Commercial License in Dubai

Dubai's thriving economy and strategic location make it a prime destination for entrepreneurs. Choosing the right license based on your business activity is important to succeed in Dubai. Dubai has different types of trade licenses, such as commercial, industrial, and tourism. Commercial license in Dubai allows a company to trade, import, export products and sell services within the UAE. Obtaining a commercial license involves selecting your business activities, location, and name and submitting an application to the Department of Economic Development (DED). This article helps you learn about the Dubai commercial license and how to get it to establish a business on the mainland and freezone. 

Filings.ae experts help you to obtain a commercial license and set up a business seamlessly!!

What is a Commercial License in Dubai?

A Commercial License in Dubai is your official permit to conduct business activities within the emirate. It allows you to import, export, or trade goods and services. This license is crucial for any company operating in Dubai, whether a local business or a foreign entity. The specific type of Commercial License you need will depend on your industry and activities (e.g., trading, professional services, tourism). With a valid license, you can access Dubai's strategic location around Africa, Asia, Europe, and the Middle East.

Benefits of Getting a Commercial License in Dubai

The benefits of getting a Commercial License in Dubai include tax-free operation, simplified business operations, etc. Here are the other benefits, 

• Tax-Free Operations: Companies with a free zone commercial license enjoy complete exemption from corporate and income taxes, maximizing profits.

• Effortless Repatriation: Repatriate your business income back to your home country without any restrictions on movement of funds.

• Global Trade Gateway: Leverage Dubai's strategic location and free trade agreements to access international markets and expand your customer base.

• Simplified Business Operations: Streamline your business setup with clear regulations and a user-friendly licensing process.

• Versatility in Trade: Conduct a wide range of business activities under a single commercial license, maximising your growth potential.

• Diverse Workforce: Attract and retain top talent worldwide with simplified work visa processes for your foreign employees.

• Flexibility for Diversification: A minimum of ten permissible business activities under one license allows you to adapt and diversify your operations.

• Legal and Financial Protection: Operate within a well-defined regulatory framework, minimising legal and financial risks for your trading company.

Know about the difference between commercial and professional license in Dubai

Business Activities Allowed under Commercial License in Dubai

The following section lets you know the business activities allowed under a Commercial license in Dubai, both mainland and freezone:

Mainland:

• Broader Scope: Ideal for businesses engaging in a wider range of activities, including import/export, electronics sales, brokerage services, real estate, construction materials, and more.
• DET Approval: All activities require approval by the Dubai Department of Economy and Tourism (DET).

Learn more: DED License Activities List in UAE

Free Zone:

• Industry-Specific: Free zone licenses offer a wider range tailored to the specific focus of each zone.

• Zone-Specific Examples:

• Technology Free Zone: Software development, e-commerce, IT consultancy.

• Healthcare Free Zone: Medical equipment trading, healthcare consultancy.

• Flexibility and Specialization: Provides greater flexibility and caters to specialised business needs within each zone's industry focus.
  

Also read: Dubai Freezone Business Activities List

Documents required for Commercial License in Dubai

Ensure you have the following documents, which are required for a Commercial license in Dubai,

• Completed Application Form: Please complete the application form for a commercial license, including Ultimate Beneficial Ownership information, ensuring all details are clear and complete.

• Passport Copies: Provide copies of the passports for all proposed business owners (shareholders).

• Passport-Sized Photos: Submit two recent colour passport-sized photographs for each owner.

How to Obtain a Commercial License in Dubai?

Below, we have given brief instructions to obtain a commercial license in Dubai Mainland or Freezone,

Step 1: Define Your Business Activities

The first step is to identify your business activities. Dubai offers a vast selection across various sectors, exceeding 2,000 options. The Department of Economic Development (DED) website provides a comprehensive list. Check with the relevant Freezone authority to learn about and select the approved business activities in Dubai Freezone areas. Consulting with a Filings.ae company formation specialist can help you select the most suitable activities for your business. Remember, depending on your chosen activities, additional permits might be required.

Step 2: Choosing Your Business Location

You must decide where to start your business: the mainland or a free zone. Each option offers distinct advantages regarding business support, financial incentives, and available license types. The best choice depends on your specific business needs.

Step 3: Selecting a Company Name

Selecting a company name is a critical step. The name must comply with UAE naming regulations, avoiding offensive language and names of existing organisations. Availability checks are also crucial.

Step 4: Submitting Your License Application

The final step involves submitting your commercial license application. This can be done directly with the Department of Economy and Tourism (DET) for mainland setups or with the chosen Free Zone authority. Ensure you have all the required documents and the license fee payment proof.

Learn how to get DED Instant license in Dubai

Cost of Commercial License in Dubai

The cost of obtaining a commercial license in Dubai can vary depending on several factors. These factors include your specific business activities, your chosen location (mainland or free zone), and any additional permits your business might require. While the license fees are part of the cost, remember to factor in expenses like DED registration charges and potential visa applications.

Commercial license Renewal in Dubai

Maintaining a valid Commercial license is essential for operating a business in Dubai. Here are the instructions to renew the commercial license in Dubai Mainland using DED eServices Portal,

• Access the DED eServices Portal: Visit the Dubai Economic Department (DED) website and log in to the eServices portal using your existing credentials.

• Initiate Renewal Application: Navigate to the "Renew License" section and enter your trade license number. This will initiate the renewal application process.

• Review and Update Details: Carefully review the pre-populated details on your trade license and make any necessary corrections to ensure accuracy.

• Settle Renewal Fees: The portal will display the applicable renewal fees. Following the instructions, you can conveniently settle these fees using a credit card or through a bank transfer.

• Receive Renewed License: Upon successful payment processing, your renewed license will be issued electronically and sent to your registered email address. Alternatively, you may collect a physical copy from the DED offices.

Note: To renew your commercial license in Dubai Freezones, contact the relevant Freezone office or website and follow the required process as guided by the UAE Freezone authorities. 

Conclusion

A Dubai commercial license allows businesses to import, export, trade goods and provide services within the UAE. It offers benefits like tax exemption, repatriation of business income and access to a global market. The application process involves choosing a location, business activity and submitting an application with required documents. The cost varies depending on factors like location and activities. Filings.ae can help you navigate the process and obtain your commercial license to set up your business in Dubai Mainland or Freezone.

Get a commercial license and start a business in Dubai with Filings.ae expert team!!