Trade License in Dubai - What you should know

December 27, 2018 Useful Articles

A trade license is mandatory for an entity to conduct business activities in Dubai and the Department of Economic Development (DED) is the authority issuing it. There are 4 types of licenses, either of which is to be held depending on the nature of your business.

  • Commercial License that covers all the trading activities,
  • Professional License that covers professionals, craftsmen, consultants, etc.
  • Industrial License for entities involved in the manufacturing or production line,
  • Branch/ Representative office of foreign companies

There are certain requirements in order to obtain the license from DED, which are as below:

  • Passport copies of all business partners
  • Memorandum and Articles of Association in case of commercial license or local service agent in case of professional license.
  • Lease agreement
  • Corporate documents of the foreign company attested and notarized (in case of branch/ representative office of foreign companies).

But what is the entire process to obtain the license to start a business in Dubai?

You should make sure that you have got all the prerequisites mentioned above before proceeding towards the process of obtaining the license. The process to be followed is stated below.

  1. Select the correct legal form required to obtain a trade license.
  2. Choose the trading activity that your business will be engaged in.
  3. Partner(s) name in the form should be put along with share capital value and partnership ratio should be set.
  4. Trade name reservation is to be done
  5. Drafting and notarization of the Memorandum of Association ( in case of Commercial license) or Local Service Agent ( in case of professional license).
  1. Submit above documents to the DED to get payment voucher.
  2. You will successfully obtain your trade license on making the payment as per the payment voucher.

This is a simple and easy process but there could be challenges since you might not be aware of a few points mentioned, hence you should have a service provider or a PRO service agent to take care of these formalities.

The above is all you need to know and do in order to obtain a trade license. Now let’s take a look at the cost that is involved for obtaining the trade license.

Cost Involved in Getting a Trade License in UAE

  1. Payment Voucher Fees
    Payment voucher fee includes trade name reservation, initial approval, and issuance of the license. The fee is subject to change upon the activity of the business.
  1. Notary Public Fees
    AED 2,000 approximately for the notarization of Memorandum of Association/ Local Service Agent Agreement.
  1. Rental Costs
    Depends on the size and location of the office.
  1. Sponsorship Fees
    A sponsorship fee is a tentative fee that is usually dependent on the nature of the business that is incorporated.