Adorable Things About Dubai Trade License

Dubai is a city that has been built on the foundation of trade and commerce, so it’s no wonder that they have some pretty unique regulations for their business community. One such regulation is the Dubai Trade License, which can be obtained from the Department of Economic Development in Dubai. In this blog post we outline what you need to know about obtaining a Dubai Trade License and offer advice for what you should do if your application gets denied.

Before we get started, here’s a quick blurb on the main types of licenses available in Dubai:

Free Zone Investment License (FZ) – This type of business license allows you to do business in and from a Free Zone. Issuing Authority: DIFC or DXB Free Zones. General Trade License (GT) – This type of license allows you to do business anywhere in Dubai, but not from a free zone. Issuing Authorities: DED and Commercial Registration Department (CRD). Branch License – This type of license allows you to establish a new company outside of the UAE and run its operations within the country. Issuing Authority: DED.

Applications for the Dubai Trade License can be submitted online via the DED website. However, if you are unable to submit your application online then you will need to visit the RTA.

What’s needed for a Dubai Trade License application?

As per Article 3 of Federal Law No. (3) of 2009 on Commercial Agencies (Trade Licensing), a trade license in Dubai is required for:

1. Establishing a commercial agency.

2. Taking up employment in a commercial agency, including the profession of commission agent and broker.

3. Providing or rendering to another person any services that enable him to carry out business transactions with third parties.

Issuing Authority: Commercial Registration Department (CRD).

Note: If you need a trade license in Dubai for the purpose of rendering any other service, then you should apply at the DED.

What about companies incorporated outside UAE?

Under Article 9 of Federal Law No. (3) of 2009 on Commercial Agencies, if a company or business is established outside the UAE, then it must obtain a trade license within 30 days of having its headquarters or branch office in Dubai.

When do you need to renew your Trade License?

Article 13 of Federal Law No. (3) of 2009 on Commercial Agencies states that you are required to renew your Trade License every three years from the original date of issuance.

What happens if you do not renew your Trade License?

Expired trade licenses will block you from starting a new business in the UAE, as well as operating an existing company. Fines can also be applied if your license has expired and you continue to conduct business with a client or customer.

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How much does a Dubai Trade License cost?

This varies depending on the company you are setting up and the services your business provides. However, for general guidance, companies set up under free zones typically pay between AED 6,000 to 10,000 in fees while other businesses can expect to pay anywhere from AED 15,000 to 25,000.

What happens if your trade license is denied?

If your application for a Dubai Trade License gets denied then you are not permitted to continue conducting business with clients or customers. If you have obtained contracts, investment approvals or even registered employees, then you will be required to cancel these agreements/registrations without any compensation.

So what should I do if my Trade License is denied?

If you have read through this blog post and are still not sure what to do when your trade license gets denied, then it might be in your best interest to consult a lawyer. Depending on the circumstances surrounding your application, there may be other options available for setting up a business in Dubai.

However, if you feel that you have acted in accordance with the law and there was no intent to deceive or wrong-do, then it is unlikely that your trade license application will be denied.

Adorable Things about Dubai – Dubai Trade License

Article by Abdul Malik Merchant. Get more useful information on how to register a business in Dubai at our blog today. Check out our website to discover the latest news on trade licenses in Dubai.

Trade License, Adorable Things About Dubai, Dubai Trade License. Article by Abdul Malik Merchant. You can contact us at [email protected] for more information on how to set up your business in UAE including offshore company formation services and tax registrations.

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