If you are thinking of setting up a business in UAE, then it is time to explore the numerous business trade licensing options. In the U.A.E., the possibilities of getting a trade license are endless. Entrepreneurs usually have several questions regarding the overall process, like the type of licenses and how to avail it.
Well, there is nothing wrong in analyzing different licensing methods before finalizing the decision.
If you are leading a trading business, with goods and products to import and export, then you must get a trading license in UAE. It is more like a legal formality that you need to obey while working within the UAE Without it, your business operations will be considered illegal and you are likely to face criminal charges.
What does a Trade License In UAE Mean?
Every single business needs a trading license to get started in Dubai. A trade license can be approved by the Department of Economic Development (DED) where some rules are needed to be followed. This license is not an all-in-one package – different licenses cover different types of trading activities. Company formation in UAE requires this type of validation to trade not just in Dubai, but in other places around UAE as well.
While the business setup in UAE is taking place, the option to choose between mainland, offshore, and free zones trading is given. Entrepreneurs then have to choose from where they want to operate and get a trade license approved.
How to Get a Trade License in UAE?
There are a few steps to follow in order to acquire a trading license. Let’s check them out.
- Firstly, decide the trade name for your company.
- For company formation in UAE, choose a legal structure as well.
- List down all sorts of business activities that you want to include in the trading license. You can choose up to 10 activities per trading license.
- Now, it is time to apply for the license.
- According to your business setup in Dubai, try getting external endorsements as well for additional support.
- Submit the required files and documents approved by the relevant ruling bodies, like the Memorandum of Association (MOA).
- Choose where you want to operate from and acquire a tenancy agreement which should be attested by Ejari.
- For the final approval, submit your request to the DED.
- Pay the issuance fee for the licenses as well as other requisite payments.
As soon as the Commercial Registry Authority will validate the application, the business name will get approved. Then, the DED will further evaluate the documents and forward them to the Federal Ministry of Economy.
Afterwards, the final evaluation will take place and the ministry will issue the endorsement letter. After getting approved, the trade license can last for 1 year, with renewal of the application from the trusted authorities. The renewed license can be easily used for 5 more years.
How much will it Cost?
Besides the company formation in UAE, the total estimated cost of a general trading license will be from 20,000 AED to 30,000 AED – depending upon the activity. This is a one-time investment which will reap amazing results in the future.
What are the Advantages of Getting a Trade License in UAE?
Some of the benefits of getting this license for business setup in UAE are mentioned below:
- There are no currency constraints
- Jurisdiction is tax-free
- Stress-free access to employee’s visa application
- Provision of local as well as international trading
- No need for paid-up capital approval
- Convenient legal procedure
- No requirement of auditing
- 100% deportation of profits and capital
- Very low import duty
- Facility of availing different banking services
All in all, obtaining a trade license in all over UAE can benefit the business in uncountable ways. Due to the applicant-friendly trading policies, more and more entrepreneurs are planning to operate in the UAE So, what are you waiting for? It is time for business formation in UAE with the approval of a trade license to make the whole process easier!
At Emirates Express, our experienced personnel support you in your journey from the beginning till the time you get your trade license in UAE. Write us here to get a call from us
