Dubai business license fees are one of the main factors to take into consideration when investors intend to open a company in the emirate. These fees constitute a significant portion of the costs investors have to provide to start a business. In this context, we will collaborate with Itqan to explore a range of fees related to the commercial license in Dubai, and we will discuss how these fees are estimated and the factors that affect them. By understanding these aspects, investors can plan effectively and make appropriate decisions to start their business in Dubai.
In the framework of cooperation with Itqan Company, in this article we will review an important topic related to business in Dubai, which is commercial license fees in Dubai . Trade license fees are an essential part of the commercial process and business organization in Dubai. This article aims to explain the importance of these fees and the effects they can have on investors and business owners in the city.
In this article, we will explore a range of important points, starting with the definition of trade license fees and their role in regulating businesses in Dubai. We will shed light on the various types of fees associated with obtaining a business license in Dubai, such as registration fees, annual renewal fees, and others. We will also address the factors that investors should consider when calculating and their impact on business sustainability.
In summary, this article will provide a comprehensive overview of business license fees in Dubai, and will help investors and business owners understand the financial and administrative requirements involved in establishing and operating a business in this vibrant economic city. We will provide you with essential information and practical guidance that will help you make informed and successful decisions regarding business license fees in Dubai.
Trade license fees in Dubai
Steps to establish a company in the Emirates
Before moving on to how to obtain a business license in Dubai, we should take a look at the procedures for establishing a company in the UAE. The procedures for establishing a company can be detailed through the following steps:
- Determine the type of commercial activity: The investor must first determine the appropriate type of commercial activity for the company, and based on that, the type of license required is determined.
- The presence of an Emirati partner or an authorized agent: The UAE requires the presence of an Emirati partner or an authorized agent to obtain a commercial license in Dubai.
- Choosing a location for the headquarters: You must choose a suitable location for the company and obtain an appropriate lease contract.
- Determine the trade name: The trade name must contain the company’s activity, and must be documented and approved by the competent authorities.
- Preparing the contract for establishing the company: The contract for establishing the company must be prepared, approved and documented by the competent authorities.
- Obtaining approval to practice commercial activity: It is necessary to obtain approval from the competent government authorities to practice commercial activity.
- Obtaining a commercial license: Go to the competent department, such as the Department of Economic Development in Dubai, to obtain a commercial license after submitting all the required documents.
Types of business licenses in Dubai
Commercial licenses vary in Dubai, and the fees for each company vary depending on the activity being started. There are five types of commercial licenses in Dubai, including:
- General trade licence: which allows the practice of many different commercial activities without any restrictions.
- Events Organizing License: This license enables its holder to organize meetings, hold parties, conferences and large exhibitions.
- Business operating permit: This permit is specific to companies that wish to obtain a lease contract or want to operate in the free zone.
- Professional license: It is a license that specifies a number of activities. Other activities are not permitted and are subject to the necessary local licenses and permits.
- Commercial license: This is the license that allows its holder to carry out the commercial activities specified in it, such as import, export, distribution, sale, etc.
- Industrial licence: specializes in various fields of industry and production, and requires obtaining this license to legally practice industrial activities.
- Tourist license: It includes all activities related to the field of tourism, and any work related to this sector can be done after obtaining this license.
Differences between national, regional and international business license?
Please see the following table explaining the differences between the national, regional, and international commercial license:
| Properties | National commercial license | Regional business license | International trade license |
|---|---|---|---|
| work area | Work is permitted within the country only | Work is permitted in the regional area only | Allows work worldwide |
| Restrictions and regulations | Subject to the laws and regulations of the specific country | Subject to the laws and regulations of the specific regional area | It is subject to international and national laws and regulations |
| Terms and costs | The terms and costs may be relatively lower | Terms and costs may be average | The terms and costs may be relatively higher |
| Administrative needs | Subject to local administrative procedures | May require additional administrative procedures to meet regional district requirements | May require complex international administrative procedures |
| International expansion | They cannot be used for cross-border expansion | Can be used to expand within the regional area | Can be used to expand globally |
What is a trade license?
Opening a business license in Dubai represents an essential step for anyone who wants to conduct business in a legal and regulated manner. A commercial license allows individuals and companies to engage in a specific activity within the framework of specific laws and regulations, ensuring legal protection for business and facilitating access to services and privileges available to commercial establishments.
The types of commercial licenses in Dubai vary according to the activity and purpose of opening the license, as they can be free trade to carry out various commercial activities such as wholesale and retail trade, or professional to practice a specific profession such as medicine, engineering, and accounting. There are other categories of licenses that allow specialized activities such as tourism, real estate, and manufacturing.
Opening a trade license in Dubai is necessary for several reasons, including:
- Legislation and controls: A commercial license ensures that the facility adheres to local and international laws and regulations related to conducting commercial activity, which enhances confidence in the facility and guarantees the rights of customers and business partners.
- Legal protection: A business license gives an establishment legal protection and rights in the courts in the event of commercial disputes or legal issues.
- Access to Services and Facilities: A business license gives an entity access to the banking, finance, insurance, and other licensing services it needs to operate its business efficiently.
- Tax concessions: A business license may allow a facility to take advantage of tax concessions available to local businesses, leading to reduced costs and increased profitability.
- Building trust: Having a commercial license is a sign of professionalism and seriousness, which increases the confidence of customers and business partners and facilitates the process of dealing with the establishment.
Trade license fees in Dubai
Our company helps you obtain the commercial license at the lowest possible cost and in the shortest possible time, as the company stands out for its extensive experience and extensive relationships, which allows you to carry out all procedures to obtain the commercial license at the lowest possible cost and implement them as soon as possible. Business for your business with the lowest prices and without any effort, you should contact our company team or call our number and get all the services you want with the highest efficiency, lowest cost and fastest time. It\\\’s not ours, but excellent ones.
Business license fees in Dubai include a set of fees that business owners must pay to the local government. These fees vary depending on the type of business, company size, and location. Here\\\’s an overview of some of the key fees to consider:
- Company registration fees: These fees include expenses related to registering the company and issuing the initial business license. The cost of this fee varies depending on the type of company, such as limited liability companies or sole proprietorships.
- Annual license renewal fees: These fees are considered an annual payment that business owners must pay to renew the validity of the commercial business license. The cost of this fee varies depending on the type of business and the size of the company.
- Branch and subsidiary licensing fees: If the original company has branches or subsidiaries, separate licenses may be required for each branch or subsidiary, and therefore additional fees must be paid to license them.
- Business address fees: These fees include the costs of using the company\\\’s business address, whether it is a physical office address or a virtual address.
- Additional Services Fees: The government may provide optional additional services for which fees may apply, such as additional work permits or advertising licenses.
The importance of a commercial license
In the context of establishing a business in the Dubai Global Market, the trade license becomes a fundamental pillar that determines the course of the business and its long-term development. This license is considered not only a legal document but also evidence of the nature of the business activity chosen by the founders, and through it the appropriate legal form of the company is determined.
When the business activity is defined, the formal choice of the company becomes clearer and more precise. The commercial license facilitates and directs this choice according to the needs of the specific economic activity. It becomes necessary for the legal form to be consistent with the type of activity, which emphasizes the importance of the license as a tool for directing and developing the company\\\’s strategies.
But the importance does not end here, rather it extends to the long term, as the license opens the doors to development and modification of the style of commercial activities. Thanks to the license powers, founders can expand the scope of their work and add new activities that suit the changing market aspirations and requirements. Thus, the commercial license becomes not just a legal permit, but rather a reliable strategic partner in the journey of business success.
Who is eligible for a commercial license?
A trade license in Dubai applies to any person who wishes to engage in commercial or craft activities in Dubai, whether an individual or a company. When you obtain a commercial license, you have legal permission to conduct the business activity you are planning within Dubai according to the specified conditions and laws. A business license can apply to a wide range of business activities, including SMEs, large corporations, craft businesses, online businesses, and more.
What is the difference between a commercial license and a professional license?
When looking to start a business in Dubai, one is faced with a lot of choices and details that must be taken into consideration. Among these options, the two most common licenses stand out: the commercial license and the professional license. Although the two names are similar, they differ in nature and usage. Let\\\’s learn about the differences between them.
| Type of license | the description |
|---|---|
| Commercial | It regulates independent businesses, home commerce and trading through social networks and websites, facilitates the mechanism for protecting intellectual property rights and supports business and trade management. |
| Professional | Obtained by teachers in the Emirate of Dubai and issued by the Educational Evaluation Authority, it requires passing cognitive and personality tests depending on the direction, in addition to licenses for professions, handicrafts, and small projects. |
In short, a commercial license gives freedom and flexibility to conduct business and marketing, while a professional license is concerned with regulating the practice of specific professions and professional services. Therefore, those who are about to start working in Dubai must choose the appropriate type of license according to the nature of the work and the services they wish to provide.
Why do you need a business license?
You need a business license for several important reasons, including:
- Legal and Legitimacy: A business license is an official approval from the government to conduct business activity in the relevant area, making your business a legal and legitimate enterprise.
- Customer and consumer protection: Businesses are regulated through licensing to ensure the quality of products and services provided to customers, by imposing certain commercial standards and conditions.
- Market regulation: A trade license helps regulate the market and prevent illegal work and unethical practices, which promotes healthy competition and protects the rights of workers and consumers.
- Access to financial services: Obtaining financing or opening a company bank account requires a business license, as this is one of the necessary requirements considered by financial institutions.
- Marketing and Advertising: With a commercial license, you can legally promote your business and conduct advertising and marketing campaigns without fears of legal accountability.
In short, you need a business license to ensure the legality and legitimacy of your business, provide protection for customers and consumers, regulate the market, access financial services, and facilitate marketing and advertising operations.
Basic requirements for obtaining a business license in Dubai
To obtain a business license in Dubai , those wishing to establish must adhere to some basic requirements and follow specific procedures. Here\\\’s an overview of the basic requirements:
- Choosing a business activity: Before applying, the employer must determine the business activity he intends to practice. This activity must be consistent with the activities permitted in the commercial register.
- Choosing the legal form of the company: You must choose the appropriate legal form, such as a sole proprietorship, limited liability company, joint stock company, or private joint stock company.
- Determine the business location: The location where the business operations will be held must be determined, whether it is in the free zones or the main commercial areas in Dubai.
- Company Name: You must choose a unique and non-duplicate name for the company and ensure that it complies with naming laws in Dubai.
- Financial contribution: You may have to determine the capital needed for the company, which depends on the type and activity of the company.
- Preparing documents: Documents such as a passport, a personal photograph, and a photo of the partners must be prepared (if the company consists of more than one person).
- Submitting the application: After preparing all the documents, you can submit the application to the relevant authority in Dubai, whether it is the Dubai Economic Development Department (DED) or the Free Zones Authority.
- Obtaining approval: After completing the procedures and submitting the documents, you must wait for the license to be approved.
- Payment of fees: You must pay the applicable fees to obtain the license.
- Registration in the Commercial Registry: After obtaining the license, the company must be registered in the Commercial Registry.
What is the cheapest commercial license in the UAE?
When it comes to joint stock companies and institutions, however, there are new alternatives to business licenses that can be obtained at a lower cost and start the business, such as:
- Merchant License: Allows you to practice all types of trade from home, and includes membership in the Dubai Chamber of Commerce at a certain cost.
- Intilak License: Designated for Emirati citizens to establish small projects at home, at a low cost and annual renewal.
- Instant license: It is among the least expensive commercial licenses, but it differs in legal status.
Commercial license in Dubai
Commercial license registration costs
The costs of registering a business license in Dubai may vary based on several factors, including the type of company, its activity, and the region in which you wish to register. Here are some points that can affect license registration costs:
- Company type: Registration costs depend on the type of company, whether it is a sole proprietorship, limited liability company, joint stock company, or any other type.
- Type of activity: The type of activity a company undertakes can affect costs. Some activities require special licenses or additional costs.
- Location: Costs also vary depending on the geographical location of the company, whether it is in a free zone or a major commercial area.
- Capital: In some cases, there may be capital requirements needed to establish a company, which can affect costs.
- Government fees: There are government fees applied to registration processes, and they vary according to the type of company and services provided.
- Use of Additional Services: If you require additional consulting services or guidance from business start-ups, these services may be an additional expense.
How much does an instant license cost in Dubai?
An instant license is available in Dubai, allowing the start of commercial activities without the need for external approvals. This license is an ideal option for small and medium-sized businesses that want to start quickly and effectively. Applicants applying for an immediate license must pay its fees, which may vary depending on the type of business activity and work location. This fee includes the main registration fee for the instant license as well as any additional fees involved in the process.
It is best to check the official website of the Dubai Department of Economic Development or contact their local office to get the exact information about the cost of an instant license for a specific type of business activity. Remember that there can also be additional costs such as consultation fees or additional services that you may need during the licensing process.
Is it possible to obtain a commercial license without a sponsor?
In some cases, it is possible to obtain a business license in Dubai without a sponsor, but this depends on several factors such as the type of business activity, the region in which the establishment process will take place, and current government policies and regulations.
Obtaining a business license without a sponsor usually requires proving the ability to be financially responsible for the business in other ways, such as providing a cash guarantee or demonstrating previous experience in the business area in question.
However, it is usually preferable to have a sponsor for business licenses in Dubai, as the sponsor is legally responsible for the company and its financial obligations, providing more confidence to government authorities and financial institutions in the country.
Advantages of our company in obtaining commercial licenses
Firstly, I am pleased to provide you with a comprehensive overview of the advantages of our company in obtaining commercial licenses. With our commitment to providing high-quality services and transparent dealings, we strive to meet our customers\\\’ needs and achieve their business goals. Here are some of the features that set us apart:
- Specialization and experience: Our company has a team of experts and specialists in the field of obtaining commercial licenses. Our team members have extensive knowledge and practical experience in local legislation, regulations and administrative procedures.
- Personalization and Individual Attention: We value each customer and pay individual attention to ensure their needs are precisely met. We understand that every business process is unique, which is why we ensure appropriate guidance and support for each client based on their specific requirements.
- Transparency and honesty: We adhere to the highest standards of transparency and honesty in all our operations. We value the trust our customers place in us and strive to maintain it by providing our services with honesty and integrity.
- Strategic guidance and advice: In addition to commercial licensing services, we also provide strategic guidance and advice to our clients. We help them understand the local business environment and provide strategies to achieve their goals.
- Efficiency and speed: We are keen to provide our services with high efficiency and as quickly as possible. We understand the importance of time in business, so we work hard to ensure that all procedures are carried out as quickly as possible without affecting the quality of service.
Investing in Dubai
Establishing foreign companies in the Emirates
Many foreigners visit Dubai not only to live and enjoy the privileged life there, but also to invest and take advantage of the promising business opportunities that the city offers. Dubai has a distinguished reputation as one of the most important global business centers, and is home to many free zones that provide an ideal environment for investment.
To make the process of establishing companies smoother for foreigners, a clear legal framework has been established that regulates residency and investment in Dubai . This framework aims to facilitate company establishment and business management, thus enhancing the city\\\’s business environment.
Among the most prominent laws that have been activated to facilitate this matter is the “Federal Law” that is applied at the level of the seven emirates, which provides a unified alternative to the local laws of each emirate. Moreover, there are free zones in each emirate that have their own regulations and legislation, allowing greater flexibility in dealing with foreign investments.
Activities allowed for foreigners in Dubai:
- Business Administration: Foreigners can freely manage and establish businesses, and take advantage of opportunities in various economic sectors.
- Investing in stocks: Foreigners can own shares in other companies, whether inside or outside the UAE.
- Property ownership: The law allows foreigners to purchase and own real estate, whether for the purpose of residence or investment, which contributes to their financial stability and enhances their presence in the real estate market.
Activities not allowed for foreigners:
- Petroleum and mining sector: The law prohibits the participation of foreigners in oil, gas and mineral extraction activities.
- Media: Restrictions are imposed on foreigners in the field of media, to ensure local control over information and news.
- Aviation: Limits the participation of foreigners in airlines and aviation infrastructure, to ensure the state’s strategic control over this vital sector.
Tips to start investing in Dubai
There are some tips you can follow to help you invest in Dubai and see the biggest benefits you want. These tips include:
You must conduct a feasibility study for the activity you want to start and prefer to consult economists in this activity
- They can tell you the success of the activity and provide many useful tips.
- It is not a good idea to borrow money to start a new business.
- You need to keep a portion of your money and not put all your capital into a project.
- You should accept loss at any time and do not expect to get more profits at the beginning of the business.
- Develop an alternative plan for another project in case the selected activity fails
Investing in Dubai
Investing in Dubai is considered one of the most attractive options in the Middle East, due to the dynamic and advanced economic environment, open investment legislation, advanced infrastructure, and its distinguished geographical location as a global commercial and tourism center. Here are some investment opportunities available in Dubai:
- Real Estate: Dubai\\\’s real estate market is considered one of the most attractive in the world. You can invest in residential apartments, villas, commercial buildings, hotels, and huge development projects. The real estate market provides opportunities to rent properties to residents and tourists, or to sell at profitable prices.
- Tourism and Hospitality: The tourism sector in Dubai represents an important source of revenue and is witnessing continuous growth. You can invest in luxury hotels, tourist resorts, entertainment facilities, and other tourism services.
- Technology and Innovation: Dubai is considered a hub for innovation and technology in the region, and provides investment opportunities in startups and modern technology, such as financial technologies, artificial intelligence, e-commerce, and smart applications.
- International Trade: Dubai is a hub for global trade and logistics, offering investment opportunities in shipping, sea and air transport, developing ports and airports, and expanding manufacturing and assembly capabilities.
- Education and training: It is possible to invest in the education and training sector, and open international schools, universities, and specialized training centers in different fields.
In conclusion, we see that Dubai business license fees are an essential part of the costs of starting a business in the emirate. These fees vary based on several factors such as the type of license and the company\\\’s activity. By working in cooperation with Itqan Company, investors can obtain the necessary support and comprehensive knowledge about the expected fees and necessary procedures. By understanding and studying these fees carefully, investors can plan better and make informed decisions to start their business in Dubai\\\’s dynamic business environment.
Frequently asked questions about business license fees in Dubai
What types of business licenses are available in Dubai?
Commercial licenses include a commercial license for general commercial activities, a professional license for professional activities, an industrial license for industrial activities, and others.
What factors affect business license fees in Dubai?
Factors that affect fees include the type of business license, type of business activity, type of company, size of activity, and location of the company (in or outside free zones).
How much does a business license fee cost in Dubai?
The cost varies based on the factors mentioned. Trade license fees can range from a few thousand to tens of thousands of UAE dirhams. It is best to contact the Department of Economic Development or a competent authority to obtain an accurate estimate of the fees.
Do trade license fees differ between free zones and Dubai City?
Yes, fees differ between free zones and Dubai City. Free zones may offer incentives and fee reductions compared to the city.
Does the trade license fee include registration fees?
Yes, business license fees may include registration fees in addition to annual license fees.
Are there additional fees when issuing a commercial license?
Additional fees may include other costs such as registration fees in the commercial registry, fees for obtaining other government approvals, and health insurance fees for employees.
Do business license fees have to be paid annually?
Yes, commercial license fees must be paid annually to renew the license and ensure the continuity of business activity.
