Trade license

Difference between Commercial License and Professional License in Dubai

Difference between Commercial and Professional License

It is almost impossible to set up business without a trade license in Dubai. That being said, depending on the nature of your trade and objectives, you will need to find the right trade license for your business.

So how many trade licenses are there? Depending on a few key factors, you can either apply for a commercial license, industrial license or for a professional one. In this article, we will focus on just the commercial and professional trade license in Dubai.

PointsCommercial license Professional license
OwnershipWhen it comes to commercial trade license in Dubai, an expat or foreign investor can legally own 49% of the total shares and the rest will be owned by a UAE national, but for certain activities the expat can own 100% of the company without any local sponsor.When it comes to a professional license, an expat will have 100% ownership and can become the sole owner, but there will be a requirement for a local service agent in the license (LSA)
Share capitalTo setup a commercial business with a commercial trade license, the minimum share capital amount required is DHS 300,000, but this amount need not be actually deposited in the account, its just for documentation.As for professional license, the minimum share capital is DHS 150,000 but this amount need not be actually deposited in the account, its just for documentation.
Government License FeesCommercial license will cost approx. Dhs 12,000.A professional license can be acquired for approx. Dhs 9,000.
LiabilityCommercial trade license in Dubai gives companies limited liabilities, they will have their suffix as L.L.C. The ownership will get divided between an expat and UAE national.Professional trade licenses, the liability of the company is unlimited. it can either be a sole proprietorship or a civil company.

Type of activityCommercial License in Dubai is issued to a business regarding any type of trading & commercial activities likes as- Retail companies, general trading, construction companies, real estate businesses and other general entitiesProfessional license is issued to all service-oriented companies. Dubai professional trade license are granted based on the applicant’s educational entitlement and area of expertise, and acquiring the trade license include several factors.
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1. Commercial License in Dubai is issued to a business regarding any type of commercial activities. Both general traders and specialized traders can avail commercial trade license in Dubai. Retail companies, construction companies, real estate businesses and other general entities also need to avail commercial trade license in Dubai.

2. Professional License in Dubai are required for all service-oriented companies. Dubai professional trade license are granted based on the applicant’s educational entitlement and area of expertise, and acquiring the trade license include several factors.

How do you Decide which License to apply for?

There are a few key features that sets the two licenses apart, and thus have their own advantages. Dubai trade licenses differ from each other in terms of ownership, trade license Dubai fees, share capital and liability.

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What are the benefits of Professional License and Commercial License in Dubai?

Professional licenseCommercial license
Fixed annual fee for professional license holdersWith the commercial license, you have several options for the type of company you want to register as and can perform a maximum of ten activities. In fact, you can undertake several similar business activities against one license.
Applying for visas for employees and having transparent dealings with clients.If you have this trade license in Dubai, you can avail residence visa for your employees and company management, as well as get assistance for opening corporate bank accounts.
It is best fitted for skilled professionals planning on setting up businesses in Dubai.Lastly, the trade license renewal in Dubai becomes more cost-effective.
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What does not change with any of the trade licenses?

Regardless of which trade license in Dubai you are applying for, it is important to make sure you have your trade license renewal done on time. Furthermore, there are a lot of other factors to keep in mind when applying for a trade license in Dubai.

The most cost effective and time saving way to deal with all of this is to partner with a Business Setup firm. They can keep the process going smooth while you focus on growing the business. And the best place to start would be with Company Setup Consultancy Dubai.

For further information and assistance on what is the Difference between Commercial and Professional License in Dubai, trade license fees or any kind of assistance you need, speak with our experienced consultants.

To Speak with our Experienced Business Consultants for further information and assistance, call us at +971582595164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at info@companysetup.ae.

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