Cost of a trade license in Dubai, Dubai is considered one of the most prominent global destinations for business and investment, as it provides a distinctive commercial environment that attracts companies and businessmen from all over the world. Dubai is characterized by a diverse and flexible economic system, which contributes to supporting commercial and economic activities in all their forms. One of the basic elements that investors must consider when planning to establish a company in Dubai is the cost of a trade license, as obtaining this license is the first and main step to practicing any commercial activity legally and reliably. The cost of a trade license varies based on several factors, including the type of activity chosen, the location, the company structure, as well as the size of the company and the number of employees. Dubai offers a wide range of options that suit different categories from small startups to large multinational companies.
Investors choose Dubai not only for the quality of life it offers, but also for the benefits and facilities that the emirate provides to companies, such as tax exemptions in some free zones, and the reduced costs for some types of trade licenses in Dubai. Hence the importance of cooperating with specialized companies such as “Itqan”, which provides integrated services to support and facilitate the procedures for establishing companies and obtaining trade licenses. With its deep knowledge of market requirements and experience in dealing with relevant authorities, “Itqan” provides customized solutions that suit the needs of investors and contribute to reducing the costs and time required to establish a new company. This cooperation helps investors understand the legal procedures and costs of a commercial license with greater clarity, enabling them to make informed decisions that enhance the chances of success of their businesses in Dubai.
Types of commercial licenses available in Dubai
Establishing a company in Dubai is one of the most attractive investment destinations in the region, as it provides a suitable environment for business growth and development. The emirate is distinguished by providing continuous facilities and support to investors, in addition to the availability of a variety of commercial licenses that suit various activities and sectors. Choosing the right type of business license is a pivotal step in establishing any new project, as this choice determines the type of business activity and the legal framework permitted, and contributes to achieving the project’s objectives in the best possible way. With the wide variety of economic sectors that Dubai accommodates, it is possible to find the license that suits the needs of companies, whether small, medium, or large.
Dubai offers several types of business licenses, each of which is specifically designed to suit specific types of activities. This diversity allows investors to work in the fields they prefer while taking into account local laws and regulations. Here is a look at the main types with a business license in Dubai:
Commercial License: This license is intended for companies that carry out general trade activities, such as buying and selling or importing and exporting. It can be used for a wide range of business activities, including sectors such as retail and wholesale.
Professional License: This license is granted to companies that provide consulting or professional services, such as legal services, accounting, or management consulting. This type of license allows professionals to provide their services in Dubai, but may require additional approvals from the relevant authorities.
Industrial License: This is for companies that carry out industrial or production activities, such as manufacturing goods or converting raw materials into finished products. An industrial license requires environmental and industrial approvals, and is usually for factories or production facilities.
Tourism Activities License: This license targets companies operating in the tourism sector, such as travel agencies, tour operators, and tourism services. This type of license is subject to special regulations to ensure the provision of high-quality services to tourists.
E-commerce License: Due to the significant growth of e-commerce, Dubai offers a special license for this field. The license allows business owners to sell products and services online, making it ideal for companies focused on online markets.
Free Zone License: This license is granted to companies operating within free zones, such as Jebel Ali or Dubai South. The benefits of this license include full company ownership and tax exemptions, and it provides greater flexibility for foreigners wishing to establish their companies in Dubai.
Foreign Company Branch License: This license allows foreign companies to open branches in Dubai without the need to establish a completely new entity. This license is useful for companies wishing to expand their activity into the Dubai market without changing their legal structure.
This diversity of licenses helps meet the needs of investors of all types and allows them to expand their businesses easily in an encouraging commercial environment. It also enhances the chances of success of their projects in light of the facilities provided by Dubai.
Documents required to obtain a commercial license
A commercial license in Dubai is the key to practicing commercial activities legally and officially, as it allows investors to start their businesses and provide their services or products within a regulatory framework that protects and supports them. Dubai enjoys a global reputation as a distinguished investment destination, due to its provision of modern infrastructure and flexible procedures that support business growth. Despite the variety of types of commercial licenses available that suit multiple fields, the documents required to obtain this license are an important aspect that investors must be well prepared for, as preparing the required documents completely and correctly ensures avoiding delays in the license issuance process, and contributes to the speed of starting the commercial activity.
The documents required to obtain a commercial license in Dubai include the following:
Copies of passports: Valid copies of passports must be submitted for all partners or shareholders in the company, to ensure identity verification and documentation in the license records.
Residence visa or letter of no objection: For residents of Dubai, a residence visa and a letter of no objection from the sponsor are required if the applicant is an employee and wishes to establish a side project. This document ensures that there are no legal impediments to practicing the business.
Detailed Business Plan: It is advisable to submit a business plan that includes details of the business activity, its objectives and organizational structure. This plan helps in obtaining the necessary approvals, especially if the activity requires additional approvals.
Office Lease Contract: An official lease contract for the office or company headquarters is required as part of the licensing procedures, and the contract must be registered and certified by the competent authorities to ensure the availability of a legal and fixed business location.
Articles of Association (in case of partners): If there is more than one partner in the company, an Articles of Association must be submitted that specify the partnership ratios and the responsibilities of the partners. This contract is a legal document that ensures transparency in business relations.
License Application Form: The license application form must be filled out and submitted to the relevant authorities, as it contains the company data and the business activity that will be practiced.
Additional Approvals: In some cases, some commercial activities may require additional approvals from the relevant authorities, such as medical, educational or industrial activities, and these approvals must be submitted with the rest of the documents.
Preparing these documents accurately helps investors facilitate the process of issuing a commercial license and reduce the time required to start practicing business activities. It is also preferable to seek the help of specialized companies such as “Itqan”, which provide comprehensive support services, to ensure that the procedures run smoothly according to the legal standards followed.
Steps required to renew a commercial license
Renewing a commercial license is an essential procedure to ensure the continuity of companies in the United Arab Emirates, as compliance with local laws and regulations is part of the sustainability of businesses. Renewing a commercial license confirms the company’s commitment to the standards of work and operation in the country, provides legal protection for companies and their owners, and allows them to continue practicing their activities smoothly. Renewing a commercial license usually includes a set of procedures that facilitate companies in maintaining their legal and commercial presence in the local market. Below are the basic steps that must be followed to complete the renewal process successfully.
Steps required to renew a commercial license
Prepare the required documents: This includes a copy of the old commercial license, a copy of the establishment card, a copy of the health insurance certificate for employees (if required), and copies of the passports of partners and employees.
Settle the fees due: The company must pay all government fees and fees associated with renewing the license, in addition to any late fees if the renewal deadline is exceeded.
Establishment Card Renewal: If the license requires renewing the establishment card, it must be updated to ensure smooth procedures.
Update company data (if necessary): If there are any changes to the company data such as the company address or contact information, they must be updated in the license before completing the renewal.
Submitting a renewal request through the Department of Economic Development platform: After preparing all documents and fees, the renewal request is submitted through the relevant Department of Economic Development platform, either through the website or through one of the approved centers.
Receiving the renewed license: After reviewing the application and its approval by the relevant authorities, the renewed commercial license is issued, and it can be received from the department’s headquarters or through the postal service.
Completing these steps ensures the company’s legal continuity in practicing its commercial activities, and helps it strengthen its position in the market.
Learn about the commercial license in Dubai
The cost of a commercial license in Dubai is an important factor that investors should take into consideration when starting their business in the emirate, as this cost forms the legal basis that allows the official practice of commercial activities. Although costs may seem different depending on the type of activity and the chosen location, Dubai offers multiple opportunities that suit different budgets and investment capabilities. Dubai’s economic policies have contributed to providing packages of incentives that make establishing companies accessible to individual investors and large companies alike, which enhances the chances of achieving high investment returns in a competitive and prosperous environment.
Cooperating with companies specialized in establishing companies, such as “Itqan”, represents a strategic step for those wishing to establish their businesses easily and smoothly. “Itqan” has extensive experience in facilitating the procedures for obtaining commercial licenses, and in-depth knowledge of market requirements and costs. The company works to direct investors towards the most appropriate options that are in line with their budgets and investment goals. It also helps them avoid unexpected additional costs, by providing accurate and comprehensive advice covering all the required financial and administrative aspects.
Establishing a company in Dubai is not just a financial step, but an investment in the future thanks to the continuous economic growth witnessed by the emirate, in addition to the advanced infrastructure and continuous government support. By taking advantage of the services of “Itqan” Company, investors can focus on developing their businesses and building success strategies instead of getting involved in complex bureaucratic procedures. This cooperation ensures that investors receive the required support in all stages of establishing their company, starting from obtaining a commercial license to fully operating the company. In this way, investors can achieve their business ambitions in Dubai with confidence and success, making the emirate the ideal choice for doing business and investing.
Frequently Asked Questions About Commercial Licenses in Dubai
What are the types of commercial licenses available in Dubai?
Dubai provides several types of commercial licenses, such as the general commercial license, professional license, industrial license, e-commerce license, and others. The type of license varies depending on the commercial activity you wish to practice.
How much does a commercial license cost in Dubai?
Can foreigners obtain a trade license in Dubai?
Yes, foreigners can obtain a trade license in Dubai, and free zones offer full ownership of the company to foreigners, in addition to many facilities.
Is there a difference between a license in the free zones and a license in local Dubai?
Yes, licenses in the free zones provide foreign investors with full ownership and tax exemptions, while licenses in local Dubai are subject to some restrictions such as local partner ownership of businesses outside the free zones.
What is the validity period of a trade license in Dubai?
A trade license is usually issued for one year, and must be renewed annually to maintain the validity of the business activity.
Can the business activity be changed after obtaining the license?
Yes, the business activity can be changed, but this requires amending the license and paying additional fees, with obtaining the necessary approvals from the relevant authorities.
What are the steps required to renew a trade license?
The steps to renew a trade license include submitting the required documents, such as an updated lease contract, and paying the renewal fees. It is advisable to start the renewal process before the license expires to avoid fines.
