Commercial License in Dubai, UAE

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commercial license in Dubai

There are numerous reasons as to why the Commercial license carries significant favoritism amongst the Businessmen in Dubai. One of the main reasons is the strategic geographical location of Dubai which makes it an epicenter to conduct a vast number of Business Activities.

Therefore, acquiring a Commercial License for your Business in Dubai can be a great decision for your Business. Thus, in this blog, you will be provided with all the necessary information required to get your very own Commercial License in Dubai. So, without any further ado, let us begin!

What is a commercial license in Dubai?

In order to smoothly conduct your Business operations, your company would be required to be licensed to sell the preferred goods and services. Therefore, the type of license required to authorize your company to sell the goods and services is called a Commercial License. In the simplest terms, a Commercial license enables you to conduct business in goods and offer services.

In the United Arab Emirates, goods can be imported and sold there, exported abroad, or traded on the domestic market. As long as you follow the regulations, the Commercial license enables you to sell anything from toys and food to packaging and electronic commodities and this list goes on. Brokerage and Real estate services are also covered by a Commercial license.

What kind of Activities fall under Commercial License?

Numerous Business Activities conducted in accordance with a Commercial Licence are approved by the Department of Economic Development (DED). The DED consists of a detailed list of the permitted business activities. We have compiled a few examples of the Business Activities which fall under the Commercial License sphere-

  • Cold Storage Services
  • Services related to Finance & Exchange
  • Fuel Filling Stations
  • Trading of Plants and Flowers and all related flora
  • Services related to Advertising
  • Trading of Automobiles and Automotive Spare Parts
  • Beauty and childcare products
  • Building conservation and maintenance facilities
  • Cleaning & Sanitary Services
  • Rental businesses
  • Management of restaurants
  • Self-storage facilities
  • Surveillance assistance
  • General Stores
  • Warehousing
  • Import & Export of Goods
  • Installation and servicing of equipment for radio and television stations and movie theatres

How do I get a commercial license in Dubai?

With the assistance provided by a reputed and well-established company formation specialist like us, you can easily get your very own Commercial License in Dubai. You will only be required to go through these 4 steps mentioned below-

1. Ascertain and identify your preferred Business Activity

Decide which Business Activity you want to conduct before you can start a business and obtain a license. You can choose between commercial, professional, tourist, and industrial sector activities along with other 2000 Business Activities which are permissible under the DED.

The DED website has a copy of the complete list available. Our Experts can also aid in your decision regarding the type of Company you should choose to launch for your new business. You might need more permits, depending on your line of work.

2. Ascertain between a Mainland or a Freezone

One of the most crucial decisions you will have to make in order to start a business in the UAE is whether to locate it on the mainland or in a free zone. The advantages of both are numerous. Some free zones provide advantages including swift and simple incorporation, financial incentives like tax exemptions and no currency restrictions, and continuing business support.

Free zone licenses are available in a variety of types. Mainland also offers a wide variety of Licenses as well. Direct trade with the UAE market offers businesses on the mainland the chance to obtain rewarding government contracts. Which amongst the top is best for you, will entirely depend upon the type of Business Activity you wish to start.

3. Decide on a Company Name

To start a business in Dubai, you must first decide on a name for it. Except when it is a subsidiary of another company, a company’s name should typically reflect what it performs. You must adhere to the strict name laws in the UAE.

Whenever possible, refrain from using foul or disrespectful language. In the event of calling your business after yourself, you must avoid using well known corporate names and abbreviations. The name you want to use must also be accessible for registration, according to the law.

4. Submission of your Application for a Commercial License

The next step would be to submit all the documents to DED for review after choosing the name, activity, and location of operation. Licensing and company establishment take place simultaneously. The question of whether you will get all the DED approvals you require will depend upon the type of your business and its operations.

You can request a Memorandum of Association, an Incorporation Certificate, and other legal documents when the appropriate authorities have given their approval for your company’s operation. Following acceptance, you will also become eligible to apply for visas, labour cards and agreement for tenancy.

Documents Required & Cost of Commercial License

Below mentioned is the list of documents you will be required to furnish, to smoothly get your Commercial License in Dubai:

  • Your Application Form including the Company’s Name in only English or Arabic
  • Payment Proof for Trade License
  • Applicant’s Passport Size colour photographs
  • NOC
  • Your registered office’s original tenancy agreement
  • Dubai’s Municipality Building Department’s authorisation to utilize the office as a commercial address
  • Financial Statement References Certifications
  • A well-explained Business Plan
  • Letter of Intent
  • Details regarding shared capital
  • A notarized copy of Registry Identification Form
  • Approval Letter of Company name by DED

The estimated cost of a Commercial License in Dubai might change depending on several factors.

    • Visa expenses
    • Transportation costs
    • Trademark registration costs
    • Housing cost
    • Fees associated with government verifications and paperwork

Therefore, in Dubai, the average cost of a commercial license ranges from AED 10,000 to 50,000.

What are the Advantages of getting a Commercial License in Dubai

1. Vastly Profitable

Dubai boasts a sizable number of mainland and free zones that will help you lower your registration and setup fees. Your commercial license can be obtained with 100% personal and company tax avoided if you choose an economic jurisdiction. The cost of renewing your commercial trade license is also lower in the UAE.

2. Safety and Protection

With the involvement of Dubai authorities, security is assured while creating bank accounts or completing registration procedures. Additionally, a new firm should anticipate active interaction on their questions regarding visas, bank account setting, and business administration.

3. Dynamic Nature of the Commercial License

You may carry out up to ten activities under a single commercial license you possess. You can do this to browse the various possibilities available in the area and choose the one that will be most helpful to you and your company.

With just one license, you can combine several related company activities. To support an import-export operation, for instance, warehousing, storage, and transportation can all be used together.

Get Your Commercial License With Our Expert

A Commercial License in Dubai will open numerous opportunities for your company as immense business activities fall under the purview of the above. Hence now is the time to get in touch with our Experts for the swift and smooth acquisition of your Commercial License.

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