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Commercial Licence in Dubai, UAE

A business licence is a prerequisite for doing business in the UAE. The four major types of licences are the professional, industrial, tourism, and commercial licence. Dubai issues all of these major types of business licences.

A Dubai commercial licence is a general-purpose licence. It is likely to be the default type of licence applicable to new business applications unless another licence fits better, as in the case of an architect providing consultancy services (professional), a factory manufacturing air conditioners (industrial), or a travel agency (tourism).

 

Activities permitted under a Dubai commercial licence

A commercial licence authorises a company to buy and sell goods and services. Companies with a commercial licence may buy and sell electronic products, property and construction materials, among others. However, if a company intends to manufacture the goods it will sell, it will have to obtain an industrial licence instead.

A commercial licence can apply to different activities, including general trading, contracting, import and export, supply brokerage, vehicle rental, logistics, and healthcare. A company in Dubai with a commercial licence can operate a maximum of 10 business activities.

 

Trade licence vs commercial licence

Is there a difference between a trade licence and a commercial licence in Dubai? The term “trade licence” is used interchangeably with “business licence”. A commercial licence is a type of trade licence.

 

Legal form

Establishments and limited liability companies (LLCs) may be formed with a commercial trade licence. Dubai does not prescribe a particular legal form to go with a commercial licence. Therefore, any business, whether a sole proprietorship or a limited liability company, may apply for a commercial licence as long as it is involved in both general or specialised trading activities.

Emirates First’s business setup consultants can help with the business licensing process, from selecting the appropriate licence to choosing the appropriate jurisdiction, preparing the necessary documentation, searching for a good trade name, and submitting the application and other related activities. The service includes getting the required approvals from the relevant government bodies in the UAE.

 

Emirates First offers assistance in commercial licence application and related services in Dubai, UAE
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Advantages of obtaining a Dubai commercial licence

Investors enjoy many benefits with a commercial licence in Dubai mainland. Some of them are as follows.

  • Exemption from corporate and personal taxes
  • Freedom to set up an office anywhere in Dubai
  • Freedom to trade anywhere in the UAE
  • Flexibility, as a company with a commercial licence can deal in more than one product, which can be from different categories
  • Simple procedures to obtain visas for expatriate employees
  • Quick and easy commercial licensing procedures

 

Steps for registering and obtaining a commercial trade licence in Dubai

The following are the general steps investors need to follow when applying for a commercial licence.

  • Choose a business activity or business activities that fall under commercial trade.
  • Prepare the company’s Memorandum of Association. 
  • Register with the Department of Economic Development of the government of Dubai to obtain a VAT number.
  • Pay the requisite fee for company registration and the issuance of the commercial license.

A commercial licence has a validity of one year from the date of issuance. Renewal is typically easy, and upon renewal, the company’s licence shall be valid for four years.

To renew their commercial licence, Dubai companies must submit their original commercial licence (or a copy thereof), a copy of their office space lease contract, and the necessary approvals from the relevant government departments. Moreover, Dubai companies with foreign shareholders must also provide details on their employees' accommodation.

Emirates First can help you obtain a commercial license. Contact us at +971 50 347 2388 for any questions or to start the licence application process.

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If you are looking for dedicated and professional assistance in setting up a business in UAE, get in touch with us. Our expert consultants can get your business registered and help you further for a smooth operation.

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