Are you planning to start a business in Dubai? Or do you run a home-based business and want to operate legally? A trade licence from Dubai Economy and Tourism (DET) is essential for conducting business activities in the emirate.
Steps to Obtain a Dubai Trade Licence
To begin, business owners must follow three key steps: obtain initial approval, reserve a trade name, and apply for a licence. The application process is simple and can be completed online via the Invest in Dubai portal or at service centers.
The first step in securing a trade licence is obtaining initial approval. This can be requested before or after reserving a trade name. It defines the business activities and licence partners, making the process more structured.
Required Documents
To proceed, applicants must submit:
– A copy of their passport or Emirates ID
– Unified number for identification
– A copy of their residence permit or visa (for non-GCC nationals)
– No Objection Certificate (NOC) if employed in a mainland company
– Articles of Association (if required)
– A feasibility study, if requested
For businesses with a parent company, additional documents are required:
– A board resolution allowing the Dubai branch
– Authorization letter for the managing director
– The parent company’s commercial registration certificate
– The Memorandum of Association (MOA)
– The parent company’s trade licence
Reserving a Trade Name
A trade name is essential for all businesses. However, it must follow DET’s naming guidelines:
– Trade license must contain more than three letters
– It should not include religious or offensive terms
– It must clearly reflect the business activity
– Family names cannot be used unless they belong to the licensee
– DET may reject names similar to existing businesses
If the trade name is in English, an extra fee of AED 2,000 applies. Also, an Emirates ID is needed for name reservation.
Types of Trade Licences
Dubai offers three types of trade licences, each designed for different business needs.
- Normal Licence – Requires a Memorandum of Association and a site lease contract.
- Instant Licence – Issued within five minutes for businesses that do not require external approvals. A virtual office is allowed for the first year.
- eTrader Licence – Designed for home-based businesses. Only UAE and GCC nationals can obtain it for trading activities. Expats can apply for professional services, except food-related businesses.
Required Documents Based on Licence Type
– Normal Licence– Requires MoA, a site lease contract, and any external approvals (if applicable).
– Instant Licence – Requires a unified number or ID number.
– eTrader Licence – Requires an ID number.
Fees for Trade Licence
The cost of obtaining a trade licence varies. However, the basic fees are:
– Initial approval fee: AED 120
– Trade name reservation fee: AED 620
– Licence fees depend on the business activity. An eTrader licence costs AED 1,370. This includes AED 1,070 for the licence and AED 300 for Dubai Chamber membership.
Trade Licence Verification
Want to verify a company’s trade licence? Visit the DET website and go to the “e-services” section. Then, search using the company name or licence number. The website provides:
– Licence status
– Expiry date
– Legal type
– Business activities
– Contact details
– Physical address (if available)
By following these steps, entrepreneurs can establish and operate businesses in Dubai while ensuring compliance with regulations.
