What is the cost of a trade license in Dubai?

٠٧ مايو What is the cost of a trade license in Dubai?

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What is the cost of a trade license in Dubai? The cost of obtaining a business license in Dubai is one of the primary factors that influence the decision to start a business in the emirate. Dubai is a global center for business and trade, and provides an ideal environment for investment thanks to its advanced infrastructure and simplified procedures for establishing companies. However, understanding the costs associated with obtaining a business license is vital for investors and entrepreneurs. This includes the cost of issuing the license itself, as well as other fees related to setting up the company, such as registration fees, rents, and costs of additional services. In this article, we will review in detail the cost of a commercial license in Dubai , focusing on the factors that affect it and how to estimate it accurately to ensure sound financial planning.

What is the cost of a trade license in Dubai?

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What is the cost of a trade license in Dubai?

The cost of a business license in Dubai is affected by a number of factors that vary depending on the type of company, business activity, and location. Here are the most important factors that affect the cost of a commercial license:

Type of commercial license : There are different types of commercial licenses available in Dubai, such as the general commercial license, industrial activities license, and professional activities license. Each type has a different cost based on the scope of activity and licensing requirements.
Company location : The cost of the license can vary based on the location you choose for the company, whether it is in a free zone or in a non-free zone. Free zones may provide incentives such as tax breaks, but they come at different costs.
Company size and type of activity : Large companies that intend to carry out multiple activities may need a multi-activity license or additional permits, which increases the cost. While small companies with limited activities may have lower costs.
Number of shareholders : Companies with multiple shareholders or partners may require additional registration fees and legal costs.
Rent and Leasing : The cost of rent for office or commercial space also affects total costs, as prime locations may be more expensive.
Consultations and Additional Services : The cost of legal and financial consultations, as well as additional services such as translation and notarization, can add to the total cost of obtaining a license.
Government fees : These include fees imposed by various government agencies, such as the Department of Economic Development, and they vary based on the type of license and the activities it includes.

By understanding these factors, investors and entrepreneurs can better plan and estimate the total cost of obtaining a business license in Dubai.

Types of business licenses in Dubai

Here is a table showing the types of commercial licenses in Dubai :

License type	Description	Permitted activities
General commercial license	It is granted to companies that carry out various commercial activities including buying and selling.	General trade, wholesale and retail.
Industrial license	It is awarded to companies that deal in manufacturing or production.	Manufacturing, production, filling and packaging.
Professional license	Awarded to professional businesses that provide consulting, educational, or technical services.	Consulting, law, design, engineering.
Free business license	It is granted in free zones and allows companies to carry out commercial activities while benefiting from tax exemptions and facilities.	All commercial activities, including industrial and professional activities.
E-commerce license	It is granted to companies that operate online or provide electronic services and products.	Selling products and services online, developing websites and programs.
Limited business license	It is granted to companies that wish to carry out specific business activities within a certain scope.	Pre-defined business activities according to the scope of the license.

Each type of these licenses requires meeting specific conditions and requirements, and the cost can vary based on the type of license and the activity assigned to it.

Steps to obtain commercial licenses in Dubai

Obtaining a commercial license in Dubai requires following specific steps to ensure that all legal and procedural requirements are met. Here are the basic steps to obtain a commercial license in Dubai:

Choose the type of license : Select the type of commercial license appropriate for your business activity (commercial, industrial, professional, or free trade).
Choosing a company name : Choose an appropriate business name that complies with the laws and regulations in force in Dubai. Make sure it is not used by other companies.
Determine the business activity : Determine the business activity that you will undertake. You may need to classify activities and identify main and sub-activities.
Location selection : Choose a location to conduct business, whether it is in a free zone or a non-free zone. Determine the type of office or space required.
Submitting an application : Submit an application to obtain a commercial license through the Department of Economic Development (DED) if you work outside the free zones, or through the supervisory body in the free zone if you work inside a free zone.
Preparing the required documents : Collect the required documents such as passport, residence visas, lease contract, description of the business activity, and approval of the trade name.
Review and audit documents : Verify the authenticity of documents and ensure that they meet all legal requirements.
Obtaining approvals : Obtain the necessary approvals from government agencies, such as the Department of Economic Development, or the supervisory authority in the free zone.
Payment of fees : Pay the fees required to issue the license. Fees include registration fees, license fees, and any additional fees.
Receiving the license : After completing all the steps and paying the fees, you can receive the commercial license. Make sure to review it to verify its authenticity.
Company Registration : Register your company with other government agencies if necessary, such as the Ministry of Human Resources and Emiratisation or the General Pensions Authority.
Open a bank account : Open a business bank account in the company’s name to manage financial transactions. Make sure to follow up on any updates or changes in requirements via official agencies to ensure that all legal standards are met.

Conditions for obtaining commercial licenses in Dubai

To obtain a commercial license in Dubai , a set of conditions and requirements must be met that vary based on the type of license and commercial activity. Here are the basic conditions for obtaining a commercial license in Dubai:

Determine the type of license and company activity : Determine the type of license (commercial, industrial, professional) and the commercial activity that you will undertake.
Trade name : Choose an appropriate trade name that complies with the regulations in force in Dubai, and ensure that it is not used by other companies.
Approval of the competent authorities : Obtaining the necessary approvals from the relevant government agencies or regulatory bodies, such as the Department of Economic Development (DED) or the supervisory authority in the free zone.
Lease Contract : Submit a lease contract for an office or commercial space in the location where you will conduct the activity. The contract must be certified by the competent authorities.
Provide personal documents : Provide copies of passport, residence visas (if you are a resident), and personal identification details of shareholders or directors.
Financial guarantee : Some activities may require proof of financial ability or certain financial guarantees depending on the type and size of the activity.
Meeting health and security conditions : If the business activity is related to health or food, health licenses or security approvals must be obtained from the relevant authorities.
Commercial Registration : Submit a commercial registration application to the Department of Economic Development or the supervisory authority in the free zone, and complete all required forms.
Compliance with local laws and regulations : Ensure that the company adheres to local laws and regulations related to commercial activity.
Submitting a business plan : Some entities may request the submission of a detailed business plan that explains the company’s objectives, strategy, and proposed activity.

Make sure to review all specific licensing requirements for your business and their updates across the official authorities to ensure full compliance.

Types of business licenses in Dubai

Papers required to obtain commercial licenses in Dubai

To issue a business license in Dubai , a set of basic documents must be submitted to the competent authorities. Required documents include:

Passport : A colored copy of the passport for all partners or shareholders in the company. It must be valid and certified by the relevant authorities if it is from outside the country.
Residence Visa : A copy of the residence visa for Dubai residents. If the company is managed by residents, copies of their visas must be submitted.
Personal photo : Recent personal photos of the founders or partners, which may also require confirmation from government agencies.
Lease Contract : A copy of the lease agreement for an office or commercial space. The contract must be certified by the relevant authorities (such as the Land Department).
Permit to practice the activity : If the commercial activity requires special approvals, such as health or industrial activities, the necessary permits or approvals must be submitted from the competent authorities.
Incorporation document : The company’s incorporation contract (if it is a limited liability company or joint stock company) or the incorporation contract for other companies.
Approval of competent authorities : In some cases, you may need to obtain approvals from additional regulatory authorities depending on the type of activity (such as Dubai Municipality, Ministry of Health, or Dubai Civil Aviation Authority).
Business plan : Some activities may require submitting a business plan that explains the company’s goals, activities, and strategy.
Approval of partners : If there are foreign partners, approval may be required from the competent authorities in their country of origin.
Legal power of attorney : If you are appointing another person to follow the licensing procedures, a certified power of attorney must be provided.

Be sure to check the requirements for the type of business activity via the Department of Economic Development or the free zone supervisory body, as the required documents can vary based on the activity and location.

At the conclusion of our article about commercial licenses in Dubai , we find that the process of obtaining a commercial license is considered a vital and essential step for any person or company seeking to launch into the dynamic business market in the emirate. This process requires adherence to precise legal and procedural requirements, including choosing the appropriate type of license, identifying business activities, and preparing the necessary documents. By understanding and meeting these requirements, investors and entrepreneurs can ensure a successful start for their projects in a business environment that is considered one of the most attractive in the world. Dubai offers great opportunities for investors through a flexible regulatory environment and unique advantages, but success also requires careful planning and full knowledge of the procedures and costs involved. We hope that this article has provided you with a comprehensive and useful overview of how to obtain a business license in Dubai, helping you achieve your business goals and successfully establish your business in this distinguished market.