How to Obtain a Trade Licence in Dubai?

How to Obtain a Trade Licence in Dubai?

Are you dreaming of launching your business in Dubai? The first thing you have to think about is the Trade Licence in Dubai. A trade licence is the legal permission to start your business in this business-friendly land and grab a massive opportunity.

Is it difficult to obtain a trade licence? Though the Dubai administration has a proper system to complete the procedures and issue a trade licence, you need to follow a set of procedures to obtain this licence. Apart from renting a building and starting your work, you need to approach the licensing authority.

Why Do We Need a Trade Licence?

Legal Must-Have: A trade licence is mandatory for legally running a business.
Defines What You Do: Do you want to sell shoes? Or offer IT services? Your licence says exactly what you’re allowed to do—nothing more, nothing less.
Builds Trust: A licence legalises a business and wins the trust of banks, clients and partners. Banks and clients require document support to trust businesses.
Unlock services: You can’t get a business bank account, lease an office, or hire anyone without it. Besides, you need a trade licence to acquire investor visas.
Enjoy your rights: With a licence, you’re protected under UAE law. That means fewer surprises and more security for both you and your customers.

A trade licence is mandatory for everyone planning to run a business in the mainland, a free zone, or even offshore.
Types of trade licences in the UAE are commercial licence, professional licence, tourism licence, industrial licence, etc.

Steps to Obtain a Trade Licence

Step 1: Decide on your business plan.
You need to decide what you’re actually going to do. The UAE, the world’s business hub, offers thousands of options to investors, and the Department of Economic Development (DED) or free zone authorities offer complete support to start your business.

Step 2: Choose the location from Mainland, Free Zone, or Offshore.
– Mainland offers complete access to the UAE market, and investors can work with the government. Investors need to complete more paperwork.
– Free Zone: 100% foreign ownership is possible here. Besides, investors can enjoy tax perks and easy business setup. However, they can’t directly trade in the local market without the support of a distributor.
Offshore location is suitable for working internationally.

Step 3: Pick a Trade Name
Pick something unique that actually fits your brand. Remember to avoid banned words or religious references to avoid rejection. Register the name with DED or your free zone authority.

Step 4: Get Initial Approval
Initial approval is not a licence but a nod to start your procedures. We can get approval by submitting the passport copies of shareholders, your business activity list, and that trade name reservation you just did.

Step 5: Notarise MOA (Mainland Only)
Investors choosing the mainland for their operations should draft a Memorandum of Association (MOA) and get it notarised. Here, you need to state who owns what and who’s responsible for what. Free zone investors can usually skip this.

Step 6: Find a Place to Work
You need a physical address. For the mainland, you have to show a tenancy contract (Ejari). Free zones are easier; you can start even by sharing a desk or renting a small space.

Step 7: Get Your Legal Docs Together
You’ll need passport copies of all shareholders and managers along with a UAE entry stamp or visa. Similarly, submit your Memorandum of Association, if necessary.

Step 8: Proceed with Licence Application

Once you’ve got every doc in order, we shoot your trade licence application over to the right authorities. Investors in the mainland can approach DED, and free zone businesses can approach the Free Zone Authority.

Step 9: Pay the Fees

The fees aren’t one-size-fits-all—they depend on your licence type, what your business actually does, and where you’re setting up shop. Our team will lay it all out for you.

Step 10: Get Your Trade Licence
Once you get your trade licence, you can officially launch your business.

Don’t run after your documentation when you should invest your time and energy in market management and business operations. Tahfeel brings you everything from A to Z. Whether you’re a one-person show or some big-shot international investor, Tahfeel keeps it smooth and drama-free. Get in touch with Tahfeel for more info.