10 simple steps to get a trade license 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 permission 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!

The 10 simple steps to get a trade license in Dubai:

Step: 1 – Commercial Name

Registering you trade name with the Department of Economic Development (DED) is the first step towards getting a trade license and setting up your company. Define, register and get an approval from the DED before getting your trade license in Dubai. You only have to submit three names as per the standards approved by the DED along with your passport copies to register your commercial name. A fee is charged for commercial name registration and you may have to spend more to get the name of your choice.

Step: 2 – Initial Approval

After the commercial name is reserved and registered, the DED will provide you with a name reservation certificate. At this step, you must apply for an initial approval. The passport copies of partners or the shareholders along with the external approval must be submitted to the DED. DED will verify the documents and grant you an initial approval.

Step: 3 – Instant License

Once you have received the initial approval, you can proceed to the third step of acquiring an instant license. You can also get an instant license at this stage to start your business in Dubai. You do not need to rent an office space or make huge investments. An instant license provides you the required time to complete the setup procedures, while simultaneously allowing you to start your business.

Step: 4 – Agreement

It is important to draft and attest your agreement at this stage. Be it an LLC company formation or a civil company setup – the required agreement must be drafted with the UAE local. Local service agent agreements and partnership agreement also need to be attested. Some of the documents in the process of agreement includes acquiring the power of attorney, agreement of incorporation, purchase agreement, commercial and translation documents, paperwork attested by Notary Public, etc.

Step: 5 – Tenancy Contract

After ensuring that the agreement and paperwork related to the company setup is sorted, you must draft the tenancy contract. Identify the office space or shop you would like to rent and draft a standardised tenancy contract. You can take assistance of firms offering business setup services, as they have a legal team for documentation and ensure contract are drafted rightly. You will also have to register for EJARI – a monitoring body of RERA.

Step: 6 – Municipality Approvals

You further need to get you approval from the Dubai municipality. You may have to submit a copy of the tenancy contract to the DED to get your trade license in Dubai. Also, name reservation certificate, initial approval papers, (BR1) form, EJARI registration certificate are some of the documents that you may need to submit to the municipality to get approvals.

 Step: 7 – Submit Documents

In this step, you need to submit all the documents you have accumulated. Such as the attested LLC agreement, name reservation certificate, external approval, tenancy contract, EJARI registration certificate, passport copies partners or any other additionally specified documents to the Department of Economic Development.

Step: 8 – Make Payments

After you complete all the steps you need to make the payment to get your trade license. The DED collects all the documents produced by you and verifies them thoroughly. The DED then provides payment vouchers and payments can be made duly. This step can also be done online. Simply upload the documents on the DED website and make the payment online.

Step: 9 – Collect Trade License

After you have made the required payments, you can collect your business trade license. However, understand the requirement before you collect your trade license. It is important to understand that every business will have various demands and require different kinds of approval even after acquiring a license.

Step: 10 – Speak to An Expert

Get in touch with a business setup expert! This is a step that you can consider anytime while getting a trade license in Dubai. An expert offers you a professional outlook on the various trade licenses in Dubai and helps you find an affordable and easy way to obtain it. To learn more about trade licenses in Dubai Mainland or to understand the various costs involved in getting a trade license in the region, speak to DBS Business Setup!

DBS Business Setup is a leading business setup services provider in the UAE. You can get more information about UAE trade license or to book a free consultation with a business setup consultant for any other queries related to company setup in Dubai.

The 10 simple steps to get a trade license in DubaiFollow the link https://www.dubaibusinessservices.com/contact-us/ call us on +97145667485 or WhatsApp +971555813673 to request a call back.



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