If you’re thinking about starting a business in Dubai, one of the first things you need to consider is the type of license you’ll need. Dubai offers several types of licenses, including commercial, industrial, and professional licenses. In this blog post, we’ll focus on the commercial license, which is the most popular license for businesses in Dubai.

What is a Commercial License in Dubai?

A commercial trade license in Dubai allows you to engage in trading, importing, and exporting goods, as well as selling certain services. You can import and sell goods within the UAE, export them for sale outside the UAE, or trade them solely within the UAE. You can trade almost any type of goods, from jewelry and toys to food and electronics. You can also sell services, such as brokerage and real estate services.

Activities Permitted Under a Commercial License

Under a commercial license, you can engage in a variety of activities, including:

• Import/export
• Plumbing and sanitary contracting
• Cold storage
• Rental services
• Restaurant management
• Automobile trading
• Shoe trading
• Self-storage services
• General warehousing
• Advertising services
• Cleaning services
• General store
• Surveillance services
• Beauty and baby care essentials
• Building maintenance services

Steps to Get Your Commercial Trade License in Dubai

Obtaining a commercial trade license in Dubai is a straightforward process if you seek the help and guidance of an experienced company formation specialist. There are three simple steps involved:

• Step 1: Free Zone or Mainland Setup?

One of the most important decisions you need to make is whether to set up your business in a free zone or on the mainland. Free zones provide advantages such a faster business incorporation procedure, continued business support, and financial incentives like tax breaks and no currency limitations. Direct trade between mainland businesses and the UAE market is possible, and they can also compete for lucrative government contracts.

• Step 2: Your Company Name

Choosing a company name is a crucial step in establishing a UAE business. You must abide by strict naming conventions, avoiding offensive or blasphemous language, names of well-known organizations, and abbreviations. You must also check that your chosen business name for trade license is available to register.

• Step 3: Your License Application

The final step is making your commercial license application. If you’re setting up on the mainland, you can apply directly to the Department of Economic Development (DED). If you’ve chosen a free zone setup, you can apply directly to the free zone. In either case, it’s a good idea to hire a company formation specialist to ensure a fast and smooth process.

Documents Required for a Commercial License in Dubai

Whether you’re making your application yourself or through a company formation agent, you typically only need to provide a few details and some basic documentation, including:

• Completed application form
• Passport copy/copies of the proposed owner/owners
• Two color passport size photos

Cost of a Commercial License in Dubai

The cost of obtaining a commercial trade license in Dubai is approximately AED 10,000. However, you may also need to consider the cost of additional registrations, visas, premises, and more, which can add up to your license cost. If you’re looking for the most cost-effective way to start a commercial business in the UAE, it’s advisable to set up in a free zone.

Conclusion

Obtaining a commercial trade license in Dubai is a straightforward process, but it’s important to seek the help and guidance of an experienced company formation specialist. At Socialite Consultancy Services we help investors decide whether to set up in a free zone or on the mainland, choose a company name that abides by strict naming conventions, and gather the necessary documentation. By following these steps, you’ll be well on your way to obtaining a commercial trade license in Dubai and starting your business in one of the world’s most strategic trading locations.