The Indian investors and expatriates looking to open a business in Dubai must secure a trading license first. It’s a legal document that legitimizes all your business activities in the UAE. The Dubai trade license cost depends on multiple factors.
These include the business location, types of activities, and a lot more. We, at UAE Expansion India, take care of all the licensing activities to ensure that the Dubai trade license cost is always in check.
What are the Various Business License Types in the UAE?
A trade license can be obtained based on your demands and business requirements. The UAE government has clearly specified the requirements for acquiring a certain license. Therefore, it’s best to check with legal consultants to figure out which license is ideal for your firm. The following are the most common categories of UAE trade licenses:
Industrial Trade License
An industrial license allows you to engage in legal industrial operations in the UAE as an individual or a firm. In addition, manufacturing activities, treatment processes, printing, lathe workshops, packing, and other activities are all included.
Because organizations with virtual offices can’t apply for an industrial license, you’ll need to get a physical location.
Commercial Trade License
A commercial trade license is eligible for companies that want to engage in trading activities, like import-export of Physical goods, such as food and beverage dealing, or auto accessories trading. The license holder can enjoy 100 percent ownership of his or her business.
You can apply for a professional license if you provide professional services such as marketing, renovation, or Consultation. As this genre of license in Dubai doesn’t require a local sponsor, the license holder can enjoy 100 percent ownership of his or her business.
All you need is a local service agent who’ll help you with the legal paperwork and charge you a yearly fee. You can work with UAE Expansion, and we’ll act as your service agent for a modest fee.
Furthermore, investors interested in exploring the tourist business can also apply for a tourism license.
How Much Does it Cost to Obtain a Trade License in Dubai?
The cost of a trading license depends on your business activities, license type, location, and a lot more. However, you can secure a trading license for as low as AED 10,000. Therefore, anything between AED 10,000 and AED 25,000 is a safe estimate.
It’s critical to note that the Dubai trading license fee rises if you require special privileges such as a foreign trading name, consent from a governing body, etc. Therefore, you can get in touch with the company formation experts at UAE Expansion India. We’ll ensure that you don’t overpay at any time while setting up your business in the UAE.
What are the Steps to Obtain a Trade License in the UAE?
1. Decide the Business Activities
What are the activities that you wish to conduct on a day-to-day basis when you launch your company in the UAE? List all of them down (you can choose up to 10, so plan accordingly) and match them from the list of permissible activities maintained by the DED.
2. Reserve a Trading Name
You can’t apply for a trading license in the UAE if you don’t have a legal business name for your venture. The name should be unique, indicative of what your company does, and free of any derogatory terms.
Moreover, abide by the naming convention laws while submitting the trade name reservation document. In addition, refrain from using controversial words or terms that hurt someone’s religion. You need to use the full name of a person if you wish to keep it as the business name of your company.
3. Finalize the location
You have the option to choose the mainland general trading license for your company and take maximum advantage of the local market of Dubai, which ranks among the best in the world. On the other hand, you can apply for a specific trade license in the UAE and have a cost-effective establishment in one of the free zones.
Businesses that apply for a mainland trading license get approval from the DED, while the free zones have their independent jurisdiction. It’s critical to choose the right location because you don’t want to burden your business with any relocation costs. Remember, all these add to the overall Dubai trading license cost.
4. Apply for the Trade License
Once you’re done with the above steps, it’s time to apply for the trade license. You’ll have to pay the issuance fee as part of your Dubai trade license cost if it’s approved by the governing body. It’s an obligatory payment that all Indian applicants need to make irrespective of the type of trade license.
Ensure that you complete all the payments within the specified timelines and get back to the concerned departments if they ask for any resubmission.
5. Maintenance and Validity of the Trade License
You’ll need to renew your trade license annually to maintain its validity in the UAE. Furthermore, fines are imposed, and penalties are collected from defaulters who fail to renew their licenses in time. All you need to do is evaluate your tenancy contract and request a payment voucher for license renewal. Make the payment from that voucher, and you’re done.
What Paperwork Goes Into Obtaining a Trading License in Dubai?
- Passport copies of all the business partners
- Payment receipt of trade name reservation
- Passport size photograph of all the business partners
Secure a Trade License Today!
You need to have a trade license in the UAE for the smooth functioning of your business. We, at UAE Expansion India, can help you obtain the same by taking care of the paperwork, documentation, local collaborations, additional approval, Dubai trade license cost, and everything else you need.
The business consultants at UAE Expansion India Branch guide you throughout the licensing process to lower the burden off your shoulders. Let’s discuss your business aspirations today and take things forward.