What is a Commercial License?
If you are planning to buy, exchange, and sell goods and any commodity or undertake any trade operation, then you need to obtain a commercial license. You will receive a one-year commercial license issued by the Department of Economic Development (DED) of Dubai.
Commercial License Business Activities in Dubai:
A commercial license in Dubai covers a wide range of business activities, including:
- General Trading License
- Specific Trading License
- Import and Export
- Logistics
- Real Estate Activities
- General Transport Services
- Equipment Rental Business
- Brokerage Services
This license allows businesses to operate legally within the UAE and engage in various trading and commercial activities.
Advantages of a Commercial License in Dubai
- Easier to obtain compared to other business licenses.
- Allows trading of multiple products or services under one license.
- Freedom to conduct business across any region in the UAE.
- Secure business engagements with the Dubai Economic Department (DED).
- No restrictions on business location within Dubai.
- Eligibility to apply for employment visas, labor quotas, and more.
- Tax benefits – Exempt from corporate, personal, and income taxes.
- No auditing required for license renewal.
- Easy process for opening a corporate bank account.
- Lower freight charges.
- Availability of ready-made offices, factories, and commercial spaces.
- No foreign exchange controls.
Documents Required for a Mainland Commercial License
- Application form with the company name in Arabic and English.
- DED approval letter for the company name.
- Lease contract with a registered company address.
- Memorandum of Association (MOA) of the sponsor and partners.
- Dubai Municipality permit for office space used as the company’s business address.
- License fee payment receipt as proof of issuance.
Steps to Obtain a Commercial License
- Choose your business activity (additional approvals may be required).
- Get initial approval from the Dubai Economic Department (DED).
- Arrange for a local sponsor if required (our team can assist in finding a reliable one).
- Draft MOA & AOA (Memorandum & Articles of Association) in Arabic and English.
- Select and register a trade name as per DED guidelines.
- Secure an office space (Flexi desks, virtual offices, or leased space) and complete Ejari registration.
- Obtain necessary approvals from relevant ministries and departments.
Instant Commercial License
Launched by DED’s Business Registration & Licensing (BRL) sector in 2017, the Instant Commercial License simplifies the licensing process.
Process to Obtain an Instant License:
- Choose your business activity.
- Finalize your activity and add business partners, defining their profit and loss share.
- Reserve a trade name (either choose a new one or use an auto-generated name).
- Specify capital value in the company’s commercial register data.
- Option to select or skip the electronic MOA.
- Receive a payment voucher and complete the payment process.
Our experts are available to assist you in navigating legal formalities and ensuring a smooth licensing process.
Renewing a Commercial License
A commercial license is valid for one year and must be renewed before expiration. Once renewed, the validity extends for five years.
Documents Required for Renewal:
- Copy of trade license.
- Copy of office lease contract.
- Necessary approvals from relevant authorities or ministries.
- Details of employee accommodations for foreign shareholders.
We are here to make your business setup journey seamless and hassle-free. Get in touch for expert assistance!