Are you planning to start a business in Dubai? Well, then you must know that obtaining a trade license is one of the essential requirements for conducting business activities in the emirate.
The cost of acquiring a trade license in Dubai can vary depending on several factors. In this article, we will discuss everything you need to know about the cost of obtaining a trade license in Dubai.
What is a Trade License?
A trade license is an official document that provides permission to businesses to conduct commercial activities within a particular jurisdiction. In Dubai, the Department of Economic Development (DED) issues trade licenses to companies operating within the mainland region.
Factors Affecting the Cost of Trade License
The cost of obtaining a trade license in Dubai can vary depending on various factors such as:
- Business Activity: The type of business activity you wish to undertake can significantly impact the cost of your trade license.
- Business Location: Depending on whether your company is located onshore or offshore, the fees for acquiring a trade license may differ.
- Company Size: The size of your business, i.e., number of employees and annual turnover, can also affect the cost of obtaining a trade license.
The Cost Breakdown
In Dubai, there are three types of trade licenses: commercial, industrial, and professional. Here’s a breakdown of their costs:
Commercial License
A commercial trading license permits companies to import/export goods and conduct general trading activities. The cost breakdown for obtaining this type of license is as follows:
- DED Fees: AED 10,000
- Municipality Fees: AED 5,000 – AED 10,000
- Chamber of Commerce Fees: AED 1,000 – AED 3,000
Industrial License
An industrial license permits companies to manufacture goods and carry out related activities. The cost breakdown for obtaining this type of license is as follows:
- Ded Fees: AED 10,000
- Municipality Fees: AED 5,000 – AED 10,000
- Chamber of Commerce Fees: AED 1,000 – AED 3,000
- Dubai Industrial Park (DIP) Fees: AED 5,500 – AED 25,500 (depending on the size of the facility)
Professional License
A professional license permits individuals to offer professional services. The cost breakdown for obtaining this type of license is as follows:
- Ded Fees: AED 9,000
- Municipality Fees: N/A for consultancy and service providers.
- Chamber of Commerce Fees: AED 1,000 – AED 3,000 (depending on the activity)
The Final Word
Obtaining a trade license in Dubai is essential for conducting business activities in the emirate. The cost of acquiring a trade license can vary depending on several factors such as business activity, location and company size. It’s recommended that you seek the guidance of a professional business setup consultant to understand the overall costs involved in obtaining a trade license specific to your business activity.
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