A business trade license in Dubai can help you take off with your budding idea in one of the world’s fastest-growing economies. Renowned for its state-of-the-art infrastructural amenities, world-class workforce, business-friendly opportunities, and investor-friendly laws and initiatives, Dubai is one of the best places for foreign investors to establish their business. If you’re wondering how to get a business license in Dubai, this post offers you all the information you need to know.
The process of company registration and setting up a business in Dubai is also hassle-free. Regardless of your business domain, industry, budget, or size, you can easily register your business across the mainland and free zone in Dubai. The process of obtaining a trade license in Dubai has become less complicated in recent times, owing to the opening of the e-government portal. While receiving the trade license is an essential part of setting up a business, it also helps entrepreneurs obtain a legitimate business status in the UAE.
While the process is straightforward, applying for the trade license in Dubai comes with its complexities, which is why you must understand its nuances. There are multiple license types to choose from, and depending on your business, you might need special approvals. However, whichever license you choose, the UAE government processes it in a fast and efficient manner, providing you the opportunities to get started with your dream business in no time.
Why Should You Apply for a Business Trade License in Dubai?
Before business owners learn how to get a business license in Dubai, it is vital to understand its benefits. There is no doubt that it is a standard procedure in the business formulation, but several more perks follow the licensing process.
1. Receive a Corporate Identity
When you register for a trade license in Dubai, your business receives a corporate identity. You are qualified to conduct trade operations in the UAE without any worries. Moreover, your trade license certifies a company’s legal status. A corporate license helps provide a company with responsibility for its actions.
2. Trade Lawfully
Possessing a trade license gives you the leverage to utilize Dubai’s abundant resources. You can trade across the UAE without any restrictions or the worry of being charged legally. Your trade license also ensures that your company is per the Commercial Firms Act under the government of UAE.
3. Establish a Reliable Reputation
Owning a trade license helps you establish a reliable reputation in the market and your customer’s eyes. Since you comply with the government’s rules and policies, people will trust you more to do business and collaborate.
4. Safeguard Your Identity
A trade license also safeguards your intellectual property rights. This means that no other brand or company can claim your trading name or pretend to be your business. Moreover, it also categorizes your company’s prospective legal cases.
What are the Different Types of Business Trade License in Dubai?
Before you apply for a trade license in Dubai, you must know your options. This will help you apply in selecting the correct category and leverage the relevant benefits.
1. Commercial Trade License
If you’re engaged in the sale and purchase of one or more types of products, a commercial trade license is a suitable choice for you. You can possess a commercial trade license if your business operates in the UAE or outside the UAE. If you plan to do business in the local sector, you can apply for a commercial trading license. On the other hand, some specific product categories such as alcohol, oil, gas, weapons, etc., require special approvals from the respective government departments. With a commercial license, you can perform a maximum of 10 business activities and opt for different types of companies to register.
2. Professional Trade License
Businesses that rely on people’s intellect need to apply for a professional license. If your company has more than one male owner, it will fall under Civil Works Corporation. Different services under this license include consultancy, insurance, computer consultancy, environmental consultancy, medical services, tax services, marketing, and management services.
3. Industrial Trade License
For business owners who have a service-oriented company, an industrial trade license is a right choice. Specialists in a niche and professionals across the industry would need to obtain this professional license to conduct trade activities. Some of the typical business activities permitted for an industrial trade license include garments manufacturing, meat products, dairy products, animal and bird products, carpet production, etc.
4. Tourism Trade License
The tourism sector is experiencing staggering growth in Dubai, making it an ideal opportunity for foreign investors. If you’re considering opening a travel agency, inbound or outbound tour operations in Dubai, you should apply for the tourism license. The Department of Tourism and Commerce Marketing is responsible for issuing this license.
How to Get a Business License in Dubai?
Following are the 5 steps you need to follow to get a business trade license in Dubai
1. Choose a business category
Start by choosing a business category from the options available in the free zone and mainland. The list of permitted activities is provided in both zones.
2. Select a Business Structure
Choose a suitable legal business structure that safeguards your interests. The choice mainly depends upon your shareholders and business location.
3. Register a Trading Name
You must register a trading name to be renowned as a business. Make sure you do not use any offensive words.
4. Finalize a Location
Explore business opportunities in the mainland and free zone Dubai. Then, make a choice to establish your business there.
What is the Cost of a Trade License in Dubai?
Once you know how to get a business license in Dubai, you’d need to pay the license fee to complete the process. The precise fees that will be required for obtaining your license depend on several factors such as business type, location, size, etc. However, the costs usually range from AED 13,000 to AED 20,000.
Connect with Shuraa
Taking your dream business idea to Dubai can be one of the most lucrative opportunities for you. Since Dubai has a lot to offer, you can easily leverage its market and policies to carve a niche for yourself. At Shuraa, we understand that this process will require diligent planning and preparation.That’s where we offer you a professional consultation to help you acquire a trade license in Dubai.
From assisting you to get the right license for your business to helping you choose a strategic location and more, our business experts are there for you every step of the way.
