Commercial License in Dubai, UAE
While submitting an application for a commercial license in Dubai, United Arab Emirates, there are a lot of steps to do and considerations to make. A commercial license, often referred to as a trading license, is a permit that is given to companies in the United Arab Emirates in order for them to legally engage in trade activities there. The ability to engage in the trading of goods, commodities, and services is granted by a commercial license.
Only general trade licenses are necessary for businesses involved in real estate, construction, and the retail industry. For companies operating in the transportation, logistics, and allied industries, a commercial trade license is necessary.
How to Apply for a Commercial License in Dubai, UAE?
A firm in Dubai can only be granted a commercial license after being formally incorporated there. The steps to apply for a commercial license in Dubai, United Arab Emirates, are as follows:
Choose your business's incorporation type and the activity category that will fall under the commercial licensing requirement.
Draft your company’s Memorandum of Association (MOA) and Article of Association (AOA).
Register the company with DED, Dubai, to obtain a VAT number
Remit the payments for applications and registration.
To apply for one, you must fulfill specific conditions for a commercial license. To do that, you must first decide which company categories you want your operations to be included under. Officially register and incorporate your business in Dubai. Apply for a commercial license from the Federal Ministry of Economy in the UAE and the Department of Economic Development in Dubai after registration and approval.
- Office space lease agreement as evidence of the company’s registered office
- Permission to use the space for commercial or business purposes from the building department of the Dubai Municipality.
- Proof of payment made towards trade license application
For renewing a commercial license in the UAE’s Mainland and Freezones, there are many requirements and procedures. In Dubai, business licenses are issued and renewed by the Department of Economic Development (DED).
To renew a commercial trade license in Dubai, The company needs a lease with a minimum one-month validity that has been Ejari verified. Without this supporting paperwork, commercial license renewal is not possible. To complete the commercial license renewal, deliver the needed paperwork and pay at DED.
Here are the documents required for commercial license renewal in Dubai Mainland:
- Typed form of BR/1
- Copy of tenancy certificate
- Ejari registration certificate
- Copy of current trade license
- Copies of all business partners’ passports
Below are the documents needed for commercial license renewal in free zones:
- Copy or original of your trade license depending upon the Freezone
- Audit reports of the firm
- Address confirmation renewal
- Copy of shareholder’s passports
- Depending on the type of business and the location where it is located, different documentation and permits can be needed.
Many benefits come with having a commercial license in Dubai, UAE. This is what draws many foreign investors to the UAE to make investments or start enterprises. The advantages of holding a commercial license for your company in Dubai are as follows:
- Free capital and profit repatriation and tax advantages are available in free trade zones.
- The rapidly growing economy of Dubai and its prospects
- Opportunity to set up a business anywhere in UAE
- Option to involve in trade and service providing
- Visa benefits for employee hiring and partners.
