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Commercial License in Dubai

    commercial license in dubai

    Benefits of Commercial License in Dubai

    Benefits of Business Setup in Dubai Mainland

    A commercial license in dubai can give you many benefits, such as the following:

    Possibility to trade almost any type of goods

    In some cases, it allows the business to sell services such as brokerage and real-estate

    Corporate tax exemption

    Possibility to carry out up to ten similar business activities under one license

    Many options to decide on a type of company to register

    Secure business environment and safe for transactions

    You are able to obtain a residence visa for your employees

    Cost-effective solution for renewal

    You can set your main office anywhere in Dubai

    Freedom to trade anywhere in the entire UAE territory

    You can also trade internationally to expand your company’s presence in other marketplaces.


    Obtain the Commercial license in dubai for your business with Connect Middle East

    Although Dubai is the prime location for business owners when you want to establish your company you need to determine many aspects before starting.

    First, you have to select a jurisdiction. Dubai has three main jurisdictions which are the Mainland, the Free Zone, and the Offshore. Each one has its benefits, but the Mainland is the preferred one for foreign investors and entrepreneurs.

    This is because it offers several advantages, and the main one is the possibility to trade within the entire UAE territory. In case you do not know which jurisdiction may be the best for you, here at Connect Middle East we can guide you so based on your company’s requirements.

    Once you have decided on the best jurisdiction, you must decide on a business license. The business license is the document that allows your business to conduct operations legally in the UAE. There are several types of business licenses, but the main ones are the Professional License, the Industrial License, and the commercial license in dubai.

    In case you are interested in establishing a commercial company, you need to request a commercial license. Here in Connect Middle East, we offer our trade license dubai so you do not have to worry about anything.

    The UAE has been known as the perfect location for conducting business in the Middle East. Its privileged access to both eastern and western markets has placed it as a top place for foreign investment.

    In this regard, investors and entrepreneurs look for the perfect place in the UAE where they can set up their commercial establishments. Dubai is always the first option they consider since it offers several advantages. Moreover, the UAE Authority has created friendly policies to encourage foreign investment.

    Thus, businesspersons can enjoy a secure business environment, a hassle-free incorporation process, and tax exemptions. All of these are great reasons to incorporate a commercial business in Dubai.

    In Connect Middle East we offer our Corporate Sponsorship Services so you can set up your business easily anywhere in the UAE. We offer a team of experts and consultants that will readily answer all of your inquiries.

    Why choose Dubai Mainland with Connect Middle East?

    Dubai Mainland is a very popular destination for commercial businesses. Thus, the commercial license in dubai is one of the most requested here. There are many reasons why this particular jurisdiction is chosen among investors, such as the following:

    • Strategic trading location: incorporating your company in Dubai Mainland will allow you to trade with international marketplaces such as those located in Europe, Africa, Asia, and the Middle East.
    • Access to airports: in Dubai Mainland, you get direct access to several international airports, and along with the nearness to the Persian Gulf you can have success with different cargo businesses.
    • Simplified incorporation process: another reason why this Emirate is so popular is that the business setup lasts 3 or 4 weeks, and in some cases, it can be even quicker.

    If you are considering the Dubai Mainland as your destination for your commercial establishment we can help you. Here in Connect Middle East, we offer our Dubai Mainland Company Setup Service, so you can start right away.

    What is a Commercial License?

    A Commercial License is a must for any business that is interested in carrying out trading activities. It is mandatory to obtain this valid document before you start operating in the country.

    In this regard, with a commercial license in dubai, you can engage in several activities as per the specifications of the license issued. Some of the activities you can carry out are import, export, distribution, storage, and many more. Thus, you can trade in goods and products, as well as sell certain services.

    Obtaining a commercial license in dubai can be challenging for foreign investors and companies that are not familiar with the formalities in the UAE. Although obtaining a business license is a very simple process, if you do not have the assistance it can be challenging for you.

    For this reason, here in Connect Middle East, we want to help you. You can achieve your expansion goals to Dubai by incorporating a commercial company with our assistance. Our team has local knowledge and expertise to provide a hands-on approach. Moreover, we can assess your current needs to provide a customized solution.

    You can obtain your commercial license in dubai easily with our assistance. But first, it is necessary to determine which activities you want to perform and if said activities are permitted under the commercial license in dubai. For this reason, it is crucial to have guidance so you know which business activities you have to select.

    Get advice on the permissible business activities for the Commercial License

    Businesses have to know which activities are covered by the commercial license in dubai if they are considering applying for one. If you are considering establishing a company in Dubai Mainland to carry out commercial activities, you have to learn which activities you can perform in this location.

    Here in Connect Middle East, we provide guidance on this matter. Our Bess Business Consultancy Services takes care of advising and guiding you. This way you can decide which activity can be the perfect one for your company.

    The following is the list of the permissible activities under the commercial license in dubai:

    • Contracting
    • Sale of electronic products and software
    • General store
    • Import and export activities
    • Sale of construction material
    • Rental Services
    • Shoe trading
    • General warehousing
    • Restaurant management
    • Furniture trading
    • Trading of medical and surgical equipment
    • Cold storage
    • Equipment installation for radio, T.V. station, and cinema theater

    It is important to point out that with the commercial license in dubai you are only allowed to carry out 10 activities. Therefore, you have to select very carefully which products you want to trade. This is because the UAE Authority only allows having a list of 10 trading activities per license.

    If you are applying for the license but you have less than 10 operations, you may complete it later with services and products. Here in Connect Middle East we can analyze your current operations and advise which activities you should select. We do this based on your requirements and needs so you can have smooth operations in Dubai.

    Obtain a Commercial license in dubai and enjoy its advantages with Connect Middle East

    Getting a commercial license in dubai can be the best decision for your company. This is if you are planning to enter the UAE market. It may enhance your operations and give you the possibility to trade in one of the most solid economies in the world.

    However, obtaining this document can be difficult. It does not matter if you are an experienced investor or a young entrepreneur, dealing with legal formalities is always a burden. Nevertheless, if you decide to rely on a trustworthy agency like Connect Middle East, you can enjoy a problem-free incorporation process.

    By trusting in us, you can receive the following advantages:

    • Total support throughout each step of the incorporation process
    • Receive guidance and consultation on which types of commercial activities you should select
    • Assistance for opening your corporate bank account
    • Guidance on which type of physical space you can choose for your business. From a Smart Office to a Work Station.
    • Comprehensive company incorporation service. You do not have to worry about anything
    • We will collect and handle your documentation and ensure to submit an error-free application
    • A team of consultants readily available to solve all of your inquiries

    Receive assistance to comply with the prerequisites to apply for the Commercial License

    Before applying for a Commercial License you have to know the requisites you need to fulfill. Here are some of the conditions you must consider:

    • Business activities: decide on the nature of your business. This means, determining which activities you want to perform under the Commercial License.
    • Trade name: your business must have a valid trade name. You cannot operate your commercial establishment under your own name.
    • Company: before applying for the business license, you must have a company incorporated in the jurisdiction. Thus, you have many options in relation to this. If you own a foreign company, for example, you could decide to set up a Branch in a Free Zone or incorporate an LLC on the Mainland.
    • Registration: you have to register your company with the Companies Registry

    Requirements for opening an LLC

    Given that a Limited Liability Company (LLC) is the preferred legal structure for business owners, it is worth noting what you need to have to incorporate this type of entity. A Commercial License fits best with an LLC, so for this reason many foreign investors opt for this type of company. However, you are free to select the type of structure for your company that best suits your interests.

    In case you are considering incorporating an LLC in Dubai, you have to comply with the following requisites:

    • You must have a minimum of 1 shareholder and a maximum of 50.
    • Comply with the minimum capital for the business

    As it is most commonly known, to incorporate an LLC in Dubai you must have a local partner. This partner holds 51% of the shares of your company, while you are allowed to hold only 49%. This was applied to all types of commercial activities.

    But, as of 1st June 2021, the UAE Authority allows foreign ownership for businesses that are going to engage in commercial activities. But, this is only for a few designated business activities.

    So, if you want to choose a particular business activity, but it is not on the list that allows 100% foreign ownership, then you must find an Emirati partner to comply with the law and continue with the incorporation process.

    For this reason, we are here to help you. You may have 100% ownership in your Mainland Company with a Commercial License with our assistance. We offer the best prices on the market and total guidance so you do not have to look for a partner for your business.

    Get your Commercial License and receive guidance through the process

    The process to obtain a commercial license in dubai can be challenging for some business owners. It is important to understand that before applying for the license, there are some considerations you have to take.

    If you are seeking guidance, in Connect Middle East we can help you. Our goal is to assist you to incorporate a company and obtain the commercial license for operating legally.

    Here we have the steps of the process

    Decide on a jurisdiction

    Setting up a commercial establishment in Dubai involves analyzing first what are your expectations of the business. Do you want to trade within the UAE? Are you interested in reaching international markets? Or do you just want to have a virtual office in Dubai?

    The answer to these questions will allow you to determine which jurisdiction can be best for you.

    In Dubai, the two most common options are the Mainland and the Free Zones. If you consider establishing your business in one of the Dubai Free Zones, you have many options, such as JAFZA, Dubai Multi Commodity Center, DAFZA, and others.

    Some of the benefits you get in a Free Zone are an easy incorporation process, financial incentives, and ongoing business support. Nevertheless, with a Free Zone Company, you are not allowed to trade within the UAE territory. You can trade within the Free Zone Only.

    In the case of a Mainland Company, you are able to trade directly with the UAE market. Moreover, you can even take on government contracts, if there is a chance.

    Nevertheless, the jurisdiction that is best for you will depend on the nature of your business. Here in Connect Middle East, we have experts on company formation that can advise you on this matter.

    Decide a company name

    Your business must have a valid trade name. You are going to work under this name so it must identify your operations very well. Keep in mind that the name has to comply with the UAE guidelines. Thus, you cannot include profanities, initials, and anything related to religion.

    Select a legal structure

    You have to select among the different types of legal structures available. For example, if you decide to set up a Free Zone Company, you can establish an FZE, an FZCO, or a Branch.

    In the case of Mainland Companies, there are many options to choose from. However, the most common one is the LLC. If you are planning to incorporate this type of legal entity keep in mind that you must have a local partner.

    Get the initial approval

    Submit the paperwork for obtaining the initial approval for your business. This is important because it allows you to register your company’s trade name. After that, you have to proceed to form a company using this trade name. This means that you will have to draft important documents about your company, such as the Memorandum of Association and others.

    License application

    The final step will be to apply for the commercial license in dubai. If you are in Dubai, you must submit it to the DED. On the other hand, if you have chosen a Free Zone, you must apply to the relevant Authority.

    You have to pay the required fees and submit your application. Please keep in mind that the costs will vary depending on the nature of your business and the number of business activities you want to include.

    Moreover, the type of company also affects the final cost of the incorporation. Generally, if you have more business partners, then you will likely pay a higher fee. Similarly, having several activities included in the license can increase the fee.

    Once you have submitted your application, the Authority will review the documents and issue the license. Upon receiving your license you can start trading legally in the UAE.

    Visas and bank account

    Although the final step of the process is to obtain your commercial license in dubai, there are some things that you have to do after that. For example, you have to request your visa, and apply for the visas for your employees. In this regard, we offer our Visa Services to help you with tedious immigration procedures.

    In addition, you have to open a corporate bank account for your business. This way you can handle your company’s finances without any interference. Here in Connect Middle East, we want to offer the best to our customers, so you can enjoy our Banking Services once you request your solution.

    Connect Middle East assists you with the paperwork for the Commercial Trade License

    A great part of applying for the Commercial License is that you have to collect the necessary documentation. Obtaining a license is a simple process, but the most crucial part is having the right documents to submit.

    In Connect Middle East we understand how challenging can be to comply with legal formalities in the UAE. Particularly those that are related to documentation. For this reason, we offer our PRO Services in Dubai, so you do not have to worry about this.

    In Connect Middle East we offer competitive rates for the Commercial License

    Obtaining a Commercial License involves making a considerable investment. Not all businesses are prepared to take on expenses like the ones involved in licensing in the UAE.

    However, unlike many may believe, incorporating a company and getting a license in Dubai is a cost-effective process. Although it is one of the most popular locations in the Middle East, the fees for obtaining a Commercial License may start from AED 10,000.

    Nevertheless, it is worth noting that this is just the fee for the license. The investor has to consider other additional expenses such as external approvals, visas, and more. Thus, adding all of these costs may result in about AED 30,000 for a commercial license.

    For this reason, the most reasonable is to partner with an agency like Connect Middle East. If you want to obtain the most out of your business setup, you can choose one of our packages. We can help you get your license, get the approval, and submit your application at the best price on the market. You can get everything you need to start your business anywhere in the UAE.

    How can you obtain your Commercial License with Connect Middle East?

    Getting your commercial license in dubai in Dubai does not have to be a complex process. With the right knowledge and the help of expert business consultants like ours, you can obtain the most out of your investment.

    Foreign investors and entrepreneurs that want to start their operations in the UAE may think that obtaining a commercial license is easy. And this is in fact true, but the application process will be straightforward as long as you have completed the application and it is free from errors.

    Moreover, you need to have the proper documentation, both for the shareholders and the company. Consequently, this documentation should be notarized, and those that are in English need to be translated to Arabic by an official translator.

    As you can see, it is very simple to obtain a license, but only if you have everything ready and well-prepared at the time of submission.

    If this can be too overwhelming for you, here in Connect Middle East we can offer our support. You can set up your commercial establishment anywhere in the UAE with our help. We will take care of obtaining the valid legal documents your business needs to operate.

    With our assistance, you can get your Commercial Trade License not only in Dubai Mainland, but also in Abu Dhabi Mainland, Sharjah Mainland, and more.

    Required Documents for Dubai Mainland Business Setup

    The following are the documents you need to submit to the Dubai Department of Economic Development to obtain your Commercial License:

    👉 Application form duly completed

    👉 Passport copy of the owner(s) of the company

    👉 Two passport size photos (color)

    👉 Company’s registered address in Dubai

    👉 Trade name certificate

    👉 Lease contract

    👉 Approval from the Dubai Municipality’s Building Department (in case of a physical office)

    👉 Proof of payment of licensing fees

    Why Connect Services Middle East ?

    Getting a commercial license in dubai can be the best decision for your company. This is if you are planning to enter the UAE market. It may enhance your operations and give you the possibility to trade in one of the most solid economies in the world. However, obtaining this document can be difficult. It does not matter if you are an experienced investor or a young entrepreneur, dealing with legal formalities is always a burden. Nevertheless, if you decide to rely on a trustworthy agency like Connect Middle East, you can enjoy a problem-free incorporation process.

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    Frequently asked questions about the Commercial license in dubai

    How do I renew the commercial license?
    When a company obtains a business license, it must know that the validity of this document is only for a year. Thus, if you want to continue with your operations, you must renew the license on time.
    In this regard, you must be aware that you have to renew your license once it has passed one year after the date of issuance. After the renewal, the Commercial Trade License will be valid for four years. You must submit the following documents to renew it:
    • Copy of the trade license
    • Copy of the leasing contract
    • Approval from relevant Authority (if necessary)
    • Foreign shareholders should provide details of employees’ accommodation
    How can I get a commercial license in the UAE?
    Obtaining a commercial license in the UAE is a very simple process. You just have to comply with three simple steps. First, you have to determine the nature of your business. This means selecting the preferred business activities and the legal structure of your company.
    Second, you must register your company’s trade name and register your company to obtain the initial approval. Finally, you will have to apply for the Commercial Trade License at the DED, in case you are in Dubai.
    What is the difference between a professional license and a commercial license?
    Some foreign investors may think that a professional license is the same as a commercial license but they are different. With the commercial trade license, you can sell tangible products.
    But, with a professional license, you are not allowed to trade in goods. You can use your special skills or knowledge to provide a service to your customers in exchange for payment.
    So, a commercial establishment usually has the form of an LLC, while a professional service is offered by a professional firm. Which are two completely different structures.
    What is the difference between the General Trading License and the Commercial Trade License?
    Although the General Trading License and the Commercial Trade License may seem similar, they differ in a few aspects.
    First, a Commercial License is more specific regarding the nature and number of goods you can trade. The General Trading License covers a wide range of products. Thus, it is perfect for those businesses that want to trade in a long list of products or engage in more business activities.
    Nevertheless, it is worth pointing out that the General Trading License is more costly than the Commercial License.
    Can I have 100% ownership with a commercial license?
    This depends on the jurisdiction of your choice. If you decide to incorporate your commercial establishment in a Free Zone, you can incorporate an FZE or FZCO with 100% foreign ownership. But, if you prefer to incorporate it in Dubai Mainland, this may vary.
    Some business activities grant the possibility to incorporate an LLC in Dubai Mainland with 100% foreign ownership. But, other activities require the company to have a local partner. In this regard, here in Connect Middle East, we can support you in this matter.