How to get a Commercial License in Dubai

In the UAE, all investors and entrepreneurs must complete certain requirements before start operating a business. However, on this occasion, we’ll only focus on the Dubai emirate. If you are planning to open a commercial company, you will need a commercial license in Dubai. And before that, you’ll need to obtain information about it.

In this article, you will be able to find the information you need about this license in Dubai. We’ll start with basic information about it. And then, we’ll explain how investors like you can obtain a commercial license. Besides, you can also find relevant details about it, such as benefits, costs, and more. Let’s observe:

What is the Commercial License in the UAE?

This type of license is probably the most wide-used license in Dubai. Most investors decide to build commercial companies, hence they require this document. The commercial license in Dubai is also known as the trade license. You can obtain it by applying for it and submitting the necessary documents to the DED.

With the commercial or trading license, investors can develop commercial activities, such as trading goods across the country. However, there are specific activities that might require additional permits. Therefore, you should consider checking a list of the allowed activities to make sure you don’t need other permits.

Although this license allows you to trade different kinds of products, you can trade more than that. Under this license, you can obtain the general trade license to trade a larger number of goods. Keep reading this article to learn more about the commercial license and its benefits.

What types of business activities can be carried out under this license?

All companies that obtain this license can develop several commercial-related activities. Some of the allowed activities you can do under the commercial license in Dubai are the following ones:

• Import and export activities.
• Automobile trading.
• Sale of electronic products.
• Rental services.
• Cold storage.
• General store.
• Sale of construction materials.
• Plumbing and sanitary contracting.
• General warehousing.
• Supply of brokerage services.
• Self-storage services.
• Shoe trading.
• Real estate-related services.
• Silos and tanks trading.
• Equipment installation and maintenance for radio, TV stations, and cinema theatres.
• Restaurant management.

However, if need more information about the allowed activities, you can obtain it from the DED (Department of Economic Development). Also, you can obtain more information from a company set-up specialist in case you cannot contact the DED

How many advantages can you obtain with the commercial license?

Besides allowing investors to do their business activities legally, this license provides other advantages. Firstly, the commercial license is the easiest to get in Dubai and other emirates. For example, the commercial license Abu Dhabi is also easier to obtain than other permits. Secondly, this license also allows companies to hire a larger number of foreign workers.

Here’s a list of other benefits that investors can obtain with a commercial license:

• With this license, investors have the possibility of engaging their Dubai companies in international trading activities.
• This document also makes easier the procedures for obtaining employment visas for foreign employees.
• It is not necessary for companies to undergo audits to renew their licenses.
• If the companies are in free zones, they get full exemption from taxes. Also, there’s free repatriation of profits to the investor’s home country.
• Companies can have their head office anywhere in Dubai if they operate under this license.
• It is also possible to sell more than one product. These products can be of different kinds too.

On the other hand, it’s also important to know that the commercial license may not be enough. In other words, some specific activities may require other special authorizations or permits. You can obtain more information about it with your business setup partner.

How can investors like you get this license in Dubai?

Before applying for your commercial license in Dubai, you must learn how to do it. Here we will explain all the steps you must take to apply for it. Also, we will mention what are the required documents below. These are the steps you must follow to apply for your license:

• Firstly, choose your business form and the activities you want to develop. The activities must match those of the commercial license.
• Secondly, draft the Memorandum and Articles of Association of the company. It must specify your company’s business activities.
• Thirdly, register your company with the DED in Dubai and obtain a VAT number.
• And finally, pay the necessary fees to complete your company’s registration process and the issuance of your license.

During the company setup process, you will need to complete this simple process to obtain your license. However, you must consider all of the options before making your decisions. After completing this process and registering your company, your license will be issued automatically.

What are the requirements for obtaining this license?

All investors who apply for this license must submit a few documents. If you are an investor, you can make your application yourself or using a company formation agent’s services. In any case, you’ll have to submit the following documents to obtain your commercial license in Dubai:

• Your application form completed. Remember to include your company’s name in English and Arabic.
• The original lease contract for the company’s registered address.
• Proof of paying the required fee for the issuance of the license.
• A permit issued by the Dubai Municipality Building Department. This permit must mention the use of the office space as a business address for the firm.
• Two colored passport size photographs.
• A passport copy of the proposed owner(s).

Once you have submitted all these documents, the DED (Department of Economic Development) will release your license. However, some additional documents might be necessary.

How much can cost a commercial license in this emirate?

The trade license Dubai fees may vary depending on several facts. For instance, it could vary depending on the free zone in which you form your company. However, it is known that the commercial license in Dubai costs approximately AED 10,000. Nonetheless, remember that there might be some additional fees.

Some other fees may be related to additional visas, registrations, premises, and more details. If you sum these other fees, they may soon add up to AED 30,000 or more. If you don’t want to spend too much money, you can find the most cost-effective free zones in Dubai. However, you can also consider setting up your business in other free zones in the UAE more affordable.

The Process and Requirements to Renew Your Commercial License.

As time passes, your commercial license will become an invalid document soon. Therefore, you must renew it before having legal issues because of it. Just like the other licenses, you must renew your commercial license annually. This is a simple process in which you only have to submit some documents and pay a fee.

In order to renew your commercial license, you must gather and submit the following documents:

• A copy of your commercial license or the original if it is possible.
• A copy of the office space lease contract.
• Approval from the relevant Dubai authorities, only if it is necessary.
• And lastly, the details of employees’ accommodation for companies with a foreign shareholder.

Are there Any Other Available Licenses in Dubai?

Knowing all the information about the commercial license in Dubai is essential to start a business. This includes knowing about the different types of trade licenses in Dubai. Besides the commercial license, there are other licenses you must know about. Each of them covers different activities, which is why you must define your activities first. Let’s take a look at these other licenses:

• General trading license: if you obtain this license under the commercial license, you’ll be able to trade more products. Moreover, it is not necessary for all these products to be related to each other.
• Professional license: as for this license, only individuals who offer professional services can obtain it. For example, the professional license covers activities related to accounting, education, consultancy, digital marketing, lawyers, and more.
• Industrial license: on the other hand, the industrial license covers other business activities. For instance, importing raw materials, manufacturing, and exporting finished products are some of the activities this license covers.
• Tourism license: it is only mandatory for tourism-related businesses to get this license. For example, hotel apartment rental, vacation homes rental, tour operators, and travel agencies need this license.
• Service license: in this case, only companies that provide certain services need this document. For instance, companies like accounting or business consultancy firms will need to obtain this license.

Why Should You Set Up a Commercial Business in Dubai?

Setting up a company in Dubai can bring you many advantages. There are many reasons why you should decide to establish your business in this emirate. However, here we will only focus on those advantages for free zone companies in Dubai. If you decide to form your company in a Dubai free zone, you will receive the following benefits:

• 100 percent of ownership of your company.
• 100 percent of repatriation of capital and profits.
• Total exemption from corporate and personal income tax for 15 years.
• Easy access to the facilities you need, including warehousing services, office space, connectivity, transportation, and more.
• You’ll be in a strategic location to engage in international business.
• World-class infrastructure.
• Business-friendly environment and regulations.
• Lots of company formation packages at affordable costs.

10. How can Connectfz help you obtain a commercial license?

If you need help to form your company in Dubai, you can count on Connectfz as your reliable partner. With our professional guidance and services, you’ll be able to establish your business in no time. Besides, we can also help you complete every step of the setup process efficiently.

Moreover, our team can also help obtain your commercial license in Dubai. Depending on the free zone you choose, you’ll find many different packages, which include what you need. You can request any of them according to your needs and business requirements.

On the other hand, you can also request other services after setting up a company. For example, use some services to improve your human resources department operations. Some of those services are payroll, HR consultancy, and banking services. But if you need to hire more employees, request our recruitment or staff outsourcing services. Feel free to contact us and request any of our available services.

Would you like to contact Connectfz to know more about the process to apply for the Commercial License in Dubai? If you have any questions, call us on +97143316688. You can email us at info@connectfz.ae, and you will talk to one of our representatives who will answer your questions.