits of Dubai Trade License:

There are several trade licenses options available to investors in Dubai. There are trade licenses that offer many advantages as compared to other licenses. These include:

  • Quick and easy process. Fast to obtain
  • Relatively lesser paperwork requirements
  • Permits the establishment of holding companies in Dubai
  • One of the best advantages of getting a trade license is that its approximate cost is very low
  • It is used as a legal holding structure for warehousing and is exempted from taxes on profits and income.
  • An exemption is also provided in the process of submission of audit reports to the Government of Dubai.
  • Facilities like corporate banking are provided to the holder of a trade license

Documents required for a Dubai Trade License:

The following are the documents required to be submitted for application for a trade license:

  • A standard application form to be filled out by the legal representative of the company
  • Company’s statutory documents, original as well as copy
  • DED’s letter with company’s name approval
  • DED’s letter attesting approval for setting up a company
  • The tenancy agreement
  • Shareholder’s details (Copies of passports of every shareholder along with details)

MBG's Company Formation Services:

MBG Corporate Services offers a varied selection of customized services for company formation in Dubai. These include helping entrepreneurs with the entire process of obtaining a trade or business license in Dubai, UAE, right from application to the completion of the trade licensing process.

To know more about our Business Setup Services specific to UAE/ Dubai, click here

You can directly reach out to us for your query related to "Setting up a Business in Dubai, UAE":

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