Do you wish to set up a company in Dubai? Or are you a home-based business owner who wants to work in the emirate? A trade licence by Dubai Economy and Tourism allows owners to legally conduct business activities in the emirate.
In order to do so, applicants must first request initial approval, book a trade name, and then apply for a licence. Here are the documents, fees required, and steps to apply.
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You can apply through the Invest in Dubai portal, or through nearby service centres. Visit the website, and click on 'setting up a business' from the upper menu. Then, click on 'business set-up services', and select the service you wish to apply for.
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You can then choose to apply through the portal, or click on service centres to access a list.
Request for initial approval
The initial approval is the first step towards obtaining a trade licence. This can be done before or after reserving a trade name. This initial step helps you define economic activities and the licence partners.
Documents required
Copy of passport/ ID
Unified number
Copy of residence permit/ visa (for non-GCC nationals)
If the applicant is listed on visa as employee of a mainland company, then an NOC from sponsor is needed, according to a DET call centre agent
Company's articles of association (if required)
Feasibility study of the project (may be required)
If the business has a parent company, then these additional documents are needed:
The parent company's board resolution to open a branch in Dubai
Letter of authorisation of the managing director
Copy of the parent company's commercial registration certificate
Copy of the parent company's memorandum of association (MOA)
Copy of the parent company's licence
Book a trade name
The trade name is an official document that confirms the name of your project or business. It will be used in all contracts and other legal documents to refer to the business.
To register for a trade name in Dubai, there are certain guidelines to keep in mind:
The name should be more than three letters, according to a DET call centre agent
The name should be free from obscene or indecent words
The name can not include 'Allah' or 'God' or contain any divine attributes
Applicants must not use family names, tribe names or other individuals' names - unless the name belongs to the licensee.
The trade name must be logical and reflect your economic activity accurately
Names should be written literally and not translated.
If any name is similar to one that already exist, DET has the right to cancel it.
Business owners cannot use any restricted names which include global political organisations or religious sectarian organisations.
According to a DET agent, if the trade name is an English one, the fee will be Dh2,000 extra.
Business owners must present their Emirates ID for trade name reservation
Issue a trade licence
There are three types of trade licences that can be issued: normal licence, instant licence, and eTrader licence.
Normal licence: A Memorandum of Association (which can be obtained electronically or manually) and a site lease contract.
Instant licence: This licence is issued for activities that do not require external approvals, and can be obtained within five minutes. If the owner issues a memorandum of association, he/she can also get a virtual site for the first year. A virtual site means the business owner can operate without requiring a physical location, for the first year.
Under this licence, business owners can also access Dubai Chamber membership for commercial activities; establishment card from the General Directorate of Residency and Foreign Affairs (GDRFA); and, establishment card from The Ministry of Human Resources and Emiratisation, with the option to employ three people.
This final card is available for the following legal forms: Limited Liability Company (L.L.C), Limited Liability Company Single Owner (L.L.C – SO), Sole Establishment, and Civil Company.
eTrader licence: A sole establishment licence for Dubai home-based businesses that have been issued with the trade name. An eTrader licence for commercial activities (such as trading) will only be issued to UAE and GCC nationals, according to a DET call centre agent.
This licence can be issued to expats for some professional activities (some activities in the service sector). However, this does not include food and cooking-based businesses, as this licence will be issued to UAE and GCC nationals only, the agent added.
Documents required
Documents required differ based on the licence that the applicant wishes to apply for.
For a normal licence, approvals from other government agencies (if required), along with MoA and site lease contract
For an instant licence, unified number or ID number
For eTrader licence, ID number
Cost
The fee for issuing the initial approval is Dh120.
The fee for booking a trade name is Dh620.
The fee for issuing a trade licence depends on the type of activities, and the specific licence required. For an eTrader licence, the cost is Dh1370 (subject to kind of activity). Dh1070 will be taken for licence fees, and knowledge and innovation fees along with Dh300 for Dubai Chamber membership fees
Trade licence verification
If you wish to verify the trade licence of a company, visit the DET website, and click on e-services; then, choose licence information.
You can then verify the validity of a trade licence by searching for the company through its English or Arabic name, or its licence number.
The website will give you a company profile, which includes details such as:
Licence status
Expiration date
Legal type
Contact details
Activities of the business
Physical address (if available)
Poojaraj Maniyeri is a Digital Journalist who loves turning everyday conversations into news stories...More
pooja@khaleejtimes.com