Companies in Dubai, UAE must obtain a valid Commercial License in order to buy and sell commodities or goods or engage in trading activities. So, if you want to start a business related to trading in Dubai, simply apply for a Commercial License – it’s that simple. Three regions provide commercial licenses in the UAE. The investor may choose any of the three options. Prior to filing for a Commercial License, the investor should select the most useful location.

Based on the documentation you submit, the DED will issue a commercial for your Dubai-based firm. The commercial license in Dubai is valid for one year and must be renewed when it expires. The following documents are required to apply for a Commercial License in Dubai.

Fill out an application form with the company name. The name must be written in both English and Arabic.

Lease contract form related with the registered address of the company.

• Sponsor/partner MOA
• The Dubai Municipality Department has approved the company address.
• License Fee proof.
• DED issues the Commercial License after evaluating the above-mentioned documentation.

The license has a one-year validity period, and it is therefore necessary to renew it when it expires. The paperwork required to obtain a Commercial license and those required to renew a license are not the same. For license renewal, you have a different set of documents. They are also included below.

• Copy/original of license
• Registered address lease contract (copy)
• Concerned authority approvals (if needed)
• Staff accommodation information related to foreign shareholder enterprises.
• After you have completed the license renewal, the renewed trade license has a 5-year validity period.

Choose the legal form, then the business activity. Add the partners according on the legal form chosen. Determine factors such as the capital share of each partner and the profit and loss distribution. Trade name reservation – you can reserve a new trade name or use one that was generated automatically.

Select the commercial register data of the company and specify the Capital value. Select or skip the electronic MOU.

Wait for the payment voucher and when the voucher has been issued, remit the fees. The total cost involved in attaining Commercial License in Dubai is AED 10,999. If you have plans to set up an Import/ Export company or any buying or selling endeavor in Dubai/UAE, Express PRO can guide you through all the official formalities regarding licensing services in Dubai.

Have doubts regarding Commercial Business License or renewal of your existing License, feel free to contact Express PRO business consultants.

Obtaining a commercial license in Dubai is comparatively easier than many of the other types of business license. Moreover, the commercial license possesses several advantages. The business firm issued with a commercial license is permitted to carry out varying activities.

The advantages of UAE commercial license are:

• It allows the company to trade more than one product.
• The business entity can undertake trading in any region in the UAE. Thus making optimum use of the markets across the country.
• Auditing is not mandatory for renewal of commercial license.
• The company can seek for employment visas for recruiting foreign employees.
• The business organization with commercial license is allowed for foreign commercial activities and trading.
• Commercial license permits companies to choose their location anywhere in Dubai.
• The reporting of financial transactions, turnover, profit and losses is easier than other type of licenses.
• Opening a corporate bank account is unfussy when the firm has commercial license in Dubai.
• Companies in the Free Zone, having commercial license, can repatriate 100% profit. Those are exempted from taxes too.

The steps for obtaining a Dubai commercial license are elaborated in the subsequent paragraphs. It may be noted that some steps have to be pursued simultaneously. And the sequence may vary depending upon the amendments in procedure from time to time. Meticulous compliance of formalities is vital for the smooth functioning of your business entity. The federal laws of the land are stringent for preventing illegal activities and unauthorized business activities. Follow the procedure judiciously, submit all the documents and get the commercial license without any delay.

Kiltons will help you to gain a uae commercial license without any complications and will aid you in setting up of business. The official formalities for a commercial license are appended below.

Step 1. Confirm the Business Activity

Choose the type and product of business you want to start in the UAE. Additional approvals may be necessary according to the type of business activity.

Step 2. Obtaining Initial Approval

The Dubai Economic Department (DED) issues initial approval for commercial license. Apply for initial approval along with the requisite documents.

Step 3. Find a Reliable Local Sponsor

The federal laws stipulate that you must have an Emirati as your local sponsor for establishing a business in Dubai Mainland and obtaining a commercial license. The local sponsor will be holding 51% of the shares in the company. The ex-pats and the shareholders are authorized for the remaining 49%. The legal formalities and commercial approvals will be on the name of the sponsor. Therefore, you must get a reliable sponsor to support your firm. Express PRO can help you get a trustworthy local sponsor. We also provide exclusive Royal sponsorship for premium business set-ups.

Step 4. Formulation of Legal Structure

Article of Association (AOA) and Memorandum of Association (MOA) is called the constitution of a business entity. The documents will lay out the rules, regulations and policies to be followed by the company, the management board and employees. The documents have to be prepared both in English and Arabic. 

Step 5. Application for Approval for Trade Name

The trade name you select must be according to the specific norms promulgated by the authorities. Else, the name will be rejected. The trade name should neither be similar to any of the existing firms. Neither should it have more stakeholders. Religious and political references are strictly prohibited.

Step 6. Hire an Office Space

Rent an office space in Dubai. However, a few types of business firms can have virtual office or flexi-desks. You must complete the registration at Ejari if you are renting or leasing an office space.

Step 7. Rent or Lease a Commercial Space

The authorities have stipulated specific dimensions for the commercial space. You must rent a commercial space for the business. The officials will inspect the commercial space for confirming the dimensions and completeness of legal formalities. Ejari formalities also must be completed for the space you are hiring. 

Step 8. Obtain Approvals from Ministries and Departments

The additional approval may not be required urgently. You can commence the business and obtain the approvals in due course.