When you start a business in Dubai, you need to acquire a business license to operate the business legally. There are several types of business licenses, and you need to obtain one of them depending on your business activity. When a company carries out activities that are covered under more than one license, it might need additional licenses to remain in compliance with the UAE business laws.  

In this post, we will specifically focus on the commercial trade license in Dubai.

What is Commercial Trade License in Dubai?

When a business activity involves selling (i.e. trading) of products, the business usually needs to acquire a commercial trade license. Under this license, various types of activities are approved, such as general trading, electronic trading, and software trading.

Thus, a commercial license is suitable for both general traders and specialized traders in Dubai and across the UAE. Trading companies in Dubai involved in the trading of goods, commodities, and services can apply for the issuance of the commercial license. Businesses related to retail, construction, and real estate industries are also required to obtain a commercial trade license.

This license is usually granted for a limited liability company that provides shareholders with limited debts and liabilities.

Types of Activities Carried Out Under Dubai Commercial Trade License

All commercial activities are approved by the Department of Economic Development (DED). The following activities can be carried out with a commercial license in Dubai:

• Aircraft and train spare parts trading
• Bags and Packaging material trading
• Beauty and baby care essentials trading
• Animal skin trading
• Amusement equipment and supplies trading
• Exchange and financial services
• Flowers and plants trading
• Home appliances trading
• Filling stations
• Foodstuff supply
• Building maintenance services
• Surveillance services
• Cleaning services
• Advertising services
• Readymade garments and many more

Benefits of Acquiring a Commercial Trade License

A commercial license not only serves as the regulation but also protection for trading companies in Dubai.

• Under one commercial trade license, you can carry out a minimum of ten business activities.
• You have multiple choices to select the type of company you want to register.
• You can conduct several similar business activities under one license.
• You enjoy exemption from taxes and the free repatriation of capital gains when used in a free trade zone.
• You have the opportunity of engaging in international trading activities.
• It facilitates the easier procedure for obtaining employment visas for foreign workers. It allows a company to hire a large number of foreign employees.
• Trading companies that operate under a commercial license don’t need to be audited to renew their license.
• The procedure for obtaining a commercial trade license in Dubai is the easiest of all.

However, when your business involves very specific activities, a commercial license alone would not suffice. For that, you will also need to obtain special permits and authorizations. If you are also planning to set up a company for commercial trading of products and services, it is best to get the guidance and complete information through a reliable and competent business consultant in Dubai.