For those interested in doing business in the UAE, there are multiple requirements to be met before one can operate legally in the region. Among these requirements are the Cheapest Trade License In UAE, Commercial Registration, and Immigration Department registration, each of which must be obtained separately and may come with a variety of fees depending on the type of company you start up. While getting all these documents may seem like quite an undertaking, it’s often easier than you think to secure them all without going over budget or breaking the bank altogether.
Things You Need To Know About Trading Licenses In Dubai
Although it might not be as difficult to obtain a Cheapest Trade License In UAE as it is in other places, there are still some important considerations you should take into account. To gain a license, you need to have an ex-pat sponsor, which is any registered UAE national or business that wants to hire you. You’ll also need to prove that you have enough capital typically at least $5,000 and evidence of property ownership. Once these are taken care of, it should only take five business days for your license application to be approved by authorities. This leaves plenty of time for you and your UAE company representatives to work on developing your new enterprise before your official trade license becomes effective.
It’s also important to know that after you receive your Cheapest Trade License In UAE, it won’t automatically permit you to open a branch of your company. There are some restrictions on how many businesses you can operate at once. In most cases, UAE authorities only allow an individual to hold two business licenses at any given time, with a few exceptions. If you want to start additional companies or brands while keeping your original one active, it’s a good idea to work with an experienced business lawyer so that you don’t violate these terms.
Types of Trade Licenses in UAE
In UAE, there are three types of trade licenses that businesses can obtain: Mainland Trade License, Free Zone Trade License, and Offshore Trade License.
Mainland Trade License:
A mainland trade license is required for businesses that operate within the mainland of UAE. This license is issued by the Department of Economic Development (DED) in the respective emirate where the business is registered. One of the significant benefits of a mainland trade license is that it allows businesses to operate across all the emirates of UAE. However, the cost of a mainland trade license is generally higher than that of free zone and offshore trade licenses.
Free Zone Trade License:
A free zone trade license is issued by the respective free zone authority where the business is registered. Businesses that operate within a free zone are allowed to carry out their operations without any restriction on the percentage of foreign ownership. The free zone authorities offer various incentives such as tax exemptions, 100% foreign ownership, and fast-track visa processing. The cost of obtaining a free zone trade license is generally lower than that of a mainland trade license.
Offshore Trade License:
An offshore trade license is issued by the respective offshore company formation agents and is usually used for companies that are involved in international trading and have no physical presence in UAE. Offshore companies are not permitted to do business in UAE but can conduct business internationally. The cost of obtaining an offshore trade license is usually lower than that of a free zone or mainland trade license.
When deciding on the type of trade license to obtain, businesses should consider their business objectives, the nature of their operations, and their target audience. Each type of trade license has its advantages and disadvantages, and the cost of obtaining a trade license can significantly vary depending on the type of license.
Cost-Effective Trade License Options in UAE
Starting a business can be expensive, and every penny counts when you’re trying to keep costs down. Fortunately, there are some cost-effective trade license options available in UAE that can help you save money while still complying with legal requirements. Here are some of the most affordable trade license options in UAE:
Freelance Permit:
A freelance permit is an affordable option for individuals who wish to work as freelancers or sole practitioners in UAE. It allows you to work in your field of expertise without the need for a physical office. The cost of a freelance permit can range from AED 7,500 to AED 15,000, depending on the issuing authority.
Commercial License in Umm Al Quwain Free Zone:
Umm Al Quwain Free Zone (UAQ) offers one of the most cost-effective trade licenses in UAE. The commercial license in UAQ free zone costs AED 8,700 for a one-year license, which is significantly lower than the cost of trade licenses in other emirates.
General Trading License in Ajman Free Zone:
The Ajman Free Zone offers a general trading license that allows businesses to trade in a wide range of products. The cost of a general trading license in Ajman free zone can range from AED 12,000 to AED 15,000, depending on the type of business activity.
Commercial License in Dubai South Free Zone:
Dubai South Free Zone offers a cost-effective commercial license that allows businesses to conduct trade and commercial activities. The cost of a commercial license in Dubai South free zone can range from AED 15,000 to AED 20,000, depending on the type of business activity.
E-Commerce License in Dubai Multi Commodities Centre (DMCC) Free Zone:
DMCC free zone offers an E-commerce license that allows businesses to conduct e-commerce activities in UAE. The cost of an E-commerce license in DMCC free zone can range from AED 9,000 to AED 18,000, depending on the type of business activity.
Trade License Costs in Different Emirates of UAE
The cost of obtaining a trade license in UAE varies depending on the emirate where the business is registered. Each emirate has its own fee structure for issuing trade licenses. Here is a breakdown of the trade license costs in some of the most popular emirates in UAE:
Dubai Trade License Costs:
The cost of a Dubai mainland trade license can range from AED 7,000 to AED 10,000, depending on the type of business activity. The cost of a Dubai free zone trade license can range from AED 15,000 to AED 50,000, depending on the free zone authority and the type of license.
Abu Dhabi Trade License Costs:
The cost of an Abu Dhabi mainland trade license can range from AED 10,000 to AED 30,000, depending on the type of business activity. The cost of an Abu Dhabi free zone trade license can range from AED 12,000 to AED 50,000, depending on the free zone authority and the type of license.
Sharjah Trade License Costs:
The cost of a Sharjah mainland trade license can range from AED 5,000 to AED 10,000, depending on the type of business activity. The cost of a Sharjah free zone trade license can range from AED 11,000 to AED 35,000, depending on the free zone authority and the type of license.
Ajman Trade License Costs:
The cost of an Ajman mainland trade license can range from AED 3,000 to AED 7,000, depending on the type of business activity. The cost of an Ajman free zone trade license can range from AED 12,000 to AED 25,000, depending on the free zone authority and the type of license.
Ras Al Khaimah Trade License Costs:
The cost of a Ras Al Khaimah mainland trade license can range from AED 5,000 to AED 10,000, depending on the type of business activity. The cost of a Ras Al Khaimah free zone trade license can range from AED 11,000 to AED 40,000, depending on the free zone authority and the type of license.
Fujairah Trade License Costs:
The cost of a Fujairah mainland trade license can range from AED 4,000 to AED 10,000, depending on the type of business activity. The cost of a Fujairah free zone trade license can range from AED 12,000 to AED 35,000, depending on the free zone authority and the type of license.
Umm Al Quwain Trade License Costs:
The cost of an Umm Al Quwain mainland trade license can range from AED 2,000 to AED 5,000, depending on the type of business activity. The cost of an Umm Al Quwain free zone trade license can range from AED 10,000 to AED 25,000, depending on the free zone authority and the type of license.
What Are The Documents Required For A Trade License?
To obtain a trade license, you must provide evidence of your legal name and address in Dubai. If you are an individual, your passport is enough if you are a company, your Cheapest Trade License In UAE is required. You will also need to provide documentation of any applicable prior criminal convictions. These documents include a National ID card for UAE nationals, a Passport for expatriates, or a visa page for Emiratis. The trade license may be obtained from any of four. The cost varies from AED1,000 to AED2,500 depending on where you apply. Each center issues its specific licenses.
There are also several required documents for a Cheapest Trade License In UAE, including but not limited to NOC No Objection Certificate from the company’s Director, a document for UAE residency, and an ID card. An applicant must submit all these requirements plus sign at least two witnesses to each document. Trade License is important in Dubai because it allows you to do business legally as an entity with no hassles. To get one, you will need several documents such as a No-Objection certificate from your Director or CEO of your company Residence visa Emirates ID Card Passport Original copies of the lease contract if renting premises or purchase agreement if buying office space; Latest bank statement along with original bank book, etc. This can be obtained through four main centers Deira City Center, Bur Dubai City Center, Mirdiff City Center, and Al Ain Center.
How Much Does It Cost To Get A Trade License?
Anyone can start a business in Dubai without having to register with any authorities. Once your business is making a profit, you can apply for Cheapest Trade License In the UAE in the Chamber of Commerce and Industry DCCI. The trade license is valid for 1 year and costs about 40 AEDs for Company Registration In UAE that generate less than 200,000 AEDs per annum and 50 AEDs for those that generate more than 200,000 AEDs per annum approx. USD 8500. 4. When renewing your trade license, you need to provide copies of the company’s audited financial statements as well as the original certificate of incorporation issued by the UAE Ministry of Justice.
About getting a trade license, we should mention that it is nothing more than getting approval from the Dubai Chamber of Commerce and Industry to start a business in the UAE. The registration process is quite simple; all you need to do is submit your application at the Dubai Chamber of Commerce and Industry’s headquarters address Al-Shindagha Tunnel Road, Bur Dubai along with copies of other relevant documents. Make sure to submit original copies when renewing your trade license. In case you plan on employing workers while your company is still receiving its Cheapest Trade License In UAE, make sure to register your company as an employer using the Ministry of Labor Certificate. Depending on how fast you want your company registered, choose between online services which usually cost around 130 AEDs
