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biztrack · 2 years ago

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Commercial license in Dubai: Everything You Need to Know

Dubai is a hub of businessmen and entrepreneurs, along with the fastest-growing economies in the world. People from different parts of the world come to Dubai to set up their ventures and start a luxurious life. Besides, Dubai is the best place for new-age investors and budding industrialists to kickstart their professional careers. However, before you step into the process of operating your business, you must first mandatorily acquire a commercial license in Dubai.

There are multiple types of business licenses available in the UAE, such as manufacturing, trading, service, and many others, including the UAE commercial license. Besides, the nature of your business operations determines the type of license you should choose for your company.

The below article gives an overview of the commercial license available in the UAE and also discusses the key specifics and points revolving around this license.

Commercial License in Dubai

A commercial license is a type of license that allows trading in goods and services in Dubai. That means a company can trade, import, and export products within as well as outside the UAE. In addition to that, it can also sell certain services under a commercial license. Hence, commercial license in Dubai is common in Dubai as well as other parts of UAE.

The commercial license permits to trade in almost any type of goods, such as jewelry, toys, food, automobiles, software, electronics, etc. Services covered under a commercial license, include brokerage, real estate services, etc.

Here is the list of some of the activities that require a commercial license in Dubai:

Import and export

Automobiles

Computer hardware

Communication Equipment

Food items

Furniture

Medical and Surgical tools

Readymade Clothes and Apparel

Software

Brokerage

Real estate

Logistics

Tourism and travel

Electronics

Construction goods

General stores and shops

Cold storage and warehousing

Rental services

Advantages of obtaining a UAE commercial license

A single commercial license covers up to ten business activities.

Allows full repatriation of UAE-earned income and profits for freezone companies

Permits recruitment of foreign employees

Overseas trade of goods and services

Enhances trade relations with neighboring countries

Renewal of license without the need for auditing

Easy to open an account in any of the UAE banks

Freezone companies enjoy complete exemption from taxes and tariffs

Better networking and connectivity because of foreign commercial activities and trading              

Steps for obtaining a UAE commercial license

Companies can choose between Dubai mainland and Dubai Freezone as their business location. Businesses in the Mainland can get their licenses from the Dubai Department of Economic Development (DED), whereas freezone companies get their licenses from the respective freezone authorities.

The basic steps involved in acquiring a commercial license for business include

Determine the business activity

While planning to start a business, the owners must decide the business operations they intend to conduct. The business activity of the company determines the license they can opt for. A commercial license permits up to 10 activities to its holder. Therefore, the owner must ensure choosing a suitable business activity as per the legal structure of the company.

Choose a location

Dubai provides strategic locations for the companies to operate. It is the center of trade connecting several countries to its market. Moreover, the companies can choose whether they want to set up their enterprise on the Mainland or Freezone.

Company formation in both these locations has its own advantages. You can contact the experts of Biztrack Business Setup Company In Dubai to get more clear information on the business locations suitable for your business idea.

Decide a trading name

A trading name is the most important trait of a business as it identifies the company from its competitors. While choosing a trading name, the owner must remember to keep certain things in mind. For example, the name of the business must be unique as well as appealing. Also, they must avoid using any offensive or blasphemous language. Apart from that, they must ensure that the selected name does not resemble any existing businesses.

Get initial approvals from the respective authority

While applying for a commercial license in Dubai, the applicant must obtain initial approval from the DED after submitting the requisite documents.

Draft an MOA and AOA

Memorandum of Association (MOA)  and Article of Association (AOA) lay out the rules, regulations, and policies that the company, the management board, and employees must follow. Therefore, they are called the constitution of a business entity. The business owner must prepare these documents in both English and Arabic.

Rent an office space

The next step involves renting or leasing an office space for your business purposes. The rented space depends on the nature of the business activity and the count of employees. However, some business activities do not require a physical office, and can rather work on a virtual office or Flexi-desks.  To get information on such business activities, you can get in touch with the business consultants of BizTrack Business Setup Company In Dubai. They can also provide you with information on the business centers and office spaces available in and nearby Dubai.

Get final approvals

The additional approvals may include agreement from the relevant ministries and departments to sanction the commercial license application.

Obtain the license

Once all the above steps are accomplished, you can obtain the license from the DED or the Freezone authorities, whichever is your area of business.

Read also: Benefits of Dubai South Free Zone Business Setup

Documents required for registration of commercial license in Dubai

For obtaining a commercial license, submission of all the required documents is mandatory, which include –

Duly filled application form

Lease contract form of the company’s registered address

Memorandum of Association with the sponsor/partner

Business address sanctioned by the Dubai Municipality Department

Proof of license fee

After verifying and cross-examining all the documents, DED issues the commercial license to the respective business. The validity of the commercial license is 1 year, which the owner can renew accordingly.

Renewal of Commercial License

Once the license reaches expiry, the applicant must submit the following documents for renewal of the commercial license –

Copy of the trade license

Office space lease contract copy

Approval from the concerned authority

Details of staff accommodation (for foreign shareholder firms)

The renewed commercial license has a validity of five years.

Conclusion

When you start a business in Dubai, you need to get a license to operate your company legally. Getting a commercial license in Dubai isn’t a complex procedure, only if you have the right knowledge and information about it.  Moreover, the application process is easy only if the application and documents are genuine and error-free. In addition, it should be submitted on time without any delay.

Biztrack Business Setup is here to ensure that your license application is successful in all stages. From handling your application to opening your bank account in UAE bank, Biztrack Business Setup Company Dubai is committed to assisting you with your business needs. Furthermore, we will handle all the government formalities including permissions, work permits as well as visa applications that are required for company formation in the UAE. In short, we will establish your company on your behalf and bring your aspiring dreams to life.

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