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Commercial License in Dubai

If you are someone planning to start a business in Dubai, you may need a mandatory license to get going. You need to apply for a specific license according to your business needs. There are mainly 4 types of licenses and they vary with the type of Business and the region of operation. The major licenses issued in Dubai are listed below.

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

The above-mentioned Licenses are issued by the Dubai Economic and Tourism or DET.

Individuals planning to set up a trading business in Dubai need to acquire a commercial license in Dubai, which allows one to buy and sell goods and services.

What is meant by Commercial License?

If you wish to buy and sell goods or involve in a trading activity, you have to possess a valid Commercial License. Commercial License in UAE is issued from 3 jurisdictions. The investor should select the most feasible location before applying for the Commercial License.

What Business Activities come under Commercial License?

Before applying for a commercial license in Dubai, one needs to decide on the trading activities and the category of businesses. Business activities related to buying and selling goods and services come under Commercial License. The major activities that come under the commercial license in Dubai, UAE are listed below.

  • Logistics
  • Import and export
  • Tourism and Travel
  • Brokerage
  • Sales of electronics and construction products
  • Real Estate
  • Rental business

After deciding on the business activities, choose a trade name and register the company.

What are the documents needed to apply for a Commercial Licence in Dubai?

The DET will issue a commercial license for your business based on the documents you submit. The commercial license in Dubai will be valid for only one year- after expiry, you need to renew it.

The documents needed to apply for a Commercial License in Dubai are mentioned below.

  • A completed application form. The name should be specified in both English and Arabic.
  • The lease contract form attached with the registered address of the company.
  • Partner MOA
  • Dubai Municipality Department permit, sanctioning the business address
  • License Fee proof.

After verifying the submitted documents DET will issue the Commercial License.

What are the steps for obtaining a Commercial License in Dubai?

The steps for obtaining a commercial license in Dubai are simple. With the help of a professional business consultancy like Bizvise, you can acquire a commercial license easily. The official formalities for a commercial license are appended below.

Step 1. Confirm the Business Activity

Decide the business activities you want to carry out in the business. Additional approvals will be based on the business activities.

Step 2. Obtaining Initial Approval

Apply for the initial approval by submitting the requisite documents to the Dubai Economy & Tourism (DET).

Step 3. Find a Reliable Local Sponsor

According to the new rule, expatriates now have 100% ownership in commercial licenses. The requirement for local sponsorship in the UAE is no longer necessary.

Step 4. Formulation of Legal Structure

Article of Association (AOA) and Memorandum of Association (MOA) is called the constitution of a business entity. The documents will lay out the rules, regulations, and policies to be followed by the company, the management board, and the employees.

Step 5. Select a Trade Name

The trade name must be finalized according to the strict naming rules. One should take care of the below-mentioned rules while naming a company.

  • Avoid the names of already registered companies
  • Avoid offensive and blasphemous language
  • Avoid the abbreviations of names

Step 6. Rent or Lease a Commercial Space

One can rent or lease a commercial space for the business, as it is mandatory. The officials will inspect the commercial space for confirming the dimensions and completeness of legal formalities. Ejari formalities also must be completed for the space you are hiring.

Attaining a Commercial License in Dubai can be time-consuming. However, consulting with an experienced business consultancy can make these procedures easy. Bizvise is an experienced professional consultancy that has assisted several organizations in acquiring Commercial licenses in Dubai. We will help you attain licenses that suit your business needs. For more queries, connect with us.

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