How to Apply for a Dubai Trade Licence

Dubai Trade Licence: Types, Application Process, and Verification in Detail

If you're considering starting a business in Dubai, or even want to conduct business from home in the emirate, a Dubai trade licence is essential. This licence allows you to legally engage in business activities in Dubai. The process involves a few steps, including obtaining initial approval, reserving a company name, and finally applying for the licence.

How to Start the Process?

The first step in applying for a trade licence is obtaining initial approval. This step can be done either before or after reserving the company name. Initial approval helps determine the economic activity and partners of the licence. Required documents include:

- A copy of the passport or ID card,

- Unified number,

- Residency or visa copy (for non-GCC nationals),

- NOC from employer if the applicant is an existing company employee,

- Memorandum of Association (if necessary),

- Feasibility study of the project (if required).

If the business has a parent company, additional documents may be needed, such as the parent company's decision to open a branch in Dubai, verification of the executive, as well as the parent company's commercial registration certificate and articles of association.

Reserving a Company Name

Reserving a company name is a crucial step, as this name will appear on all legal documents and contracts. When choosing a company name in Dubai, several rules must be considered:

- The name must contain at least three letters.

- It cannot include obscene or offensive words.

- It cannot contain the words "Allah" or "God," nor any divine attributes.

- Family names, tribal names, or other personal names cannot be used unless it is the owner's name.

- The name must logically reflect the economic activity.

- The name must be written literally and not be translated.

- If the name resembles an existing name, DET may cancel it.

- Names of global political or religious organizations cannot be used.

It's important to note that if the company name is in English, an additional fee of 2000 dirhams is payable. An Emirates ID needs to be presented for the reservation of the company name.

Issuance of Trade Licence

In Dubai, three types of trade licences can be applied for: a standard licence, an instant licence, and an eTrader licence.

Standard Licence: This requires a Memorandum of Association, which can be created electronically or by hand, along with a lease agreement.

Instant Licence: This can be issued for activities that do not require external approval and can be obtained within five minutes. If the owner prepares the Memorandum of Association, a virtual space can be provided for the first year, meaning there is no need for a physical location.

eTrader Licence: This licence is specifically issued for home businesses. Only UAE and GCC nationals can obtain an eTrader licence for commercial activities, while expats can get it for certain service activities.

Documents and Costs

The required documents depend on the type of licence needed. A standard licence may need additional government approvals, while an instant licence may only need a unified number or identification number. An eTrader licence only requires the identification number.

Costs are as follows:

- Initial approval: 120 dirhams.

- Company name reservation: 620 dirhams.

- Issuance of the trade licence: For an eTrader licence, it costs 1370 dirhams, which includes license fees, an innovation fee, and a Dubai Chamber membership fee.

Verification of Licence

To verify a company's trade licence, visit the DET website and select the "e-services" option. Here you can check the licence's validity using the company's name or licence number. The system displays the company profile, including the licence status, expiry date, legal type, contact information, activities, and physical address (if available).

Summary

Applying for a trade licence in Dubai is a straightforward, yet detailed process that allows you to legally perform business activities in the emirate. Whether you wish to apply for a standard, instant, or eTrader licence, make sure you pay attention to the documents and costs involved in the process. If you have any questions, DET's customer service is always there to assist you. Dubai offers a wealth of business opportunities, and by obtaining a trade licence, you can be part of this dynamic economy.