Commercial License in Dubai

With economic stability, a secure environment, and world-class services – Dubai is one of the best countries to set up your business. Though you will expose your brand or service to the world, you will need a commercial license to do so!

You must first choose the license you want before commencing the process of opening a business in Dubai or anywhere else in the UAE. This depends on the type of your business operations. Commercial, industrial, and professional licenses are just a few popular licensing categories.

A commercial license allows you to trade, import and export items into, out of, and within the United Arab Emirates and provide a limited number of services if you have a business license. If you’re interested in Import Export business here’s our detailed guide

So, if you’re considering growing your business in the UAE’s commercial sector, explore all the data about applying for a commercial license in Dubai. 

Different Types of Licenses in Dubai

A trade license according to the firm type, industry, and commercial activity is needed to launch a business entity in Dubai, United Arab Emirates. This is relevant to international businesses opening offices in free zones. The four most typical Dubai trade license categories accessible to businesses in free zones are as follows:

1. Commercial License

The general trading license or company license are other names for commercial licenses. In Dubai’s Free Zones and the Mainland, it is the most common type of license.

Businesses engaged in trade and commercial activity in Dubai and the UAE are subject to this license category. These often involve trading goods and commodities, exporting, and importing.

Companies operating in Dubai’s Free Zones are governed and protected by the Commercial License. This makes a business eligible for numerous industry-specific business support systems, including startup offices, financial assistance, and trade incentives tailored to particular sectors.

2. Professional License

For qualified professionals to operate businesses in specific domains of competence, the Professional License is offered by the UAE government. 

The target market for this type of trade license includes businesses that provide business consulting, operating management services, teaching and training, IT services, engineering expertise, lawyers, mechanics, doctors, and other healthcare professionals, accounting and auditing service providers, and more.

3. Industrial License

Businesses that produce and manufacture new items from natural or raw resources are eligible for an industrial license. This includes the production of goods, the food and textile industries, the production of engines and other machinery, and more. 

To be eligible for this trade license, a business must maintain an office location, such as an actual office space, physical warehouse, or industrial complex within a Dubai Free Zone.

4. Tourism License

Businesses can operate in any of Dubai’s tourist-related industries with a tourism license. The three most common forms of tourism businesses to be created in Dubai are travel agencies, outward tour operators, and inbound tour operators. 

The Department of Tourism and Commerce Marketing (DTCM) and Dubai’s DED is responsible for issuing this type of trading license.

dubai commercial license

What is a Commercial License in Dubai?

A business license enables you to transact in commodities and offers specific services, to put it simply. These products may be exported for sale outside the UAE, imported and sold there, or traded inside the UAE.

You can trade in practically any product you can imagine, from jewelry and toys to packaging, food, and technology, with the help of a commercial license. A commercial license also permits the sale of brokerage and real estate services.

Commercial License in Dubai: Activities allowed

Here are just a few examples of what a commercial license permits:

  • Import/export
  • Sanitary and plumbing contracting
  • General retailer
  • Installation and upkeep of theater equipment for radio, television, and movies
  • Exchanging shoes
  • Vehicle trading
  • Frozen storage
  • Trading of tanks and silos
  • Services for self-storage
  • Common warehousing
  • Restaurant administration
  • Rental options

You can communicate with a company formation expert or the Department of Economic Development (DED) to get a complete list of approved commercial business operations.

commercial license in dubai

How to Get a Commercial License in Dubai?

Getting a commercial license in the UAE is a relatively simple process if you seek the assistance and direction of a knowledgeable expert in business creation. Your license application is the culmination of only three easy steps.

Step 1: Select locations for your Business Setup

Choosing whether to start your UAE business in a free zone or on the mainland is one of the most crucial decisions you will make. Both have a lot of advantages. 

For example, a quick and simple incorporation procedure, continuing business assistance, and financial incentives like tax exemptions and no currency limits are just a few advantages that free zones provide.

Free zone permits come in a variety of forms. Several free zones offer various license types, such as those for industrial, commercial, e-commerce, and professional services.

On the mainland, a variety of permits are also offered. As a result, businesses from the mainland can directly commerce with the UAE market and compete for potentially profitable government contracts.

Your business’s needs will determine the best configuration for you—making this choice with a business setup specialists who can recommend the best course of action for your particular needs.

Step 2: Choose Your company name

A crucial first step in starting a UAE business is selecting a company name. When making this choice, there are a few factors to consider. First, a rigid yet simple to follow set of naming standards must be followed. A business setup specialist can help you with this phase.

When it comes to selecting the name of your company, you need to be mindful about the following aspects. 

  • Avoid using unpleasant or vulgar titles. 
  • Avoid using abbreviations. 
  • Do not copy the name of another organization. 

Step 3: Apply for a License

Making an application for a business license is the process’s last stage. You can apply directly to the DED if you are establishing a business on the mainland. Hiring a professional business setup company is a smart move to ensure a quick and easy procedure.

Documents needed to obtain a Commercial license in Dubai

There are specific documents needed to obtain a commercial license in Dubai. To fill out the license  application form, you will need to provide: 

  • A copy of the business owner(s)’ passport.
  • Filled-out application.
  • Two passport-size photographs in color.

Cost of a Commercial license in Dubai And UAE

One of the factors to consider while starting your business in the UAE is the cost of a commercial license in Dubai. You will need to pay AED 10,000  for a commercial license. 

Additionally, you may need to budget for the price of additional registrations, visas, locations, and other expenses, which might total more than AED 30,000.

Set up in a free zone and keep an open mind about other emirates than Dubai if you’re searching for the most affordable option to launch a commercial enterprise in the UAE.

Free zones provide various affordable licensing packages without the need for an annual audit, paid-up share capital or a complex incorporation procedure. In addition, you do not need to be physically present in the UAE to launch your new business.

Conclusion

When you apply for a commercial license in Dubai, you open the door to success and opportunities. You can legally work for or provide your services to any customer, client, or employer in the UAE, and you are permitted to engage in activities appropriate for your qualifications and area of expertise. 

A professional license, as opposed to an industrial or commercial license, enables foreign investors to own the business fully and grants them the same privileges as a limited corporation. 

Rather than finding the document and offices, you can contact Airzone to find you the perfect business setup company. As business setup professionals know every in and out of setting up a company in the Dubai, you can rest assured that you are availing services from experts!