Cost of a business license in Dubai

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Dubai trade license is one of the key factors to consider when setting up a company in this thriving city. If you are thinking about starting a business in Dubai, understanding the cost of a business license in Dubai is crucial to making an informed decision.

In this article, we will explore the details of the cost of a business license in Dubai in collaboration with Itqan Company. Itqan Company will be a reliable and specialized partner in guiding you through this process, as it has in-depth knowledge of the required procedures and associated costs.

Itqan Company will help you understand the type of commercial license suitable for your business, whether it is a general trade license, a limited trade license, or a free trade license. The company will also explain to you the fees required for registration and licenses, including initial registration fees and annual renewal fees.

Basic steps to obtain a business license in Dubai

To obtain a business license in Dubai , here are the basic steps that can be taken:

Study the market and determine the company’s activity: Before starting any action, you must study the market and determine the type of business activity you want to practice. The activity must be compliant with local regulations and laws.
Choosing the legal type of company: You must choose the appropriate legal form for your company, whether it is a sole proprietorship, joint stock company, or partnership.
Choose and confirm a business name: Choose an appropriate, non-duplicate name for your company, and ensure it complies with local business name registration regulations. Next, the name must be confirmed at the Department of Economic Development (DED) in Dubai.
Submit a license application: Submit an application for a business license at the Department of Economic Development (DED) in Dubai. Required documents must be submitted, such as application form, passport, personal photo, business plan, etc., depending on the legal type of company.
Payment of fees and licenses: After accepting the application, you will have to pay the required fees, which vary depending on the type of license and business activity.
Signing agreements and contracts: There may be agreements or contracts that need to be signed with the relevant authorities, such as lease contracts if the place is rented, insurance agreements, and others.
Obtaining additional licenses if necessary: You may need to obtain additional licenses depending on your company’s activity, such as health and safety licenses, building licenses, or others, according to local laws.
Receiving the license: After completing the procedures and paying the fees, the application will be reviewed and the commercial license will be issued by the Department of Economic Development in Dubai.

Cost of a business license in Dubai

Business license costs in Dubai vary greatly depending on the type of activity and the type of company you wish to establish. Here is a general estimate of the cost of obtaining a business license in Dubai:

Basic Registration Fees: These include fees paid to the Dubai Economic Development Department (DED) or the business licensing authority in the specific area.
Government services fees: These fees include services provided by the government, such as examinations, audits, and issuing licenses.
Legal and accounting consulting costs: You may need to consult an attorney or accountant to help you prepare the necessary documents and comply with laws and regulations.
Annual renewal fees: After obtaining a business license, you may need to pay an annual fee to renew the license.
Additional costs: Additional costs may arise such as rental costs for the office, marketing and advertising costs, recruitment costs, etc.

Types of commercial licenses available in Dubai and the differences between them

Type of license	the description	Differences
Commercial License	It allows the company to engage in general commercial activities and sell products and services.	It allows registration in any public commercial activity. Requires specific capital. The work must be located in Dubai.
Professional License	It allows individuals working in the liberal professions to practice their own professions independently.	It allows the practice of professional professions such as medicine, engineering, law, consulting services, and others. Does not require a specific work location in Dubai.
Industrial License	It allows the company to engage in industrial production and manufacture of products.	It allows the establishment and operation of factories and workshops. Includes transformational and productive activities. Requires a specific work location in designated industrial areas.
Craftsman License	It allows individuals to practice handicrafts and craft work such as carpentry, sewing, dyeing, and others.	It allows the practice of handicrafts and handicraft works individually or within the framework of a small company. Does not require a specific work location in Dubai.

Documents required to obtain a trade license in Dubai

To obtain a business license in Dubai , you usually need to submit a set of basic documents proving the identity of the founders, details of the company and the planned business activity. Here is a list of common documents you may need:

License Application Form: The license application form must be filled out with true and accurate information in accordance with the requirements of the Department of Economic Development in Dubai.
A copy of the passport: A copy of the passport must be submitted for both founders and partners.
Personal photo: A personal photo must be submitted for both founders and partners.
Business Plan: A comprehensive business plan must be submitted that explains the financial, marketing and operational details of the company and its planned business activity.
A copy of the rental contract: If the company’s headquarters is rented, a copy of the rental contract for the office or commercial space must be submitted.
Civil Liability Insurance Certificate: The Dubai Department of Economic Development may require a civil liability insurance certificate for the company.
Profession license: In some cases, you may have to obtain a profession license from the Department of Economic Development, which is a license specific to the business activity you wish to practice.
Additional approvals: You may need additional approvals depending on the type of business activity, such as approval from the Civil Aviation Authority for companies operating in the aviation field.

Tax requirements for business companies in Dubai

For businesses in Dubai, there are several tax requirements that must be adhered to. These requirements include:

Value Added Tax (VAT): Business companies must commit to registering value added tax (VAT) if the company’s annual gross sales reach or exceed the registration threshold. Businesses must submit VAT reports regularly and pay the tax due on the specified dates.
Corporate Tax: In Dubai, there is no corporate tax for non-residents, but corporate tax applies to some private companies such as banks and real estate companies. Resident companies have to pay corporate tax based on the profits made during the financial year.
Financial Disclosure: Commercial companies in Dubai must commit to providing financial disclosure regularly in accordance with the requirements of accredited local and international bodies.
Submitting tax returns: Companies must submit tax returns regularly according to the specified deadlines and commit to properly documenting and recording all financial transactions.
Compliance with international tax laws and regulations: Business companies in Dubai must comply with international tax laws and regulations, especially if they have international branches or operations.

Common challenges facing businesses in Dubai

There are several common challenges that businesses in Dubai can face, including:

High Competitiveness: There is a competitive market in Dubai with many local and international companies operating in various sectors. This can make it difficult for new companies to build strong market share.
Local legislation and regulations: Businesses may face challenges in understanding and adhering to local legislation and regulations, which can change regularly and impact their operations.
Government bureaucracy: Companies may face some challenges in dealing with government bureaucracy at times, which affects the process of obtaining licenses and approvals.
Linguistic and Cultural Challenges: Businesses with international operations may face challenges in understanding the local language and culture, affecting communication and understanding with business partners and customers.
Economic and political changes: Changes in economic and political conditions can affect businesses in Dubai, such as oil price fluctuations and the global economic slowdown.
Environmental and natural challenges: Business companies may face environmental and natural challenges such as scarcity of local resources and the effects of climate change.
Shortage of skilled human resources: There may be challenges in recruiting and retaining skilled human resources in some industries and sectors.

In conclusion of this article, we can conclude that understanding the cost of obtaining a trade license in Dubai is crucial for any entrepreneur who wants to start his business in this dynamic city. By benefiting from the experience and services of Itqan Company, investors can receive specialized support and professional guidance at every step of the process of obtaining the license.

Itqan is a strong and reliable partner for investors who want to set up their companies in Dubai. The company will provide in-depth knowledge of local laws, regulations and administrative procedures, and will provide accurate guidance on required licenses and financial fees.

Frequently asked questions about the cost of a business license in Dubai

What is the cost of obtaining a business license in Dubai?

The cost of a business license in Dubai varies depending on the type of business, location and size. It can range from several thousand to several hundred thousand UAE dirhams.

Can I expect additional costs after obtaining a commercial license?

Yes, additional costs may include annual renewal fees, office rental fees, labor fees, and other administrative and operational costs.

Are there differences in the cost of the license between small and large companies?

Yes, the cost of the license varies between small and large companies based on the type of activity, number of employees, required space, and required facilities.

What are the basic fees that must be paid to obtain a license?

Basic fees include registration fees, government services fees, processing fees, and other fees required to issue the license.

Can the cost of the commercial license be paid in installments?

Some entities may allow installments to facilitate the process of paying the cost of the license, but this option must be verified with the entity issuing the license.

Can a portion of the license cost be refunded if the business activity is cancelled?

Refund policies vary between entities, and there may be procedures and conditions for refunding part of the cost in the event of business cancellation.