We all know that Dubai is a center of attraction for people all over the world for its lavishing lifestyle, glittering nightlife, and professional business activities. Investors, business owners, and employees in Dubai belong to different nationalities, races, religions, etc. Everyone is making a great fortune for themselves considering coming to Dubai for various reasons. One thing is certain, Dubai is amazing for its booming business and incredible trading opportunities.
This is one of the major reasons why business owners from all over the world are considering Dubai as their base for the incredible amount of trading options. In this light, I want to inform the readers that more than 55,000 new trade or business licenses have been issued in the past year.
What is a Trade License in Dubai?
A trade license is a legal document given to a company or business owner for carrying out legal business operations in Dubai and other Emirates of the UAE. The Department of Economic Development of the United Arab Emirates is an authorized body for issuing trade licenses to anyone planning on opening a business.
Once you have fulfilled all the requisites required by the Department of Economic Development, you will be issued a valid trade license in Dubai. Using this trade license, you can carry out several import and export activities with the license.
If you are planning to open a business in any Free Zones in Dubai, you are eligible to get a trade license in Dubai. Moreover, it is also important to note that companies offering industry-specific services are also eligible to apply for Dubai Trade License without any hassle.
Types of Trade Licenses in Dubai
When you have planned to get a trade license in Dubai, it is vital to note that you are not allowed to get into all the categories, but only these categories exist from which you can choose easily;
- Commercial Trade License
The first is a commercial trade license required for the ones participating in the trade activities. In this type of trade license, the business includes exporting, importing, brokerage services, trading products, and rental activities.
- General Trade License
General Trade License is another important and required for operating general trades. These trade activities include imports and exports.
- Professional Trade License
The next that comes in the line is a professional trade license. It is a type of license for professional individuals offering a special set of services. The professional trade license brings a great set of benefits to the table, i.e., the license holder can sell their services to governmental bodies and authorities and make lucrative contracts.
- Industrial License
The next in line is industrial licenses for businesses running industrial and manufacturing operations in the UAE. This trade license is particularly for you if you are a manufacturer inside the UAE, and it also allows you to open your industrial office space inside the country.
10 Steps to Get Trade License in Dubai, UAE
If you have prior experience beginning businesses in the UAE, you may know the process to get a trade license in Dubai. But before entering the battle on your own, if you’re new, it’s advised that you seek advice from the professional lawyers at MAAF Legal, the leading legal firm in Dubai. If you decide to take the plunge alone, you may follow advice from corporate law firms in Dubai, which is broken down into these easily riveted steps.
1. Select Business Area & Name
The foremost step, to begin with, is to determine which area or business jurisdiction you are planning to open your business in. Business investments must be made carefully, and when choosing Dubai as your business operation center, you should select it beforehand. The business jurisdictions in Dubai are Mainland Dubai, Free Zones, and Offshore Companies.
Moreover, the next thing to undermine is the business name, which is another crucial thing for setting up your company and obtaining a trade license. So, you must consult to a legal advisor in Dubai at Mai Alfalasi.
2. Be Clear on Your Business Legal Framework
The next is to be clear on your business legal framework. It is a vital aspect to obtain a trade license in the UAE. In this legal framework, you will describe the functioning and operations of your business and the key liabilities of your enterprise. In order to obtain a trade license and structuring a legal framework, you can take assistance from the best legal counsels in Dubai.
3. Describe Your Business Activities
After deciding on your company’s name and legal form, you must specify the commercial operations you want to carry out. Each trade license enables a maximum of 10 activities, so be sure to mention all of your activities on the license.
4. Plan to Get Initial Approvals
The next important thing is to get initial approvals for registering your business as well as obtaining a trade license. The initial approvals from the Department of Economic Development in Dubai will be obtained. For this, you will need to fill up a form or application.
5. Prepare a Memorandum of Association (MOA)
Another vital step to perform is the preparation of the memorandum of association (MOA). In order to obtain a trade license in Dubai, preparing MOA is highly important. For this, you will also need to get the services of a legal representative to carefully and properly draft this document.
6. Collect Important Documents
The next important part is to collect some important documents before moving further with a trade license. This is where you may require external approvals. Also, be mindful of the fact that you will need to research the correct business formation process. Failing to fulfill the requirements will result in a rejection of your trade license form.
7. Finalize Your Office Space
Because the rental agreement and EJARI are required to get the trade license from the DED, you must find an office space. You can choose a virtual office if you don’t require a real office location. But either way, you must fulfill this step to move forward with your trade license.
8. Submission of Documents to the DED
There are some weighty documents from the DED that must be submitted. The following is a list of the documentation you must provide to the DED:
- Clear copies of shareholders’ passports.
- Initial approval document from the DED.
- DED application form.
- Memorandum of Association (MOA).
- Tenancy contracts and EJARI
9. Submit an Application for Trade License
Now that you have prepared all the documentation followed the process, and decided on the business location, moving forward with applying for a trade license is the next thing that comes up in line. This is where you will need to submit all the documents and other materials to the DED to obtain your trade license.
10. Pay the Required Duese
Keep in mind that obtaining a trade license is not free. In order to obtain your license, you must pay both the licensing fee itself and the issuance fee.
The Final Words
If you’re looking for professional help, you’ve come to the right place. Our team of expert lawyers and advocates at MAAF Legal will take care of all your business needs before and after company formation. So contact us today, move successfully with your company registration, and obtain a legal trade license in Dubai.
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Mai Alfalasi Advocates & Legal Consultancy
1203, Green Tower
Baniyas Street, Deira
Dubai, United Arab Emirates
Phone. +971 4 223 0666
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Email. info@maaflegal.ae
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