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Understanding Dubai’s Appeal and Business Opportunities Dubai is widely recognized as a key metropolis in the United Arab Emirates, famous for its iconic skyline with impressive skyscrapers set against the desert sands and sea waters. However, not everyone knows that in the 2023 , the UAE’s financial system reached a record of AED 4.075 trillion in non-oil foreign trade.

Additionally, the number of newly registered companies in Dubai increased by 23% in 2023, with the Dubai Chamber of Commerce issuing 735,155 certificates of origin during the same period.

It is no surprise that the UAE government plans to double Dubai’s economic growth over the next decade.

If you’re interested in becoming part of this business wave by starting a company in Dubai, you’ll need a trade license to get started. Here’s what you need to know about it.

What is a Dubai Trade License?

A Dubai trade license is a legal document issued to an individual or entity, granting permission to engage in specific commercial activities within the Dubai Emirate. This license is provided by the UAE’s Department of Economic Development (DED) or the authority bodies of a specific Dubai free zone if that’s where you choose to start your business. Such licenses are crucial for establishing and running a company anywhere in the UAE. Typically, a separate trade license is required for different business activities, but you can also opt for a general trading license, which allows multiple activities under one license along with other benefits, including conducting business operations and importing/exporting goods.

Types of Trade Licenses:

There are several types of business licenses in Dubai, each designed to cater to different commercial activities and legal structures.

Common types include:

Commercial (Trade) License: Issued for companies involved in trading activities, allowing them to buy, sell, and distribute goods.

Professional License:

For service-oriented businesses such as consultancy firms, law firms, and medical practices.

Industrial License:

Required for companies engaged in manufacturing or industrial activities.

Tourism License:

For businesses in the tourism and travel sector, including travel agencies and tour operators.

Freelance Permit:

Designed for individual professionals conducting business activities on a freelance basis.

E-commerce License:

For businesses engaged in online retail and e-commerce activities.

Branch Office License:

Allows foreign companies to open a branch office in Dubai to conduct activities related to the parent company.

Each license type may have specific requirements such as paperwork, business structure, office size, and warehouse access.

Compliance with these requirements is essential to avoid legal complications and delays.

Consulting Dubai-based experts can help ensure adherence to these requirements.

Free Zone, Mainland, or Offshore License In Dubai, businesses can operate under three main licensing options:

Mainland, Free Zone, and Offshore.

Each option has distinct characteristics, benefits, and limitations.

1.Mainland License:

Location:

Operate within Dubai or other emirates in the UAE.

Ownership:

Typically requires a local UAE-national sponsor holding at least 51% ownership, with some exceptions allowing 100% foreign ownership.

Flexibility:

Can conduct business activities across the UAE without restrictions.

Regulation:

Subject to UAE and specific emirate laws.

Trade Across UAE:

Can trade directly with other mainland companies without intermediaries.

Customs Duties:

Subject to customs duties on imported and exported goods.

2.Free Zone License:

Location:

Operate within designated economic or free trade zones in Dubai.

Ownership:

Allows 100% foreign ownership without a local sponsor.

Flexibility: Restricted to operating within the respective free zone.

Regulation: Governed by the respective free zone authority.

Trade Across UAE:

Can trade with mainland companies via a local distributor or agent.

Customs Duties:

Generally exempt from customs duties, but duties apply if goods are transferred to the mainland.

3.Offshore License:

Location:

Registered in Dubai’s offshore jurisdiction, such as Jebel Ali Offshore, but not physically located in Dubai.

Ownership: Allows 100% foreign ownership without a local sponsor.

Flexibility:

Used for holding assets, investments, and international financial activities.

Regulation:

Governed by Jebel Ali Free Zone Authority (JAFZA) Offshore regulations.

Trade Across UAE: Not permitted to conduct business within the UAE.

The choice between a Mainland, Free Zone, or Offshore license depends on business objectives, ownership structure, and the nature of planned activities.

Consulting with legal and business advisors is crucial before making a decision.

Advantages of Having a Dubai Trade License Having a Dubai trade license offers numerous benefits for businesses seeking to operate in the Emirates.

Dubai is internationally recognized for its business-friendly environment, strategic location, and advanced infrastructure.

Here are some key benefits:

Geographical Advantages:

Dubai’s location serves as a gateway to the Middle East and global markets, providing access to Europe, Asia, Africa, and beyond.

Tax Benefits:

Minimal to no personal income or corporate tax for most business activities.

100% Foreign Ownership:

Available in certain free zones, eliminating the need for a local partner.

Business Flexibility:

Various license types tailored to different business activities and legal structures.

Credibility:

A trade license establishes trust with clients, partners, and government bodies.

Access to Free Zones:

Numerous free zones offer industry-specific environments, customs duty exemptions, and profit repatriation.

Skilled Workforce:

Access to a diverse and professional labor force from around the world.

Setup Convenience:

Faster setup process compared to other emirates, with most procedures completed within three weeks.

No Currency Restrictions:

Free movement of capital with transactions in various currencies.

Government Support:

Access to initiatives and incentives to attract foreign investment and support local businesses.

Sponsoring Family and Employees:

Ability to sponsor dependents and employees for residency visas.

Financing and Investment Opportunities:

Well-developed banking and financial sectors supporting business growth.

By securing a trade license in Dubai, businesses can leverage these benefits to thrive in a dynamic and globally connected environment.

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Trade Name Guidelines

The trade name you choose will be transliterated to Arabic or English but NOT translated
Alphabets and numbers are allowed but you cannot use icons or special characters
The trade name can include the partner/owner's first and last name but shouldn’t be the last name alone,
e.g. (Ahmed Al-Ghamdi Properties; not Al-Ghamdi Properties)
A trade name cannot include words as Allah's name and all Its synonyms, countries, regions, areas, sects
and organizations, already registered and known names of brands and establishments.
It is not allowed to reserve a name starting with words like "Universal", "Middle East", "International"
and/or translate them into Arabic.
Trade name database is based on pronunciation, so you should identify duplicates of the name entered
in both English and Arabic by matching keyword search.
The trade name may include specific words like Gulf, abbreviations, and foreign words and will be
considered as premium trade name category A
The trade name may include a trademark, an Arabized name or a region, which will be considered as
premium trade name category B
The primary activity name will be added to the trade name, but the trade name cannot be the same as
the activity name
The trade name should be among the appropriate names that do not contain obscene words and that it
should not be among the names that offend modesty and contradict public decency.
That it does not bear any of the names of countries, capitals or governments, except with the approval of
the embassy of the country.
The trade name is valid for a period of six months. In the event that the trade name certificate expires,
the customer must reserve the trade name again and pay all fees
Trademarks are not reserved in the Department of Economic Development and can be registered in the
Trademarks Department of the Ministry of Economy.
The company has the right to use a trade name for another company that granted it the franchise right
when submitting the franchise contract to the Department of Economic Development.
The trade name will be automatically canceled upon expiry of the reservation period if the name holder
has not issued the trade license.
The department has the right to calculate the difference in fees of previous years for trade name
violations.
The Department of Economic Development has the right to cancel or change the trade name if it is
similar to an existing trade name or if it does not comply with the established terms and conditions.
The trade name reservation fee must be paid within 72 hours of the issuance of the payment
authorization

Additional Information

Includes trade license, residency, exclusive transportation, digital bank account, and visitor visa

Business Setup

Effortlessly secure your trade license and residency with business setup service. The SuccessScope Form helps refine your strategy, ensuring a successful launch. Enjoy expert guidance and complimentary exclusive transportation throughout the process.

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