How to get Commercial License in Dubai

Investors can apply for the mandatory license for starting a business in Dubai. Licenses vary based on the business type and region of operation. These licenses can be issued by the Department of Economic Development (DED). Major licenses are:

• Commercial License
• Professional License
• Tourism License
• Industrial License

You have to get a commercial license if setting up a trading business in Dubai. This can allow you to buy and sell services and goods.

Strategic Location Of Dubai

The biggest benefit for business establishment is the “strategic location of Dubai”. The most happening trading hub of Asia is Dubai. It has international sea and air routes. Dubai’s International Airport is the third busiest airport in the world, serving as the international gateway for Africa and Asia.

Dubai has world-class exports such as Jebel Ali, Port Rashid and Al Hamriya, handling cargo and passenger operations. The business-friendly transport infrastructure serves Dubai as a trader’s paradise.

Business Activities For Commercial License

You have to decide on trading activities before applying for a commercial license. Get a clear idea of the type of business activity that you need to set up in Dubai. Service-oriented, selling and buying endeavours can get the Commercial License. Activities that come for commercial licenses are:

• Export and Import
• Logistics
• Tourism and Travel
• Brokerage
• Real Estate
• Product-oriented sales
• Rental business

Once deciding your business trading activities, pick a business trade name to register it. The relevant documents are submitted to the UAE Federal Ministry of Economy and the Department of Economic Development to get the commercial license of the country.

Documents required for a Commercial License in Dubai

DED can issue the commercial license for your Dubai business as per the documents you submit. Dubai’s commercial license can be valid for one year, then you have to renew after its expiry. Below mentioned documents are required for a Commercial License in Dubai.

• Company name must be filled in the application form. The name has to be specified in Arabic and English.
• The lease contract form is connected along with the company’s address.
• Partner or Sponsor’s MOA.
• Business addresses must be sanctioned by the Dubai Municipality
• Department.
• A proof of license fee.

The Commercial License is issued by DED after verification of the mentioned documents.

Get a Commercial License in Dubai through the Instant License

Choose the legal form of the specific business activity. Add partners as per the chosen legal form. Aspects like partner’s capital profit, share and loss distribution must be considered. Select the automatic trade name or reserve the new one.

Choose the commercial register data and specify their Capital value. Skip or select the electronic MOU.

Remit the fees, once the payment voucher is issued. The price of the Commercial License in Dubai is 10,000 AED. If you’re setting up the Import/Export company in UAE/ Dubai, Black Swan takes you through all official formalities related to licensing services in Dubai.

Contact Black Swan business consultants if you have doubts related to Commercial Business License or renewing the existing License.

Benefits of UAE Commercial License

The commercial license of Dubai is easier than any other license. It has added benefits for business firms to carry out various activities.

Their advantages are:

• The company can trade more products.
• Auditing is not essential to renew the commercial license.
• Business entities can use trading in any UAE region. It has the optimum use of markets in the country.
• The company gets employment visas to recruit foreign employees.
• Business organizations that have commercial licenses can do foreign trading and commercial activities.
• Commercial license allows companies to locate in any region of Dubai.
• Reporting turnover profit, losses and financial transactions is easier with this license.
• It’s unfuzzy to open a corporate bank account that has a commercial license in Dubai.
• Free zone companies benefit 100% profit. They are exempted from taxes too.

Steps To Get A Dubai Commercial License

The smooth functioning of a business entity depends on the compliance of formalities. The federal laws prevent unauthorised business activities and illegal activities. You have to submit all documents to get the commercial license with no further delay. Black Swan can gain you the UAE commercial license without complications and aids you to set up a business. Official formalities of commercial licenses are:

• Confirming The Business Activity – Select the business products and type to start in the United Arab Emirates.
• Get Initial Approval – Initial approval is given by the Dubai Economic Department for the commercial license.
• Choose A Reliable Local Sponsor – The local sponsor must be an Emirati to establish a business in Dubai Mainland to get the commercial license. Local sponsors can hold 51% of company shares, while shareholders and expats get the remaining 49%. Commercial approvals and legal formalities can be in the name of the sponsor. Get the support of a reliable sponsor to support the firm. Black Swan can find you a trustworthy local sponsor. We offer exclusive Royal sponsorship especially for the set-ups like premium business.
• Legal Structure Formulation – Memorandum of Association (MOA) and Article of Association is known as the constitution of a business entity. These documents lay the policies, regulations and rules to be followed by the management board, company and employees. Documents must be prepared in Arabic and English.
• Apply For The Approval Of A Trade Name – Selecting a trade name must be based on norms promulgated from authorities. Otherwise, the name will get rejected. No two trade names must be similar or a new trade name should not be as same as the existing firm. Nor they must have more stakeholders. Political and religious references can be prohibited.
• Office Space – You can rent office space in Dubai. Few kinds of business firms have flexi-desks or virtual offices. If leasing or renting an office space, you must complete a registration at Ejari.
• Lease Or Rent A Commercial Space – Authorities have particular dimensions for commercial space. You can rent a space for business purposes. Officials inspect the space to confirm dimensions and fulfil the legal formalities. Ejari formalities are completed for the official space you hire.
• Get Approvals From Departments And Ministries – No other additional approvals are required. Commence the business and get approvals in due course.

Originally posted 2021-10-21 05:11:49.