Complete Guide on Trade License in Dubai

 Trade license is required for practicing business activities legally in the emirate.

Types of Trade Licenses in Dubai

Normal License: 

It requires the existence of a Memorandum of Association (that can be obtained either electronically or manually) and a site lease contract.

Instant License: 

It is issued in just one step and within five minutes for a group of activities that do not need external approvals with the option to issue a memorandum of association and a virtual site for the first year. The below bundle services are issued simultaneously with this license:

• Dubai chamber membership membership for commercial activities

• The establishment card from the general directorate of Residency and Foreign Affairs

• The establishment card from The Ministry of Human Resources and Emiratization where the customer receives a text message approving the opening of the establishment card and opening an automatic file for the employment of 3 employees. This license is available for the following legal forms:

  • Limited Liability Company (L.L.C)

  • Limited liability company Single owner (L.L.C – SO)

  • Sole Establishment

  • Civil company

DED trader license: 

It is a sole establishment license that can be obtained by Dubai home-based businesses issued with the trade name. It can be applied through “Invest in Dubai” platform with a fee of AED 1070 (license fees and knowledge and innovation fees) + AED 300 (Dubai Chamber membership fees).

How to get trade license in Dubai ?

Trade license can be obtained from Invest in Dubai platform and Service Centers

These are the steps involved to get trade license in Dubai.

1. Obtaining the initial approval (Emirates Identity Card or Unified Identity Number)
2. Trade name reservation
3. Obtaining activity approval from the other entities if required.
4. Obtaining the memorandum of association based on the legal type.
5. Obtaining a service agent contract for professional licenses
6. Tenancy contract issued by the Real Estate Regulatory Agency.

How to apply online for trade license in Dubai?

Trade license can be applied online through Invest in Dubai platform.

In case you have an initial approval issued in advance, then follow the below steps to obtain trade license in Dubai.

1. Login to Invest in Dubai platform
2. Specify location details
3. Send legal documents such as the memorandum of association to the concerned partners in order to sign them, and this requires the registration of all partners on the platform so that they can sign electronically.
4. Pay via one of the available payment methods
5. Obtain the final license and related documents

In case you don't have the initial approval yet, then follow the below steps to obtain trade license in Dubai.

1. Select the main business activity (the primary activity and the additional activities)
2. Add the license parties and their nationalities
3. Select the legal form of the company
4. Select the license type (normal license, instant license, DED trader license)
5. Add the license details
6. Add the partners details (partners, managers and local service agent if any) such as addresses, contact information, identification numbers (Emirates ID number, passport or unified number), tasks in the company and ownership shares.
7. Add Ultimate Beneficiary owners
8. Confirm details
9. Pay via one of the available payment methods
10. Issuance of Initial Approval
11. Specify location details
12. Send legal documents such as the memorandum of association to the concerned partners in order to sign them, and this requires the registration of all partners on the platform so that they can sign electronically.
13. Pay via one of the available payment methods
14. Obtain the final license and related documents

How to apply offline for trade license in Dubai?

Follow the below steps to apply offline for trade license in Dubai.

1. Visit one of the service centers of the Dubai Economy
2. Send the requirements via the center's e-mail
3. Pay via one of the available payment methods
4. Obtain the license

Minimum and maximum number of partners required in trade license in Dubai

Based on the legal type of your company here is the number of partners you can have.

• The sole proprietorship is owned by one person only.
• The minimum number of partners for the limited liability company is 2 and the maximum number is 50.
• The civil works and the partnership companies are composed of 2 or more partners.
• The private joint-stock company doesn’t include less than 3 founders.
• The public joint-stock company offers its shares for subscription and has unlimited number of partners.

Time Required to get trade license in Dubai

If your application is complete, then you will receive the trade license in

• Normal License: 10 minutes/normal
• Instant license: five minutes
• DED trader license: five minutes 

How much does it cost to get trade license in Dubai?

• License registration fee: AED 600
• Knowledge Dirham fee: AED 10
• Innovation Dirham Fee: AED 10
• Trade name advertisements: AED 350
• Service request form: AED 50
• Foreign trade name fees: from AED 1000 to AED 3000
• General trading activity fees: AED 15,000
• Investment activity fees: AED 15,000
• Real estate activities fees: from AED 5000 to AED 25,000
• Business center fees: AED 25,000
• Building contracting activities fees: AED 10,000
• DED trader License: AED 1,070 + AED 300 Dubai Chamber fees
• Intelaq license: AED 1,070
• Memorandum of Association fee / service agent contract:
  • AED 300 for the signature of each of the parties to the document for attestation of the signatures on the document valued does not exceed one hundred thousand Dirhams.
  • 0.5% of the value of the document with a maximum of AED 15,000 for attestation of the signatures on the document valued exceeds one hundred thousand Dirhams
  • AED 500 to postpone the completion of the transaction after the registration to the next day as requested by one of the partners.
  • AED 500 for in case if the partners signing the document in different service centers.
  • AED 100 for each partner signing the document electronically.

To know the approximate fees for issuing licenses, please visit the link: Invest in Dubai Business Setup Recommendation 

How to renew trade license in Dubai?

The license can be renewed through 3 ways as mentioned below.

1. Automatic renewal through SMS: the customer receives or sends a text message from/to the number 6969 with the license number close to expiry date for renewal and pays the fees by clicking on the payment link.

2. Renewal through service centers:

• Visit one of the service centers of the Dubai Economy
• Send the requirements via the center's e-mail
• Pay via one of the available payment methods
• Obtain the renewed trade license

3. Invest in Dubai platform:

• Log in via the platform’s website: https://invest.dubai.ae
• Select renew a license
• Enter the license number or trade name
• Enter email address
• Enter the phone number
• Send the data by pressing the “Send” button

How much does it cost to renew trade license in Dubai?

The license renewal fee is the same as the issuance fee.

How to cancel trade license in Dubai?

Please note that you need to visit a Service Center to apply for trade license cancellation transaction.

De-registration procedure for a commercial company  which expired less than two years ago:

First stage:

• Minutes of the general assembly meeting approving the company liquidation and appointing the liquidator provided that the liquidator’s name shall be specified therein and the Minutes shall be notarized by a notary public.
• A letter from the liquidator accepting his role as the company’s liquidator along with the liquidator’s documents: (copy of the license, the accountant’s registration certificate, signature specimen notarized by a notary public).
• Payment of AED 520 to obtain a certificate on the company dissolution and appointment of the liquidator, with the consent of the legal consultant.
• Advertisement in two Arabic newspapers for one day only provided that the advertisement shall allow creditors a period of 45 days following the advertisement date to submit their requests. (The liquidator shall carry out the advertisement)

Final stage:

• The original newspapers containing the advertisement and the company's final report shall be submitted.
• A declaration from the liquidator and the shareholders that no objection is made by any other entity within a period of 45 days following the advertisement date.
• The employees’ resident visas on the license shall be canceled. However, there is no need to provide a document from MOHRE to testify that there are no employees on the license. The information shown on the common system with the Department is sufficient. A copy of the minutes of the assembly meeting and a copy of the dissolution certificate.
• Approval of the cancelation shall be obtained from third-party entities in case the business activity so requires.
• Payment of the AED 3020 as final fees.

De-registration procedure for a commercial company  which expired more than two years ago:

Stage One:

• A copy of the trade license
• The supporting documents (that the shareholder has been outside the UAE for more than 6 months, or that the shareholder’s whereabout can’t be identified) shall be obtained from GDRFA.
• The Establishment Card shall be cancelled with the Ministry of Labor.
• Declaration and undertaking signed by the shareholders that there are no liabilities on the company and that they shall assume full responsibility for the correctness thereof.
• An Advertisement in an Arabic newspaper for one day only provided that the advertisement shall allow creditors a period of 15 days following the advertisement publication date.
• Payment of AED 520 to obtain the company's dissolution certificate.

Stage Two:

• The original newspapers containing the advertisement shall be submitted.
• Payment of AED 3,020 to obtain the license cancellation certificate. 

Documents Required to cancel trade license in Dubai

Following documents are required to cancel trade license in Dubai.

1. Board decision to cancel/write off/liquidate the company
2. Company de-registration decision from the Ministry of Economy for companies registered there, to cancel branches of foreign companies or branches of free zone companies.
3. Book from the auditor
4. Original advertising newspapers
5. Company final budget

How much does it cost to cancel trade license in Dubai?

• License Cancellation Fee: AED 500
• Knowledge Dirham fee: AED 10
• Innovation Dirham Fee: AED 10
• Cancellation Announcement Fee: AED 500
• Company Dissolution Fee: AED 2,000
• Deregister of a business company Fee: AED 500

Time required to cancel trade license in Dubai

It will take 10 mins to cancel trade license in Dubai. 

References

• Department of Economy & Tourism, Dubai
• Trade License Service Details