A guide about different types of trade licenses in Dubai

Dubai’s business-friendly atmosphere has given entrepreneurs all over the world a plethora of business options. As a result, an increasing number of people and companies have been interested in company formation or business setup. However, you must have a specific trade license in hand before you can start providing any business products or services; otherwise, conducting business will be prohibited.

Thus, you will learn everything there is to know about the many kinds of trade licenses in Dubai today.

But before I reveal any kind of, you need to be aware of this:

A trade license: what is it?

A permit is a legal document that authorizes people or companies to engage in business. This paper is a crucial prerequisite for starting a business or a company in Dubai. A trade license lists all the operations that your company or business is permitted to carry out in Dubai. This article outlines the legal parameters that your business or company must adhere to to maintain regulatory compliance.

Benefits of obtaining a trade license

Having a trade license has the following advantages.

  • Upon obtaining a trade license, your business gains legitimacy. You can do business and transactions as usual, free from any legal entanglements or fines.
  • Dubai is a business hub that provides a respectable business with enormous opportunities to grow both its consumer base and business operations.
  • You can expect support from the government if your business is registered in Dubai. For instance, you can expand your business by applying for grants or loans.

Various Trade Licence Types

In Dubai, the following are some typical trade licenses.

1. A business/commercial license

This license is sometimes known as a “business license” or a “general license.” You must apply for this license if you wish to engage in commercial trade activities in Dubai, such as import/export, commodities trading, etc. You will be able to carry on with your trade business in apparel, real estate, import/export, and other industries with these general licenses.

Most foreigners prefer Dubai Free Zones when it comes to starting a trading company in Dubai. Because you can fully become the exclusive owner of your commercial trading business with this area’s commercial license, all foreigners, regardless of nationality, are eligible to take advantage of this business opportunity.

However, you are not permitted to become the only owner of your trading company even if you have a commercial license in the continental United States. This is due to the fact that the area’s license mandates you to give a local sponsor a 51% stake in your company.

2. Professional License

Are you going to provide any services in Dubai that are based on your educational background? Under such circumstances, you must obtain a professional license in Dubai. After obtaining a professional license, you can operate as an independent contractor or manage your service-based business in Dubai.

Here are several occupations in Dubai where you might need to apply for professional licenses:

  • Legal consultation practice
  • IT support
  • Accounting
  • Engineering
  • Auditing

You can apply for an employee visa after obtaining a professional license, and you’ll need to pay an annual fee that is determined by the services you provide.

3. A licence for industry

Establishing a manufacturing or industrial business in Dubai requires an industrial license. To manufacture a new product using raw materials or natural resources, your business needs to obtain an industrial license. Once you have this license, you can manufacture products using raw materials that are produced locally or imported.

In Dubai, the following industries are examples of those that need an industrial license:

  • Food Industry Manufacturing of Stationery Supplies
  • Manufacturing of Medical Equipment
  • Engines
  • Textiles

4. A licence for tourism

A tourism license is required if you wish to run a business in the tourism industry. This kind of trade license is issued in Dubai by the Department of Economic Development (DED) and the Department of Tourism and Commerce Marketing (DTCM).

The following are a few instances of tourism-related industries that require licenses:

  • Tour operators, both inbound and outward
  • Travel companies
  • Guesthouses
  • Resorts
  • Travel agencies Accommodations

Once you get this license, you can go on local or foreign excursions, schedule trips, and rent out certain places.

5. A licence in craftsmanship

Any craftsman in Dubai who wants to charge for his services to make money must have a license. Regardless of whether you want to work for a company or independently, you need this license.

The following artisans in Dubai are required to get craft licenses:

  • Carpenter
  • Painter
  • Plumber
  • Electrician

In Dubai, providing services without obtaining a handicraft license carries consequences that include jail time, fines, legal penalties, and deportation.

6. Licence for Agriculture

An agricultural license is required in Dubai if you wish to operate a business that is centered around agriculture. These are the agricultural activities for which a permit is necessary.

  • Production of farming equipment
  • Trade in agricultural goods
  • Farming
  • Consultation on agriculture

For my business, what kind of trade license do I require?

Given that Dubai offers a variety of trade licenses, it’s understandable to become perplexed and start asking questions. I’ve gone over the six different kinds of trade licenses available in Dubai. However, this business hub welcomes a diverse range of enterprises.

If your company is not on the list, I have given examples of typical industries and enterprises that require licenses. Don’t worry if you need clarification on the kind of trade license you need to obtain; Prospr is here to assist.

Please make an appointment with our expert in business setup here to receive a thorough response to this query. And surprise! We will continue by simply telling you which trade license to apply for. We’ll also provide a hand with the setup of your business.

Don’t hold off any longer!

Allow Prospr to assist you with acquiring a business license.

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