Obtaining the cheapest trade license in Dubai requires government and economic department approvals. Also, licensing can be confusing and costly for first-time investors. You must promptly obtain clearance from UAE agencies for your company formation documents. And while all of this may sound complicated, starting a business in Dubai is still a good choice.
There are numerous advantages to starting a new business in Dubai. The UAE is an excellent business location, ranking 16th in the World Bank’s Ease of Doing Business 2024 report. Furthermore, accessible business licensing, government legal assistance, business-friendly policies, and other benefits help businesses to prosper and grow.
So if you want to start a trading business in Dubai, worry not. The country has several low-cost economic zones that offer some of the cheapest trade licenses in the UAE. This blog will walk you through the benefits, types, documents, procedures, and costs of a Dubai trade license.
Types of Trade Licenses in Dubai – UAE
The UAE government has listed thousands of activities but has categorized major businesses into four types of business trade licenses:
- Commercial License: A commercial trade license is required in the UAE for businesses that buy or sell goods. This license is required for trading both within and outside the UAE. Some of the commercial operations carried out under a UAE commercial permit include imports and exports, product trading, rental services, brokerage firms, logistics companies, real estate, and so on.
- Professional License: Businesses that provide services in the UAE must have a professional trade license. Professional ventures can run businesses such as management consultancies, law firms, marketing, and design firms, auditing and accounting firms, and so on.
- Industrial License: An industrial trade license is granted to businesses engaged in manufacturing and industrial activities in Dubai. You must have a physical office within the country to obtain this permit. Manufacturing any product, casing, furnishing, and packaging are just a few permitted activities.
- Tourism License: Dubai is widely regarded as the top tourist destination, attracting millions of visitors each year. In the UAE, the Economic Department and the DTCM launched a tourist license to regulate the tourism industry. Tourism permits are required in the UAE for businesses such as travel agencies, tour operators, and the hotel industry.
Benefits of Getting a Trade License in Dubai
Here are some benefits to consider when looking for a trade license in UAE:
- Increase local and international trade
- Enhance credibility
- Obtain tax benefits
- Trade restrictions are few
- Set-up is simple
- Sponsor opportunities
- Quick and easy-to-understand procedure.
- Documentation requirements are lower than average.
- Allows the establishment of holding companies in Dubai.
- One of the most appealing aspects of a trade license is its low estimated cost.
- It is a legitimate warehousing holding company exempt from paying income and profit taxes.
- There is also an exemption provision for audit reports submitted to the Dubai government.
- A trade license holder has access to services such as corporate banking.
What Documents Do You Require for a Trade License in Dubai?
You need the following documents to file for a trade license in Dubai:
- A completed application form that describes what your business does and the goods and services you will be trading in
- Copies of your passport and passport-size photos
- A copy of your residence visa (if applicable)
- Emirates ID copy (if applicable)
Depending on your company’s operations, organizational structure, and preferred location, more documentation may be required. Our experts can assist you with a wide range of business documents.
How to Get a Trade License In UAE?
Obtaining the Trade license in UAE is simple if you have the right advice and documentation. The following steps must be taken into account:
1. List Your Business Activities
To start a business in the UAE, you must first obtain a trading license. But first and foremost, you must list out all of the operations you intend to carry out. This will help you choose the right business permit and apply for it.
2. Choose a Location
Ordinary trade businesses require easy access to various modes of transportation, whereas industrial businesses should look for locations with large warehouses. Understanding your needs will assist you in deciding where to locate your business. You should be aware that you can establish both mainland and a free zone business in Dubai.
3. Reserve a Trade Name
In the following step, you will reserve a trading name for your company. The title should not be religious or mention any deities; instead, it should describe your abilities. In addition, the company name must be free of any offensive or negative phrases. But that’s not all. The list of rules is extensive, and you must ensure that the name you choose complies with all.
Once completed, you can use the payment receipt from the transaction to obtain preliminary clearance.
4. Apply and Get Your Trading License
After you’ve completed the preceding steps, you can apply for a trading permit from the relevant authority. Ensure to apply for a suitable license after considering your operations. Make sure you are not engaging in any activities not covered by your license. However, this does not preclude you from operating. You only need to seek approval from outside sources. Furthermore, renew your permit yearly to keep it active.
5. Open a Bank Account
A corporate bank account is also required to manage your company’s transactions. Choose a reputable bank that provides convenient services and long-term benefits.
Cheapest Trade License cost in Dubai
A trade license in Dubai can cost anywhere from AED 15,000 to AED 5,0000. The UAE’s newest investment hub, Ajman Media City, offers a rapid and straightforward company formation process. This free zone attracts businesses from all around the world by providing specific and inexpensive services. AMC offers a wide range of media and entertainment-related activities.
Since it is a free zone, it is the ideal place for small and midsized business owners to launch their enterprises. AMC, which offers trade licenses beginning at AED 8500, is one of the UAE’s most reasonably priced free zones. Besides this, other free zones like IFZA and Meydan Free Zone offer trade licenses starting from AED 10,000*.
Get Your Trade License With Bizinvestfirm
The specialists at the Bizinvestfirm can help you obtain a trade license in Dubai. We can also assist you with ongoing license renewals. We can provide customized business setup packages and a wide range of business solutions for all business setups and licensing needs. Our professionals will make the process hassle-free and quick, ensuring no mishaps. All you need to do is get in touch with us!
