Costs and Fees: What You Need to Know About Dubai Business Trade Licenses

Understand the costs and fees of obtaining a business trade license in Dubai, from initial expenses to renewal fees, for a smooth and efficient business setup.

Business Sep 30, 2024 17 Add to Reading List

Costs and Fees: What You Need to Know About Dubai Business Trade Licenses

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Starting a business in Dubai is an exciting prospect due to the city’s strategic location, business-friendly environment, and growing economy. However, a key consideration for entrepreneurs is the cost of acquiring a business trade license in Dubai. Knowing these expenses is crucial for effective financial planning and ensuring a smooth business setup in Dubai. This blog provides a detailed breakdown of the costs and fees involved in obtaining a business trade license.

Types of Trade Licenses and Their Costs

Dubai offers various business trade licenses designed to accommodate different business activities. The cost of a business trade license in Dubai varies depending on the license type and the nature of the business.

1. Commercial License

A commercial license is necessary for businesses engaged in trading activities, such as buying and selling goods. The cost of a commercial license typically starts at around 12,000 AED but can vary based on the specific activities listed on the license. Additional costs may include:

Activity fees: Ranging from 150 to 500 AED per activity.
Market fees: Based on office or shop size, generally around 5% of the rent.

2. Industrial License

Businesses involved in manufacturing, production, or industrial activities require an industrial license. The starting cost is around 15,000 AED, with additional expenses that may include:

Rent for factory or warehouse space.
Equipment and machinery costs.
Compliance with environmental and safety regulations may lead to extra charges.

3. Professional License

A professional license is for individuals and firms providing professional services, such as consulting, legal, or healthcare. The cost for this license starts at around 10,000 AED. Other expenses may include:

Professional service fees.
Fees for a local service agent, if required.
Office space rent.

4. Tourism License

Businesses operating in the tourism sector, such as travel agencies and tour operators, need a tourism license. The cost starts at around 15,000 AED, with additional fees for tourism-specific activities, such as:

Tourism permits.
Compliance with tourism regulations.
Office space rent.

Additional Costs and Fees

Beyond the initial license cost, entrepreneurs must account for several additional fees when starting a business in Dubai:

Trade Name Registration

Registering your trade name with the Department of Economic Development (DED) is an essential step in the licensing process. Depending on the type of name chosen, the cost of registration ranges from 600 to 2,000 AED.

Initial Approval

To proceed with the licensing application, you’ll need to obtain initial approval from the DED, which usually costs around 1,000 AED.

Memorandum of Association (MOA)

The MOA defines the business structure and operations. Notarization fees for the MOA range from 1,000 to 3,000 AED, depending on its complexity and the number of partners involved.

Office Space Rent

A physical office space is required for most business licenses in Dubai. The cost of renting office space varies based on location, size, and type. Free zones offer flexible office solutions at competitive rates, making them a cost-effective option for startups.

Other Administrative Fees

Some additional administrative fees to consider include:

Fees for modifying or translating the trade license: 200 to 500 AED.
Activity classification fees: 150 to 200 AED.
Attestation charges for various documents.

Renewal Fees

Trade licenses in Dubai are valid for one year and must be renewed annually. The renewal fee is generally similar to the initial license cost, with extra charges for visa renewals, updating information, and office space rent.

Conclusion

Understanding the costs and fees associated with acquiring a business trade license in Dubai is essential for effective financial planning and a smooth company formation process in Dubai. You can ensure a successful business setup by considering all expenses, from initial license fees to administrative costs. To streamline the process and avoid complications, consider working with a business setup consultancy like Bizex LLC, which offers expert guidance and PRO services in Dubai. Investing in professional advice can save you time and money, allowing you to focus on growing your business in Dubai’s thriving economy.