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Establishing a business in Dubai often begins with obtaining a trade license, a crucial legal document that permits you to conduct your specific commercial activities within the emirate. But what happens when circumstances change? Whether you're looking at business acquisition, expansion, relocation, or changes in ownership, understanding the process of trade license transfer in the UAE is essential. This guide will walk you through the key aspects of transferring a trade license in Dubai.
What is a Trade License in Dubai?
A trade license in Dubai is an official permit issued by the Department of Economy and Tourism (DET) – formerly known as the DED – that authorizes a business to carry out specific commercial or professional activities within the emirate. It clearly defines the nature of the business and ensures it operates legally within Dubai's regulatory framework.
Why Transfer a Trade License?
While specific requirements can vary, common documents needed for a trade license transfer in Dubai typically include:
It's highly recommended to consult with trade licence transfer services in the UAE to ensure you have all the necessary documentation.
How to Transfer a Trade License in Dubai?
The process of transferring a trade license in Dubai involves several steps that require careful attention to detail and adherence to regulatory procedures.
The first official step is to file an application to the Dubai Department of Economy and Tourism (DET) for initial approval of the ownership transition. This will involve submitting the required documents and paying the initial fees.
The present license holder must inform the Department of Economic Development (DED) of the ownership transfer by submitting:
Supporting documents, including:
Depending on the nature of the business and the authorities involved, obtaining No Objection Certificates (NOCs) from relevant government entities might be necessary.
Obtain required approvals from relevant authorities, such as:
Create an MoU outlining the terms of the ownership transfer, including:
The MoU should be:
Ensure all necessary approvals and documents are in place before proceeding with the transfer.
The current and new owners must visit the DED service center together, submitting:
The DED will review and process the ownership transfer upon verifying all requirements.
Upon receiving the necessary approvals, the applicable trade license transfer fees must be paid to the DET.
Once all the requirements are met and the fees are paid, the DET will issue a new trade license under the new ownership.
What Should be Considered While Transferring the Trade License?
Navigating the trade license transfer in the UAE requires careful consideration of several factors:
Here are the key differences in trade license transfer regulations between the Dubai Mainland and Free Zones:
| Feature | Mainland | Free Zone |
| Regulatory Authority | DET governs all transfers | Each Free Zone Authority (e.g., DMCC, JAFZA) has its own transfer rules |
| Ownership | Now allows 100% foreign ownership for many activities; historically, local sponsors were needed. New owner eligibility may have requirements. | Generally, 100% foreign ownership. Transfer ownership implications differ from the mainland. |
| Transfer Process & Docs | DET procedures apply. Requires DET application, potential NOCs from mainland entities (e.g., DEWA, Municipality), Sale Agreement, original license, IDs, tenancy contract, MOA, clearances. | Each Free Zone has unique processes & documents. May involve internal NOC, shareholder resolutions, and updated incorporation papers. Transfer between zones is often deregister/reregister. |
| Tenancy Contracts | Must comply with Ejari under Dubai Municipality. | Follows Free Zone's specific rules for office spaces and lease agreements. Transfer linked to lease |
| Approvals & NOCs | May need approvals from various mainland departments (e.g., Municipality, DEWA, FTA). |
Primarily dealt with the respective Free Zone Authority and entities within its ecosystem. |
Moving a business license in Dubai is a rigorous process that requires strict adherence to the requirements. Whether you're buying a business, growing, moving to a special economic zone, or changing who owns the company, knowing what to do and what papers you need is very important. To make sure everything goes easily and correctly, it's a good idea to get help from experts. Open your business in Dubai with our expert trade license services - check out this page to know more.
Ready to navigate your trade license transfer in Dubai with ease? Contact Reyson Badger for expert assistance and a seamless transition.
What trade-related services can I do as the new owner, need to transfer?
As the new owner, you might need to transfer various essential services connected to the business. This includes utility connections (electricity, water), bank accounts, lease agreements for the business premises, existing contracts with suppliers and clients, telecommunication services, and any other operational agreements.
What should I do about existing contracts with suppliers and clients?
Review your existing contracts. It is advisable to start notifying them as soon as the transfer is officially completed. Depending on the terms of the contracts, you might need to formally assign them to the new entity or renegotiate new agreements.
Why is it advisable to promote the ownership transfer?
Promoting the ownership transfer helps to ensure clarity and avoid confusion among your clients, suppliers, and other important stakeholders. It demonstrates a smooth transition and helps maintain trust and continuity in business relationships.
What are the best ways to promote the ownership transfer?
You can promote the transfer through various channels, including:
How long does the business ownership transfer process take?
The business ownership transfer process takes approximately 2-4 weeks.
What factors can affect the processing time?
Complete documentation and approvals from relevant authorities are required.