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How to Get a Commercial Trade License in Dubai, UAE

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If you’re planning to start a new business or extend an existing one to a new market, Dubai, UAE, might be the perfect place for you. Dubai is an influential city for business innovation and entrepreneurship and is considered a top destination for doing business.

However, company registration in Dubai requires careful planning and a trade license from the Department of Economy and Tourism (DET) or a freezone authority.

For businesses involved in trading specific goods and services, a commercial trade license in Dubai is the best choice for a business license. This article will show you the steps to get a commercial license in Dubai.

If you are planning to set up a company in Dubai and the UAE, our highly skilled business advisors are fully prepared to assist you in obtaining the required business license and offering thorough guidance for running your business in the UAE. We are dedicated to providing complete and transparent support throughout the entire company formation process in Dubai, including business licensing, opening a bank account, and handling visa applications. For more information, we welcome you to schedule a free consultation with our experts.

What is a Commercial License in Dubai?

A commercial trade license in Dubai is a type of business license that enables a company to trade or offer specific types of goods and services in and out of the UAE.

The main difference between a commercial license and a general trading license in Dubai is that a commercial license is for businesses focused on trading a particular category of products or services, while a general trading license allows you to trade a wide range of products in different categories without limitation.

Business License in Dubai Commercial Trade License in Dubai

Benefits of Business Formation in Dubai

Establishing a business in Dubai is a top choice for many international entrepreneurs and SMEs for a couple of reasons. For instance, Dubai offers 100% business ownership to foreigners for company registration in the Dubai freezones and mainland business formation.

Here are some other benefits of starting a commercial business in Dubai.

  • Tax exemption and 100% repatriation for capital and profit to home country.
  • Simplified business setup procedures and easy-to-get work visas for foreign nationals.
  • A commercial license in Dubai allows a minimum of 10 business activities under a single trade license, allowing you to trade a wide range of products and services.
  •   Ability to trade, import, and export products across the UAE and beyond.

List of Activities Covered by a Commercial Trade License in Dubai

The list of business activities under a commercial business license in Dubai is endless.

To know whether you’ll need a commercial license to setup your company in Dubai or a different type of license in Dubai, we advise you to consult an expert business setup consultant like Corporate Business Services (CBS) to guide you through the steps and suggest a suitable license for your business activities.

Here are the top ten business activities covered by a commercial license in Dubai:

  1. Logistic Services
  2. Real Estate and Brokerage Services
  3. Computer Retail and Distribution Services
  4. Car Rental Services
  5. Automobiles Trading
  6. Foodstuff and Related Products Trading
  7. Furniture Trading
  8. Medical Equipment Trading
  9. Home Appliance Trading
  10. Readymade Garments Trading

Steps to Apply for a Commercial License in Dubai

Getting a commercial license in Dubai requires a few steps to comply with the legal regulatory body responsible for issuing trade licenses in Dubai.

Our expert business setup consultants in Dubai can guide you through every stage of your business journey to ensure you experience a smooth and easy company registration in Dubai.

Here are the steps to get a commercial trade license in Dubai:

  • Decide whether to setup your company in Dubai mainland or freezone, considering the pros and cons of each option.
  • Decide on the legal structure of your company. Choose among the available options, such as limited liability or sole proprietorship company.
  • Choose a unique name for your business and apply for a trade name reservation from the DET.
  • Make available all required documents based on your business activities, legal structure, and chosen jurisdiction.
  • Apply for initial approval from relevant authorities.
  • Get a tenancy contract and secure an office for your company.
  • The next step is to apply for your business license after obtaining initial approvals.
  • Pay the license fee and wait a few days to get your license.
  • The next and final steps after getting your commercial license are to apply for visas, open a business bank account, and start your business operations.

Required Documents to Apply for a Commercial Business License in Dubai

  • A complete business setup application from DET or chosen freezone authority.
  • Original lease agreement ( EJARI).
  • Trade name reservation certificate.
  • No Objection Certificate (NOC) ( if applicable)
  • Passport copies of all shareholders
  • Proof of residence.
  • Complete business plan
  • Two color passport-size photos.

What is the Cost of a Commercial License in Dubai?

The actual cost of getting a commercial trade license in Dubai is dependent on many factors. However, a freezone business license in Dubai is usally cheaper than a business license in Dubai mainland.

Some of the factors influencing the cost of starting a company in Dubai include:

  • Type and number of business activities.
  • Chosen legal structure and jurisdiction.
  • Number of visas required.
  • Desired office space and location.

How to Renew a Commercial License in Dubai?

The validity period for a trade license in Dubai is typically 12 months (1 year). To renew your business license, you’ll need to provide the following:

  • A valid tenancy contract (EJARI)
  • Copy of the recently expired trade license
  • Passport Copy/ Visa Copy of the company owner(s)
  • BR/1 form from DET
  • Updated health insurance membership certificates (if applicable)
  • No Objection Certificate (NOC) from any relevant authorities (if applicable

Get Expert Business Setup Services in Dubai

Are you looking to setup a company in Dubai? Our expert business consultant can assist you with all legal procedures from start to finish.

We are an Emirati-owned business consultancy company in Dubai with 17+ years of experience in assisting entrepreneurs and businesses to establish a presence in Dubai and the UAE.

You can book a free consultation with our expert business advisors now.

Address

Office: Office #1601, 48 Burj Gate Tower, Downtown Dubai – UAE

Tel: +971 4 404 8787

Email: ask@cbs-uae.ae

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