Are you a home business in Dubai? Here is how you can get a licence.

Trader licence 1 — Picture used for illustrative purposes only Image Credit: Stock image

Dubai: If you are a home-run business, a social media store or a start-up in Dubai, here is how you can easily register your business activity in the Emirate.

The Dubai Economic Department’s (DED) ‘Trader licence’ is aimed to integrate startups and business activities that operate online or on social networking sites within the economic department’s database.

The licence is issued electronically and the process also guides business owners on how they thrive in Dubai’s business environment.

According to DED, once a DED Trader Licence is issued, the business becomes legal, which in turn builds customer confidence, and guarantees the trader’s intellectual and economic rights.

Why should I get a Trader Licence?

If you are a new business, or a small home set up, this is the easiest way to ensure you are operating it legally. Some other benefits of the licence, according to DED are:

• It provides the necessary consultations to start a business

• You get Dubai Chamber membership for commercial activities

• You also benefit from bank facilities

• You get a ‘Customs Client Code’, which is provided by Dubai Customs and facilitates import and export, via dubaitrade.ae

• An establishment card will be issued to you, allowing you to hire three employees.

• You will also get temporary employment services.

• You will be able to participate in exhibitions, conferences and training workshop.

• Your products will be displayed at consumer points of sale in the premises of Dubai Economy partners.

• Dubai Economy partners will also provide options for a work space.

What are the criteria?

The conditions for getting a DED Trader licence are:

• Projects/startups should exist in the Emirate of Dubai.

• The project owner must be 21 years of age.

• The trader must have an Emirates ID to complete the registration

• The license is issued for residential site only (Makani must be provided).

• The trader is allowed more than one licence.

• The trader is allowed 10 activities per licence maximum within the same group description.

• DED Trader licence is valid for one year and is renewable.

• The activity, trade name and social media accounts can be amended per request.

How much will it cost?

The registration fees are Dh1,070 and the licence needs to be renewed annually.

DED, however, has a strict set of conditions on the trade names that can be registered with the department:

• The trade name shall not include any form of religious wording such as the word of “Allah”, “Lord” or “God”

• The trade name shall not be already reserved for the same activity or any similar activity.

• The trade name shall not include the name of any person, but it shall only include partner/ownership name in the licence.

• The trade name shall not contain any profanity or phrases that discriminate.

• Only the name of the person along with family name permitted as trade name; example; (Ahmed Al-Ghamdi Accessories; not Al-Ghamdi Accessories).

• It is not permitted to translate the trade names. So, if you are using the word 'Al Saqer' in Arabic, which would translate into English as 'falcon' you cannot have the Arabic trade name as Al Saqer Events Management and the English trade name as Falcon Events Management. The registered trade name shall be written in two languages. Example: “الصقر لإدارة الفعاليات” shall be written in English as “Al Saqer Events Managements”.

• The trade name shall not carry the name of any countries and governments and shall not indicate the global political organisations, sectarian or religious affiliation.

• The trade name shall not be identical or similar to local or global brand, or trademark registered in the Ministry of Economy. Example: (Emaar, KFC, Carrefour... etc).

• The trade name shall be compatible and associated only with the activity and legal form of the company; example: you cannot reserve the trade name of "XYZ" only for Gifts trading license, but the activity must be mentioned in the trade name such as: "XYZ GIFTS"

• The trade name shall not include any icons such as points or spacers etc. such as (. , / ).

• It is not possible to reserve a trade name beginning with the word "Universal", "Middle East", "International" or translate the same to Arabic.

• It is not possible to register the trademarks with Dubai Economy; but you shall register the trademarks with the Trademarks Department of the Ministry of Economy.

• The Company may use the trade name of another company, which provides the franchise to the Company.

• Dubai Economy has the right to cancel or change the trade name if the name is similar to an existing trade name, or if the trade name does not consider the applicable terms and conditions.