Dubai is becoming the most popular hub for entrepreneurs. Its economy is one of the fastest-growing ones in the world. It’s the ideal location if you’re a beginner trying to start a business.
This is because of its helpful position and changing economic environment.
The primary need for setting up a company in Dubai is obtaining a business license.
A license helps in confirming your company as a certified legal entity for doing business. It helps the government authorities in regulating and controlling all commercial activities.
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So, What is a Commercial License?
A commercial license is a trade license that gets issued to companies engaging in trading, buying, and selling goods. This license serves the need for regulations and protection for such companies.
The Department of Economic Development issues the commercial license.
A commercial license enables you to engage in trading activities. It’s also referred to as a trading license.
Activities coming under the Dubai Commercial License:
Before applying for a commercial license in Dubai, decide on your business activities.
You can have a total of 10 activities per license, including primary and secondary.
Here are some of the operations coming under Dubai’s commercial license:
- Logistics
- Import and export
- Rental of automobiles
- General stores and shops
- Selling of building supplies
- Tourism and travel services
- Real estate-related services
- Providing brokerage services
- Selling electronic products
Documents You’ll Need for the Dubai Commercial License:
The following documents are necessary for obtaining your commercial license:
- Trade names mentioned in English and Arabic
- Passport copies of the shareholders
- Company’s lease contract
- Passport size photo
- Application form
- Fees receipt
- Visa copy
But, the authorities may need further documents depending on the needs.
Procedure for Getting Your Commercial Trade License in Dubai:
There are steps you should follow to get your commercial license:
- Selecting the Business Activity
You must choose the kind of commercial activity before submitting an application for the license.
- Selecting a Company Name
The next step is to select a unique name for your company. The name must follow Department of Economic Development (DED) guidelines. You can choose up to 3 names and select one of them.
- Preliminary Approval
Once you’ve chosen your business name and activity, request the DED for initial approval. You’ll have to submit the application form along with the required documents, which are mentioned above.
- Finalizing Your Location
Pick the best-suited location for your company. It can be on the mainland or in a free zone.
- Getting the Necessary Approval and Permit
After selecting the location, request the licenses and permits from government organizations, including the Dubai Municipality and Dubai Civil Defence.
- Getting Your License
Once you have all the required authorizations and licenses, you can proceed to complete the licensing process. A payment voucher gets released; pay the required fees, and you’re all set.
To avoid any complexities, always partner with a business service provider. So you can sit back and sip some tea while they do the heavy lifting.
Commercial Licence Renewal:
A commercial license, as noted, is only valid for a year before the business owner may renew it. A renewed license has a four-year validity period. To renew the license, the following papers must be presented to apply to renew the above-mentioned Licence:
- Copy or original of the commercial license
- Duplicate of the office space lease agreement,
- Details about every employee’s accommodation with a foreign stockholder
- Approval from the relevant authorities, if necessary.
Perks of Holding a Commercial License:
Getting a commercial license for your Dubai business is simpler than most company licenses.
Once you have the license, you’ll be able to engage in a variety of activities. For example:
- It enables the business to trade many products
- Commercial license renewal does not demand an audit
- Recruiting foreign employees gets easier
- Entities with commercial licenses are able can engage in overseas trade and commerce
- You will get the liberty of choosing your business location
- Financial transactions, turnover, profit, and loss reporting get easier
- Opening a corporate bank account is also easier when the firm has a commercial license.
- Companies operating in Free Zones can repatriate 100% profit.
Instant Commercial License In Dubai:
In 2018, the UAE government introduced the instant commercial license for boosting the economy.
What does it say?
If you want to get a commercial license right away, you will get it in a hassle-free way through a digital portal.
A commercial business license package starts from AED 16,575. You can get it in 1 working day.
An instant license is available for the following legal structures:
- Limited Liability Company
- Sole Proprietorship
- One Person LLC
- Civil Company
If you want to apply, it’s advisable to appoint an expert to navigate the licensing process since you may never know when you will miss an important legal aspect.
Say you’re planning to start a trading activity or import/export business. In such cases, Commitbiz Management Consultants will guide you. They have been in this business for more than 16 years.
We help our clients with business setup in UAE and related services.
Contact us to book a Free Consultation call with our industry experts. They’ll answer any business-related queries you have.
