- A trade license in UAE is a legal requirement for businesses operating in the UAE, allowing them to operate in various locations and avoid criminal charges.
- Entrepreneurs must decide on a trade name, choose a legal structure, list up to 10 business activities, apply for the license, obtain external endorsements, submit required documents, choose a location, acquire a tenancy agreement, and pay the issuance fee.
- The Commercial Registry Authority validates the application, and the DED evaluates the documents and forwards them to the Federal Ministry of Economy.
- The trade license can last for one year with renewal, which can be used for five more years.
- The total estimated cost of a general trading license in the UAE is between 20,000 and 30,000 AED, depending on the activity.
A trade license is a legal formality required for businesses operating in the UAE, including those importing and exporting goods. It is not an all-in-one package, but it covers different types of trading activities. Companies must choose between mainland, offshore, and free zone trading to operate. To obtain a trading license, entrepreneurs must decide their company name, legal structure, list business activities, apply for the license, obtain external endorsements, submit required documents, choose a location, and obtain a tenancy agreement.
The process involves deciding the trade name, legal structure, and obtaining external endorsements. The DED will evaluate the documents and forward them to the Federal Ministry of Economy for final approval. The license can last for one year with renewal, which can be used for five more years. The total estimated cost of a general trading license is between 20,000 AED and 30,000 AED, depending on the activity.
Advantages of obtaining a trade license include no currency constraints, tax-free jurisdiction, stress-free employee visa application, provision of local and international trading, no need for paid-up capital approval, convenient legal procedure, no auditing requirement, 100% deportation of profits and capital, very low import duty, and the ability to avail various banking services. With applicant-friendly trading policies, more entrepreneurs are planning to operate in the UAE. Therefore, it is time for business formation in the UAE with the approval of a trade license to make the whole process easier.
If you are thinking of setting up a business in the UAE, then it is time to explore the numerous business trade licensing options. In the U.A.E., the possibilities of getting a trade license are endless. Entrepreneurs usually have several questions regarding the overall process, like the type of license and how to obtain it.
Well, there is nothing wrong with analyzing different licensing methods before finalizing the decision.
If you are leading a trading business with goods and products to import and export, then you must get a trading license in the UAE. It is more like a legal formality that you need to obey while working within the UAE Without it, your business operations will be considered illegal, and you are likely to face criminal charges.
What does a trade license in the UAE mean?
Every single business needs a trading license to get started in Dubai. The Department of Economic Development (DED) approves trade licenses after following specific rules. This license is not an all-in-one package; different licenses cover different types of trading activities. Company formation in UAE requires this type of validation to trade not just in Dubai but in other places around UAE as well
While the business setup in the UAE is taking place, the option to choose between mainland, offshore, and free zone trading is given. Entrepreneurs then have to choose where they want to operate and get a trade license approved.
How do I get a trade license in UAE?
There are a few steps to follow in order to acquire a trading license. Let’s check them out.
- Firstly, decide the trade name for your company.
- For company formation in UAE, choose a legal structure as well.
- List down all sorts of business activities that you want to include in the trading license. You can choose up to 10 activities per trading license.
- Now, it is time to apply for the license.
- According to your business setup in Dubai, try getting external endorsements as well for additional support.
- Submit the required files and documents approved by the relevant ruling bodies, like the Memorandum of Association (MOA).
- Choose a location to operate from and acquire an Ejari-attested tenancy agreement.
- For the final approval, submit your request to the DED.
- Pay the issuance fee for the licenses as well as other requisite payments.
As soon as the Commercial Registry Authority validates the application, the business name will be approved. Then, the DED will further evaluate the documents and forward them to the Federal Ministry of Economy.
Afterwards, the final evaluation will take place, and the ministry will issue the endorsement letter. After getting approved, the trade license can last for 1 year, with renewal of the application from the trusted authorities. The renewed license can be easily used for 5 more years.
How much will it cost?
Besides the company formation in the UAE, the total estimated cost of a general trading license will range from 20,000 AED to 30,000 AED, depending on the activity. This is a one-time investment that will reap amazing results in the future.
What are the advantages of getting a trade license in the UAE?
Some of the benefits of getting this license for business setup in the UAE are mentioned below:
- There are no currency constraints
- Jurisdiction is tax-free
- Stress-free access to employee’s visa application
- Provision of local as well as international trading
- There is no need for paid-up capital approval
- Convenient legal procedure
- There is no requirement of auditing
- 100% of profits and capital
- Very low import duty
- Facility of availing different banking services
All in all, obtaining a trade license in the UAE can benefit the business in uncountable ways. Due to the applicant-friendly trading policies, more and more entrepreneurs are planning to operate in the UAE So, what are you waiting for? It is time for business formation in UAE with the approval of a trade license to make the whole process easier!