Dubai is a global business hub that attracts entrepreneurs, investors, and companies from all over the world. One of the essential requirements for doing business in Dubai is obtaining a trade license. A trade license is a legal document that authorizes a company or an individual to conduct commercial activities in Dubai and the UAE. In this guide, we will provide you with a comprehensive overview of the trade license in Dubai, including the general trading license and its cost.
General Trading License in Dubai
The General Trading License is the most popular type of trade license in Dubai. It allows the license holder to import, export, and trade in a wide range of products and services, except for the items that require special permits or approvals. Here are the requirements and procedures for obtaining a General Trading License in Dubai:
Company Registration: You need to register your company with the Department of Economic Development (DED) or the relevant free zone authority, such as Dubai South or Dubai Multi Commodities Centre (DMCC).
Business Activity Selection: You need to select the appropriate business activity for your General Trading License. The business activity should be relevant to your business plan and comply with the regulations and restrictions of the DED or the free zone authority.
Business Plan: You need to prepare a detailed business plan that outlines your company’s objectives, strategies, products, services, target market, and financial projections.
Tenancy Contract: You need to provide a tenancy contract for your office or warehouse space that complies with the regulations and requirements of the DED or the free zone authority.
Trade Name Registration: You need to register your trade name with the DED or the free zone authority and obtain the necessary approvals.
Application Submission: You need to submit your application for the General Trading License to the DED or the free zone authority and pay the necessary fees.
Approval and Issuance: Once your application is approved, you will receive your General Trading License, which is valid for one year and renewable.
Dubai Trade License Cost
The cost of a trade license in Dubai varies depending on several factors, such as the type of license, the business activity, the location, and the duration. Here are the main costs associated with obtaining a trade license in Dubai:
Trade License Fee: The trade license fee is the main cost of obtaining a trade license in Dubai. The fee depends on the type of license and the location. For example, the cost of a General Trading License in Dubai Mainland ranges from AED 15,000 to AED 25,000, while the cost of a Free Zone General Trading License ranges from AED 15,000 to AED 35,000.
Office Rent: You need to rent an office or a warehouse space to obtain a trade license in Dubai. The rent cost depends on the location, size, and facilities. For example, the rent cost for an office in Dubai Mainland ranges from AED 30,000 to AED 120,000 per year, while the rent cost for an office in a free zone ranges from AED 20,000 to AED 80,000 per year.
Immigration Fees: You need to pay immigration fees for obtaining the necessary visas for yourself and your employees. The fees depend on the type of visa and the duration. For example, the cost of a three-year employment visa for a skilled worker in Dubai Mainland is AED 8,500, while the cost of a three-year residence visa in a free zone is AED 15,000.
Other Costs: You may need to pay other costs, such as legal fees, translation fees, notarization fees, and government fees, depending on the requirements of the DED or the free zone authority.
Abu Dhabi Trade License
Abu Dhabi is another popular destination for doing business in the UAE. The process of obtaining a trade license in Abu Dhabi is similar to that in Dubai, but there are some differences in the requirements and procedures. Here are the main requirements and procedures for obtaining an Abu Dhabi trade license:
Company Registration: You need to register your company with the Abu Dhabi Department of Economic Development (ADDED) or the relevant free zone authority, such as Abu Dhabi Global Market (ADGM) or Abu Dhabi Airport Free Zone (ADAFZ).
Business Activity Selection: You need to select the appropriate business activity for your trade license. The business activity should be relevant to your business plan and comply with the regulations and restrictions of the ADDED or the free zone authority.
Business Plan: You need to prepare a detailed business plan that outlines your company’s objectives, strategies, products, services, target market, and financial projections.
Tenancy Contract: You need to provide a tenancy contract for your office or warehouse space that complies with the regulations and requirements of the ADDED or the free zone authority.
Trade Name Registration: You need to register your trade name with the ADDED or the free zone authority and obtain the necessary approvals.
Application Submission: You need to submit your application for the trade license to the ADDED or the free zone authority and pay the necessary fees.
Approval and Issuance: Once your application is approved, you will receive your trade license, which is valid for one year and renewable.
Obtaining a trade license in Dubai or Abu Dhabi is a crucial step for doing business in the UAE. It allows you to legally operate your business and conduct commercial activities in the region. The process of obtaining a trade license can be complex and time-consuming, but with the help of a reputable business setup consultant, you can simplify the process and ensure that your application is approved smoothly.
The cost of obtaining a trade license in Dubai or Abu Dhabi depends on several factors, such as the type of license, the business activity, the location, and the duration. It is important to consider these factors and plan your budget accordingly to avoid any unexpected costs.
In summary, if you are planning to start a business in Dubai or Abu Dhabi, obtaining a trade license should be your top priority. With the right guidance and support, you can obtain your trade license and start your business journey in the UAE.
