Commercial License in Dubai

How to Acquire a Commercial License in Dubai

Based on the nature of the business, the right form of licence must be selected in order to launch a business in Dubai. There are several types of licenses available, including commercial, manufacturing, and technical licenses, with the commercial license being a popular option due to its versatility. Many companies in Dubai choose to obtain a commercial licence because it enables trading, importing, and exporting of goods as well as the provision of some services.

Dubai is a desirable site for enterprises involved in international trade due to its strategic location and proximity to substantial markets in Asia, Africa, Europe, and the Middle East. Additionally, the UAE is a hub for cargo companies, with several international airports and direct access to the Persian Gulf. With the aid of a business setup representative, establishing a business is relatively simple in Dubai owing to the simplified company incorporation procedure.

The condensed company incorporation procedure, which makes it very simple to start trading, is another factor contributing to the popularity of commercial license's in Dubai. All companies conducting business in Dubai are required to get a licence, the most typical of which is the commercial licence.

The most popular type of business for carrying out commercial activities is a Dubai limited liability company, which can be established both on Dubai's mainland and in any free trade zone in the Emirate.

The fact that each free zone authority grants its own licences is one distinctive feature of establishing a free zone firm in Dubai. The commercial licence, however, is the same for all free zones. The commercial licence of a free zone company may only be utilised for business operations within the specific Dubai free zone. International businesses can also get business licences to set up subsidiaries or branches in Dubai.

Steps to get a Commercial License

If you want to obtain a commercial license in Dubai, there are certain procedures you need to follow. Below are the steps you need to take to obtain a commercial license:

• Choose the type of business you wish to run and make sure it complies with the commercial licence requirements.
• Create the Memorandum and Articles of Association for the business, which should include a list of the ventures it will take on.
• Register your company with the Department of Economic Development in Dubai and obtain a VAT number.
• Pay the needed costs for establishing your company and issuing your business licence.
• Following these procedures, you can submit an application for a commercial licence to the Dubai Department of Economic Development and the Federal Ministry of Economy of the United Arab Emirates.
• The application form must be submitted along with the initial leasing agreement for the address where your company will be registered, and the business name in both English and Arabic.
• Permit issued by the Dubai Municipality's Building Department allowing you to use the office space as your business address.
• Finally, you must present evidence that the trade licence application fee was paid.

You will receive your commercial licence after your application is approved, which entitles you to trade, sell some services both inside and outside the UAE, import and export goods. It's crucial to remember that the company can only get a commercial licence after being officially formed in Dubai.

Necessities of Commercial License

There are a few conditions that must be met if you're an investor with a keen interest in getting a business licence in Dubai. A commercial licence enables up to ten activities, therefore you must first choose the main type of operation and any supplemental activities that will be performed under the licence. The following step is to choose the kind of company to register in Dubai after taking all of the available options into account.

The business must register with the Companies Registry after determining its legal structure. After completing this, the investor must submit a number of documents to the Dubai Department of Economic Development and the Federal Ministry of Economy of the United Arab Emirates in order to get a business licence.

• These documents include an application form with the business name in both English and Arabic.
• The initial lease contract of the company's registered address.
• The authorization from the Building Department of Dubai Municipality permitting the use of the office space as a business location.
• Proof of payment for the license fee.

It is also crucial to keep in mind that depending on the type of company being registered and the sort of business, the criteria could change. Before acquiring a commercial licence, some companies may be required to obtain extra regulatory permits. To learn about the exact requirements and processes for acquiring a commercial licence in Dubai, it is advisable to speak with a business setup representative or a legal counsel.

Scope of Commercial License

• A Dubai commercial license allows various business activities to be undertaken, such as import and export.
• The sale of electronic products, brokerage services, and real estate-related services are also permitted.
• To lawfully conduct business in Dubai, you must have a professional licence.
• The commercial licence also covers entities in Dubai that offer healthcare services
• Subsidiaries of foreign corporations and tourism-related businesses operating in the emirate are also required to get a Dubai commercial licence.
• A Dubai company's trading license is limited to a maximum of ten operations.
• A business with fewer than ten operations can complete the list of services or products after the license has been granted.

Renewal of the Commercial License

In Dubai, a commercial licence can be renewed after being granted for a year. The new trade licence has a four-year validity period.

The following papers must be supplied in order to apply for a renewal:

• A copy or the original of the current commercial licence
• A duplicate of the office space lease agreement.
• If necessary, authorization from the appropriate authorities.
• Information on accommodations for workers at businesses with foreign shareholders.

Benefits of Commercial License

For foreign investors seeking to establish a business in the area, a commercial licence in Dubai offers a number of advantages.

• If the company is established in a free trade zone, tax exemptions and free repatriation of income to the investor's home country are allowed.
• Commercial licence holders are allowed to locate their corporate headquarters anywhere in Dubai, giving them more flexibility.
• Businesses can sell a variety of products and services, increasing the size of their possible consumer base.
• The commercial licence makes it easier for foreign nationals to get employment visas.
• Commercial licence holders are exempt from audit requirements carried out in order to renew their licences, which eases administrative obligations.
• The commercial licence also enables companies to run their operations and market their goods and services both domestically and abroad.
• It simplifies the admission process for international employee visas, enabling businesses to hire more overseas workers.
• Obtaining a commercial license is a simpler process than obtaining special permits for certain activities.