How to Get a Trade License in Dubai
"How to Get a Trade License in Dubai - A Comprehensive Guide"
If you’re looking to start a business in Dubai, one of the first things you’ll need is a trade license. A trade license is a legal document that allows you to conduct business activities in Dubai. In this comprehensive guide, we’ll cover everything you need to know about how to get a trade license in Dubai, including business setup in Dubai, company formation in Dubai, and more.
What is a Trade License and Why is it Important for Business Setup in Dubai?
A trade license is a legal document that allows you to conduct business activities in Dubai. It is issued by the Department of Economic Development (DED) and is mandatory for all businesses operating in Dubai. A trade license serves as a proof of legitimacy and ensures that your business complies with the legal requirements set by the Dubai government.
Types of Trade Licenses in Dubai
There are three types of trade licenses in Dubai – commercial license, professional license, and industrial license. A commercial trade license is required for companies engaged in trading activities, a professional trade license is required for individuals providing professional services, and an industrial trade license is required for companies engaged in manufacturing activities.
How to Obtain a Trade License in Dubai
The process of obtaining a trade license in Dubai involves several steps. Here’s a step-by-step guide to help you navigate the process:
Choose your business activity: The first step in obtaining a trade license is to choose your business activity. You’ll need to select a business activity that is relevant to your business.
Choose your business location: You’ll also need to decide on the location of your business. You can choose to set up your business in Dubai mainland or in one of the many free zones in Dubai.
Choose your legal structure: You’ll need to choose a legal structure for your business, such as a sole proprietorship, partnership, or limited liability company (LLC).
Apply for your trade license: Once you’ve completed the above steps, you can apply for your trade license. You’ll need to submit your application to the DED along with all the required documents.
Business Setup in Dubai Mainland vs. Free Zones
When setting up a business in Dubai, you have two options – Dubai mainland or free zones. Dubai mainland offers a wider range of business activities and allows you to conduct business anywhere in Dubai. Free zones, on the other hand, offer a more business-friendly environment with 100% foreign ownership and zero taxes.
Local Sponsor/Agent - What You Need to Know
When setting up a business in Dubai mainland, you’ll need to have a local sponsor or agent. A local sponsor is a UAE national who will hold 51% of the company’s shares, while the foreign investor holds the remaining 49%. The local sponsor will act as a liaison between your business and the Dubai government and will also provide assistance with the visa process.
Obtaining a trade license in Dubai is a necessary step for anyone looking to start a business in the city. By following the steps outlined in this guide, you’ll be well on your way to obtaining a trade license and starting your business in Dubai. If you need assistance with business setup services or have any questions about setting up a business in Dubai, please visit Gulf Central, our business setup consultants in Dubai.