Commercial License in Dubai, UAE
If you wish to start a business in the UAE, then the foremost step is to get a business license. There are four main types of business licenses available; commercial, professional, industrial, and tourism licenses. Dubai issues all these licenses, depending on the nature of your business.
What is a Commercial License in Dubai?
A commercial license is the most common type of business license in Dubai. It allows companies to trade goods and services. If you are setting up a business in Dubai and your activities don’t fit under professional, industrial, or tourism licenses, then a commercial license is the right choice for you.
Here are a few examples for your reference:
- A consultancy firm needs a professional license.
- A manufacturing company requires an industrial license.
- A travel agency must get a tourism license.
What Business Activities Are Allowed Under a Commercial License?
If you are confused about the business activities that are permitted under a commercial license, know that a commercial license permits a company to buy and sell products and services within Dubai and beyond. Businesses operating under this license can engage in:
General trading
Import and export
Supply brokerage
Healthcare trading
Retail and wholesale trading
Real estate and construction materials
Vehicle rental and logistics
However, if a company is the manufacturer of their own goods or products they sell, then they will need an industrial license instead.
In Dubai, a company with a commercial license can conduct up to 10 different business activities under one licence.
Trade License vs. Commercial License – What’s the Difference?
Many people use the terms trade license and commercial license, but stay confused between these two licenses. However, a commercial license is a type of trade license specifically focused on trading businesses. A trade license is a broader term that includes commercial, professional, industrial, and tourism licenses.
Legal Structure for a Commercial License
Businesses with a commercial license can be structured as follows:
- Sole establishments(owned by one individual)
- Limited liability companies (LLCs) (owned by two or more partners)
Dubai does not require a specific legal structure for a commercial license. Any company engaged in general or specialized trading can apply for a commercial license.
How to Get a Commercial License in Dubai
Setting up a business in Dubai involves several steps, including:
- Choosing the right business activity
- Selecting a suitable trade name
- Deciding on the legal structure
- Preparing and submitting documents
- Getting approvals from relevant authorities
Once the application is approved, the commercial license is issued, allowing businesses to legally operate in Dubai.
If you are planning to start a trading business in Dubai, a commercial license is the key to all you need.
Main Benefits of a Dubai Commercial License
The commercial license in Dubai mainland will let the investors enjoy several advantages. Here are some of the key benefits listed below:
No personal or corporate taxes
Businesses are exempt from corporate and personal income tax.
Freedom to choose office location
Companies can set up their office completely on personal choice anywhere in Dubai.
Trading across the UAE
Businesses can legally operate and trade freely within Dubai and across the UAE.
Can engage in multiple business activities
A company with a commercial license can deal or engage in multiple products, even from different categories outside their business.
Easy visa
processing
The process of obtaining visas for expatriate employees gets simple with our fast, reliable, and hassle-free support.
Quick licensing
procedures
The commercial license application process is quick and completely hassle-free for the investors.
How to Get a Commercial Trade License in Dubai
Now the question is, how to apply for a commercial license in Dubai. Check out what investors need to follow:
Note that the commercial license is valid for one year from the date of issue. Renewing the license is simple. Once renewed, the license remains valid for the next four years from the date of renewal.
To renew a commercial license, companies must submit the following documents:
- The original license (or a copy)
- A copy of the office lease contract
- Approvals from relevant government authorities
Additionally, businesses with foreign shareholders must also provide the accommodation details of their employees.
By securing a commercial license in Dubai, businesses can operate legally and take full advantage of the city’s promising trade environment.
FlyBiz can assist you in obtaining a Dubai commercial licensee. Reach out to us at (Number) for any inquiries or to begin your license application process.