Greetings everyone, I am Javed and I am here today to provide you with some valuable advice on how to reduce the cost of your trade license in Dubai. There are several ways to minimize the price of license a few have been discussed below.
Factor Effecting Price of Trade License
Below are all the factors that directly affect the cost of a license in Dubai.
Arabic Company or Business Name
One important tip to consider is the choice of your company or establishment’s name. It is common for many of us to opt for an English or foreign name, but by forgoing this preference, we can save up to 2000 dirhams annually, as per the laws in Dubai. You see, having an English or foreign name for your company incurs an additional cost of 2000 dirhams. Instead, you can choose an Arabic or a local name, which will help you save this amount every year. Additionally, if your company’s name includes a regional name such as an international or foreign name from Eastern Europe, consider removing it. By doing so, you can save approximately a thousand dirhams.
Less Number of Business Partners
The second tip we will discuss is related to applying for a trade license. It is important to note that reducing the number of business partners mentioned in your trade license can have significant cost-saving benefits. Typically, when applying for a trade license, it is common to include all business partners. However, a more cost-effective approach would be to minimize the involvement of business partners in the trade license, focusing solely on your own involvement. This is particularly relevant for limited liability companies, as the number of business partners listed on the trade license directly impacts the cost. The more business partners listed, the higher the expenses. Therefore, it is advisable to limit the number of business partners included in your trade license. In fact, we strongly recommend having only one party listed on your trade license.
Small Rental Office or Virtual Office
The third tip involves a straightforward approach when obtaining your trade license. Consider opting for a cost-effective or smaller rental space. This is a practical step to take. Another advantage of setting up your business in Dubai is the option to acquire a trade license without a physical office through a virtual address. This can help you avoid unnecessary expenses.
Ejari in your name
Lastly, if you reside in Dubai and have an Ejari in your name, you could save up to a thousand dirhams by receiving your trade license payment voucher at that address.
These are some useful tips to enhance cost-effectiveness during the trade license application process. If you have any queries or require additional advice, feel free to contact us through the provided channels. Thank you for reading our article, and we look forward to assisting you further.
