Business License in Dubai

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Business License in Dubai


Permits for companies to operate in Dubai are issued by the Department of Economic Development (DED) in Dubai. DED has assigned distinct licenses to each company, based on the nature of their commercial activities. 

In Dubai, obtaining a commercial trade license can lead to an interesting and promising business venture. To avoid fines and disruptions, you require the necessary licenses and amendments. A number of regular and unique permits must be obtained before applying for a business license in Dubai. Having a business license to operate in Dubai offers you and your firm several benefits and a management structure. 

This blog will provide a basic overview of business trade licenses in Dubai, including the types of licenses available and their associated costs. Without further ado, let’s get started. 

What do you mean by a business license in Dubai? 

A business license in Dubai is a type of official document that lists the types of activities that a company is allowed to carry out within the United Arab Emirates. The Department of Economic Development is in charge of granting all licenses. 

General trade licenses can be used for a variety of economic activities in the United Arab Emirates. This entails conducting commercial activities, such as importing and exporting goods. 

What are the various kinds of trade licenses for businesses in Dubai (UAE)? 

  • General Trading Businesses require a commercial license. 
  • A professional license for businesses that provide services. 
  • An industrial license to manufacture goods. 
  • License for Tourism in the Travel & Tours Sector. 
  • Individuals who work as freelancers are eligible for a freelance license. 
  • The agricultural industry is covered by an agriculture license. 

The following categories of business trade licenses are offered in Dubai: 

  • Commercial License: A commercial license is required for both specific and general trading activity. 
  • Professional License: Organizations engaged in any of the various occupations or activities that necessitate the provision of services, such as healthcare, education, and other crafts, are eligible to apply for professional licenses. 
  • Industrial License: Businesses involved in manufacturing or industrial processes are granted an industrial license. 
  • Tourism license: Dubai requires all businesses and organizations operating in the travel, tourist, or hospitality industries to have a tourism business trade license. 
  • Freelance License: To meet the needs of the growing number of independent contractors, the government created the freelance license. 
  • Agricultural License: An agricultural license is required for anyone who wants to cultivate plants, harvest crops, or run any type of agriculture-related business. 

How to Get a Business License in Dubai? 

The type of business you intend to start on the mainland usually determines whether you need a business trade license in Dubai. If someone wishes to set up a business in Dubai to engage in trade activities including import-export, clothing, furniture, accessories, and electronic equipment, a general commercial license issued within Dubai is adequate. 

Select the corporate entity and select the business venture. 

Selecting the corporate structure and specific business ventures the company will partake in is the first step toward obtaining the trade license. Since each license in Dubai can only support a maximum of 10 activities, it is imperative to list every activity. 

Choose a trading name. 

Choosing a suitable trade name that complies with UAE regulations and isn’t currently being used by another company is the second stage. 

Select the location for your business. 

When applying for a business trade license in Dubai, site selection is essential. Once the corporate location has been selected, you need to get a tenancy agreement. 

Complete the application and make the required payments. 

You must complete the application and send it to DED with the necessary supporting papers to obtain the trade license. You then have to pay the fees associated with your license application. 

Obtain a trade license. 

You will receive the trade license after your application has been granted and the supporting documentation has been checked to make sure everything is correct. 

What is the necessary paperwork required to apply for a trade license? 

  • An application for a trade license that each manager of the company signs. 
  • Memorandum of Association. 
  • Your application should then bear a formal acceptance of your name. The DED will give you this approval as soon as they have authorized the company name you have chosen. 
  • Copies of each management partner’s passport. 

Benefits of Acquiring a Business License in Dubai 

  • Trade facilitation: Obtaining a trade license opens up a lot of options for product manufacturing and importation. You can make money by exporting your goods to other countries or by selling them locally in the Dubai markets. 
  • Tax benefits: Dubai is an excellent location for enterprises because it has no trade restrictions. Operating expenses can be deducted from tax earnings as entrepreneurs in Dubai are not subject to manufacturing or sales taxes. 
  • Easy to obtain trade license: If all the required documentation has been filed, obtaining a trade license in Dubai is not difficult. Also, you are not required to provide auditing statements once you have your license. 
  • E-trading ecosystem: The Department of Economic Development’s commerce Regulation and Licensing sector developed an e-trader license for firms that want to conduct commerce on different social media platforms, especially those from the Gulf nations. 
  • Promote both local and international trade: Businesses in Dubai with a trade license are able to sell or distribute products that are imported or exported to both local and international markets. Dealers can profit globally in this way by utilizing all business chances.  
  • Multiple visa options: In addition, the UAE offers a number of visa services to enable business owners to get various visas while retaining their physical presence in the Emirate. Having several visas also makes it possible for employers to acquire more employees. 

What is the cost of a trade license for businesses in Dubai? 

Getting a general trade license in Dubai has many benefits. This license will be utilized for warehousing as well as a legally binding holding structure. The general trade license holder is not subject to income and profit taxes. Additionally, trading is possible both globally and within the Dubai mainland. Depending on how many employees are needed to open a business in Dubai, the holder of a general trading license may also be allowed to apply for numerous employee visas. The starting price of a business trade license is AED 18500*. For a detailed cost estimate, it is advised that you speak with our professionals at UAE Expansion. 

Empower your entrepreneurial journey with UAE Expansion! 

The legal ability to conduct any kind of commercial activity in Dubai is granted to those who possess a business license in Dubai. The UAE offers many trade license alternatives, such as commercial, industrial, professional, and more, depending on the kind of operation you plan to undertake. On the other hand, before filing a license application, it is advisable to be informed about both national and local laws and regulations.  

At UAE Expansion, we make sure you receive all the support you need for a seamless business setup. We’ll take care of all the necessary procedures, from setting up pre-approvals to helping you get your business license. To learn more, get in touch with UAE Expansion corporate specialists.   


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