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Common Questions About Dubai Commercial License

Common Questions About Dubai Commercial License

Selecting the type of business license entrepreneurs plan to operate their business in the UAE is one of the most important decisions an entrepreneur must make before applying for the respective business as there are several types of licenses to choose from. The most common licenses are commercial, industrial, and professional licenses. Dubai Commercial License covers a large number of business activities such as:

  • trading, import, and export of goods, in, out, and within the UAE, 
  • selling of particular services in, out, and within the UAE.

The goods that can be traded cover a vast category of goods, such as jewelry and toys to packaging, food, and electronics. A comprehensive, specific list of the activities that can be carried out under a Dubai Commercial License is as follows:

  • Import/export
  • General store
  • Plumbing and sanitary contracting
  • Radio, T.V. station, cinema theater equipment installation, and maintenance
  • Automobile trading
  • Shoe trading
  • Tanks and silos trading
  • Cold storage
  • General warehousing
  • Self-storage services
  • Rental services
  • Restaurant management

The complete list of categories can be provided by a Company Formation Specialist.


Why is a Dubai Commercial License Popular?

The commercial trade license is quite popular in Dubai and the UAE in general, for the following reasons:

  • for its incredible, strategic trading location,
  • being surrounded by vast markets including Africa, Asia, Europe, and the Middle East,
  • international airports coupled with the UAE’s direct access to the Persian Gulf make it incredibly popular with cargo businesses,
  • the emirate’s simplified company incorporation process makes it easy to get trading with the help of a company set-up agent.

What is the Process of Obtaining a Dubai Commercial License?

There are a few steps to follow to obtain a Dubai Commercial License:

  1. Selecting the right jurisdiction: one of the most important decisions for entrepreneurs to make before applying for the commercial trade license is choosing whether they should opt for the Dubai Mainland. They both have their pros and cons and seek the advice of a business setup consultant to optimize a business setup, and the costs can be beneficial at this stage. There are plenty of reasons for choosing one jurisdiction over the other. For example, Free zones offer benefits such as a quick and easy incorporation process, ongoing business support, and financial incentives such as tax exemptions and zero currency restrictions; they also offer license types including industrial, commercial, e-commerce, and professional services. Whereas Dubai Mainland businesses can trade directly with the UAE market, take on potentially lucrative government contracts, and offer several licenses. The right setup depends on the nature of the business. An expert in company formation can be quite helpful for making this decision, advising on the best option for specific requirements.

  2. Selecting a company name: there are strict regulations for choosing a trade name in the UAE, and the costs of reserving and registering a company name vary based on these rules. While a company setup expert can be quite helpful in this process, there are general rules that should be followed, such as checking the availability of the name, avoiding any offensive or blasphemous language, avoiding names of well-known organizations and abbreviations if the company is named after their owners’ names. 

  3. License application: license application can be submitted directly to the DED if the business setup is established on the Mainland. For Free Zones, the license application must be directly made to the Free Zone authorities. 

What are the Documents Required?

A few documents should be prepared to be submitted along with the license application:

  • Completed application form
  • Passport copies of the proposed owners
  • Two colored passport-size photos.

What is the Costs?

The approximate fee to obtain a license in Dubai Mainland from AED 14,500. There are also other fees to consider, associated with registrations, visas, premises, and more. The most cost-effective jurisdiction for operating a business is a Free Zone, and there are around 40 of them across the UAE. Dubai Free Zone offers many affordable license packages with no paid-up share capital requirement, no annual audit, and an easy incorporation process. There is also no need to be present in the UAE to establish a new company. 

How Can Choose UAE Help

Choose UAE has a team of experienced and knowledgeable Dubai Company Formation Specialists who will guide you in obtaining a dubai commercial license and give valuable advice on which jurisdiction will suit your needs the most. They can also provide the services you will need beyond license approval.

We can help you jumpstart your business today with our end-to-end license processing services and optimal customer service customized to your business needs. 

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