- أغسطس 19, 2020
- Posted by: DBS Editorial Team
- Category: Trade licenses in Dubai
Business trade license in Dubai is the most important document obtained in the process of company setup. As an entrepreneur – to get a trade license you need to adhere to the norms put forth by the Department of Economic Development. You may also have to acquire permissions from various government authorities, depending on the type of business activity you intend to set up. Getting a business trade license in Dubai requires you to understand the various types of licenses available and opt for the right one!
So, if you want to get a business license but are not sure on how to proceed, here is a complete guide on business trade licenses in Dubai.
Why do you need business trade licenses in Dubai?
A business trade license in Dubai authenticates the company and deems it as a legal entity in the UAE. Business trade licenses ensure that your company functions in accordance to the UAE Commercial Companies Law. With a trade license you can be conduct business in agreement with the regulations levied by the government bodies.
The trade license also maintains accountability of the business activities carried out by your company. It also segregates and secures the interests of the shareholder within the company and guards the overall business proceedings.
What are the types of business trade licenses in Dubai?
- Commercial License for General Trading Companies
- Professional License for Service-Related Businesses
- Industrial License for Manufacturing & Productions
- Tourism License for Travel and Tours Businesses
How to obtain business trade licenses in Dubai?
The Department of Economic Development (DED) is a government body delegated to monitor and issue business trade licenses in Dubai. The DED licenses only mainland companies also called as onshore businesses. On the other hand, free zones companies are licensed by their respective free zone authorities. Each free zone has their own procedures that you as an entrepreneur will have to follow to obtain a trade license. However, to get a DED mainland license in Dubai here are some of the steps that you will have to follow:
- Select a trade name for the company.
- Decide on a legal structure for the company.
- Pick a business location or jurisdiction as per your preference.
- Rent an office and get the tenancy contract attested by Ejari.
- Finalise the business activities that will be added on the business license (you can add only 10 related business activities per business trade license).
- Fill in and submit the application to get an initial approval.
- Get external approvals depending on the business activity.
- Draft the Memorandum of Association (MOA).
- Collect all the certifications from the relevant government bodies.
- Accumulate the documents along with the application and submit to the DED.
- Make the payment and obtain the license.
How much time does it take to obtain a business trade license in Dubai?
The time taken to obtain a trade license varies. Generally, it takes three days to a few weeks depending on the business activity and the added approval procedure. Nevertheless, with the right business setup services providers and all the required documents – you can get a trade license in three-days. Moreover, the DED has also has instant trade licenses in Dubai for businessmen willing to start a company instantly. The instant license allows businessmen to do business up to one-year without any documentation or even renting an office space.
What is the validity of a trade license in Dubai?
A trade license issued by the Department of Economic Development (DED) remains valid for one year and thereafter must be renewed every year. The renewal process is simple and can be done by your business setup service provider itself.
Here is how you need to renew your business trade license in Dubai:
- Type the trade license renewal application form.
- Submit the tenancy contract with attested EJARI (more than three months of validity).
- Check any added certification or approvals from governmental bodies (depending on the business type).
- Attach the photographs of all the business partners.
- Make the payment using the transaction number given by the DED.
- You trade license is renewed!
Speak to an expert on business trade licenses in Dubai
Do you have more queries related to business trade licenses in Dubai? Are you confused on how the business licensing procedures function in Dubai or any other Emirates? It is best to speak to a company formation expert before you take the big decision!
Contact us on +97145667485 or WhatsApp +971555813673 to request a call back. For more information send us your enquiry here https://www.dubaibusinessservices.com/contact-us/