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Commercial License in Dubai
The commercial license in Dubai is a mandatory requirement for all businesses within the trading industry who want to sell any commodities and goods. So, if you are planning to setup a business in UAE which involves trading, you will require a commercial license.
Possibly the most sought-after license in the country, the commercial license, also known as a trading license, is issued to companies that conduct activities related to the trading of goods and commodities, import and export, low-scale manufacturing (in some cases), and more. This license, much like others, is applied to legalize your business operations in the UAE.
The reason for the popularity of a commercial license in Dubai is the amount of flexibility it offers in terms of the goods that can be traded. Though it is important to finalize the sort of activity you will be involved in prior to obtaining a license – however once obtained, you can carry out a maximum of 10 activities related to the main business.
Some business activities fit both into a commercial license and tourism, industrial or professional license; and making the right decision when applying for a license can feel quite worrying. With a trusted consultancy firm though, this can feel like a piece of cake. Our experts have dealt with many such queries for over two decades, get in touch and let us guide you towards the right license.
Dubai is a hub for investment, and regardless of the type of activity you’re involved in with a commercial license, Business Link can assist by taking over the completion of all requirements and necessary procedural tasks. Your business is as important to us as it is to you!
What activities are involved under a commercial license in Dubai?
With well over 100 activities within the scope of a commercial license, the opportunities within are endless if you’ve got the right business plan in mind. Here are some of the trading and service-providing business activities that fall under this license type;
- Auto spare parts
- Roastery
- Facilities Management
- Ready-made garments
- Medical and surgical equipment
- Supermarkets and grocery stores
- New and used furniture
- Flour mills
- Financial services
- Smoking tools and accessories
- Jewelry
- Bags and packaging products
Activities that require special permission
The United Arab Emirates is very particular in terms of rules and regulations, and to ensure everything is done in a safe, secure, and orderly manner, you are often required to seek additional approvals from the concerned authorities.
- The trading of smoking tools and accessories, especially e-cigarettes, is one such activity that requires you to seek special permission from the Emirates Standardization and Metrology Authority (ESMA) and the Narcotics Department of the Dubai Municipality.
- You are also required to seek approvals if you are involved in the trading of gold jewelry or luxury goods. The government body in charge of approving this request is the Security Industry Regulatory Agency (SIRA).
We understand that it can feel like quite the task to first apply for a business license, manage paperwork, seek additional approvals, and more – our services are catered to ensuring the launch of your business takes place with all approvals, that are carried out by our dedicated PROs.
Benefits of a commercial license in Dubai
The commercial license is both; easily accessible to obtain and one with immense advantages, making it a highly desirable license by locals and foreigners alike. The benefits are endless and most activities underneath this license have been known to be profitable. Some of these benefits are;
- The business is allowed to undertake as many as 10 activities, provided they have some form of relevance to the main activity.
- You can have a 100% ownership or can open a Limited Liability Compamny (LLC) as well.
- As compared to other licenses, the commercial license is relatively easier and quicker to obtain. The usual turnaround time for a commercial license in Dubai is one week, as long as you’ve submitted all necessary documents.
- Whether you choose 3 additional business activities or all 10 under the main activity, the commercial license allows you to trade in an immeasurable number of products; that means you have plenty of opportunities to make revenue.
- Companies under the commercial license are not required to conduct an audit for license renewal.
- Cost-effective and easy license renewal process.
How can you obtain a license?
As the commercial license is the most popular license in the country, the application process for the same has been made simple and easily accessible.
- The first step is to identify the industry you want to do business in, along with settling for business activity.
- You’re then required to pick a name that goes with the rules and regulations set forth by the government and send it for approval.
- An office space is your next requirement. Whether that is a supermarket, a warehouse or a plain office, you must rent it for the purpose of your business license issuance.
- In some cases, you can own the business 100% or can open a company in partnership as LLC company.
- After that, you’re required to submit the following documents to initiate the processing of your application;
- Completed commercial license application form
- Memorandum of Association with partner
- Original lease contract for the registered office space
- Proof of fee payment
- Passport copies of owners and partners
- DED approval letter for the proposed company name
- DED attestation letter approving the business setup
- Upon validating your documents and looking into your application, you will be issued a commercial license that is valid for a period of one year.