Every business setup in Dubai should have a trade license from the Department of Economic Development (DED) authority. The DED authority permits only those people who have their trading license to set up a business in Dubai; without a trading license, carrying out business is illegal in Dubai and is subject to penalty.
There are certain categories of businesses which need special permission from different ministries, for example, the manufacturing business needs permission from the Ministry of Finance and Industry, and pharmaceutical and medical products require permission from the Health Ministry.
According to the UAE code of conduct, trade license is a legal certificate that allows a businessman or an investor to indulge in activities which are mentioned in the license. But the foremost question that arises is: how to get a trade license in Dubai? And second is: how to renew a trade license in Dubai? For starters, let us see how one can get a trade license.
How to get a trade license in Dubai?
Business services in Dubai are subdivided into 3 trade license categories:
- Commercial licenses (for all trading activities)
- Professional licenses (professionals, craftsman, tax advisors, and business consultants)
- Industrial licenses (for carrying out manufacturing practices)
Steps to Obtain a Trade License in Dubai
- Select the category of business you are involved in (commercial, professional or industrial)
- Decide on the all the business activities be included in the business license (maximum 10 per license)
- Choose an appropriate trading name for your business
- Fill in and submit the application for initial approval
- Get external approvals, if required, depending on the type of business activities
- Arrange all the required documents like the Memorandum of Association, and all the approved documents from all the relevant government authorities
- Decide a business location and get a tenancy contract attested by Ejari
- Proceed by submitting an application to the DED to get to the final license
- Make the necessary payment for the license
Even though there are a lot of steps involved. It is relatively a simple procedure to get a general trade license in Dubai. Now, let us move on to the next question, i.e., how to renew a trade license in Dubai?
How to Get a Trade License Renewed in Dubai?
Here is a list of all the documents required for the purpose of trade license renewal:
- A typed BR/1 form
- Ejari Registration Certificate and a photocopy of Tenancy Contract
- Photocopy of the current business trade license
- Passport photocopies of all the business partners
Every business needs to renew its trading license in Dubai every year as per the rules of the department and to remain legitimate. Now, here are the steps one needs to follow to renew the trade license:
Step 1: Have a valid tenancy contract
The first thing one needs to ensure is that the firm’s tenancy contract should have a validity of at least 1 month and it should be attested by Ejari. If the tenancy contract does not have the validity of a month, the associated license cannot be applied for renewal.
Step 2: Apply for a renewal license
Apply for license renewal at the DED, along with all the required documents. One can apply for renewal through different mediums like e-Services, mobile application, authorized law firms, and authorized service centers.
Step 3: Payment
After submitting the application, the DED shall allot a payment voucher. After receiving the voucher, proceed to the payment procedure. Immediately after making the payment you will receive your renewed license from the channel.
The DED in Dubai has provided 3 ways to renew trade license – either by following offline procedure, online procedure or automatic renewal system. Despite DED’s efforts to ease obtaining and renewing a trade license, sometimes handling these procedures of acquiring and renewing a trade license in a timely fashion in Dubai can prove cumbersome for entrepreneurs. This is where services like business setup consulting and company formation advisory can come in handy. If you have any queries on how to get or renew a trading license in Dubai, do get in touch with us, and we’d be glad to help.