Foreign investors setting up companies in Dubai must follow several steps before starting any commercial activity. Also, there are a few requirements that must be fulfilled before submitting all relevant paperwork with the Companies Register for company incorporation in Dubai. Depending on the type of activities to be carried, the company must also apply for one of the three special licenses released by the relevant authorities in Dubai:
Below our company registration consultants in Dubai explain how to apply for a commercial license. You can rely on us if you want to set up a company in Dubai and want to apply for a commercial license.
According to the law, all companies operating in Dubai must apply for one of the licenses available. The commercial license is one of the most popular types of business permits as it allows a company to engage in trading relations.
The most common type of company used for operating under a commercial license is the Dubai limited liability company which can be set up in mainland Dubai, as well as in any free trade zone in the Emirate. A particular aspect of opening a free zone company in Dubai is that each free zone authority issues its own licenses, however, the commercial license is common no matter the special economic zone the company is registered in. However, the commercial license issued for a free zone company can be used for trading activities in the respective Dubai free zone alone.
It is also possible to obtain commercial licenses for branches and subsidiaries of foreign companies interested in operating in Dubai.
If you are interested in company registration in Dubai, our local specialists can help you set one up in mainland Dubai or any of its free zones.
In order to apply for a trade license in Dubai, investors must fulfill certain requirements and follow a few steps. The first step will be to designate the main type of activity the company will carry out and the adjacent activities that can be maximum of ten per one commercial license.
The investor must decide on the type of business to be registered in Dubai, as one can choose among several types of companies. In order to obtain the Dubai trade license, the company must be registered with the Companies Register. After this step, the documents to be submitted with the Department of Economic Development in Dubai and with the UAE Federal Ministry of Economy for the commercial license to be issued are:
Based on these documents, the Department of Economic Development will release the commercial license for the Dubai company.
It is important to know that the commercial license cannot be obtained before the actual incorporation of a company in Dubai. For this, one will need to follow the steps below:
Once the company is registered, the commercial license will be issued automatically.
Our local advisors can help you select the appropriate business activities which will enable foreign business owners to apply for a commercial license in Dubai. We can also help with the registration of the company or we can handle the Dubai company formation procedure on behalf of foreign entrepreneurs.
You can also find out from the video below how to apply for a commercial license in Dubai:
According to the Commercial Law, the following activities can be undertaken based on a commercial license:
The commercial license is also required when opening auto vehicle rental businesses and even logistics companies.
The Dubai commercial license must also be obtained by tourism companies operating in the emirate and even by branches of foreign companies. Companies offering healthcare services also fall under the scope of the commercial license in Dubai.
It should be noted that a Dubai company can have a maximum of 10 activities on the trading license. It is also possible for a company with less than 10 activities to complete the list of services or goods after the license has been issued.
Our Dubai company formation advisors can assist with the application of the trading license as part of the registration process of the business. We also remind foreign investors that on mainland Dubai a local partner is required in order to set up a business. This requirement is not mandatory in Dubai free zones where full foreign ownership is permitted.
A Dubai commercial license has one-year validity from the date it was issued, and it can be renewed. A renewed trade license in Dubai has a four-year validity. In order to apply for renewal of a Dubai trade license, the following documents must be submitted:
Most foreign investors do not know that the commercial license can bring a lot of benefits to those setting up companies in Dubai. Among these, we mention the following:
The commercial license allows investors setting up companies in mainland Dubai to complete their activities and to sell goods and services in other UAE Emirates, as well as internationally. One of the less known facts about the commercial license is that it provides for easier visa admittance procedures for foreign employees: companies can hire a larger number of foreign employees under a commercial license in Dubai.
The commercial license is the easiest to obtain in Dubai compared to the other types of business permits.
It is good to know that where specific activities are completed, the commercial license will not suffice, and special permits and authorizations must be obtained.
Our company formation consultants in Dubai can offer more information on the advantages one can acquire under a company running with a commercial license.
Dubai is one of the most prolific emirates of the UAE and trading activities here thrive no matter if operated under companies registered by local or foreign investors. According to the Dubai Statistics Center:
For complete details about company registration and licensing, please contact our company formation agents in Dubai.