Dubai is renowned for its dazzling rivers and exciting nightlife. However, the city is also well-known for its strong economy and excellent business opportunities. If you wish to follow this expanding trend and find out how to get a trade license in Dubai, keep reading.

Perhaps this explains why so many business owners choose Dubai as their operational hub when attempting to establish a business in the United Arab Emirates. In the past year alone, about 55,000 new business licenses have been granted.

This guide walks you through the steps of applying for a trade license in Dubai.

Statistics on Business Licenses in Dubai, UAE

In the first half (H1) of 2022, Dubai issued 45,653 new business licenses, a 25% increase over the 36,647 licenses granted in H1 2021. 

The figures confirm the effectiveness of the government’s creative new strategic plans and policy changes, which have boosted the economy and attracted a lot of foreign and local investment. This allows the emirate to accelerate the rate of its diversification and sustainable economic growth.

In 2024, Dubai saw a significant increase in business licenses issued, with 16,574 licenses in March 2024, a 39% increase compared to March 2023.

In 2023, Dubai experienced fluctuations in the number of licenses issued, with a notable dip in April 2023 (8,443 licenses) but a recovery by September 2023 (12,256 licenses). 

In the first half of 2022, 55% of the new business licenses were professional, and 45% were commercial. 

What are the types of Trade Licenses in Dubai?

Not all UAE Trade licenses are made equal. Professional, commercial, and industrial licenses are the three main categories of trade licenses.

• Those who provide certain services must hold a professional license.
• Every business participant must get a commercial license.
• Industrial licenses are permissions for businesses engaged in manufacturing and other industrial activities.

It’s essential to ensure that you have all the required documentation before submitting an application for any of these trade licenses. If this is not completed, your license may not be issued on time.

Step-by-Step Guide to Getting a Trade License in Dubai, UAE

It’s not too hard to get a trading license in Dubai. To acquire your Dubai trade license, you need to finish a few simple steps.

1. Choose a Company Name

Selecting an appropriate trade name is the first step in getting your trade license. You must choose your business name in accordance with UAE company name regulations. It must also be a name that isn’t being used by any other active entity at the moment.

2. Lay Up Your Legal Framework

You must decide on your company’s legal structure before you can move forward with your trade license application. The legal framework will define who is in charge of your company’s operations.

3. Describe Your Commercial Activities

Following the selection of your company’s name and legal structure, you need to outline the business operations you plan to engage in. Make sure to list all of your activities on the license, as each license allows for a maximum of 10 activities.

4. Fill out the Application Form

The next step in the process is to complete your application. After completing the form, send it to the DED for initial approval.

5. Obtain Additional Approvals

For some business activities, you could require external authorization. Prior to completing the business formation process, make sure you do your homework. If not, your trading license will be denied by the authorities.

6. Collect The Necessary Documents

Along with your completed application, you will also need to submit a number of supporting documents for your license. Compile these documents and ensure they have all the necessary signatures.

7. Select A Location for Your Business

You have a number of options when it comes to the kind of trade license you might apply for. In order to apply for a mainland trade license, you will need a physical business location.

A tenancy agreement must be obtained after choosing a site for your company. You must include Ejari’s attestation in the contract, which you will submit with the rest of the application paperwork.

8. Send in Your Application

After you’ve chosen a location for your business and gathered all the required paperwork, submit your trade license application. To obtain your Dubai trade license, submit all necessary documentation to the DED.

9. Payment of License Fees

Note that it is not free to get a business license in Dubai. You must pay both the license fee and the issuance fee in order to receive your license.

How Much Does It Cost to Get a Trade License in Dubai?

Before rushing to get your trade license and start a business in Dubai, you should be informed of all the charges. This will keep you out of trouble and help you organize your money for the license process.

The cost of a trade license in Dubai varies according to the products you intend to sell and the permits you require. The following other factors could affect the price of your trade license:

• Number of business associates
• Geographic area of the establishment.
• Structure of a business.
• Collaborations with regional sponsors.
• Type of commercial operation.

In Dubai, the cost of a trade license can range from AED 15,000 to AED 50,000, or even higher. The cost of a business license is determined by a number of factors, including the presence of a sponsor, the number of partners, the type of business, the location of the business, the region in which the business is located, the structure of the company, etc.

Benefits of Trade License in Dubai

The UAE offers several commercial benefits, which is why many entrepreneurs wish to open offices or companies there. Getting a trade license in Dubai has the following main benefits:.

1. Increase both domestic and foreign trade

If you hold a general commerce license, you have many options for producing or importing commodities. Sending your items overseas to make money from other markets or to the Dubai market are your options.

2. Boost your credibility

To boost their earnings, many businesses look for legal and regulatory holes. On the other hand, consumers are more inclined to trust companies that take the time to follow the law.

3. Several Trade Restraints

Dubai is an excellent location for business because there aren’t many trade restrictions. As long as your products are registered under a general trading license, you won’t have to worry about restrictions.

Conclusion

Entrepreneurs hoping to make a mark in one of the most vibrant markets in the world have to get a trade license in Dubai. Company owners can efficiently simplify their formation process by adhering to the specified procedures, which include deciding on the best company activity, picking a suitable legal structure, obtaining the required paperwork, and understanding the associated costs.

After all, you can book a free consultation call today with the experts at JSB Incorporation to learn more about getting a trade license.