Trading business is considered to be one of the most popular lines in the global scenario and attracts millions of people every year. The phase of globalization has tremendously changed the way any business deals. Today, most of the companies enter the international market to capture a mass market. The trading business follows the same rule as, down the line, it has been expanding itself in all corners. Now, when we talk about the trading business, it is not limited to stock or consumables. A trading company involves itself in multiple tasks in the process of exchanging goods for money that involves many intermediaries in the supply network. If we talk about the international market, Dubai, the city of gold, is one of the most extensive and mass markets for the trading business. It provides a humongous platform for different business activities to carry out at ease. If you are willing to initiate your trade business, Dubai is a prospective location you can opt for. Business setup in Dubai has always been the first choice of investors as it has multiple free zones which simplify and promote business. All you need to make sure is that you obtain a trade license. This guide will take you through the entire process of obtaining a trade license for your business. To know more, read below…
Trade License in Dubai
A trade license is essential for business entities to carry out their trading activities. It is also regarded as a commercial license. Now, if you want to initiate your trade license in Dubai or any other part of UAE, obtaining a trade license in UAE becomes a mandate, which is issued by the Dubai Department of Economic Development (DED). To initiate the process one needs to hold certain documents and follow a linear process. There are three types of trade license:
- Commercial License that covers all the trading activities
- Professional License that covers professionals, craftsmen, etc.
- Industrial License for entities involved in manufacturing or production line
What Are the Documents Required to Obtain a Trade License in Dubai?
In order to obtain a Trade License Dubai, one needs to have the following essentials:
- Passport copies of all business partners
- A NOC from the sponsor of the company for international investors
- Copies of Residency Visa for all business partners
- Memorandum and Articles of Association
- Lease agreement
In case of obtaining a General Trade License, one needs to consider the Department of Economic Development (DED) E-Services and obtain a Dubai Smart Pass. So, now you must be wondering…
What Is the Process of Obtaining a Trade License in Dubai?
One should make sure that he/she has got all the prerequisites mentioned above before proceeding towards the process of obtaining the license. The process to be followed is stated below.
- Visit a centre or DED e-Services and obtain the legal form required to obtain a trade license
- Choose the trading activity that your business provides
- Add partner’s name in the form
- Mention the share capital and total capital value
- Partnership ratio needs to be stated
- Reservation of a trade name needs to be done
- Get an instant trade number provided by the system
- A payment voucher will be generated and you need to complete the payment process
- You will successfully obtain your instant trade license in Dubai
Now that you are clear about the documentation process, let’s have a look at the cost involved in obtaining a trade license in Dubai.
Different Costs Involved in Obtaining a Trade License in UAE
The following costs are incurred in obtaining a trade license in Dubai:
1. Payment Voucher Fees
This fee includes Trade Name Reservation, Initial Approval, and Issuance of the License. The fee is subject to change depending upon the business activities.
2. Outsourced Centre Fees
An amount of AED 2,000 will be charged for the Dubai General Trade License through the outsourced centres.
3. Rental Costs
Initially, you don’t need to pay any rental costs for one year.
4. Sponsorship Fees
It is considered as a tentative fee that mostly depends on the business activities and is charged accordingly.
5. Happiness Lounge
This is an express service. If you want to process your trade license immediately, all you need to do is pay an additional amount on AED 3,000.
Thus, you have come across the process of obtaining a trade license in Dubai. Now, obtaining a license in a foreign land becomes difficult if you are unfamiliar with the rules and process. Another hectic part one needs to go through is during the process of renewal of trade license. At this moment, the best you can do is have a word with a business consultant who understands your needs and can provide a customized solution. Commitbiz does exactly this for you. We are one of the top business consultants in Dubai and has been dealing with the incorporation process that holds a package of multiple activities ranging from the setup process until providing a license. Our experts are equipped with up-to-date business establishment knowledge. To know more, do contact us today.