Commercial License in Dubai
Commercial License in Dubai & UAE which allows to do trade, import and export of goods & services
Commercial License in UAE
Dubai is a global business hub recognized for its strategic position surrounded by large markets in Africa, Asia, Europe, and the Middle East. Establishing a business in Dubai undoubtedly offers numerous benefits.
You will need a license to start a business in Dubai or anywhere in the UAE. In fact, Dubai offers a variety of licenses, each of which applies to a specific business type and activity. The commercial license, which is quite common, applies to a wide range of businesses.
What is a Commercial License?
Commercial license is a common license type that applies to a wide range of businesses, including trading, import/export, and some services. In the UAE, a commercial license allows a firm to operate as a certified entity. The license not only governs the company’s operation, but also safeguards consumers’ safety and well-being. It ensures that the firm operates responsibly and takes full accountability for its activities.
List of Commercial Licenses in Dubai
With a commercial license, you can start trading in the following categories:
- Gold and Precious Metals
- Automobiles and Spare Parts
- Used Furniture
- Oil and Gas
- Chemicals
- Publications and Media Material
- Safety Equipment
- Logistics
- Brokerage Agencies
- Services on Rent
- Dubai Limited Liability Firm
A commercial license is a prerequisite, whether you want to operate within or outside of Dubai. It offers multiple benefits, making it one of the first licensing types businesses should seek.
Benefits of Getting a Commercial License in Dubai
The primary benefits of a commercial license in Dubai include the following:
- You can register up to ten business activities under one license.
- It applies to a diverse range of businesses.
- The license allows your business to operate legally in Dubai and the UAE.
- You can open a corporate bank account in Dubai.
- It facilitates fiscal reporting and allows tax benefits.
- Renewal charges are quite affordable.
Having an authorized and accredited business comes with multiple perks. Not only does it help the business attract more customers, but it also promotes trust and confidence among investors and stakeholders.
A registered company safeguards itself against all liabilities. Hence, if the firm faces any future damage, your finances will not be impacted. Additionally, the license makes it easier for the firm to file taxes and take advantage of benefits.
Types of Business Licenses in Dubai
Dubai offers four major types of business licenses, which are:
Commercial License
A commercial license is required for general trading activities, including export and import, as well as trading goods.
Professional License
This applies to businesses that employ professionals for their expertise to serve customers. This includes auditors, consultants, and professionals with similar backgrounds. In Dubai, individual consultants in the following categories can receive a professional license.
Industrial license
Manufacturing companies operating in Dubai are required to obtain an industrial license. This extends to businesses involved in importing raw materials and exporting finished goods.
How to Obtain a Commercial License in Dubai, UAE
To get a commercial license, the company must meet certain criteria and requirements. Initially, you need to determine which type of commercial activities the firm will be involved in. The license also allows you to choose up to ten related activities. Next, you need to determine which type of company to register, as different types of companies have varying licensing requirements.
The company first needs to register with the Companies Registry in Dubai to receive a trade license, and then with the Dubai Department of Economic Development and the UAE Federal Ministry of Economy for the commercial license.
Documents Required for Commercial License in Dubai
These are the documents you need while applying for a commercial license in Dubai:
- Copies of the passport and visa of the business owner and manager
- An application form that includes the company’s name in both English and Arabic
- The tenancy agreement of your registered office in Dubai
- Permit from the Dubai Municipality’s Building Department allowing the company to use the leased property
- Proof of payment for the trade license
- Degree certificate attested (in some cases)
- Experience certificate (in some cases)
The validity of a commercial license in Dubai typically ranges from one to two years for most businesses.
Why Choose RichMan Associate for Commercial License in Dubai?
RichMan Associate offers a comprehensive range of services, starting from business consultation to trade license acquisition and corporate bank account opening, helping you setup a business in Dubai. With our extensive expertise and acumen, we can help you
navigate the licensing requirements, saving both time and money. We offer solutions that are affordable and reliable, ensuring complete peace of mind. If you are looking for a business consultation service in Dubai, give us a call today. We don’t act only as a service provider but as a partner, assisting you in every step until your business starts operating.
FAQs
Who issues the commercial license in Dubai?
The responsible agencies are the Department of Economy and Transportation in Dubai and the Federal Ministry of Economy in the UAE.
Can I apply for a commercial license at the time of company registration?
It is advisable to apply for the license at the time of company incorporation to ensure smooth operation and compliance with regulations. You will need to submit a duly filled application form along with the relevant documents to obtain the license.
What is the validity of a commercial license? What happens when the license expires?
The validity of a commercial license in the Dubai Mainland is one year. Companies operating in the International Free Zones can apply for a multi-level license with a validity period of up to five years. In both cases, companies must renew their licenses before expiration. Failing to do so will incur a hefty penalty.
What are the fees for a commercial license?
The license will cost you between AED 5,750 and AED 30,000. For Dubai Mainland, the fees range from AED 6,000 to AED 27,000, while for the free zone, the cost is AED 5,750 to AED 30,000.
Can a company hire foreign workers under the commercial license?
Companies with commercial licenses can hire workers from foreign countries. However, the company will have to obtain visas for its foreign workers separately.
