Mainland License

What is a Trade License in Dubai?

A trade license is a legal permit issued by the Department of Economic Development (DED) in Dubai, allowing businesses to conduct activities within the emirate. Depending on the type of business activity, there are several types of trade licenses:

• Commercial License: For businesses engaged in trading activities.
• Professional License: For service providers like consultants, designers, or freelancers.
• Industrial License: For manufacturing and industrial activities.

The most common license is the DED trade license, which is essential for anyone wanting to engage in commercial activities in Dubai.

How to Get a Trade License in Dubai?

Getting a trade license in Dubai is a straightforward process if you follow the required steps. Here’s a breakdown of the process:

1. Choose the Business Activity: The first step is selecting your business activity. The DED offers a comprehensive DED license activities list on its website, where you can choose from over 2,000 permitted activities.
2. Choose the Business Structure: Decide on the legal structure of your company, whether it’s a Limited Liability Company (LLC), sole proprietorship, or branch of a foreign company.
3. Reserve Your Trade Name: You will need to choose and reserve a unique trade name for your business. This name should comply with DED regulations and reflect the nature of your business.
4. Submit the Initial Approval Application: The next step is applying for initial approval from the DED. This approval confirms that the Dubai government has no objection to your business operating in the region.
5. Draft a Memorandum of Association (MOA): For LLCs and some other business structures, you’ll need to draft an MOA, outlining the ownership distribution and profit-sharing arrangements among partners.
6. Find an Office Space: A physical office is required for all businesses operating in Dubai mainland license. You will need to present a tenancy contract to the DED as part of the license application process.
7. Submit the Documents: Finally, submit all the necessary documents, including your initial approval, MOA, tenancy contract, and identification documents, to the DED.

Once approved, you’ll receive your DED trade license, allowing you to legally operate your business.

Cost of DED Trade License in Dubai

The DED license cost can vary depending on several factors, including business activity, office space, and the number of visas you require. On average, the cost of obtaining a trade license ranges between AED 10,000 to AED 30,000. Additional expenses may include:

• Local sponsor fees (for certain types of businesses).
• Office space rent.
• Visas for employees.

Consulting with a business setup expert can help streamline the process and ensure you understand all the costs involved.

DED Trader License: What is It?

The DED Trader License is an excellent option for freelancers and home-based businesses looking to operate in Dubai. This license allows individuals to engage in commercial activities from home without the need for physical office space. It’s a great way for entrepreneurs to start small and gradually expand their businesses.

To apply for a trader license in Dubai, you can visit the DED Trader and complete the application online. The e-trade license in Dubai is an ideal solution for online businesses and professionals in the creative and service sectors.

Benefits of a Trade License in Dubai

Obtaining a DED trade license opens the door to numerous business advantages:

1. Access to Local and International Markets: With a Dubai trade license, your business can operate within the UAE and expand globally without restrictions.
2. 100% Ownership for Foreign Investors: Thanks to recent reforms, foreign investors can now have 100% ownership in many sectors, making Dubai even more attractive for global entrepreneurs.
3. No Corporate Taxes: Dubai offers 0% corporate tax, allowing businesses to reinvest profits for growth.
4. Visa Sponsorship: A DED company setup allows you to sponsor visas for employees, their families, and yourself, ensuring smooth business operations.

How to Choose the Right Business Activity?

The DED license activities list covers a wide range of sectors, from retail and trade to consultancy and technology. It’s essential to select an activity that reflects your business’s core operations. If you’re unsure which activity to choose, consult the DED’s website or seek advice from a business setup consultant.

Why Choose Dubai for Your Business?

Dubai’s business-friendly policies, strategic location, and global connectivity make it the perfect place for entrepreneurs. Whether you are setting up a physical business or going digital with an e-trade license, Dubai offers unparalleled opportunities for growth and success.