Commercial
Commercial License in Dubai, UAE
A business license is essential for operating any business in the UAE. The four primary types of licenses include professional, industrial, tourism, and commercial licenses, all of which are issued in Dubai.
The commercial license is a versatile, general-purpose license and is often the default for new business applications unless a more specific license applies—such as professional (e.g., architects), industrial (e.g., manufacturers), or tourism (e.g., travel agencies).
Activities Permitted Under a Commercial License
A commercial license allows a company to engage in buying and selling goods and services. Businesses under this license can deal in products such as electronics, property, and construction materials. However, companies intending to manufacture products must obtain an industrial license.
The license covers a wide range of activities, including:
General trading
Contracting
Import and export
Supply brokerage
Vehicle rental
Logistics
Healthcare
A company in Dubai with a commercial license can operate up to 10 different business activities.
Trade License vs. Commercial License
In Dubai, the term “trade license” is often used interchangeably with “business license.” A commercial license is one type of trade license, specific to trading activities.
Legal Form
A commercial license supports various legal structures, including establishments and limited liability companies (LLCs). Dubai does not mandate a specific legal form for a commercial license, making it accessible to businesses ranging from sole proprietorships to LLCs engaged in trading activities.
Expert Assistance for Business Licensing
Smartfast Business Service LLC’s expert consultants simplify the business licensing process in Dubai. From selecting the right license and jurisdiction to preparing documentation, choosing a trade name, and obtaining government approvals, Smartfast ensures a smooth setup experience. Let Smartfast handle the complexities while you focus on growing your business in the UAE.
Advantages of obtaining a Dubai commercial license
Investors enjoy many benefits with a commercial license in Dubai mainland. Some of them are as follows.
- Exemption from corporate and personal taxes
- Freedom to set up an office anywhere in Dubai
- Freedom to trade anywhere in the UAE
- A commercial license allows trading across multiple categories.
- Simple procedures to obtain visas for expatriate employees
- Quick and easy commercial licensing procedures
Steps to Register and Obtain a Commercial Trade License in Dubai:
The following are the general steps investors need to follow when applying for a commercial license.
- Select business activities that align with commercial trade.
- Prepare the company's Memorandum of Association.
- Register with Dubai’s Department of Economic Development to obtain a VAT number.
- Pay the required fees for company registration and commercial license issuance.
A commercial license in Dubai is valid for one year from the date of issuance and, upon renewal, extends to a validity of four years. To renew the license, companies must provide the original license or a copy, a copy of their office lease contract, and necessary approvals from relevant government departments. Companies with foreign shareholders are also required to submit details of their employees’ accommodation.
