Trade License
The Trade License is a license issued by the Commercial Registry of the Department of Economic Development to the person who is going to work in the field of trade. The type of trade license provided is determined according to the type of trade specified in the application. Each type of trade license has a number and is registered in the name of the holder. A trade license is provided for a maximum period of 5 years. The Trade License is the gateway to starting a business and to securing a bank loan.
Trade license is a license provided by the Ministry of Economy in UAE and the Department of Economic Development in Dubai. The trade license is issued in accordance with the Commercial Companies Law Rules of Dubai and Abu Dhabi Commercial Companies Law and the Commercial Companies Law Rules of Dubai and UAE. The Foreigners Investment Catalogue of the Emirates is a list of the products and services that can be provided by a foreign company.
Who required trade license in UAE?
- In the UAE, every business is needed to have a trade license, which is issued by the local municipality that the business is based in.
- The license is applied for by the company or an individual, and is commonly pre-approved upon submission of the application and payment of required fees.
- The municipality issues the trade license upon approval of the application.
- The trade license is valid for a year, and is required to be renewed upon completion of the year, or prior to the expiry date. Failure to renew the license may result in performance by the authorities.
- Any shop in UAE has to have a trade license.
- If you want to open a shop, you should apply for a trade license.
- The trade license is required for all buyer and sellers who want to run their business in UAE. It is a type of license which will help you to run your business perfectly and smoothly.
- The Ministry of economy and trade will issue trade license to those who have applied for one. It is a very useful document for doing business in UAE.
Documents needed for Trade License:
- Trade license application form
- Passport copy and ID along with Emirates ID.
- Trade contract.
- Company formation certificate.
- Articles of association.
- Federal tax registration number.
- Reservation from the Ministry of Economy.
- UAE Chamber of Commerce membership (if the company is present in the Dubai).
- Emirates ID copy of the owner of the company.
- Reservation from the municipality of the area where the company is located.
- Tax number.
- Work permit from the Ministry of Labour.
- Trade license from the municipality.
- Electricity connection certificate.
- Entry visa for company owner and for every employee of the company.
- Copy of the passport of the company owner and for every employee of the company.
- Copy of the education certificates of employees and company owner.
- Other documents as requested.
Process of trade license:
The trade license is one of the most important licenses required to operate business in UAE. The trade license is granted by either federal or local trade license authority, which is known as NOLO in Abu Dhabi, RBO in Dubai and free zone and licensing authority in Sharjah. The trade license is a personal license, which means that a business may get the trade license and name itself as the holder of the trade license. You should have a personal or company’s identity, a business address other than residential address, and the trade license is to be kept at the address you have provided.
- In the United Arab Emirates (UAE) they don’t use the term 'Trade License' because in the UAE it is a free trade zone country.
- So, the process is easy.
- You have to register your company. In the registration process you have to get approval from the licensing authority.
- The approval process is really easy. You have to have the approval from the licensing authority and after approval you can start your business.
- After that, you have to apply for the work permits for your staff.
Purposes of Trade license in UAE:
Trade license is required for anyone who wants to start his own business. It is issued by the Ministry of Economy and Commerce. Trade license is a document that allows you to buy, sell and trade in any product or service. It gives you the authority to import, export or transport goods. You can get trade license after reviewing the documents and providing proof of production, sales and marketing plans, financial statements and any other information that the customs authority requests. You can apply for trade license online as well as offline. You need to submit all the documents to get the license within one month of the application date.
- Trade license is required for any kind of business in UAE including manufacturing, trading, and service provider and so on.
- In the case of manufacturing and trading, trade license is issued by the Ministry of Economy.
- While the Department of Economic Development (DED) issues trade licenses for service providers.
- In the case of import of goods, the trade license is issued by the Ministry of Economy only.
- For the other kind of licenses, it is issued by the Ministry of Labour and social affairs for domestic helpers, doctors, engineers and others.
- There is no trade license for construction and contracting.