Types of Trade Licenses in Dubai and How to Choose the Right One

22 Mar Types of Trade Licenses in Dubai and How to Choose the Right One

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1 Types of Trade Licenses in Dubai

2 Steps to Obtain a Trade License in Dubai

3 Costs of Obtaining a Trade License in Dubai

4 Benefits of Setting Up a Business in Dubai

5 FAQs About Trade Licenses in Dubai

Obtaining a Trade License in Dubai: A Complete Guide

Dubai is one of the most attractive destinations for entrepreneurs looking to start a business. To legally operate, obtaining a trade license in Dubai is a crucial first step. This guide will explain the different types of licenses, the application process, and the costs involved.

Types of Trade Licenses in Dubai

Dubai offers various trade licenses depending on the nature of the business. Selecting the right type is essential for compliance and smooth operations.

Commercial License

A commercial license is required for businesses engaged in trading activities, such as general trading, import, and export businesses.

Professional License

A professional license is suitable for individuals and companies offering services like consultancy, IT solutions, marketing, and accounting.

Industrial License

Businesses involved in manufacturing, production, and industrial activities need an industrial license.

Tourism License

If your business operates in the tourism sector, such as travel agencies and tour operators, a tourism license is required.

Steps to Obtain a Trade License in Dubai

Here are the key steps to follow for obtaining a trade license in Dubai:

Step 1: Decide on the Business Activity

Choose your business activity from the list provided by the Department of Economic Development (DED) or relevant free zone authority.

Step 2: Choose a Business Structure

Select the appropriate legal structure, such as a sole proprietorship, LLC, or branch office.

Step 3: Select a Business Location

Decide whether to establish the business in a free zone or on the mainland. Each option has unique benefits, such as 100% foreign ownership in free zones.

Step 4: Register Your Trade Name

Choose a name that complies with Dubai’s naming conventions and register it with the DED.

Step 5: Obtain Initial Approvals

Submit your business plan and obtain approvals from relevant authorities.

Step 6: Secure an Office Space

Rent an office space that meets Dubai’s business regulations, whether in a free zone or on the mainland.

Step 7: Submit the License Application

Prepare the required documents and submit your application to the appropriate licensing authority.

Step 8: Pay the Fees and Receive the License

Once approved, pay the necessary fees and receive your trade license.

Costs of Obtaining a Trade License in Dubai

The cost of a trade license depends on various factors, including the type of business, location, and add-ons like office space. Generally, trade license fees range from AED 10,000 to AED 50,000.