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Commercial license in Dubai provides certain benefits to business owners and startup owners. A commercial license comes with suitable benefits. If you are an investor or you want to start a business in Dubai, you need to obtain a commercial license to perform your business activities. However, the application for a permit involves a clear and documented process. In this blog, we will cover all aspects of a commercial license in Dubai.
Key takeaways
In this blog, you will learn about
- What is a commercial license?
- Steps to get a commercial license in Dubai
- Services under a commercial license
- Commercial license cost in Dubai
- Documents required to get a commercial license
And more
What Is A Commercial License In Dubai?
A commercial license is like a permit that enables you to provide specified services or perform business operations in products. If you have a commercial license, you can import and sell products in the UAE. You can also trade your products outside the UAE.
In addition to these, business owners can also provide services. By meeting certain requirements, you can perform a diverse variety of business activities.
Services/Activities Under Commercial License
Investors can select any of the following business activities that support the commercial license system in Dubai. You can choose from a plethora of services as the choices are diverse. Here are the major examples of the business activities or services that can be operated using a commercial license in Dubai.
- Advertising services
- Automobile trading
- Beauty products
- Baby essentials
- Cleaning services
- Cold storage spaces or equipment
- Maintenance services
- Exchange and financial services
- Filling stations
- Flowers and plants trading
- Warehousing
- General store
- Home appliances trading
- Trading
- Plumbing
- Media-related equipment and services (for radio, TV, cinema, or others)
- Rental services
- Restaurant management
- Surveillance services
- Self-storage services
Documents Required For Commercial License
An applicant has to submit the following documents to apply for a commercial license in Dubai. These documents are prepared and registered for the record.
- An application form. The company name should be mentioned in both English and Arabic languages.
- Original leasing contract for registered office
- Permit from Dubai Municipality’s Building Department to use it as a business address
- DED’s letter of approval to be used for the company name
- Proof of payment of the license
- Applicant’s passport-sized pictures (colored)
- No-objection certificate
- Letter of intent
- A business plan
- Details of shared capital
- Reference certificates of financial statements
- A notarized copy of the registry identification form
How Much Does A Commercial License Cost In Dubai?
The cost can vary in various areas in Dubai. The approximate cost ranges from AED 10,000 to AED 50,000. The cost can vary depending on visa fees, residence fees, transport costs, trademark registration fees, documentation fees, and other expenses involved.
Why Should You Get A Commercial License In Dubai?
A commercial license comes with a number of benefits for business owners.
Flexibility: A license gives you the flexibility to deal in a variety of activities under one license. From real estate to small startups, you can work on up to 10 activities under a license.
Good pricing: Dubai offers cost-effective options in the form of mainland and free zones you can select from. Depending on the type of business, you can select suitable packages in these zones.
Security & transparency: The entire process takes place with transparency. All documents are protected and all paperwork is secured.
Types Of Commercial License
Apart from a commercial License, there are other types of License available.
Professional License: The DED License is issued to businesses that make money from their services. Services can include spas, salons, technical services, educational services, management, or consultancies.
Industrial License: Activities under this License include production and development of items from natural or artificial raw materials. Applicants need to have a physical warehouse or space for the operation.
Tourism License: Activities include hotel apartment rentals, home rentals, travel agencies, tour operators, and others.
Difference Between Professional And Commercial License In Dubai
Professional License holders can enjoy 100% ownership. Whereas, commercial License holders can enjoy 49% shares in the business. The remaining shares are owned by a local agent in the UAE mainland.
A commercial License is the center point of the business activities you do. Whereas, professional License holders need to have a unique skill set.
How To Get A Commercial License? Here Are The Steps
Select Your Business Activity
Select a business activity from a diverse variety (as mentioned above). You can select any activity from industrial, commercial, professional, and tourist sectors registered under this License.
Select Between The Mainland And Free Zone.
As per the business chosen, you can determine the suitable location. Both free zones and mainland areas have feasible benefits.
Chose A Company Name For Your Business
Apart from that, you can select a suitable business name in Dubai. You need to select a name that has not been chosen by other companies before.