How To Get A Commercial Trade License In Dubai
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How To Get A Commercial Trade License In Dubai

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The foreign entrepreneurs setting up companies or businesses in Dubai must follow several steps before starting any commercial activity. Some needs must also be fulfilled before submitting all suitable paperwork with the companies register for company incorporation in Dubai. As per the type of activities to be carried, they must also apply for a trade license in Dubai. The commercial license is one of the most famous types of business permits because it allows a company to engage in trading relations. If you want to know how to get a commercial trade license in Dubai, here we mention a complete guide.

Commercial Trade License in Dubai

Commercial business license in Dubai is needed for companies that are engaged in Goods and related services, which comprise trading, buying, or selling of goods. In common, it is also mentioned as a commercial trading business. Suppose you are planning to set up a business in UAE which is classified under commercial activity. In that case, you have to apply for a commercial license to carry out the business legally. A commercial license company can be formed in Dubai free zone or any free zones companies in Dubai.

The commercial license is also required when opening auto rental businesses and even logistics companies. The Dubai commercial license must also be obtained by tourism companies running in the emirate and even by overseas companies’ offices. In a commercial license, an ex-pat or overseas entrepreneur can make legal a low 49 percent of the total shares, and the rest or 51 percent will be owned by a United Arab Emirates (UAE) national or local service agent. The commercial license is issued for a limited liability company, which provides shareholders limited debts and liabilities.

The commercial license permits traders to set up companies in mainland Dubai to complete their activities and sell goods and services in the other UAE Emirates and internationally. One of the less known facts about the commercial license is that it offers an easier visa admittance process for overseas employees. Companies can hire a massive number of overseas employees under a commercial license in Dubai. The commercial license is the easiest to get in Dubai compared to the other types of business permits.

A commercial license is issued to a company comprised of any sort of commercial trade activity. General traders and specialized traders in the construction and real estate industries also require to apply for a commercial trade license. A commercial trade license caters to both the regulation and protection for trading companies. Businesses that belong to the retail, construction, and real estate industries also require to apply for a commercial trade license.

Steps For Getting A Dubai Commercial License

It is necessary to know that the commercial license cannot be obtained before incorporating a business In Dubai. To get the commercial license in Dubai, one needs to follow the steps below:

  1. Choose the business form and the activities that match those of the commercial license
  2. Draft the Memorandum and Articles of Association of the company, which must specify the completed activities.
  3. Register the company with the Department of Economic Development in Dubai and get a VAT number.
  4. Pay the fee associated with the company set up and to the issuance of the commercial license.

When the company is registered, the commercial license will be issued automatically. The business setup provider in Dubai will help you choose the relevant business activities that will enable overseas business entrepreneurs to apply for a commercial license in Dubai.

Advantages Of The Commercial License In Dubai

Most of the overseas entrepreneurs do not know that the commercial license can bring a lot of advantages to those setting up companies in Dubai. Some of the benefits are:

  • Exemption from taxes and the free repatriation of profits to the overseas entrepreneur’s home country is used in a free trade zone
  • Companies can trade more than one product under a Dubai commercial license
  • Companies working under a commercial license can have their head offices everywhere in Dubai.
  • It offers for an easier process of getting employment visas for overseas workers
  • Companies operating under commercial licenses are not needed to undergo audits in order to renew their license.

Also Read, How To Obtain An Import And Export License In Dubai

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With a history of business success, Pankaj is well known in the UAE and beyond as a visionary entrepreneur with a passion for helping others establish and grow their own businesses.

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