Commercial License in Dubai, UAE

The commercial license in Dubai is famous for a variety of reasons. One of them is that trading is less expensive and time-consuming than creating goods and services from scratch and reselling them to wholesalers.

55% of the new business licenses issued during H1 of 2022 were professional, and 45% were commercial, according to data from the BRL sector. These percentages show that the emirate’s economic growth and diversification have advanced due to sound government policies and initiatives.

There are various license types available in Dubai, mainly commercial licenses, to assist you with your business setup. It covers a variety of products and activities, making it one of the most sought-after licenses. 

So if you want to obtain a commercial license as well, continue reading. By the end of this blog, you will have a complete understanding of the Dubai commercial license 

What Is a Commercial License in Dubai?

Every company that operates in Dubai must be licensed. The same applies to businesses involved in buying and selling goods and services in Dubai.

A commercial license, in its most basic form, allows you to conduct business in goods and provide specific services. In the United Arab Emirates, products can be imported, sold, exported overseas, or exchanged on the home market. 

The commercial license in UAE allows you to sell anything from toys and food to packaging and electronics as long as you follow the rules. A commercial license also covers brokerage and real estate services.

What Are the Types of Activities Allowed Under Commercial License? 

Here is the list of some activities that are allowed under the UAE commercial license:

1. Import and export activities
2. Sales of electronic products
3. Provider of brokerage services
4. Real estate-related services
5. The construction supply trade
6. Self-storage services
7. Tanks and silos trading
8. Advertising service
9. Flowers and plants trading
10. Animal skin trading, and many more.

Foreign corporation subsidiaries and tourism-related businesses operating in the emirate must obtain a commercial license in Dubai. According to the most recent DED of Economy and Tourism statistics, 7.12 million foreign tourists visited Dubai in the first half of 2022. This represents a more than 183% increase over the same period in 2021. 

The commercial license also applies to Dubai-based companies that provide healthcare services. However, it’s important to remember that a Dubai company can only operate ten activities under its trade license. After the license is granted, a company with fewer than ten operations may complete the list of services or goods.

Benefits of a Commercial License in Dubai

Opening a company in Dubai with a commercial license is usually favourable for business people. Let’s examine some of the noteworthy benefits:

• Any location in Dubai is permissible for businesses with a commercial license to put their headquarters.
• The license makes it simpler for international workers to obtain employment visas, and the business can hire many foreign workers.
• Tax exemptions and free income repatriation to the foreign investor’s home nation are available if utilised in a free trade zone.
• Following the receipt of a commercial license in Dubai, traders have the option of producing or importing all of the commodities listed on the license. They have both options: they can export manufactured goods to any country they want, or they can sell these commodities on the local market.

How to Obtain a Commercial License in Dubai?

The following are the steps for obtaining a commercial license in Dubai to start your business in the United Arab Emirates:

1. Choose a Business Activity

Choose your company’s legal structure and the commercial activities it will engage in. Once the license type has been determined, select the best business form. This information can be obtained from the relevant governing body.

2. Obtain Initial Approval

After completing the first step, contact DED to request an initial approval certificate. You must submit the necessary paperwork and make the required payments within the six-month validity period of the initial approval.

3. Establishment of a Legal Structure

Create a Memorandum of Association with a list of the duties that must be fulfilled. The partnership’s characteristics, such as who owns the company and how profits and losses are distributed among investors, should be listed after the legal organisation.

4. Application for Trade Name Approval

The trade name you choose should reflect the venture’s goals and nature. If you want to use that as your official business name, always choose a unique name and avoid using a person’s nickname. Shuraa UK branch experts can help you with the complete list of naming regulations to make it easier for you! 

5. Set Up an Office

You must find a suitable office space for your business operation in the Emirates. Specialists can assist you in locating the best office space for your company after assessing your requirements.

6. Submit a License Application

Register your company with the Department of Economic Development ( DED) in the UAE. After that, you can apply for a business license. You can apply for VAT registration later if you meet the requirements.

7. Complete the Payment

After submitting all required papers and completing all forms, the final step is to make the payment. You are given a payment voucher that must be used to pay the fees associated with registering your business and obtaining the permit.

Your UAE commercial license will be granted automatically once you have finished the prior stages.

Documents Required to Obtain a Commercial License in Dubai

Businesses in the UAE must follow the documentation guidelines established by government agencies. To apply for a commercial license in Dubai, you must submit the following documentation:

1. A copy of your passport
2. Passport-size photographs
3. A copy of your entry visa

You can consult with our experts to avoid making mistakes. They will help you ensure that your paperwork is accurate and complete.

What Is the Cost of a Commercial License in Dubai?

An important aspect to consider is the commercial license cost in Dubai. In UAE, the cost of a commercial license is anticipated to be AED 12,000. Additional registration fees, immigration fees, venue fees, and other expenses of AED 30,000 or more must also be considered.

Renewal of Commercial License in Dubai

After the first year of validity, a Dubai commercial license can be renewed. A renewed trade license in Dubai is valid for four years. The following documentation is required to apply for a Dubai commercial license renewal:

• The original or a duplicate of the trade license.
• A copy of the lease agreement for the office space.
• Obtaining approval from the appropriate authorities and, if necessary.
• Information on worker accommodations in companies with foreign shareholders.

Get Your Commercial License With Shuraa

All the necessary paperwork must be in order, your license application must be finished and error-free, and the entire procedure must be simple and hassle-free from start to finish. If you have the necessary information or are working with a reputable and experienced business consultant in Dubai, such as Shuraa UK Branch, getting a commercial license in Dubai can be a simple process. 

We are in this place to help with that. To learn how we may help you piece together your idea for a Dubai company formation, get in touch with us.