What is the cost of a trade license in Dubai? Dubai is one of the most prominent business destinations in the world, offering a flexible investment environment and advanced infrastructure that makes it a major destination for businessmen and investors wishing to establish their projects. One of the basic steps to establishing any business in Dubai is obtaining a trade license, which is the official document that allows the company to practice its activities legally. With the increasing demand for establishing companies in the city, it becomes necessary to understand the costs of obtaining a trade license, as these costs depend on several factors such as the type of business activity, the location of the company (inside or outside the free zones), the number of employees, and other criteria.

The cost of a business license varies greatly based on several considerations. If a company chooses to operate in a free zone, the cost of the license may be lower, thanks to incentives such as full foreign ownership and tax exemptions. Conversely, if a company wishes to operate in the mainland, there may be additional fees associated with obtaining government approvals or operating in certain sectors.

One of the factors that affect the cost of a trade license in Dubai is the type of business activity you choose. Some activities require special approvals or incur additional fees, such as activities related to health, education, or legal consultancy. Additionally, options such as renting offices in strategic locations or hiring a large number of employees may increase costs.

Itqan, as one of the leading business setup companies in Dubai, offers innovative and integrated solutions that help investors accurately determine costs and obtain a trade license at the lowest possible cost. Through its comprehensive services, clients can understand the details of trade license costs and ensure compliance with all legal requirements, saving significant time and effort during the incorporation phase.

Types of commercial licenses available in Dubai

Dubai is a global hub for business and investment, providing a flexible and supportive economic environment for entrepreneurs and investors from all over the world. One of the most important steps in establishing any business in Dubai is obtaining the appropriate trade license. This license is an official permit that allows companies to conduct their commercial activities in accordance with the legal framework in force in the emirate. There are different types of trade licenses available in Dubai depending on the nature of the business activity that investors wish to practice. Therefore, it is essential to choose the trade license that matches the type of business activity to ensure compliance with local laws.

Types of commercial licenses available in Dubai:

• Commercial License: The commercial license is the most common and is granted to companies that deal in commercial activities such as wholesale and retail, export and import, and other commercial activities. This license allows companies to practice commercial activities within and outside Dubai.
• Professional License: The professional license is issued to individuals and companies that provide professional or consulting services, such as law firms, management consulting, graphic design, and technical services. This license allows investors to practice businesses that rely on personal skills and professional experience.
• Industrial License: An industrial license is granted to companies operating in the field of manufacturing and production. This includes heavy industries, food factories, and industrial assembly and production. Obtaining this license requires approvals from the relevant government authorities to ensure compliance with environmental and health standards.
• Tourism License: Given the importance of the tourism sector in Dubai, a tourism license is granted to companies operating in the tourism and hospitality sector, such as hotels, travel agencies, and tour operators. This license requires additional approvals from the Department of Tourism and Commerce Marketing in Dubai.
• Free Trade License: This license is issued to companies wishing to operate within the free zones in Dubai. This license allows companies to enjoy full ownership without the need for a local partner, and provides many incentives such as tax and customs exemptions.
• Branch License: This license is granted to foreign or local companies that wish to open additional branches within Dubai. The branch license allows the parent company to practice the same business activity as the original company without the need to establish a new legal entity.

Each type of business license in Dubai comes with different requirements and procedures, and investors must determine the most appropriate license for their business activity to ensure that they comply with local laws and achieve success in their business.

Documents required to obtain a commercial license

Establishing a company in Dubai requires obtaining the appropriate trade license, which is a vital step to ensure compliance with local laws. To obtain this license, investors must submit a set of necessary documents that facilitate the registration process and prove the seriousness of the business. These documents vary slightly depending on the type of trade license and the location of the company (inside or outside the free zones), but there are basic documents that every applicant should have available. Understanding and submitting these documents correctly contributes greatly to speeding up the process of obtaining a trade license and starting to practice business activities legally. Documents required to obtain a trade license:

• Copies of Passports: Clear and recent copies of the passports of all partners and shareholders of the company must be submitted, as this document is essential in the registration process.
• Copy of National ID (for residents):   If one of the partners is a resident of the UAE, a copy of the UAE National ID must be submitted.
• Recent Personal Photographs: Submit recent personal photographs of each partner or shareholder, as per the required government standards.
• Certified Lease Contract: A certified lease contract for the office or commercial space that the company will occupy must be submitted. The contract must be certified by the relevant government authorities such as Dubai Municipality.
• Business Plan (in some cases): For some businesses, a detailed business plan outlining the company’s goals and strategies may be required. This is especially true for businesses that require special approvals.
• Articles of Association and Memorandum of Association: Articles of association are required for limited liability companies (LLCs) and other companies with multiple partnerships. The articles should include details about the distribution of shares among the partners and management rights.
• Special government approvals: Some business activities require special approvals from relevant government agencies such as the Ministry of Economy or the Department of Tourism and Commerce Marketing, depending on the type of activity.
• Copy of the commercial license (in case of branches): If the new company is a branch of an existing company, a copy of the commercial license of the parent company must be submitted, in addition to papers proving the registration of the parent company.
• Authorization of Local Agent (in case of foreign companies): For foreign companies wishing to open a branch in Dubai, it may be required to appoint a local agent and submit an official attested authorization.
• No Objection Certificate (for residents): If a partner or shareholder is already working in the UAE and wishes to set up a new company, they may be required to provide a No Objection Certificate (NOC) from their current employer.

By preparing these documents accurately, investors can facilitate the process of obtaining a trade license and starting their business in Dubai, opening up a wide range of business opportunities for them.

Learn about the commercial license in Dubai

In conclusion, the cost of a trade license in Dubai varies based on several factors related to the type of business activity, the location of the company, the number of employees, as well as the requirements of each sector. Understanding these costs is an essential part of the process of setting up a business in Dubai , as good financial planning contributes to ensuring a successful and sustainable establishment of the company. It is important for investors and entrepreneurs to consider all fees and expenses associated with obtaining a trade license, including the costs of government documentation, office rental, and approvals for specific activities.

Free zones are a preferred option for many foreign investors due to the conveniences they offer in terms of tax exemptions and 100% company ownership without the need for a local partner. However, these advantages come with a set of costs that can sometimes be higher than on the mainland, which requires investors to carefully consider the advantage that a company achieves based on its location and activity. Therefore, understanding these differences is crucial when estimating the overall cost of a business license.

Itqan plays a pivotal role in helping businesses and investors make the right decision regarding obtaining a commercial license in Dubai . By providing specialized consultancy and comprehensive services, the company helps clients analyze their specific needs and fully understand the legal and financial requirements. This allows investors to save time and effort and focus on managing their business effectively. In addition, Itqan contributes to facilitating the process and providing customized solutions that meet the needs of each company according to its business activity and budget.

By dealing with Itqan, investors can get a clear view of the costs of a trade license and benefit from their services that aim to facilitate the establishment procedures at the lowest possible cost. Dubai remains a preferred destination for businesses due to the great investment opportunities it offers, and a trade license ensures the legal path to start this success.

Frequently asked questions about the commercial license in Dubai