Operating a business in the United Arab Emirates requires a trade license, with the Commercial License and Professional License being the most common types in Dubai. As a foreign investor, understanding the distinctions between these licenses and their benefits is crucial.
This article aims to provide the difference between Commercial License and Professional License, advantages, and the process of setting up a business in the UAE. Gain clarity on trade licenses and explore opportunities for establishing your business in Dubai.
Table of Contents
What is the difference between professional license and commercial license in Dubai?
| Points | Commercial license | Professional license |
|---|---|---|
| Ownership | When 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 capital | To 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 Fees | Commercial license will cost approx. Dhs 12,000. | A professional license can be acquired for approx. Dhs 9,000. |
| Liability | Commercial 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 activity | Commercial 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 entities | Professional license in Dubai is issued to all service-oriented companies. professional trade license Dubai are granted based on the applicant’s educational entitlement and area of expertise, and acquiring the trade license include several factors. |
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 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.
Want to Get Professional Trade License at AED 11,500. Send Us Your Inquiry
What are the benefits of Professional License and Commercial License in Dubai?
| Professional license | Commercial license |
|---|---|
| Fixed annual fee for professional license holders | With 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. |
How can I get a professional license in Dubai?
To obtain a Professional License in Dubai swiftly, follow these steps:
- Determine the specific business activity you intend to pursue.
- Secure a local sponsor who is a UAE national.
- Obtain approval from the Department of Economic Development (DED).
- Reserve your chosen business name.
- Fulfill the required fees.
- Submit the necessary documents to the DED for approval.
What is Dubai professional license?
In Dubai, UAE, a professional license pertains to the specific type of license that authorizes professionals to establish and operate a business in the Emirates.
How much is a professional license in Dubai?
The cost of Professional License in Dubai is AED 10,310. Keep in mind that this amount might vary over time.
What is the cheapest professional license in Dubai?
The most affordable professional license in Dubai is offered by Meydan Free Zone, excluding a visa. The license cost varies, generally ranging from AED 10,000 to AED 13,000. It can also be obtained through monthly interest-free payments of AED 800 to AED 1,100.
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.
