What Is the Cost of Trade License in Dubai

cost of trade license in Dubai

A trading license in Dubai is probably one of the most sought-after licenses in Dubai, given the wide range of activities it covers. Furthermore, to start and operate a company in Dubai or anywhere else in the UAE, you must get a trade license first. As such, you may wonder: What is the cost of a trade license in Dubai? Is it pocket-friendly or expensive? Moreover, will it be worth the investment? 

Want to know the answer to these questions? Keep reading. This blog will walk you through everything you need to know. It covers why you would want to consider setting up a trading business in Dubai, activities covered by the trading license, the license application process, the cost of a trade license in Dubai, and more. 

So, without further ado, let’s dive straight into it! 

What Is a Trade License?

In Dubai, the Department of Economic Development must provide you with a general trading license before you begin a business. Once you have it, you are free to trade anything that the UAE government typically permits.

On the other hand, certain goods, including alcohol, automobiles, medical supplies, guns, etc., need specific government approval to sell. Even if they need a trade license, too, it’s generally a specialized one like a Commercial Trade License.

Why Must You Consider Obtaining a Trade License in Dubai?

Trade activities are popular in Dubai, given its strategic location. You will be surprised that data from the registration and licensing division at the Department of Economy and Tourism shows that Dubai granted 72,152 new business licenses in 2021, up from 42,729 licenses the year before. Approximately 6 out of 10 new enterprises were categorized as “professional,” while 41% were listed as “commercial.”

Given these numbers, it will not be wrong to say that more entrepreneurs and businessmen are eyeing Dubai for all the right reasons. Here are some of them – 

  • Exposure to local and international markets 
  • Freedom to export or import goods 
  • Exemption from taxes on personal or corporate gains with only 5% VAT on eligible businesses. 
  •  Seamless connectivity with the rest of the world via airports, ports, and roads. 
  • Supportive government policies that foster business expansion
  • Opportunity to pitch for government projects if your business is established on the Mainland

What Are the Different Types of Trade Licenses Issued in Dubai?

It’s important to note that Dubai is home to several different economic or trade jurisdictions, all of which have their laws and regulations.

The four most common varieties are industrial, commercial, tourist, and professional licenses. 

  • Industrial License – Obtaining an industrial trade license is one of the first steps you must take if you want to launch a manufacturing firm in Dubai. Once you get your license, you can import raw materials, process them, sell them, and export the finished goods to Dubai or other nations.
  • Commercial License – A commercial trade license is required to purchase and sell goods. Having a license for commercial commerce has several advantages. Importing and exporting goods, as well as leasing space for commercial use, are among these advantages.
  • Professional License – An authorization to practice a particular profession or provide a specific service is known as a professional license. This comprises businesses in the fields of digital marketing, business consulting, audits, banking, and hospitals.
  • Tourist License – In Dubai, a tourist trade license is required if you wish to do business in the travel and tourism industry. This comprises lodging establishments, travel agencies, tour guides, the hospitality sector, and transportation companies.

What Is the Process of Obtaining a Trade License?

Obtaining a trade license is easy, given you know the process. The following is a general overview of the process – 

  1. Choose a business activity.
  2. Decide on your company’s legal structure.
  3. Choose a trading name and register it with the authorities.
  4. Decide on a location, find an office space, rent or lease it and register it with Ejari. 
  5. Obtain per-approvals if needed.
  6. Gather all documents and apply for the particular trade license.
  7. Pay the necessary fees, and your license will be issued if everything is well. 

What Documents Do You Require to Get a Trade License?

Even though establishing a company in Dubai is a straightforward procedure, the paperwork might be time-consuming if you’re doing it for the first time. However, to get you started, below is a list of the documents you will need to submit: 

  1. Copy of your passport.
  2. Copy of your visa or an entry permit.
  3. Passport-size photographs. 

Depending on the company operations you choose, there could also be a need for a few other particular permits and documentation. To get a comprehensive list, speak with the business setup specialists at the UAE Expansion India Branch.

What Factors Determine the Cost of Trading License?

Several factors determine trade license fees in Dubai. Some of them are –

  • Choice of business activity: Different business activities have different prerequisites. Thus, your choice of business activity will significantly impact your final trade license cost.
  • Preferred business location: You can choose to establish your business on the Mainland, in one of the free zones, or on the offshores. These locations differ in the kind of opportunities they present. Furthermore, the rent for offices in these locations is determined by the amenities they offer. Thus, the a difference in the license fees.
  • Need for pre-approvals: Some business activities are more highly regulated than other activities, requiring you to obtain permission from several departments. These extra permits will add to your final cost. 

What Is the Cost of a Trading License in Dubai?

However, to give you an idea, a trade license can start at approximately AED 12,500 to 28,500. If you are not confident about starting a full-fledged business, you may choose to start a small business. A small business license cost in Dubai is equally reasonable. 

In order to obtain the cheapest trade license in Dubai, you may get in touch with UAE Expansion India branch experts. They will break down the costs for you, help you decide whether pre-approvals and additional approvals are necessary, and obtain the same on your behalf. All this while ensuring you don’t pay a penny extra than what is needed. 

Obtain Your Trade License With UAE Expansion

After reading this blog, we hope you understand what a trade license costs in Dubai. However, it is recommended that you speak with professionals specializing in company setup to find out what further paperwork and procedures are necessary.

UAE Expansion India’s business advisers have extensive expertise in assisting entrepreneurs in establishing operations in Dubai. They have extensive experience with the procedure and will be able to help you at every stage.

All you need to do is give us a call!

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