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How much does a trade license cost in Dubai

How much does a trade license cost in Dubai

١٧ يناير How much does a trade license cost in Dubai

Dubai is one of the most attractive cities for investors seeking to set up their companies and start their businesses. One of the essential factors that investors should take into consideration is obtaining a business license, which is the first and essential step to building success in Dubai’s dynamic business market. In this article, we will discover how much a commercial license costs in Dubai and the types of commercial licenses in Dubai.

Calculating the capital costs of obtaining a business license in Dubai is a crucial step for any investor seeking to establish his company. In cooperation with Itqan Company, in this introduction we will explore the topic of business license costs in Dubai and their importance in strategic business planning.

Business license costs in Dubai vary greatly and depend on several factors, including the type of company, scope of business, and government requirements. Costs may consist of initial registration fees, annual renewal fees, special license fees, and other additional fees related to administrative and consulting services.

By cooperating with Itqan Company, investors can obtain an accurate estimate of the costs of business licenses in Dubai, in addition to obtaining support and guidance in the process of establishing the company and meeting all legal and administrative requirements.

Understanding the costs of business licenses helps investors make informed and innovative financial decisions, ensuring business success in Dubai’s dynamic business environment. In this introduction, we will highlight the importance of understanding the costs associated with business licenses and how Itqan can provide the necessary support to investors to achieve their business goals efficiently and effectively.

How much does a trade license cost in Dubai?

How much does a trade license cost in Dubai?

Commercial licenses in Dubai

Business licenses in Dubai are an essential key to starting a business and investing in this vibrant and dynamic city. Dubai provides a flexible and favorable business environment, which makes obtaining commercial licenses a smooth and easy process for investors. The types of business licenses in Dubai vary according to the type of business activity and the company’s requirements, and each one has a set of benefits and features that meet the needs of different businesses.

Commercial licenses in Dubai include several types, including the general commercial license, the commercial license for joint-stock companies, limited liability companies, sole proprietorships, industrial licenses, and others. Commercial licenses in Dubai have several advantages, including ease of obtaining, low costs, flexibility in business management, and rapid availability of licenses thanks to modern electronic procedures that facilitate the process of submitting applications and administrative movements.

In addition, commercial licenses in Dubai provide access to the UAE, regional and global market, as Dubai is considered a trade and investment center in the Middle East, and various investment and business opportunities are available in various economic sectors. Commercial licenses in Dubai also provide a stimulating commercial environment that encourages innovation and leadership, and provides advanced infrastructure and excellent logistical services that facilitate import and export operations.

In short, business licenses in Dubai are a gateway to starting businesses and expanding investments in this modern and thriving city, and provide an enabling and supportive environment for companies and entrepreneurs to achieve sustainable success and prosperity.

Steps to obtain a commercial license in Dubai

Dubai is one of the most important commercial and economic centers in the world, providing an ideal environment for individuals and companies to start businesses. One of the basic steps that must be taken to start a business in Dubai is to obtain a trade license, which is considered the main gateway to legally establishing a company and starting a business. Here are general steps to obtain a commercial license in Dubai :

  1. Determine the type of license: Before starting the process of obtaining a license, you must determine the type of commercial license that best suits your business and your specific needs.
  2. Choosing a company name: You must choose an appropriate name for your company and ensure that it complies with the regulations and legal requirements in Dubai.
  3. Determine the legal structure of the company: You must choose the appropriate legal structure for your company, whether it is a sole proprietorship, partnership, or limited liability company.
  4. Completing the required documents: All documents required to submit a license application must be completed, including a copy of the passport, a copy of the lease contract or ownership document, and any other documents required by the concerned authorities.
  5. Submitting an Application: You must submit an application for a trade license to the relevant authority in Dubai, whether that is the local municipality or a designated free zone.
  6. Review and approval: After submitting the application, the relevant authority will review the application and verify that all requirements are met. You may be asked to conduct an interview or provide additional information.
  7. Pay the fees and receive the license: After the application is approved, you will be asked to pay the relevant fees and then the business license will be issued to your company.
  8. Implementing tax and legal obligations: After obtaining the license, you must comply with all local legal and tax regulations in Dubai.

Cost of a business license in Dubai

The cost of obtaining a commercial license in Dubai is affected by several factors, including the type of business activity, the region in which the company is located, the size of the proposed business, and the services that company establishment offices and legal advisors may provide. Here are some factors that affect the cost of a business license in Dubai:

  • Type of company: The cost of obtaining a license may vary depending on the type of company required, whether it is an individual company, a joint stock company, a limited liability company, or any other type of legal structure.
  • Geographical region: The cost of obtaining a license varies according to the region in which you choose to establish the company, as there may be differences in registration fees, taxes, and administrative fees between different regions.
  • Additional Services: There may be an additional cost for legal, accounting and advisory services that may be provided by company incorporation offices and legal advisors.
  • Government fees: You must pay the government fees required for the registration, licenses and permits process, and these fees vary based on the type of business activity and the size of the company.
  • Electronic registration costs: There may be a cost for electronic registration via e-government platforms, if this service is available.
  • Office and employee costs: If you plan to rent an office or hire employees, you will have additional costs for rent, salaries, and fringe benefits.

Types of commercial licenses in Dubai 

It is characterized by a wide variety of types of business licenses in Dubai , allowing investors and entrepreneurs to choose from a variety of options to easily establish and operate their businesses. These licenses offer great flexibility and multiple configurations, allowing individuals and companies to operate in various industries and sectors. Here are the types of business licenses in Dubai:

Type of licensethe description
General Trading LicenseIt allows the company to engage in all types of commercial activities, including wholesale and retail trade.
Free Zone Company LicenseIt allows the company to operate within a designated free zone in Dubai, providing some tax and customs benefits.
E-Trading LicenseIt allows businesses to sell goods and services online without the need for a traditional store.
Gulf Partnership License (GCC Partnership License)It allows Gulf citizens to partner with local partners in Dubai for commercial projects.
Joint Stock Company LicenseIt allows the company to raise capital from several shareholders, and it is considered a closed or open joint stock company.
Sole Proprietorship LicenseIt allows an individual to establish and manage a commercial company in Dubai.

The various types of business licenses in Dubai provide fruitful investment opportunities for investors and help them achieve their business goals efficiently and effectively. By understanding the options available and the requirements for each type of license, investors can make the right decisions to achieve sustainable success in Dubai’s dynamic business market.

Commercial license in Dubai

Commercial license in Dubai

Dubai instant license

The instant license in Dubai is considered one of the latest services provided to customers of Dubai Economy, which guarantees the issuance of a commercial license within just 5 minutes, where you can obtain your commercial license and carry on your business in one step without the need to reserve a trade name or have a company incorporation contract or lease contract.

The issuance of a Dubai instant license comes within the framework of the Dubai Economic Strategy, which aims to support the process of economic diversification, sustainable growth and competitiveness in the emirate, as it focuses on facilitating the process of doing business and investment, which contributes to anticipating and creating a better future in which Dubai will be the first in the world in Attracting strategic economic sectors and providing high-quality services in accordance with the highest international standards.

Types of companies in Dubai

In Dubai, there are several types of companies that individuals and companies who wish to invest in can invest. Here are some common types:

  • Sole Proprietorship: Managed and owned by one individual and liability is unlimited.
  • Solidarity Company: It is managed by a group of shareholders and the liability is unlimited for some shareholders or for all.
  • Limited Liability Company: Also known as “LLC”, where the shareholders’ liability is limited to the extent of the paid-up capital.
  • Public Joint Stock Company: The company’s capital is divided into shares that can be purchased by the public.
  • Private Joint Stock Company: Shares are not tradable in the public market.
  • Limited Liability Joint Stock Company: The capital is divided into shares and the shareholders’ liability is limited to the value of the shares they purchased.
  • Craft company: working in a specific field such as handicrafts or traditional industries.
  • Investment company: invests in financial assets such as stocks, bonds, and real estate.
  • Joint Company: The ownership of the company is shared between two or more companies.
  • Local company: Owned and managed by local shareholders.
  • Group company: manages a group of subsidiaries.

Steps to establish a company in Dubai

Dubai is considered one of the most attractive cities for investors and entrepreneurs in the world, as it provides an ideal environment for establishing companies in Dubai and starting a business. It provides investors with diverse opportunities and great flexibility in choosing company types and establishment procedures, making it an ideal destination for building business success. Here are the steps for establishing a company in Dubai :

  1. Determine the type of company: You must first determine the type of company you wish to establish, whether it is an individual company, a joint stock company, a company in free zones, etc.
  2. Choosing a company name: Choose an appropriate name for the company and make sure that it has not already been used, and it must comply with local laws and legislation.
  3. Bring the required documents: Collect the required documents such as a passport, recent personal photos, and a rental contract or ownership document.
  4. Submitting the application: Submit the application and required documents to the competent authorities in Dubai.
  5. Application processing: The application and documents will be reviewed by the relevant authorities in Dubai, and this step may require a period of time depending on the volume of applications and the type of company.
  6. Payment of fees: After the application is approved, you will have to pay the prescribed fees to obtain the commercial license.
  7. Receiving the trade license: After paying the prescribed fees, you will receive the final trade license that confirms the legitimacy of the company and allows it to start business activity in Dubai.

Advantages of establishing a company in Dubai

Establishing a company in Dubai provides many advantages that make it an attractive destination for investors and entrepreneurs from all over the world. Here are some of the key advantages of setting up a company in Dubai:

  • Encouraging business environment: Dubai is known for its business-friendly environment, as it provides advanced infrastructure, a flexible legal system, and smooth procedures for establishing companies.
  • Tax exemptions: Many free zones in Dubai offer full tax exemptions on income and profits for up to 50 years, making them an ideal place to avoid heavy tax burdens.
  • Strategic location: Dubai is located in a distinct geographical location between Europe, Asia and Africa, which facilitates access to large and diverse markets and makes it a global logistics center.
  • Advanced Infrastructure: Dubai has a world-class infrastructure, including modern airports, advanced ports, and an advanced road network, which supports business and facilitates logistical operations.
  • Cultural Diversity and Skilled Workers: Dubai embraces a diverse international community and provides a wide range of skilled workers from different nationalities, making it easier to find the talent needed to run a business.
  • Political and economic stability: Dubai is characterized by political and economic stability, which creates a safe and favorable environment for investment and business establishment.
  • Fast and flexible procedures: The process of establishing companies in Dubai is known for its speed and flexibility, with the availability of electronic services that speed up procedures and reduce bureaucracy.
  • Full Foreign Ownership: In many free zones, foreign investors can own 100% companies without the need for a local partner, giving them full control of their business.
  • Financial and banking facilities: Dubai provides a wide range of financial facilities and banking services, including financing, commercial bank accounts, and investment services.
  • Technical Infrastructure: Dubai is considered a center for technology and innovation, with an advanced technical infrastructure that supports technological and innovative companies.
  • Legal and Regulatory Security: A strong legal and regulatory system protects investors’ rights and provides a transparent and stable environment for business.

In conclusion, the cost of a business license in Dubai is an important topic that influences the decisions of investors and entrepreneurs looking to take advantage of the business opportunities available in this dynamic city. Dubai, with its strategic location and advanced infrastructure, attracts many investors who want to establish successful businesses. However, the cost of obtaining a business license can vary greatly based on the type of business, size of business, and services required.

Cooperation with Itqan Company can greatly facilitate the process of obtaining a commercial license, as the company provides integrated services that include legal consultations, administrative procedures, and providing full support to investors during all stages of establishing the company. Through a professional and experienced team, Itqan ensures the provision of customized solutions that match customer needs and meet their requirements in the best possible way.

When we talk about the cost of a business license in Dubai , several factors must be taken into account including government registration fees, incorporation consultation costs, license fees for the specific business activity, as well as rental costs for offices or commercial facilities. These costs can change based on the requirements, location and nature of the project. Therefore, hiring an Itqan company can help provide an accurate and transparent estimate of expected costs, which helps in sound financial planning and avoiding unexpected costs.

The most important frequently asked questions about the commercial license in Dubai

Can foreigners get a business license in Dubai?

Yes, foreigners can obtain a business license in Dubai, but there may be some additional requirements such as a local partner in some cases.

What are the necessary procedures to renew a commercial license in Dubai?

Procedures include: submitting a renewal application, paying fees, and updating any required documents such as the lease contract and security certificates.

What are the necessary steps to convert the type of commercial license in Dubai?

The transfer application must be submitted to the Department of Economic Development, and supporting documents such as new articles of incorporation and business plans must be submitted.

What are the legal controls and regulations that must be complied with while operating a business in Dubai?

Must comply with labor laws, commercial laws, health and safety laws, and domestic and international tax regulations.

Can a Dubai trade license be used to conduct business activities in other emirates?

No, the commercial license issued in Dubai allows work within Dubai only. To work in other emirates, you must obtain a local license for each emirate.