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How to apply for a Trade License in Dubai?

By Shivangi - 01 Dec 2021 Last Updated: 05 May 2022
How to apply for a Trade License in Dubai?

When starting a business in the Dubai, one of the first things you should do is apply for a business license. There are several different license kinds to choose from.

While applying for a license is not without its challenges, determining which license type is best for your company is quite simple. If you provide professional services, for example, you should apply for a professional services license; if you manufacture items, you should apply for an industrial license; and if your company trades commodities, you should apply for a commercial license.

The type of license you need will be determined by the nature of your company and its operations. Regardless of whose license you choose, the application procedure is usually simple and quick if you are aware with the requirements for opening a business in the Dubai.

The type of license you need will be determined by the nature of your company and its operations. Regardless of whose license you choose, the application procedure is usually simple and quick if you are aware with the requirements for opening a business in the Dubai.

To reiterate, professional services licenses are most suitable for those providing marketing or consulting services, commercial licenses are best suited for trade or import/export businesses, and industrial licenses are best suited for those in the manufacturing industry.

To figure out which license is best for you, write down your business activities, which must be specified on your license application. Your company activity must correspond to one on a list that has already been published. There are more than 2,000 options, ranging from food manufacturing to business consulting.

The difference between Business Types Trade License required to start a business in the Dubai

Commercial License

In the United Arab Emirates, a commercial trade license is required for businesses that buy or sell goods. A commercial business trade license is required for dealing within the Dubai or even outside the nation. Imports and Exports, product trading, rental services, brokerage firms, logistics firms, real estate, and other business operations are all covered by a Dubai commercial trade license.

License for Tourism

Dubai is the most popular tourist destination in the world, with millions of visitors each year. The economic department and the DTCM launched a tourist license in the Dubai in order to govern the tourism industry. Businesses such as travel brokers, tour operators, the hospitality industry, and others must get a tourism license in the Dubai.

License For Professional Use

Professional Trade Licenses are required in the Dubai for service-oriented businesses. A professional trade license allows for 100% ownership; however, the process must be completed by a local service agent. Management consultancies, law firms, marketing and design firms, Auditing and accounting firms, and other businesses require a professional license.

License for Industrial Use

Businesses engaged in industrial and manufacturing activities in Dubai are required to get an Industrial Trade License. For this license, you must have a physical office within the country. Manufacturing of any kind of product, casing of products, furnishing of products, and packaging of products are only a few of the notable activities.

How to Apply for Trade License in Dubai

You must first outline your company activity, or activities, before submitting your trade license application. Depending on the license you select, you may be able to specify multiples on your application.

It's a good idea to engage with a business formation company at this point to ensure you include all of the activities you plan to do. Such professionals are aware with permitted activities and can recommend those that are most appropriate for your company.

The next step is to pick a business name. This is not a simple undertaking no matter where you choose to conduct business. However, there are a few additional issues to keep in mind in the Emirates. The Dubai has a set of name conventions that are both rigid and simple to follow. Again, a business setup professional may assist you in adhering to them.

You can now apply for your trade license after deciding on your firm name and activities. This application can be submitted directly to the Department of Economic Development (DED) or municipality of the emirate in which you are establishing a business, or to the management authority of the Freezone in which you wish to operate. In either case, a business formation professional can assist you with this stage, even managing the full application procedure on your behalf.

Whether you apply on your own or through a company formation agent, you will typically only need to give a few details and some basic documentation, such as:

  • Completed application form
  • Passport copy of the proposed owner or owners
  • Two colour passport size photos.

1. Obtaining initial clearance and registering a trade name in Dubai

You must first apply to DED Dubai to reserve a trade name for your company. The permission will be issued if the firm name is available. You'll also need to apply for first authorisation for the commercial operations you'll be conducting with your Dubai trade license.

2. Notarization of the Memorandum of Association of the Company

To receive a trading license in Dubai, the company's Memorandum of Association must be notarized. At DED Dubai, notarization can be completed in less than a day. Along with it, a trade license application must be submitted.

3. Documents to be submitted

Document submission is required not only for obtaining a Dubai trade license, but also for registering as a member of the Dubai Chamber of Councils. The applicant must go to the DED Dubai's commercial registry in order to submit the needed original paperwork. The name of the company is entered into the Commercial Register if the documents are complete and legal. The Federal Ministry of Economy receives these documents, as well as the MOA and trade license application form.

The Benefits of Having a Dubai Trade License

As the Dubai strives to attract more foreign direct Investment, the DED trade license offers significant benefits to investors and business owners.

  • Import duties are minimal.
  • It is not necessary to have paid-up capital.
  • Not only on money, but also on earnings, 100 percent repatriation is possible.
  • A wide range of banking advantages are available to you.
  • Tax-free territory
  • It serves as a crossroads for both domestic and international trade.

Conclusion

Dubai serves as a location for firms to form professional ties and assist one another in growing. Dhanguard are well aware of the emirate's incomparability and significance. Aside from the Dubai trade license, we will also walk you through the entire process of starting a business in Dubai.

Experts on the team have completed a large number of projects in Dubai and other regions of the Dubai relating to mainland business creation,Offshore company formation, and free zone company formation.

Allow us to handle the formation of your company in the Dubai and the obtaining of a DED trading license. We'll take care of the business setup while you focus on your primary business.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides the company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free offshore company formation services and company formation services in Mainland and Freezone in UAE.

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