DUBAI TRADE LICENSE: A COMPLETE GUIDE

Essentially, obtaining a Dubai trade license is the most critical step for any entrepreneur looking to operate legally in the emirate. The Department of Economic Development (DED) issues this license, which acts as your official permission to conduct specific business activities. Consequently, this guide covers the entire process, from understanding the different license types to the final application steps.

With BizVibez, you can navigate the licensing process with confidence. For instance, our experts handle all complexities, ensuring your business is set up for success quickly and efficiently.

What is a Dubai Trade License?

A Dubai trade license, often called a business license, is a legal document that authorizes a company to engage in commercial, professional, or industrial activities. Importantly, it ensures your business operates in compliance with all UAE laws and regulations. Without a valid license, conducting any business is illegal and will, therefore, result in heavy penalties.

Types of Trade Licenses in Dubai

The type of license you need depends directly on the nature of your business activities. For this reason, the DED categorizes licenses into three main types:

1. Commercial License
   Businesses involved in any form of trading, buying, or selling goods require a Commercial License. This is the most common license type and covers activities such as general trading, import/export, retail, and real estate.

2. Professional License
   The DED issues a Professional License to individuals or companies that provide service-based or artistic services. This includes consultants, lawyers, auditors, and IT specialists, among others. A key feature is that a Professional License on the mainland allows for 100% foreign ownership, although it does require the appointment of a UAE national as a Local Service Agent (LSA).

3. Industrial License
   An Industrial License is necessary for businesses that engage in the manufacturing, production, or fabrication of goods. For example, this includes factories, processing plants, and assembly workshops. To secure an industrial license, a business must obtain approvals from various government bodies, including the Dubai Municipality.

How to Get a Trade License in Dubai: The Step-by-Step Process

Experts handle the process for obtaining your license to ensure it is structured and straightforward. Specifically, our team manages every step for an efficient experience.

Step 1: Define Your Business Activities and Legal Structure
First, you must finalize the specific activities your business will undertake, as this determines your license type. In addition, you need to choose a legal structure, such as a Limited Liability Company (LLC) or a Sole Establishment.

Step 2: Choose and Register Your Company Name
Next, your company name must be unique and adhere to the UAE’s strict naming conventions. The name must be officially registered with the DED. We can check the availability and subsequently handle the registration for you.

Step 3: Obtain Initial Approval from the DED
Afterward, you submit your initial application and required documents, including passport copies of all partners, to the DED. The DED then issues an Initial Approval, which allows you to proceed.

Step 4: Draft and Notarize Your MOA and Lease Agreement
Following approval, you will need a Memorandum of Association (MOA) for LLCs and a tenancy contract (Ejari) for your physical office space. These documents must be professionally drafted and legally notarized.

Step 5: Submit Final Application and Pay Fees
Finally, once all documents are in place, you submit the final application to the DED and pay the required fees. Upon a successful review, the DED will issue your official Dubai trade license.

Dubai Trade License Cost

The cost of a trade license in Dubai varies depending on several factors. These include your chosen business activity, the legal structure of your company, and fees for name registration, initial approval, and office rental (Ejari).

Ultimately, our consultants provide a transparent, detailed cost breakdown based on your specific needs, so you can budget effectively with no hidden surprises.

Trade License Renewal in Dubai

Businesses must renew all trade licenses annually. The renewal process involves submitting an updated tenancy contract (Ejari) and paying the renewal fees to the DED. It is crucial to renew your license on time; otherwise, you can face fines and the freezing of your company’s activities. Our team can manage this renewal process to ensure your business remains compliant.

Start Your Business Journey with BizVibez

Getting your Dubai trade license is the first step toward building a successful enterprise in the UAE. Our team of specialists is here to handle every detail, from paperwork and DED approvals to ensuring you have the right legal structure.