Types of Trade Licenses and the Dubai trade license cost
Having a trade license in a Dubai location is the most important step that you must take to start your business. And this legal document will not only legitimize your company but also help you cover your business activities in Dubai. However, it is vital to consider the Dubai trade license cost and know its requirements before applying for it. In this article, you will learn all you need to know about this license available in Dubai. And you will also discover the different types of trade licenses that you can apply for in this emirate. Besides, you should know about the license renewal process and its cost to be prepared for it. 1. Why do you need a Trade License in Dubai to do business? There are several reasons why you need a trade license, and the main one is that it is mandatory for investors. Regardless of the business location in which your company operates, it is a legal requirement to have this license. However, there are many other reasons why your business should possess this document in Dubai or the UAE. For instance, you should keep in mind that a license like this will identify both you and your company. Besides, having this document also allows your business to take accountability for its commercial activities in the Dubai emirate. In addition, a trade license can also protect the public’s interest and provide safety through procedural measures. And also, investors that have their trade licenses can participate in many profitable measures that the government introduced. On the other hand, there are many other benefits that investors can enjoy by having a trade license in Dubai. For example, some of those benefits that they can get are the following ones: 100 percent of repatriation of both capital and profits. Low import duty. No, paid-up capital requirement. Multiple banking benefits. Tax-free jurisdiction. And it also provides a getaway for both local and international trading as well. However, if you want to apply for a trade license in this emirate, you will learn about the application process. Besides, it is also vital to know about the types of trade licenses and the main authority that issues them. Furthermore, you should also keep in mind the Dubai trade license cost and the renewal process and fees. 2. Who in Dubai issues Trade Licenses? The only authority that issues this type of legal document in Dubai is the DED. These acronyms stand for the Department of Economic Development, which is a government entity that sets and drives the emirate’s economic agenda. And this authority also supports the structural transformation of the emirate into a diversified and innovative service-based economy. The DED also counts on several agencies that develop and manage economic policies and plans. Besides, these agencies also have the function of identifying and supporting the economic growth of different strategic sectors. And in order to support them, the DED agencies provide them with services to both local and international investors and companies. There are three main DED agencies that have the main purpose of supporting investors and their different types of businesses. And those agencies are Dubai SME, Dubai Industries & Exports, and Dubai FDI (Foreign Direct Investment). Each of them was launched for supporting and promoting specific kinds of businesses, besides facilitating their success and growth. To summarize, this government body has the goal of improving the business environment and speeding up Dubai’s productivity growth. Therefore, one of the services that the DED provides is the issuance of different business licenses, including trading licenses. However, in case you want to establish your company in another emirate, you must issue your license through other entities. What are the different types of trade licenses available in Dubai? Depending on the types of business activities in Dubai that your company carries out, you will need a specific trading license. And you can find four main types of this business license in Dubai and other emirates in the UAE. It is important to know about each license so you can choose one that suits and covers your activities. Let’s take a look at the four main types of trading licenses that you can apply for in Dubai: Commercial License: with this license, your company can carry out different trade activities within the jurisdiction, including buying and selling products. However, you must know that it is only possible to trade these activities for the items that your license mentions. Additionally, traders could also import and export goods by having this license. Professional License: on the other hand, this license is only for those who carry out individual activities or services. For example, local or foreign professionals who have experience with multiple activities from certain industries can use this license. And the most common ones tend to be marketing, management, education, accounting, healthcare, advertising, and more. It is worth mentioning that it is not necessary to have a local sponsor if you have this license. Industrial License: this one is useful for investors who desire to set up a factory and carry out industrial activities. The main activity that this license allows is importing raw materials, which leads to other activities and processes. For instance, it is possible to manufacture goods and then export the finished products. Tourism License: this one, it is exclusively for tourism-related companies or agencies that operate in Dubai. Therefore, some taxes, regulations, rules, permissions, and compliance are somehow different when it comes to the tourism sector. Is it necessary to renew a trade license in Dubai? It is mandatory for company owners to renew their trade licenses every year if they want to keep operating. And the main reason is that they could face certain penalties if they keep running their businesses with an expired license. Therefore, it is vital to consider not only the Dubai trade license cost but also the renewal cost. Once your trading license has expired, you will only have 30 days to renew it or cancel it. And of course, you
