Who needs to apply for a Trade License in the UAE?
Eligibility for a trade license is one of the major doubts business owners may have. Foreign investors interested in opening a business in the UAE need to have a valid Trade license before starting their activities. UAE Residents and nationals also need to have this document for their businesses.
When it comes to foreign companies that are looking to establish a branch company in the UAE, they also need to apply for a Trade license. So, whether you are a foreigner or a local, if you are planning to incorporate a company, you should apply for the license.
Furthermore, you need to know which type of license you have to obtain Legally. You can choose between the commercial, industrial, professional, or tourism license based on the nature of your business. In addition, you need to comply with the requirements and submit the needed documentation to get the approval and start running your business.
Benefits of the Trade License
Acquiring a Trade license gives many benefits to businesses looking to establish themselves in the UAE. In case this is the first time you are incorporating a company, it could be a little intimidating to go through the process to obtain a license. But, if you have the help of expert consultants like Connect Business Centers, you can set up your business easily and obtain all of these advantages.
Keep in mind that to operate legally in the UAE, you must have a valid license. So, the main benefit is that you will have a business that complies with the law. This can help you improve your brand and enhance your credibility among your clients. Remember that clients are most likely to engage with businesses that are legal in the country.
What are the benefits of the Trade license?
One of the most important benefits you can get with your Trade license is boosting your sales. By taking advantage of local and international trade, you can expand your business and continue growing. Another significant benefit is the initiatives established by the Government like no tariffs on exports and imports.
Since Dubai, and the entire UAE, has a very secure and safe business environment, having a solid business established there is your business will gain the trust of clients and investors. Moreover, by gaining exposure in the market you can increase your revenue considerably.
Another great benefit is the tax exemptions. In Dubai, you can make investments and enjoy tax benefits. Such as no personal taxes, and one of the lowest tax rates on corporate income. Other excellent advantages are the few trade restrictions, easy business setup process, and sponsor opportunities for your dependents.
How to get a Trade license?
The process to obtain your trade license in the UAE is straightforward. If you do not have previous experience setting up a business in this country, or even if you are experienced in the matter, it is always helpful to have a partner that can guide you in the process. Here at Connect Business Centers, we can assist you from start to end.
Since the procedure is divided into simple steps, it is not hard to understand. Whether you are planning to obtain a commercial license or any other type, the process is almost the same. The only difference relies on the external approvals you may have to get depending on the nature of your business.
What is the process to obtain the trade license?
First, you have to select the economic jurisdiction where you would like to establish your company. These are the Mainland, Free Zones, and Offshore. Each one provides a set of advantages that you have to weigh to determine the right one for you. After that, you have to select a type of company structure and the business activities you want to perform.
Then, you will have to get the Initial approval from the DED. Fill out the application and wait for their response. After that, you have to look for a physical office space for your company. With this, you can get the tenancy contract and EJARI. Some businesses may opt for a virtual office, but others, like those interested in an industrial license, are not allowed.
You will have to prepare the company formation documents. These are the MOA, AOA, etc. In this case, it is better to have legal assistance since you need to notarize them. After that, you will have to obtain external approvals, if necessary. Lastly, you have to submit the documents to the DED, complete the final application and pay the required fees.
Business Activities under the Trade License
When you apply for the trade license, you need to obtain the type that is related to your company’s field. Thus, you are allowed to perform the activities that are specified on the license issued. For this reason, it is crucial to select the proper type of license and activity so you can carry out your activities without trouble.
In Connect Business Centers we understand the importance of selecting the proper business activity for your company. For this reason, we have a team of experts available so you can make this essential decision with confidence. We take your company’s best interests into account to provide a suitable solution.
What business activities can you perform with a trade license?
The activities you can perform will vary depending on the type of license you apply for. Here we have some of the activities you can carry out based on the four types of licenses available in Dubai:
- Commercial License: sale of goods, import/export products, offer commercial services, distribute goods, and more.
- Professional License: consultancy, marketing, and advertising, IT Services, management services, accounting, financial advisory, and more.
- Industrial License: manufacturing, importing raw material to make products, assembling, packaging, selling finished products, warehousing, and more.
- Tourism License: inbound tours, outbound tours, sell tickets, open a travel agency, run a hotel, offer guided tours, sell tourism packages, and more.
Documents to obtain the Trade License
To obtain the Trade license you will have to gather some important papers. The best part is that it is very minimal documentation needed. Moreover, there is the option to apply online. In this case, you will need to have an Emirate ID to register and complete the process. But, if you do not have it, you can apply through a service center in person.
Once you gather all the needed documents, you have to submit them to the Trade License and Commercial Registration Department. This is within the DED, which is the body in charge of issuing the licenses for companies.
What documents do you need to submit to obtain the trade license?
The documents you need to submit to obtain the business license in Abu Dhabi, Dubai, or anywhere in the UAE are the following:
- Application form duly filled out and signed
- Copy and original company’s statutory documents
- DED trade name approval
- DED initial approval
- Tenancy contract
- Details about the shareholders
- Passport copy for each shareholder
- External approvals (if necessary)
Keep in mind that the DED may request additional documents. This will depend on the type of legal structure or business activities you have chosen to perform.
Requirements for the Trade license
To obtain the Sharjah trade license or any other one in the UAE, you have to look for the requirements. This is because you need to be aware of everything you need before applying. First of all, you need to check if the business activity you want to perform is included in the list of the chosen jurisdiction.
Keep in mind that depending on the jurisdiction, you may find the activity and in others not. For this reason, it is best to look for a place where you can carry out your business activity. And, another requirement you have to comply with is incorporating a company. You cannot apply for the license if you do not have the company’s statutory documents.
What do you need to obtain the trade license?
In case you are interested in obtaining an Ajman trade license, you have to comply with the requirements. You must have a valid trade name that complies with the law. Also, you need to have a physical space for your business. Thus, you must have a registered address before applying.
Whether you are planning to obtain an online trade license in Dubai or apply through a service center, you need to comply with the requirements before starting the process. Depending on the type of company you want to incorporate, you will need to have a capital amount deposited in the bank.
Lastly, the final requirement is having the budget to incorporate a company and to apply for the license. For this reason, you need to know the business license cost in Dubai so you have everything ready to start the process.
What is the cost of the Trade License?
When it comes to the small business license cost in Dubai, you have to know how much you will have to spend for incorporating your company. If you have a limited budget, you can always look for a cost-effective option. So, if the cost of a business license in Dubai is too high, you may check on other jurisdictions for obtaining a better rate.
The best part is that across the UAE you can find outstanding rates for establishing your business. So, it is worth knowing the Abu Dhabi trade license fees, if this is the place where you would like to set up your operations.
How much is the trade license in the UAE?
The Dubai business license cost may range from AED 30,000 to AED 50,000. This will depend on the type of business activity you want to perform. For example, the General Trade License cost tends to be higher than the other types of licenses.
Keep in mind that the final cost may vary depending on the jurisdiction you have chosen. For example, the Ras al Khaimah trade license cost may be lower or higher than the Sharjah trade license cost. Some additional fees you have to consider are the registration fee, leasing cost, notarization of documents, and more.
Make sure to consider also the trade license renewal fee in Dubai. Your business license is valid for a year. And, after that period you will have to pay a fee. So, you have to include this too in the Ajman trade license cost.
The renewal process for the Trade license
The issuance of the license is the first step for starting to run a successful business in the UAE. Nevertheless, you have to be aware of the validity of your license. This is because, after a year, you have to do the trade license renewal process if you want to continue operating legally in the country.
Thus, the Dubai trade license renewal is highly important. Your HR team must be aware of the date when you need to start trade license renewal in Dubai. But, if this is too challenging for you, here in Connect Business Centers we can help you. Whether you need to renew the trade license in Dubai or do the trade license renewal in Sharjah, we got you covered.
How to renew the trade license in Dubai?
The first step for the renewal is to collect and verify your documents. These are the tenancy contract, current trade license, BR-1 form, and passport copies for each shareholder. After that, you have to file the application and pay the renewal fee. The trade license renewal cost ranges from AED 8,000 to AED 15,000.
After the DED verifies the documents and the payment, you can receive your license renewed. This way, you can continue carrying out your operations in the UAE. It is important to renew your license because otherwise, you may face legal repercussions. Also, you need to renew it on time.
In some cases, you could find the trade license renewal in Dubai with a discount. This will help you save some money on this process. This may vary depending on the jurisdiction where you have set up your company. You can find great rates for the Sharjah trade license renewal with discounts here in Connect Business Centers.
Why do you need a Trade License?
The company formation process in the UAE is considered one of the best in the world. This is because is very simple, even for newcomers. Added to this is the fact that the UAE has one of the most prosperous economies in the Middle East and a privileged location near East and West markets.
For this reason, thousands of business owners want to establish operations here. Nevertheless, to be able to run your business you need to have a valid business license. Thus, the reason to obtain a license is to stay in compliance with the UAE standards. But, this also offers great advantages. You can run a successful business in one of the most thriving places in the world.
Connect Business Centers Licensing Services
In Connect Business Centers we understand how crucial it is to set up your company efficiently in the UAE. For this reason, we have a team of specialists readily available to help you. Our representatives can answer all of your inquiries about our licensing services and help you understand our process.
By opting for a trustworthy partner, you can make the procedure easier. You can even focus on your business plan and your strategy for entering the UAE market while we handle the paperwork and legal formalities. Save time and money with our wide range of services.
We can help you find the cheapest business license in the UAE, so you can incorporate your company without exceeding your budget. Contact us to receive a customized solution and start taking your business on the road to success with us. Our team is waiting for you.