Difference between Commercial License & Professional License in Dubai UAE

There comes a need to get a business license in Dubai for starting a business. Common kinds of licenses issued in the emirate for businesses are commercial and professional licenses. Here, we can see the differences between these two.

Commercial License

Commercial licenses in the United Arab Emirates can be given to businesses that sell and buy products. Businesses that operate outside and within the UAE get a Commercial License in Dubai. The commercial licenses of the UAE have several ways for their commercial activities.

You can trade locally by applying for the general trading license of UAE. File the export or import authorization form along with licensing authority. UAE has several business services and licenses to exchange products like machines, electronics, machinery and building materials.

Kind Of Activity For Commercial License

The business activity to sell tangible products needs a commercial license. Activities for the approval in issuance of commercial licenses are electronic trading, general trading and software trading.

Share Capital For Commercial License

• The minimum share capital price is Dhs 30,000.
• Fees for government license
• Commercial license costing Dhs 17,000
• Liability of the Commercial License

The commercial license can be issued for the limited liability company that gives shareholders limited liabilities and debts.

Professional License

Businesses or individuals can use the people’s intellectual abilities to get a Professional License for offering their services in UAE and Dubai. It’s known as Civil Works Corporation if the business has more than one male owner.

Lawyers, auditors and consultants get professional licenses in Dubai. Craftsmen, IT service providers and mechanics are allowed to apply for the UAE Technical License. Expats having technical degrees own 100% of the company and are eligible to become the ultimate owners.

Activity Types in Professional License

Professional licenses can be obtained for those having the special knowledge or skill set and need to get service in exchange for a fee.

Ownership in Professional License

Expats can have 100% ownership if they have a professional license and become the sole owner.

Share Capital in Professional License

The minimum share capital to open the company with the professional license is Dhs 150,000.

Government License Fees in Professional License

The professional license is acquired for Dhs 11,000.

Liability in Professional License

Professional license holders can become the sole responsibility and establish business in all liabilities and debts.

Benefits Of Acquiring A Commercial License

The commercial trade license acts as a security and supervision for trading firms. Here are the advantages of holding a commercial license.

• A single commercial trade license is used for a maximum of ten activities.
• Several types of companies to choose from while registering.
• Single license covers a plethora of related business practices.
• You can secure commercial relationships with the Registration of Companies and the Department of Economic Development.
• Get residence visas for company management and employees.
• Can open the corporate bank accounts with assistance.

Professional skills are mandatory for service-oriented companies. One must have a UAE professional trade license to open a business in the UAE.

• There is a fixed annual fee for a professional license.
• Highly suited for skilled professionals.
• Transparency in client’s dealing.
• Businesses must apply for visas for employees.

Originally posted 2021-10-27 06:35:42.