A Guide for UK Investors

How to Secure Your Dubai Trade License

Welcome to the thriving economic hub of Dubai, UAE, where business opportunities abound for UK entrepreneurs eager to expand their ventures into new territories. Securing a trade license in Dubai is your key to tapping into a vibrant market full of potential and growth. At DXB-VIP, we specialize in facilitating a smooth and efficient process to obtain your Dubai trade license, making it easier than ever to establish and expand your business in the UAE.

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Why Choose Dubai for Your Business?

1. Boost Local and International Trade

Dubai stands as a gateway between the East and West, providing unparalleled access to a vast array of markets. Its strategic location enhances connectivity to critical global markets, making it a top choice for companies aiming to boost their trade reach both locally and internationally.

2. Improve Credibility

Operating a business in Dubai immediately elevates your brand’s credibility. The city’s reputation as a global business hub assures potential clients and partners of your company’s legitimacy and ambition.

3. Enjoy Tax Benefits

One of Dubai’s most attractive features is its investor-friendly tax regime. Businesses benefit from minimal taxes, including exemptions from income and corporate taxes, which can dramatically increase profitability.

4. Few Trade Restrictions

Dubai offers a business environment with fewer trade restrictions compared to other international business centers. This open market encourages free trade and lowers the barriers to entry for new businesses.

5. Easy Set-Up Process

With streamlined procedures and clear guidelines, Dubai ensures that the setup process for new businesses is as smooth as possible. DXB-VIP can guide you through every step, ensuring that your business is up and running without unnecessary delays.
Trade licenses
Trade licenses

6. Sponsorship Opportunities

Businesses in Dubai can take advantage of extensive sponsorship opportunities, opening doors to local and regional markets and fostering important local connections that can be crucial for business success.

7. Tax Advantages and Incentives

The UAE’s tax incentives are some of the most compelling globally, attracting businesses looking to maximize their returns while minimizing liability.

8. Legal Protection and Compliance

Dubai is renowned for its robust legal framework, which protects companies and ensures that they operate in a secure business environment.

9. Flexibility and Ease of Doing Business

The UAE government has created a flexible business environment that supports and encourages entrepreneurship. The ease of doing business here is unmatched, thanks to efficient governmental procedures and business-friendly policies.

10. Investor-Friendly Environment

Investors find Dubai appealing not only for its economic stability but also for its dynamic growth opportunities and state-of-the-art infrastructure.

How to Obtain a Trade License in Dubai: The Process

Securing a trade license in Dubai involves several key steps, which DXB-VIP can help you navigate:
  1. Choose Your Business Activity: The first step is to define the nature of your business, as this will determine the type of trade license you require.
  2. Legal Formulation: Decide on the legal structure of your business, whether it’s a sole proprietorship, a partnership, or a corporation.
  3. Trade Name Registration: Register a trade name that reflects your business identity and complies with the regulations.
  4. Apply for Your License:Submit the necessary documents and application to the Dubai Department of Economic Development (DED).
  5. Obtain Additional Approvals: Some business activities require approvals from other governmental agencies.
  6. Finalize Your Setup: With your trade license in hand, you can start your business operations in Dubai.

FAQs

A Trade License in Dubai is also called a business license. It is a document that the Department of Economic Development issues. With this trade license, companies can legally conduct business activities in the UAE. Like every investor or businessman who wants to start a business in the UAE, UK investors will also need a Trade License to get started here.

These are the documents you need to get a trade license in the UAE:

  • Application form
  • Passport copies of shareholders and partners
  • Copy of initial approval certificate
  • Notarized Memorandum of Association (MOA)
  • Lease agreement for the business premises
  • Proof of payment for trade license fees

To get a trade license in Dubai, like any other investor, a UK investor also needs to follow the following steps:

  • Choose the business activity you want to conduct
  • Decide whether you want to set up in a Mainland or Free Zone.  Each of them has its advantages and disadvantages.
  • Choose a trade name.
  • Prepare the legal documents required.
  • Apply for initial approval to the DED or the relevant Free Zone authority.
  • Lease office space
  • Submit the final documents
  • Get your trade license.
The cost of getting a trade license in Dubai can vary from business to business and from region to region. But generally, it ranges from AED 8050 (around USD 2200) to AED 32000 (around USD 8700)

Generally, the time required to get a trade license in Dubai for UK investors can vary depending upon factors, such as the types of business you choose, the region you want to go for, and what business consultancy firm you have. But overall the time required for getting a trade license in Dubai can be between four days to 3 weeks.

Yes, UK investors can operate multiple businesses under one trade license in Dubai.
The Corporation Tax rate in Dubai is only 9%, compared to 25% in the UK. There are also generous exemptions available through the Small Business Rate Relief if your turnover is less than AED 3,000,000. This can provide a financial advantage to UK investors, and it allows them to reinvest their earnings and grow their business in the UAE.
Whether or not you require a local sponsor to get a trade license in Dubai depends on the zone you are working in. You generally do not require a local sponsor unless you are opting for an LLC (Limited Liability Company), where you need a local sponsor who holds 51% shares of the company you want to work in.
DXB VIP provides UK investors with tailored support in getting a Dubai trade license through end-to-end consultations, a client-centric approach, and the expertise of local businesses Dubai. With DXB-VIP, you don’t have to worry about getting your business started.
Yes, as a UK citizen, you can get a trade license in Dubai without living there. You can manage your business from the UK. However, if you stay a UK resident, you won’t benefit from Dubai’s tax advantages. You’re taxed based on where you reside for tax purposes.