A Dubai trade license is the permit to do a trading business within Dubai, UAE. However, for certain business activities, businesses need to obtain approval from concerned ministries or authorities. For instance, insurance companies require approval from the Ministry of Economy and Commerce and financial institutions need approval from the Central Bank of the UAE.
Foreign investors who are looking to start a new business in Dubai mainland need to pay attention to the type of business license. There are, generally, three types of licenses available in Dubai, namely:
- The Trade License
- The Industrial License
- The Professional License
Consulting with a licensed business consultant would help you know about all these licenses in detail and finding which type of business license is fit for your business.
This blog discusses the Dubai Mainland Trade License in detail. Let’s take a look.
Dubai Mainland Trade License
A trade license is also known as general trade license and commercial license. Dubai mainland trade license covers most of the activities that can be carried out in Dubai mainland and across the UAE. This license is issued by the Department of Economic Development (DED) in Dubai.
Note: If a company wants to sell different products in the Dubai mainland, it doesn’t need to acquire a trade license for each category of products because the general trading license covers all the activities of the company.
Who can obtain a Dubai Mainland Trade License?
Dubai trade license can be obtained by the following
- Import and export companies registered in Dubai mainland
- Companies that carry out commercial services, such as sales of goods and services in Dubai mainland
- Companies that offer professional services in Dubai mainland
How to acquire a Dubai Mainland Trade License?
The procedure of obtaining a Dubai Mainland Trade License requires incorporating documents related to the trading field. It is also vital to notice that most business activities in Dubai mainland are covered under the general trade license. However, it is better to ascertain the license type you need by consulting with a business expert.
To obtain a trade license, a person must have a Trade Name, Memorandum, and Articles of Association in advance. Once you have them ready, you can file with the DED for initial approval. Besides, an individual must have a rental agreement as proof of the registered address of the company. Finally, the application for trade license can be submitted.
Documents Required to Obtain Dubai Trade License
When you apply for Dubai trade license, you are required to present the following documents to the Trade License and Commercial Registration Department within the DED:
- A filled and signed (by company’s legal representative) standard application form
- Original statutory documents of the company and their copies
- The DED’s letter with the approval of company name
- The DED’s letter attesting the approval for company setup
- The tenancy (Rental) agreement
- Passport copies of all shareholders
Professional Trade License
A professional trade license is a special permit that is issued for businesses related to specific industries, for instance:
- Accounting and finances
- Information Technology (IT)
- Marketing and more
This license can be obtained by sole proprietors and it grants full foreign ownership when obtained by a sole trader.
“A small business is an amazing way to serve and leave an impact on the world you live in.” -Nicole Snow
Note: Foreign citizens applying for a trade license in Dubai mainland must become a resident of Dubai to enjoy full ownership over the sole proprietorship.
A person needs to obtain a trade license even when he/she is opening a branch of their foreign company in case activities to be carried out are covered under the trade license.
Learn more about Trade License acquiring. Contact us to know more.