Commercial License in Dubai

Dubai has an advantage of being in a geographically strategic location, in the sense that many goods are imported and exported from Dubai. Therefore, doing business in Dubai can be beneficial for a businessman. If a person wants to establish a business in Dubai which includes trading activities or purchasing and selling of goods, they will have to obtain a commercial license in Dubai from the concerned authorities. We at Start Any Business (SAB) are completely able to deal with this process.

What Is A Commercial License

A commercial license in Dubai is needed for companies that are engaged in goods and related services including trading, purchasing, or selling of goods. In general, it can also be referred to as a commercial trading business. In the United Arab Emirates if you are making a plan to establish a business that is categorized under commercial activity then you should apply for a commercial license to do the business legally. The activities covered under a commercial license are: Import and export, Sale of electronic products, Supply of brokerage, Sale of construction material, Logistics and Auto vehicle rental business

A company with a commercial license can be formed in Dubai free zone or any free zones in the UAE. The key benefit of registering the company in the free zone is that you would be own 100% of your business. You can also start an LLC company in Dubai, UAE, with the help of a commercial license, the problem with the LLC company setup is that 51% of shareholders must be UAE citizens and the remaining 49% is for foreign ownership. 

Commercial License in Dubai

Process For Obtaining A Commercial License In Dubai

The process of obtaining a commercial license in Dubai are mentioned below:

  • Choose a legal entity for your business
  • Decide on your activity of the business.
  • Need to add the partners as per the legal entity and identity the following points: partner’s stake in the capital, profit and loss distribution between the partners
  • You need to reserve the trade name through one of the following ways: reservation of a new trade name through the company registers, and using an automatically generated trade name, which consists of the trade name reservation number.
  • Need to add the capital value in the company’s commercial register data; remaining fields would be filled automatically.
  • A payment voucher shall be issued
  • And finals make the payment. 

Document Required For A Commercial License In Dubai

The documents that required for a commercial license are given below:

  • An application form, where the name of the company must be mentioned in Arabic and English.
  • The original lease agreement for the registered address of the company.
  • Memorandum of Association with the partner
  • The permit issued by the Dubai Municipality, clearing the use of the office space as a business for the company.
  • Proof of the paid amount for the issuance of the business license.

Depend on these documents. The Department of Economic Development will issue a commercial license for your company. The license is valid only for one year, after which it can be renewed. 

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Advantage Of A Commercial License In Dubai

Getting a commercial license in Dubai is comparatively easy compared to other types of business licenses. In addition, the commercial license has many benefits. A business firm issued with a commercial license is allowed to perform different activities.

The benefits of a commercial license are:

  • This permits the company to trade more than one product
  • The business unit can trade in any region in the United Arab Emirates. Thus, making optimal use of the market in the country.
  • Auditing is not compulsory for commercial license renewal.
  • The company can ask for an employment visa to recruit foreign employees.
  • A business organization with a commercial license is permitted for foreign commercial activities and trade.
  • A commercial license allows companies to select their location anywhere in Dubai.
  • Reporting of financial transactions, turnover, profit, and loss is easier compared to other kinds of license.
  • Companies holding a commercial license in a free zone can revert to 100% profit. They are also exempted from tax.

Business Activities comes under commercial license

The business activities that fall under the commercial license are:

• Export and import activities
• Supply of brokerage services
• Sale of electronics products
• Real estate-related services
• Sale of construction materials

Cost of Commercial License in Dubai

The overall cost of an immediate commercial license in Dubai, comprising trade name, initial approval, and the license issuance is INR 2,03,490 that is certain. Once you get it, the commercial license has benefits such as visa application, translation services, getting labor quotas, no income taxes, nor corporate taxes, and a simplified financial reporting system.

Commercial License Renewal in Dubai

The commercial license validity is for one year and hence this is compulsory to renew it upon reaching the expiry. The documents required to get this license and the documents required are not the same for the renewal of the license. You have to prepare different kinds of documents which are – Copy of the license, approval from the relevant authority, registered address lease agreement, information about the accommodation of staff applicable for overseas shareholding firms. Once you have completed the process of license renewal, the extended validity of the renewed business license is 5 years.

How We Can Help You

Start Any Business UAE is a leading business setup consultants in Dubai that helps clients in business establishments. We have a team of qualified professionals who have extensive experience in this field. We also help in licensing process. 

So, if you are planning to start a trading activity and related business, and looking for a commercial license in Dubai then we at Start Any Business will help you in obtaining a license on your behalf. For any business-related queries or information related to the license, you can contact us – we would be glad to assist you.

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