Trade License in UAE

How to get a trade license in UAE/Dubai

Getting a trade license in UAE/Dubai is a task that shouldn’t be as hard as many perceive it to be. Not everyone is familiar with the requirements and how to apply for a trade license in UAE/Dubai. Before applying for a trade license in Dubai or other United Arab Emirates regions, the first  important step you should take is to equip yourself with the necessary knowledge of this exciting process.

Before taking you through the steps to follow, it’s necessary to remind you that there are three types of trade licenses in the UAE. They are:

  • Professional license
  • Industrial license
  • Commercial license

The government department responsible for carrying out the issuance of trade licenses to individuals or corporate organizations is called the Department of Economic Development or DED. This entity offers licenses for businesses that are to be carried out within the mainland.

Acquiring a trade license in Dubai or UAE is an achievable task when all the steps listed below are followed diligently.

Steps to follow in the registration of a trade license in UAE/Dubai

  1. Get the permission that’s required.

The business law in UAE states that one has to get permission from the Dubai Economic Department (DED). This enables one to get a trade license that matches the corporate activities they wish to embark on. The type of business activity dictates the category that your business license falls.

There are three types of permits that one can acquire. One of those permits is an industrial permit used by those undertaking manufacturing or industrial operations. The second permit that one can receive is a professional license. This one is used by artisans, craftsmen, and professionals in different categories. The third permit is the commercial license, acquired to allow one to carry out all sorts of legal trading activities.

  1. Selection of business activities to be carried out

With your business permit, you can now decide on the business activity to undertake. You have to be conversant and comprehensive of the business activity you wish to undertake.

Do some research and understand if you can carry out such businesses in Dubai or any other United Arab Emirates region. With the right information at hand, it’s now time to move to this process’s next step.

  1. Find a local partner or sponsor within the UAE.

The most important and delicate step of acquiring a trade license in the UAE is getting a local sponsor or trade partner from the region. This is handled with care because choosing a sponsor who is not suitable for your business activity can lead to a challenging experience as you embark on regulating your business or company.

  1. Get a name for your business.

A business name acts as your business identity. The DED has set the requirements and rules to be adhered to during this process. Follow their disclosure and get a proper trade name.

  1. Application of first approval

This step requires you to make an application to get the initial approval from the DED. This is carried out after the acquisition of the initial paperwork. This stage’s importance is that it gives you the go-ahead to apply for more certifications required by the Dubai Economic Department before you can get a trade license.

  1. Acquire external approvals

External approvals may be a requirement, depending on the type of company or business you intend to set up. You can acquire them from judicial bodies, ministries, or the municipality of Dubai, among others.

  1. Get documentation or the required paperwork.

More paperwork may be needed as per the nature of your business. This depends on how and where you intend to start your business in the UAE.

  1. Renting a space or an office

Renting an office is an essential step on your journey to acquiring a trade license in Dubai/UAE. In most instances, you will have to get an actual space as your office through renting. In other cases, you can rent a Flexi Desk, depending on the type of business you intend on setting up.

  1. Show your office rent (Ejari)

The Arabic word for “my rent” is Ejari. To get your trade license in UAE, you have to show your Ejari to the Dubai Economic Department. RERA sponsors this initiative as a way of regulating the Dubai sector of renting and leasing.

  1. Pay the required amount of money.

The DED requires some relevant fees and payments before you can finally acquire your trade license in Dubai or other UAE regions. You have to complete these payments in due time so that you get your license of trade.

  1. Get your trade license.

This is the final step of this process. After giving out the relevant details and making the required payments, you are finally viable to get your trade license and start your business activity in UAE/Dubai.