Dubai is one of the world’s leading business destinations, thanks to its dynamic business environment and investment-friendly laws. One of the essential steps to setting up a business in Dubai is obtaining a trade license. Opening a trade license in Dubai is a crucial step for anyone looking to start or expand their business in this advanced city. A trade license is the official document that authorizes a company to practice its legal activities within a certain scope, and it requires the completion of a set of specific procedures and criteria. In this article, we will discuss how to obtain a trade license in Dubai, the necessary requirements, and the necessary procedures to ensure that the process of obtaining a license is facilitated and the company is compliant with local laws and regulations.
Basic requirements for obtaining a trade license in Dubai
When obtaining a trade license in Dubai , you usually need to meet a set of basic requirements. Here is a list of the main requirements that are usually required:
- License Application Form: The license application form must be filled out with accurate information about the business activity you intend to conduct.
- Memorandum of Association and Articles of Association: The memorandum of association documents the company’s structure, objectives, number of shareholders, and type of activity.
- Passport copies: Colour copies of the passports of the shareholders and directors concerned.
- Lease Agreement or Property Title Deed: A lease agreement for the place where the business will be located must be submitted.
- Building Permit Copy: If the company will be using a commercial building, a copy of the building permit may be required.
- Image of a Business Plan: A document that outlines a company’s plans for growth and development and proposed strategies.
- Good Standing Certificate: For shareholders and directors to confirm their good standing and conduct.
- Professional Permits for Business Activity: The professional permits required to practice the business activity must be obtained.
- Pay the required fees: The required fees must be paid to obtain the commercial license.
Costs of opening a business license in Dubai
When opening a business license in Dubai , you will incur various costs. Here is a list of some of the costs that may be required, and these costs vary depending on the type of business, the type of license, and the size of the company:
- Company Registration Fees: These fees include the costs of registering and establishing the company.
- License Renewal Fee: You need to pay an annual fee to renew your business license.
- Document and Permit Fees: You may need to pay fees to obtain business-specific permits.
- Contract and rental fees: These fees include the costs of rental contracts for offices or shops.
- Legal and accounting consulting fees: You may need to pay fees for legal and accounting consulting to ensure compliance with local laws and regulations.
- Advertising and Marketing Fees: A budget must be allocated for advertising and marketing to attract customers.
- Required visa fees: You may need to pay fees for employee visas if this is required.
- Insurance costs: You may need to pay for insurance to protect your company and employees.
- Government Service Fees: These fees include any fees applied by the relevant government agencies.
Types of commercial licenses available in Dubai
Here is a table showing the types of business licenses available in Dubai, with a brief description of each type and the activities covered:
| Type | Description | Activities included |
|---|---|---|
| Commercial License | A license that allows the practice of general commercial activities. | Buy and sell products, e-commerce, distribution. |
| Industrial License | A license reserved for companies that involve the manufacture or production of goods. | Factories, workshops, production of goods, manufacturing. |
| Service License | A license that allows the provision of consulting or professional services. | Consulting services, IT services, financial, educational. |
| Professional License | Special license for independent practitioners and sole proprietorships. | Law, medicine, engineering, design, artistic activities. |
| Branch License | License to open a branch of a company located outside Dubai. | Commercial, industrial, and service activities by branch type. |
| Holding companies license | A license for companies that invest in or manage other companies. | Investment management, holding companies, business groups. |
| E-commerce license | License to trade online and sell products and services over the web. | Selling products and services online, e-commerce. |
| Distribution License | License to engage in the activities of distributing products and goods. | Product distribution, wholesale and retail distribution. |
The requirements and conditions for each type of license vary depending on the competent authority and the commercial field, so it is always preferable to review the details with the relevant authority to obtain the appropriate license for your business activity.
Basic steps to obtain a trade license in Dubai
Here are the basic steps to obtain a trade license in Dubai:
- Determine the business activity: Before starting the process of obtaining a license, you must determine the business activity that you wish to practice.
- Choosing the legal form of the company: The appropriate legal form for the company must be chosen, such as a sole proprietorship, joint stock company, limited liability company, etc.
- Choosing a Trade Name: You should choose a unique trade name and ensure that it complies with local regulations.
- Obtaining a permit from the competent authorities: You may need to obtain permits for your business activity from the competent authorities.
- Submitting the required documents: It may be required to submit documents such as commercial register, lease contract, passports, incorporation documents, etc.
- Pay the required fees: The fees required for the process of obtaining a commercial license must be paid.
- Submitting a license application: After preparing all documents and paying the fees, the license application must be submitted to the competent authority.
- Waiting for approval: After submitting the application, you must wait for the procedures to be completed and final approval to be obtained.
- Receiving the commercial license: After approval, you can receive your commercial business license.
- Registering the company for taxes and social security: After obtaining the license, the company must be registered with the relevant government authorities for taxes and social security.
How to renew a commercial license
Here are the general steps to renew a commercial license in Dubai :
- Prepare in advance: Check the expiration date of your business license and prepare to renew it before it expires.
- Update information: Make sure that all information related to the company such as its address and contact information is up to date.
- Payment of fees: Pay the required fees to renew the license. You can check the specific fees from the relevant authority.
- Submitting the application: You may need to submit an application for renewing your trade license to the relevant authority in Dubai. Make sure to submit all the required documents.
- Examination and Approval: After submitting the application, it will be reviewed and examined by the responsible authority. If approved, the renewed license will be issued.
- Receiving the renewed license: After approval, you can receive the renewed commercial license from the responsible authority.
- Update Records: Once you receive your renewed license, make sure to update all of your company’s records with the new information.
- Update taxes and social insurance: Don’t forget to update your company’s registration with the government agencies concerned with taxes and social insurance.
In conclusion, opening a trade license in Dubai is an essential step towards achieving success in the city’s thriving business environment. By following the right steps and preparing the required documents, entrepreneurs and investors can take advantage of the unique business opportunities that Dubai offers. Make sure to understand the legal requirements and procedures for obtaining a trade license to avoid any delays or complications. Obtaining a trade license is not just an administrative procedure, but rather a gateway to the world of business in Dubai, where companies can grow and thrive in a favorable and stimulating environment. By adhering to all procedures and submitting the correct documents, you can be sure that your company will be on the right path to success in this leading market.
Top Frequently Asked Questions About Opening a Business License in Dubai
What is a commercial license and what is its benefit?
A business license is a legal authorization that allows a company to legally conduct business activities. Its benefits include allowing the company to conduct business, open bank accounts, and hire employees.
How do I choose the right type of business license?
Choosing the type of license depends on the nature of your business activity. The general commercial license is suitable for most commercial activities, while the professional license is suitable for service activities, and the industrial license is suitable for production activities.
How long does it take to get a trade license in Dubai?
The process usually takes two to four weeks, depending on the type of license and the efficiency of submitting the documents.
Can the commercial license be renewed? And how is this done?
Yes, the commercial license can be renewed. Renewal requires submitting an application to the responsible authority and paying the renewal fees.
What other licenses might you need besides the commercial license?
You may need additional licenses such as health, educational, or industrial licenses, depending on the nature of the company’s activity.
What are the procedures required to change the company name?
An application must be submitted to the responsible authority to change the name, amend the articles of association, and reissue the license with the new name.
