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Commercial license

Commercial license in Dubai: requirements and distinctions

What is a commercial license in Dubai?

A commercial license in Dubai is a mandatory requirement for businesses planning to participate in buying or selling goods within the region. Whether you're a global conglomerate or a budding entrepreneur, securing this license ensures you are able to legally operate in the dynamic market of Dubai.

Commercial license

Activities under commercial license

Commercial licenses in Dubai cover a wide range of activities from retail sales and wholesaling to trading, etc. If your business involves transactions of goods or services to consumers or other businesses, it's likely you will need a commercial license.

How to get a commercial license in Dubai?

  • Step 1: Decide on free zone or mainland business setup
    • Free zone: benefit from 100% ownership, tax exemptions and dedicated infrastructure.
    • Mainland: connect with the broader market of the UAE and embrace versatile business options.
  • Step 2: Choose a name for the company
    • Ensure the name reflects your business nature and complies with naming conventions of Dubai.
  • Step 3: Submit your license application
    • Complete the application forms and provide necessary documents.

Documents required for a commercial license in Dubai

  • Business plan outlining company operations
  • Passport copies of all partners
  • Proof of initial approval for the business
  • Office tenancy agreement
  • Other industry-specific documents as necessary

Commercial license

Cost of commercial license in Dubai

The cost of a commercial license in Dubai varies based on several factors, including business activity type, jurisdiction (mainland business setup or free zone) and the number of partners. It's better to consult with a local expert or a special agency for accurate and up-to-date pricing.

How to obtain a commercial license in Dubai free zone

  • Step 1: Consultation
    • Realize the advantages of establishing within the free zone and choose one that aligns with your business needs.
  • Step 2: Prepare documents
    • Collate necessary paperwork, including business plans, identification documents and approvals.
  • Step 3: Registration
    • Submit your documentation, complete the registration form and pay the associated fees.
  • Step 4: License issuance
    • Upon approval, receive your commercial license and start your business operations.

The process of renewal of the commercial license

Commercial licenses in Dubai typically require renewal every year. This involves submitting updated documents, settling any outstanding government fees and undergoing periodic inspections if necessary.

Commercial license

Benefits of having a commercial license in Dubai:

  • Legally operate and grow your business in one of the world's most dynamic cities.
  • Access a strategic location connecting the East and West.
  • Enjoy a competitive and low-tax environment.
  • Benefit from world-class infrastructure and services.

What are the business activities allowed under commercial license in Dubai?

From trading, export, import to distribution, a plethora of activities fall under the commercial license. Depending on the nature and scale of your operations, you may need additional approvals or permits.

Commercial license in Dubai in FAQs

  • Do I need a local sponsor for a mainland commercial license?
    • Yes, a local sponsor holding 51% of the shares is required for mainland business setups.
  • How long does it take to get a commercial license in Dubai?
    • On average, it takes 1-4 weeks, but this can vary depending on the type of business and other factors.
  • Can a foreigner own 100% of a business in the free zone in Dubai?
    • Absolutely! One of the prime benefits of free zones is the provision for foreign investors to retain 100% ownership.

For more detailed information and personalized assistance reach out to our dedicated team of experts. Whether you are starting a new venture or expanding your global footprint, we are here to help navigate the exciting world of business in Dubai.

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