What is the cost of a trade license in Dubai

Dubai is one of the most prominent global business destinations, attracting investors and entrepreneurs from around the world thanks to its thriving economic environment and advanced infrastructure. Obtaining a commercial license in Dubai is the first and essential step to starting any business activity in the emirate. Although the process may seem complicated to some, the government provides many facilities to make it smoother and easier. The cost of a business license in Dubai varies based on several factors such as the type of business activity, the location of the office or shop, the size of the company and the number of employees. Through this article, we will review these factors in some detail, in addition to what the cost of a commercial license in Dubai is, the steps necessary to obtain the license, and the expected fees. The goal is to provide a comprehensive guide that helps investors understand all aspects related to business license costs in Dubai , making it easier for them to make informed decisions that support the success of their business.

Factors affecting the cost of a commercial license in Dubai

The cost of a business license in Dubai is influenced by several key factors, which can vary significantly based on the characteristics of the business and the specific requirements of each business. Among these factors:

• Type of business activity

The type of business activity is one of the primary factors that affect the cost of a business license. Fees and costs vary according to economic sectors, as there are specific fees for each type of activity, such as general trade, services, industry, and the tourism sector. For example, the license fee for a business in the service sector may be lower than the license fee for an industrial activity that requires certain plant and equipment.

• Office or shop location

The location of the office or shop plays a vital role in determining the cost of a commercial license. Fees vary based on whether the location is within the city or in free zones. Free zones offer a range of incentives and facilities that may reduce overall licensing costs, while costs may be higher in vital commercial areas within the city due to the high demand for prime locations.

• Company size and number of employees

The size of the company and the number of employees greatly affect the cost of a business license. Small and medium-sized companies may pay lower fees compared to larger companies that require larger spaces and a larger number of employees. In addition, costs associated with health insurance and visa procedures for employees may affect the overall cost of obtaining a business license.

Together, these factors contribute to determining the final cost of a business license in Dubai. It is important to carefully consider each of these factors and plan an appropriate budget before beginning the licensing process to ensure that all financial and regulatory requirements are met.

What is the cost of a trade license in Dubai?

To obtain a business license in Dubai , you must follow a set of basic steps that ensure compliance with local laws and regulations. These steps include the following:

• Determine the type of activity

The first step in the process of obtaining a business license is to determine the type of business activity you intend to engage in. You should choose an activity that matches your experiences and interests, and for which there is demand in the local market. The activity can be commercial, industrial or professional, and each type of activity has special requirements that must be met.

• Choose a trade name

After determining the type of activity, you must choose a trade name that reflects the nature of your activity and is distinctive and easy to remember. It is preferable that the trade name is not used by any other company to ensure its acceptance by the Department of Economic Development in Dubai. You can check the availability of the trade name via the Department of Economic Development website.

• Submit the application and pay the fees

The next step is to apply for a business license. You can submit the application online or by visiting one of the service centers affiliated with the Department of Economic Development. The application includes submitting a set of necessary documents such as a copy of your passport, a copy of your residence visa (if you are a resident), and the office or shop lease contract.

After submitting the application, you will need to pay the required fees. Fees vary based on the type of activity, company size, and geographic location of the office or shop. Fees can be paid online or through authorized service centers.

By following these steps, you will be able to obtain a commercial license and start doing your business in Dubai legally and orderly.

Expected fees for a trade license in Dubai

The expected fees for obtaining a business license in Dubai vary based on several factors such as the type of business activity, location, and company size. In this section, we will review some of the basic fees that you should take into account when planning to set up a company in Dubai.

Government fees

Government fees include a range of costs imposed by various government agencies in Dubai. Paying these fees is one of the basic conditions for obtaining a commercial license, and they include:

1. Registration fees: These are the fees charged when submitting a commercial license application for the first time.
2. License issuance fees: After approval of the application, license issuance fees must be paid, which vary depending on the type of business activity.
3. Annual renewal fees: The business license must be renewed annually and the resulting fees must be paid.

Domain service fees

Domain service fees are additional fees that can affect the cost of the license. These fees vary based on the area in which you wish to operate your business. For example, Dubai free trade zones such as Jebel Ali and Dubai Internet City require special fees for doing business there. Domain service fees include:

1. Rental fees: Depends on the space of the office or shop you wish to rent in the required area.
2. Service fees: include maintenance, security, cleaning, and other basic services provided by the range area.

Office or shop fees

Office or shop fees include the costs of renting or purchasing the commercial space you will use to conduct business. These fees vary greatly based on location and size of space required. These costs include:

1. Office or shop rent: depends on the location (city center, suburbs, free trade zones) and the size of the space.
2. Furnishing and equipment fees: The costs of equipping the office or shop with the furniture and equipment necessary to start work.
3. Public service fees: such as electricity, water, and internet, which are added to the monthly costs.

Ultimately, it is important that you conduct a detailed feasibility study that includes all the expected fees and costs associated with setting up and operating your business in Dubai. Preparing an accurate budget can help you avoid financial surprises and ensure the success of your business.

Types of business license in Dubai

In Dubai, there are multiple types of business licenses that meet the needs of various commercial and industrial activities. Here are the main types of business licenses in Dubai:

1. General Trade License: Allows companies to practice various and unspecified commercial activities. This license is suitable for companies operating in several commercial fields.
2. Commercial Activities License: Granted to companies that focus on wholesale or retail trade, including the sale of goods and merchandise. This license includes activities related to commerce.
3. Industrial Activities License: Issued to companies that engage in industrial activities such as manufacturing, production, and assembly of materials. The license includes companies operating in the field of heavy or light industry.
4. Professional Activities License: Granted to companies that provide specialized professional services such as consulting, accounting, translation, design, and others. This license is intended for companies that rely on skills and specializations.
5. Tourism Activities License: Issued to companies operating in the tourism sector, including hotel management, travel agencies, tour services, and other tourism activities.
6. Financial Activities License: Granted to companies operating in the financial sector such as banks, insurance companies, investment companies, and accounting. Includes financial activities and banking services.
7. Technical Activities License: Issued to companies working in the field of technology or information, such as software development, website design, network services, and e-commerce.
8. Health Activities License: Granted to companies that provide health services such as medical clinics, pharmacies, nursing services, and medical laboratories.
9. Educational Activities License: Issued to establishments that provide educational and training services such as schools, training institutes, language teaching centers, and others.
10. Agricultural activities license: Granted to companies working in the field of agriculture, agricultural crop production, animal husbandry, and other agricultural practices.

What do we provide you regarding the cost of a trade license in Dubai?

• We have years of experience in setting up companies in Dubai.
• We provide feasibility studies for projects to help entrepreneurs find suitable opportunities.
• Providing offices and warehouses for companies.
• Assistance in all legal and paperwork before the relevant government agencies.
• Assisting investors in facilitating all procedures and obtaining long-term investor residency.

In conclusion, it can be said that the cost of a business license in Dubai varies greatly based on several factors such as the type of business activity, the location of the office or shop, the size of the company and the number of employees. Entrepreneurs and investors must carefully plan and know all the fees and costs associated with the process of obtaining a business license to ensure the success of their business venture. By following the necessary steps, from specifying the type of activity and choosing the trade name to submitting the application and paying the fees, the license can be obtained with ease.

Understanding these aspects helps overcome any obstacles investors may face and enables them to focus on the growth and prosperity of their business. In addition to government fees, domain service fees, and office or store fees, investors should be aware of all the details related to the licensing process to avoid unexpected surprises.

Finally, Dubai is considered one of the best global destinations to start a business thanks to its supportive environment and advanced infrastructure. Therefore, investing in obtaining a commercial license is a first step towards success and benefiting from the promising opportunities offered by the Emirate of Dubai.

The most important frequently asked questions about the commercial license in Dubai