Do You Need a License to Start a Business in Dubai?

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An international business hub, Dubai concentrates on finance and trade as the foundation stones of strategic business planning. Even though, you won’t find a single business in the United Arab Emirates that would be allowed to operate with no trading licenses and permits required by the state. As an entrepreneur in the UAE, you are free to obtain the general trading license or the standard trade (a.k.a. commercial) license to run your company thereunder.

The main purpose of both these license types is the same: they authorize commercial operations within the emirate and on an international level, import and export deals included. However, beware of the meaningful differences. We will explore the subject further in the article below.

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Types of licenses you may obtain in the UAE: dissimilarities and available options

In the United Arab Emirates, the authorities have approved several trade license types for local companies, with professional, agricultural, industrial, freelancer, and commercial licenses among them:

Commercial Licenses: These licenses are for companies that trade a variety of goods within the UAE.
Professional Licenses: They are for businesses that render professional services in the UAE, such as consultancy, real estate brokerage, R&D, carpentry services, and more.
Industrial Licenses: The said industrial licenses are for companies involved in manufacturing activities in the UAE.
Freelancer Licenses: With the above license, you can work remotely for UAE companies or foreign firms.
Agricultural Licenses: They are issued to companies in the UAE that cultivate and sell vegetables, fruits, and other crops, as well as pesticides.

Besides the above categories based on business activity, trading licenses in the UAE are also classified as either general or standard.

Not exactly Siamese twins: general trading license vs. standard trade license in the UAE

Check out the main differences between a standard trade license and a general trading license below:

A General Trading License grants a company the right to trade in nearly all types of goods across various categories. Here belong imports and exports, as well as products falling under categories like furniture, cosmetics, construction materials, and other items subject to licensing as per UAE regulations.
A Standard Trade License is for companies that trade a limited range of goods or services, usually up to 10. This means that the company can only deal with specific products or services related to its business activity.

The apparent conclusion is that companies about to import, sell, or export food products, electronics, furniture, clothing, and the like, will benefit from obtaining a general trading license.

Trade restrictions in Special Economic Zones and on the mainland

If you want to obtain a general trading license in Dubai, you have 2 options: you can apply through the Dubai Department of Economic Development (DED) on the mainland or through one of the many Dubai Free Zones. Each option has its own strengths and limitations, depending on your business goals and activities. A common question that arises is whether a free zone company with a general trading license may sell its products in the mainland Dubai market.

The thing is, it may, although indirectly. A free zone company is only authorized to sell its products on the mainland through a local DED-licensed distributor. This means that the free zone company has to share its profits with the distributor and follow the distributor’s terms and conditions. Alternatively, a free zone company may set up a branch with a DED license on the mainland, which allows it to operate independently and directly in the mainland market. However, the above option comes with more paperwork and higher fees, and the branch has to comply with the mainland laws and regulations.

Benefits of registering a company with a general trading license in the UAE

A general trading license in Dubai has many benefits over a standard trade license, especially if you choose to operate in one of the free zones:

You don’t have to pay corporate taxes on your business activities in any Dubai free zones.
You aren’t required to contribute any minimum authorized capital amount to start your company.
You can get your license quickly and easily, without much hassle.
You have the right to transfer all your capital and profits to your home country without any restrictions.
You may own 100% of your company, with no need for a local partner or sponsor.
You are free to trade in multiple types of goods under one license, without having to apply for separate licenses for each category.
You and your employees may get UAE residency visas, which allow you to live and work in the country. You can also sponsor your family members for visas.

As an extra option, don’t hesitate to apply for a long-term residency visa if you buy properties in the UAE. Available since 2023, this visa gives you more stability and security, as well as access to various services and facilities. Find out more about Q Wealth offers and expert services!

How to register a company in the UAE and obtain a general trading license

If you want to get a general trading license in Dubai, you need to register your company in the UAE first. Depending on your business needs and preferences, you can choose to register a business on the mainland or in one of the free zones. Here are the basic steps to follow when launching a company and getting a general trading license in Dubai:

Hire a local agent to help you with the company registration process. The agent will prepare and submit the required documents, and represent you in the corresponding government bodies. If you register your company on the mainland, you will need a local sponsor who owns 51% of your company. In the case of free zone incorporation, you may own 100% of your company with no need for a sponsor.
Choose the emirate and the free zone where you want to register your company. Dubai has about 30 free zones that offer different benefits and incentives for various business sectors.
Pick a suitable name for your company that meets the established legal criteria.
Find an office that suits your budget and needs. You can rent an office in the mainland or in a free zone.
If your business involves importing goods, follow the customs clearance procedures established in the UAE.
Apply for a general trading license in Dubai or another emirate. You will need to submit certain documents and pay the corresponding fees to get your license.

To obtain your general trading license faster, make sure you have all the documents ready and in a due form.

Should you require any help with company incorporation in the UAE, don’t hesitate to contact Q Wealth. Our experts will offer you all the required services to launch your business in the UAE, including document preparation, translation, and legalization.

Document requirements for a general trading license in the UAE in 2023

The documents you need to get a general trading license in Dubai may vary depending on your business structure, company type, and location.

These are the documents that companies with natural person shareholders shall submit:

copy of your passport
passport-sized photos
copy of your UAE resident visa
copy of your Emirates ID card.

If your company has corporate shareholders, you may need to provide the documents listed below:

company incorporation certificate
Information about the shareholders, directors, and officers of your company
Memorandum of Association
board resolution that authorizes the establishment of your company in Dubai.

Please note that these are only general examples and the exact document requirements may vary among different free zones and mainland authorities in Dubai and the UAE. You can only get the exact info during licensing and company incorporation in the UAE. If you need any help or guidance with this, feel free to contact Q Wealth experts for an introductory consultation.

How much does it cost to register a company with a general trading license in the UAE?

Depending on the type of license, the location of your business, and the regulations that apply to your industry, it will cost you anywhere from AED 17,000 (USD 4,640) to AED 100,000 (USD 27,250) to get a trade license in Dubai.

To learn more about Dubai license prices in different free zones and mainland areas in Dubai, refer to The Most Expensive and Most Affordable Free Economic Zones in the UAE in 2023.

How to speed up the registration of a company with a general trading license in the UAE?

To start a company in the UAE and enjoy zero taxes and the freedom to trade in various products with a general trading license, expert assistance comes invaluable to guide you every step of the way.

You are welcome to learn about a wide range of services we offer to help you set up a company in the UAE:

Free consultations on how to register your business and get a general trading license in the Emirates.
Document preparation for registering your company, opening a bank account, getting a business license, and applying for resident visas in Dubai.
Assistance from experienced agents that will help you choose the best option for your company: mainland, offshore, or free zone.
Launching a company with a bank account in the UAE and/or abroad (in banks, non-banking financial institutions, or payment systems).
Support with getting either a general trading license or a standard trade license in Dubai.

Contact Q Wealth today and our UAE partners will start the company registration process for you to obtain a general trading license that suits your business needs and goals.

Do small businesses need a license in the UAE?

In the UAE, a license that matches its type of activity is a must for every business. The license shows that the business is legal and follows the rules and regulations in force in the UAE. The type of license you need depends on your business activity type that you are engaged in as either a sole proprietorship, a company, a freelancer, or a joint-stock corporation.

What is the cost of a business license in Dubai?

The charges you’ll incur depend on the size, characteristics, and operations of your enterprise. To illustrate, a trade license may be costlier and entail larger expenses compared to a service license, and to get a mainland license, you will pay more than in the case of a free zone license.

How much does a small business license cost in Dubai?

In 2023, a Dubai license price depends on its type, ranging from AED 2,500 to several thousand American dollars. The freelancer license is the cheapest option, followed by the professional artisan (a.k.a. craftsmanship) license. In the Emirates, the industrial and general trading business licenses in Dubai cost the most.