Dubai is one of the most prominent business destinations in the world, due to its advanced business environment, modern infrastructure, and sophisticated regulatory procedures. To start any business in Dubai, a trade license is a necessary basic that must be obtained to ensure that the company complies with local laws and operates legally. In this article, we will review all aspects related to a trade license in Dubai , starting from its concept and importance of obtaining it, all the way to the steps and procedures required to obtain it. We will also discuss the different types of trade licenses, the requirements for obtaining them, as well as the benefits of having a trade license in this business city.
Basic steps to obtain a trade license in Dubai
To obtain a trade license in Dubai , a set of basic steps must be followed to ensure the successful completion of the process. Here are the basic steps to obtain a trade license in Dubai:
- Determine the type of company and business activity: Determine the type of company you wish to establish (such as a limited liability company, a joint stock company, or a branch of a foreign company) and the business activity you will conduct. The business activity must be registered and approved by the competent authorities.
- Choosing a company name: Choose a trade name for your company and make sure it meets the legal criteria. The name must be unique and not similar to other company names. You can check the availability of the name on the Department of Economic Development website.
- Obtaining initial approvals: Apply for initial approval from the Department of Economic Development. You may need to provide additional information or business-specific documents to obtain this approval.
- Preparing the Articles of Association: Preparing the company’s articles of association, which include details of partners, shares, and other legal provisions. This can be prepared by a specialized lawyer.
- Securing Company Headquarters: Secure a physical headquarters for the company in Dubai. The headquarters must comply with the requirements of the Department of Economic Development and be provided with a lease contract.
- Submitting the final registration application: After obtaining the initial approval, submit the final registration application to the Department of Economic Development. Submit all required documents, including the lease contract, articles of association, and passports.
- Pay the fees: Pay the fees required to obtain a business license. These fees vary depending on the type of business activity and the size of the company.
- Receiving the commercial license: After processing and reviewing your application, the Department of Economic Development will issue the commercial license for your company. You can receive the license from the service centers or via email if the service is available.
- Registering the company with other authorities: You may need to register the company with other authorities such as the Emirates Identity Authority, Social Security, and update bank records if necessary.
Documents required to obtain a commercial license in Dubai
To obtain a trade license in Dubai , you will need to submit a set of basic documents. Below is a list of the most important documents that may be required:
- Passport: A colour copy of the passport of the partners and shareholders of the company.
- Residence Visas: A copy of the residence visas of the partners or managers if they are residents of the UAE.
- Personal Photo: Personal photos of partners and shareholders.
- Lease Agreement: A lease agreement for the company’s premises, with confirmation from the landlord of the validity of the agreement and location details.
- Articles of Association: A document containing the articles of association or legal agreements that specify the details of partners, shareholders and the percentage of contribution.
- Business Report: A comprehensive description of a business or business plan that outlines the nature of the activities the company will undertake.
- Approval from the competent authorities: If the activity requires special approvals (such as health or educational activities), these approvals must be submitted.
- Registration Application Form: The company registration application form, which is usually available through the Department of Economic Development or the relevant authorities.
- Signing of documents: Partners or legal representatives sign the required documents.
- Registration fees: Pay the fees required to register the company, which depend on the type of activity and the size of the company.
Types of commercial licenses available in Dubai
In Dubai, there are several types of business licenses that suit different business activities. The following are the most prominent types of business licenses available:
- Commercial License: Granted to companies that carry out traditional commercial activities such as buying, selling and general trade.
- Professional License: This is for companies that provide professional services that require special skills or expertise, such as consulting, training, design, and advisory services.
- Industrial License: Issued to companies operating in the field of manufacturing or production. This license includes activities related to the manufacture and assembly of products.
- Tourism License: Granted to companies dealing with the tourism sector, such as travel companies, tour operators, hotels, and resorts.
- Health License: It is allocated to activities related to the health sector such as medical clinics, pharmacies, and beauty centers that provide medical or health services.
- Educational License: Granted to educational institutions such as schools, training institutes, and private education centers.
- Service License: Includes activities that provide specialized or consulting services without being industrial or commercial, such as transportation companies, security services, and technical consulting services.
- E-commerce license: granted to companies that operate entirely online or provide services and products through electronic platforms.
- Cultural License: Issued to companies active in cultural and artistic fields, such as artistic production companies and art centers.
Cost of obtaining a trade license in Dubai
The cost of a business license in Dubai depends on several factors related to the type of business activity, the size of the company, and the area in which you intend to register the company. Here is an overview of the main components of the costs of obtaining a business license:
- Basic License Fee: The cost of obtaining the business license itself, which varies depending on the type of business. These fees can be higher or lower depending on the scope of the company’s business.
- Establishment and Procedures Fees: These include the costs of preparing legal documents, articles of association, and fees for registration procedures with the Department of Economic Development.
- Rental costs: If your company’s headquarters requires rent, you will need to pay the rent, which depends on the location of the office or business.
- Additional approval fees: If the business activity requires special approvals from other government agencies (such as health, educational, or tourism activities), additional costs may be incurred to obtain these approvals.
- Consulting Services: If you use legal consulting services or the services of companies specializing in company registration, the costs of these services may be added to the total licensing cost.
- Other Permit and License Fees: Some activities may require additional permits or licenses related to the activity, such as building permits or e-commerce permits.
- Taxes: You may need to pay taxes on certain business activities or fees related to registering a business.
How to renew a trade license in Dubai
Renewing a trade license in Dubai is a periodic process that must be done to ensure that the business continues legally. Here are the steps to renew a trade license in Dubai:
- Review renewal date: Check the expiry date of your company’s trade license to avoid any delays. The expiry date of the license can be found in the official documents or on the Department of Economic Development website.
- Pay the fees: Pay the license renewal fees. These fees vary depending on the type of business activity and the size of the company. The fees can be paid online or at authorized service centers.
- Submitting a renewal application: Submit a license renewal application through the Dubai Department of Economic Development website or through one of the approved service centers. There may be forms that must be filled out and submitted.
- Application Review: After submitting your application, you may need to visit the Department of Economic Development to provide any additional information or to correct any details.
- Receiving the new license: After the renewal request is processed and approved, a new license will be issued. The license can be received from the service centers or via email if the service is available.
- Update Records: Make sure any other records related to your business are up to date, such as company information at your bank or other agencies.
In conclusion, obtaining a trade license in Dubai is an essential step for any individual or company looking to establish a business in this global city. We have covered how to obtain a trade license, from choosing the right type of license to submitting the necessary documents, as well as the benefits this license provides to companies. A trade license ensures that companies comply with local laws and helps build a strong reputation in the market, which contributes to the success and growth of businesses.
Understanding the procedures and requirements related to the commercial license can have a significant impact on the progress of the company establishment process, and saves the time and effort needed to avoid legal and administrative complications. Dealing with specialized consulting companies can also contribute to speeding up this process and ensuring full compliance with all requirements.
Top Frequently Asked Questions About Dubai Business License
How long does it take to get a trade license in Dubai?
The process of obtaining a business license usually takes from a few weeks to a month, depending on the type of activity and specific requirements. The duration may vary depending on the speed and completeness of the documents submitted.
Can foreigners get a trade license in Dubai?
Yes, foreigners can obtain a trade license in Dubai. They can establish a company as a whole or work as partners in companies, especially in free zones where they can own the company as a whole.
Do companies in free zones need a trade license?
Yes, even companies in free zones need to obtain a trade license. Free zones offer benefits such as full foreign ownership, but they also require a license to conduct business activities.
Can the commercial license be modified after it has been issued?
Yes, the commercial license can be amended to change the company name, type of activity, or any other details by submitting a request to the relevant government agency and providing the necessary documents.
What are the basic steps to obtain a commercial license?
The basic steps include choosing a company name, determining the type of activity, preparing the required documents, submitting the application to the relevant government agency (such as the Department of Economic Development), and obtaining the final license.
