How to Get Commercial License in Dubai, UAE
If you have business plan in your mind to setup in Dubai or anywhere in UAE? Do you want to trade both goods and services in UAE or Internationally? then you will need to get commercial license in Dubai.
If you are planning to start your very own business in a foreign land, Dubai might be the perfect destination for you. The benefits of forming a business in Dubai are huge. Apart from the benefits of its location, Dubai also has a world-class infrastructure and a favorable business environment for new companies to grow.
However, before you can start your own company, you will need to meet the requirement of the Dubai government and follow the rules and regulations. One of the requirements of starting a business in Dubai is that you will need to obtain a business license to run your business operation legally. But first, you will need to decide what kind of business activities you want to perform in Dubai.
What is a Commercial License?
A commercial license allows you to trade both goods and services. You can perform a wide range of business activities with a commercial license. With a commercial license, you can trade both buy and sell goods inside and outside the UAE.
A commercial license will allow you to trade almost any kind of product like as- jewelry and toys to packaging, automobiles, computer systems, furniture, foodstuffs, readymade garments, virtual goods, software etc. You can perform some specific services like Brokerage or real-estate services with a commercial license.
Dubai Commercial License Activities List
The range of business activities you can perform under a commercial license is huge. With a commercial license, you can easily expand your business to different sectors.
Here are some of the business activities you can perform under a commercial trade license Dubai:
- Medical Commodities
- Aircraft and train spare parts trading
- Bags and Packaging material trading
- Beauty and baby care essentials trading
- Animal skin trading
- Flowers and plants trading
- Home appliances trading
- Medical Commodities
- Surgical Equipment
- Cleaning services
- Advertising services
- Foodstuffs
- Furniture
- Readymade Garments
- Software
- Computer Systems
- Communication Equipment
- Automobiles
- Logistics
- Import and export
- Brokerage
- Product-oriented sales (electronics, construction, shops, stores etc)
- Real Estate
- Rental business
The list of permitted business activities is much bigger than this. You can access the full list from the Dubai Department of Economic Development.
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Steps to get your commercial license in Dubai
The process of starting a company and obtaining a commercial license in Dubai is quite straightforward. The simplified process of incorporating a company in Dubai is one of the many reasons that make Dubai a lucrative choice for entrepreneurs.
Here are the steps you will need to follow to acquire a commercial license in Dubai:
1. Select a Name and Legal Structure for Your Company
The first step of getting a commercial license in Dubai is choosing a name for your company. You will need to follow the rules and regulations of the Dubai government when choosing a name for your country. You will need to make sure that the name is unique within the UAE. The name must not contain any kind of profanity. Next, you will need to make sure that the name is available for registration. Once the name is locked, you will need to choose a legal structure for the company. There are options available to you to choose as the legal structure for your company:
- Sole Proprietorships
- Corporations
- Partnerships
- Limited Liability Company (LLC)
- Holding Company
- Free Zone Company
2. Choose the Business Activity You Want to Perform
Next, you will need to finalize the business activity you want to perform with your company. When choosing a business activity, you must make sure that the activity complements your skillset. You will also need to make sure that you have the capability, resources, and manpower to run this business activity. A commercial license will allow you to choose from a wide range of options. You can choose multiple business activities if you have the capabilities to do so. Once you have finalized your business activity, you can move on to the next step.
3. Choose the Location of Your Business Operation
Next, you will need to choose the location of your business operation. There are two options available to you to choose from. You can choose to run your business on the mainland or in one of the free zones. Both of them have advantages unique to them. The rules and requirements can also vary based on the location. If you choose to form your business in the free zone, you can enjoy benefits like 100% ownership, tax benefits, quick company incorporation, and no money restriction. On the other hand, you will need a local sponsor to start a business on the mainland. The local sponsor will need to own 51% of the company. However, starting a company in the mainland means your company will enjoy more traffic, and you can trade directly with the UAE market.
4. Apply For the Commercial License
Next, you will need to apply for a commercial license. If you are starting your business on the mainland, you can directly apply to the Dubai Department of Economic Development. However, in the free zone, you can apply in one of the local offices. You can apply online too.
5. Submit Relevant Documents
The authority will ask for some documents to verify and approve your application. The documents you will need to submit may vary depending on the type of business activities you want to perform with the commercial license. When submitting the documents, make sure to provide correct and updated information. Providing wrong and old information may require you to restart the process. You should seek professional help at this stage.
6. Pay the Fees and Collect The license
Once your application is approved, you will need to pay the fees to collect the license. The authority might take some time to verify and approve your license. Once the payment is confirmed, you can collect the license from the local office. With the commercial license, you can now legally run your business operation in Dubai.
Documents Required to Obtain a Commercial License in Dubai
Here are the documents you will need to submit to acquire a commercial license in Dubai:
- A completed application form that includes the registered company name
- Registered lease contract
- Copy of the shareholders’ passport
- Passport size color photos (2)
How much does a commercial license cost in Dubai?
The cost of obtaining a commercial license in Dubai typically ranges from AED 15,000 to AED 28,500. However, it’s essential to consider additional expenses such as extra registrations, visa fees, leasing premises, and other associated costs, which can amount to AED 30,000 or higher.
Renewing Your Commercial License in Dubai: A Step-by-Step Guide
The renewal process for a commercial license in Dubai involves several steps. Initially valid for one year from the issuance date, a Dubai commercial license can be extended for a period of four years. To apply for a trade license renewal in Dubai, the following documents are required:
- Original or copy of the existing trade license.
- Copy of the lease contract for the office space.
- Approval from relevant authorities, if applicable.
- Details of accommodation arrangements for employees in companies with foreign shareholders.
Advantages of Get a Commercial License in Dubai
The commercial license is one of the most popular business trade licenses in UAE because of a couple of reasons. That is to say, it is also very to obtain from the authorities. For instance, new businesses can easily obtain it within a short period of time and start performing their business activities.
Here are the benefits provided by the commercial license in Dubai:
- Maximum ten activities to perform under one commercial trade license.
- Choose a wide array of company structures you want to register.
- You can conduct several similar business activities under one license.
- Trading companies that operate under a commercial license don’t need to be audited to renew their license.
- The procedure for obtaining a commercial trade license in Dubai is the easiest of all.
- There are no personal taxes, and the corporate taxes are very lenient.
- You can transfer all profits to your home country and move all capitals after liquidation as well.
- You can hire foreign workers and sponsor their visas if you have the required office space.
- The commercial trade license allows you to import foreign products and export your products overseas.
Documents Needed for Commercial License Renewal in Dubai
- Copy/original of license
- Registered address lease contract (copy)
- Concerned authority approvals (if needed)
- Information regarding staff’s accommodation, applicable to foreign shareholder firms.
- After you have accomplished the license renewal, the renewed trade license has an extended validity of 5 years.
Frequently Asked Questions on Commercial Trade License
What is commercial license in UAE?
A commercial license in Dubai, UAE, is a legal authorization that permits individuals or businesses to engage in the buying and selling of goods and the provision of specific services. This license enables activities such as importing and selling goods within the UAE, exporting goods to be sold outside of the UAE, or conducting trade operations exclusively within the country.
With Commercial License, you will be able to perform business activities such as importing, exporting, and trading goods such as automobiles, computer systems, furniture, foodstuffs, readymade garments, virtual goods, software, etc.
Is commercial license the same as trade license?
A trade license is typically issued to individuals or businesses involved in commercial trading activities. However, it’s important to note that there is a distinction between a General Trading License and a Commercial Trade License in Dubai. The key difference lies in the scope, as a Commercial Trade License in Dubai is more specialized and is specifically tailored to cover a restricted range of products or services.
What is commercial trade license in Dubai?
A commercial trade license in Dubai is a prerequisite for engaging in the buying and selling of goods and the provision of specific services. In simple terms, this license grants you the authority to trade in products and offer designated services. It allows you to engage in activities such as importing and selling goods within the UAE, exporting them to foreign markets, or conducting trade within the local market.
How much is a commercial license in UAE?
When considering the cost of a commercial license in the UAE, it’s important to note that the Dubai trade license typically starts at AED 10,000 as a base fee. However, it’s essential to factor in additional expenses such as registrations, visas, premises, and other associated costs, which can cumulatively amount to AED 30,000 or even more.
How can I get a commercial license in Dubai?
You will need to follow a simple process to get a commercial license in Dubai. If this is your first time, it might be better to seek professional help. Here is the process for getting a commercial license in Dubai:
- Choose a name and legal structure for your company
- Select the business activity you want to perform
- Select your business jurisdiction
- Apply for the commercial license
- Submit relevant documents
- Pay the fees and collect the license
What is the difference between a trade license and a commercial license?
The main difference between a trade license and a commercial license is the types of business activities you can perform. With a trade license, you will be required to perform a certain type of business activities the license is issued for. On the other hand, a commercial license offers you flexibility on the types of business activities you can perform. You will have a wide range of business activities you can choose from. You can even perform ten types of business activities legally with one commercial license.
How much does a commercial license cost in Dubai?
A commercial license in Dubai will cost you around AED 10,000 to AED 30,000. Several factors will decide the cost of your commercial license. The cost might rise in case you need to acquire additional approval from the authority.
What is the difference between a professional and a commercial license?
With a commercial license, you will be allowed to trade a wide array of products and services inside and outside Dubai. However, if you want to do business by utilizing your special skill set and knowledge, you will need to acquire a professional license. In the case of a commercial license, you will require a local sponsor who will own 51% of the company. There may be some exceptions in some of the free zones. However, you can retain 100% ownership and be the sole owner of your business with a professional license.
Also Read: difference between commercial and professional license Dubai
Get your Dubai Commercial License with Company Setup?
If you want to perform commercial business activities in Dubai and the UAE, then you will need to obtain a commercial trade license in UAE. Our experienced Company Setup experts will answer all your license-related queries. Contact us today and hit the ground running.
Click here to book a free consultation with our experts and learn more about how to obtain a commercial license in Dubai; call +971 582595164. You can also send a WhatsApp message at +971582595164. For email assistance, mail your query at info@companysetup.ae
