Get Trading License in Dubai UAE

Get Trading License in Dubai UAE: Dubai, UAE is an amazing city and has managed to retain successfully its global position in the business market. Young starters and fully developed business organizations are offered plenty of business opportunities. If you are eager to start a new business here and is a foreign investor, then there is a need to understand the rules & regulations set by the Dubai government and to adhere to it. One initial step will be to obtain the Trade License, since it will reflect your business activities in Dubai.

You can apply for trade license to export/import in Dubai clothes or products like electronics, accessories, clothes, raw materials, furniture, etc. If you deal in multi-trading activities, general trade license will cover them all. However, the trade license will not cover few products like medicines, alcohol, cars, guns etc. since it will require the UAE municipals to provide high level clearances and authorizations. The type of approval to be derived from the concerned authorities will be determined by your business activities. For example:

• Approval will be necessary for insurance agencies from Economy & Commerce Ministry.
• Approval will be necessary for financial institutions from Central Bank.
• Approval will be necessary for food related services from Municipal Food Department.
• Approval will be necessary for medical services from the Health Ministry.
• Approval will be necessary for manufacturing firms from Finance & Industry Ministry.
• Approval will be necessary for education related services from Knowledge & Human Development Authority.

In Dubai, UAE, it is the DED (Dept. of Economic Development) that takes the responsibility to manage issuance of Trade License. But in few rare cases, the registration process may be taken care of by Dubai Commerce Chamber.

Trade License, Dubai & its benefits

With the trading license obtained in Dubai, you are sure to avail plenty of benefits. Given below are few crucial benefits:

• No restrictions on currency
• Varieties of banking facilities
• Low import duty
• Auditing optional
• Hassle-free registration procedure
• Local & international trading

Trade License types in Dubai

Trade license offered for registration in Dubai are of three types, namely:

Commercial License

Companies carrying out trading activities can obtain commercial license. It includes all types of business activities. But with Mainland Limited Liability Co. creation, you can trade in the UAE market. To achieve this objective, you will require a local sponsor. In case, your business deals in external trading outside the UAE, company can be established in the Dubai Freezones. For this, local sponsor will not be necessary and you can enjoy 100% ownership of your company. Free Zone companies are permitted to get into partnerships with Mainland companies to market their services and products within the country.

Business activities included within Commercial License

• Brokerage firms
• Logistics firms
• Raw material trading
• Electronics trading
• Car rental services
• Export & Import

Industrial License

Companies involved in product manufacturing are provided with this type of license. You need to have a brick & mortar office in Dubai Free zone or Mainland to obtain this license.

Business activities associated with this license include

• Food product manufacturing
• Packaging
• Metal casing
• Furniture manufacturing

Professional License

Craftsmen, service providers, artisans and professionals will require obtaining this license. But if have 100% business ownership, then a local sponsor will be necessary to avail this license.

Business activities associated with this license include

• Educational institution
• Auditing & Accounting companies
• Law firms
• IT (Information Technology) companies
• Medicine related businesses
• Management & Marketing consultancy

Documents essential to obtain trade license

To obtain trade license, documents to be submitted will vary depending upon business activities. The general requirements for documents include the following:

• Passport & Visa copy (meant for partners)
• Firm name approval
• MOA (Memorandum of Association)
• Licensed application

Procedure to obtain Trade License, Dubai

It is possible to conduct business hassle-free in Dubai by obtaining valid trade license. Following are the essential legal requirements during submission of trade license requests to concerned authority:

• Choose specific business category type
• Determine business related activities
• Fill application to avail initial approval
• Prepare business plan
• Get approval of trading name
• Application submission to concerned authorities
• Choose business premises & get authority approval
• Legal documents including Memorandum of Association as required by concerned authority
• Pay prescribed fees and charges

Trade License Cost in Dubai

Trade license cost depends entirely upon the business activity type that you plan to conduct in Dubai. Initial cost involved in Free Zones and Mainland is also different. Cost might involve terms like:

• License application cost
• Court Appearance of Local Sponsor
• Business Address registration
• Consultancy fee
• Local sponsorship fee
• Legal document translation and typing

Why obtain trade license in Dubai?

You need to follow the given below points to initiate the process:

• Easy application process
• Reasonable setup cost
• Business can be set up anywhere desired
• Low barriers exist for business expansion
• Patronizing dependents is much easier
• Allows participation with regards to government measures
• Business can undertake commercial activities

Besides the above, there are offered numerous banking and financial facilities for corporate and personal purposes. In Dubai, a major advantage derived from holding trade license is, not requiring paying any taxes. Multiple visas can also be applied for on meeting specific criteria requirements. The company trying to establish in Dubai, on obtaining trade license is able to enjoy 100& capital and profit repatriation. It is because of such opportunities offered that businesses in Dubai are able to expand further to achieve record breaking measures.

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Originally posted 2021-09-29 06:20:39.