Are you thinking of starting a business in Dubai and looking for which license is the right fit for your commercial activities? With so many options available, one of the most popular and flexible licenses entrepreneurs choose in the UAE is the commercial license.
In 2021, Dubai issued 72,152 new business licenses, with 41% categorized as commercial, reflecting a 69% increase compared to 2020. This growth underscores Dubai’s position as a global business and investment hub.
A Commercial License in Dubai allows business owners to trade, import, export, and sell goods or services, making it an ideal choice for both local and international entrepreneurs.
In this article, we cover UAE commercial license, its benefits, covered activities, step-by-step licensing process, required documents, and average costs. Our experts at Now Consultant help you through every step of obtaining your commercial license in the UAE.
What Is a Commercial License In Dubai?
A Commercial License in Dubai is a legal permit issued by the Department of Economic Development (DED) or relevant Free Zone authorities that allows businesses to engage in trading activities. The license is not just about doing business in Dubai; however, it is about doing it legally and efficiently in one of the world’s most investor-friendly markets.
This license supports a wide range of business activities, from retail shops and e-commerce businesses to import-export and logistics companies. The license also covers buying and selling goods, services, and commodities both within the UAE and internationally.
Why Is a UAE Commercial License So Popular?
The commercial license remains one of the most preferred business licenses in Dubai. The following points highlight its popularity in Dubai and the UAE:
Diverse Business Activities:
A commercial license allows companies to trade in various products and services under one umbrella. From retail outlets to logistics firms and electronic goods suppliers, it suits a broad range of industries. This flexibility makes it ideal for businesses looking to scale or diversify.
Global Trade Opportunities:
With a commercial license, companies can engage in both import and export activities. This enables entrepreneurs to connect with international markets and build strong trade networks. It is especially beneficial for those aiming to expand beyond the UAE.
Simple Setup Process:
One of the main reasons for the popularity of a commercial license is its simple setup process. With proper consultancy support, businesses can complete licensing requirements efficiently. This ease reduces setup time and helps entrepreneurs start operations quickly.
Flexible Location Choice:.
Whether you prefer operating within a Free Zone or want direct access to Dubai’s local market, a commercial license supports both options. You can set up your business with a commercial license in any designated Free Zone or mainland in Dubai. This dual availability adds to its popularity.
Benefits of Holding a Commercial License In Dubai:
The following are the benefits for those holding a commercial license in Dubai:
Legal Business Status:
A commercial license gives your business legal recognition in the UAE. It ensures you meet local regulations and can operate with full legal protection. This builds trust with clients, partners, and banks.
Access to Markets:
With this license, you can trade within the UAE and also expand your business internationally. Whether you are targeting GCC countries or markets across the world, it supports global business growth.
Multiple Activities:
You can include several related business activities under one commercial license. This allows you to sell different types of goods or services, helping your business grow without needing extra licenses.
Visa Sponsorship Facility:
Commercial license holders can sponsor employees and family members and even apply for investor visas. This makes it easier to build a team and bring in partners and investors.
Tax Benefits:
Businesses in UAE-Free Zones enjoy 0% corporate and personal income tax. They can also transfer profits to their home country without restrictions, increasing overall returns.
Wide Range of Goods:
The license allows trading in a variety of products under a single approval. From electronics and healthcare products to construction materials, you can expand your business range easily.
Ideal for Foreign Trade:
With supportive trade laws and advanced logistics, Dubai is ideal for companies involved in import and export. A commercial license ensures you are fully covered for international trade.
Business Protection:
Holding a commercial license ensures the authenticity of your business as it presents legal recognition for your business operations. It protects businesses from legal issues and ensures compliance with Dubai’s trade laws.
Business Activities Covered Under a Commercial License In UAE:
The commercial license in the UAE includes a wide range of activities recognized by DED and Free Zone Authorities, as given below:
Mainland Business Activities:
The following are the common activities for businesses to choose under a commercial license in the mainland jurisdiction in Dubai and the UAE.
- Import-export activities
- Sale of electronic products
- Supply of brokerage services
- Real estate-related services
- Sale of construction materials
Free Zone Business Activities
The following are the popular activities for businesses to choose under a commercial license in the Free Zone jurisdiction in Dubai and the UAE.
- Software development
- Electronic commerce
- IT consultancy
- Medical equipment trading
- Healthcare consultancy
Each of these activities can be combined based on the authority’s approval and business scope. The DED and Free Zones Authority allow the addition of multiple related activities under a single license, making it a cost-effective and scalable option.
Process of Getting a UAE Commercial License:
The following is a step-by-step process of getting a UAE commercial license in the UAE:
Step 1: Choose the Jurisdiction
In the first step, you need to decide where to set up your business, whether on the mainland or in the Free Zone. Each jurisdiction offers different benefits and has different limitations. If you plan to deal directly with local customers, the mainland is ideal. If you are focused on international trade or want full ownership, a Free Zone may be better suited.
Step 2: Select Business Activities and Legal Structure
In the second step, you have to select business activities according to your business requirements. You can select the business activities from the list provided by DED or Free Zone Authority and approve the activities from the relevant authorities.
In addition to this, you have to choose a legal structure for your business in the selected jurisdiction. Both jurisdictions offer different legal structures based on ownership, limited liabilities, and operational scope in the UAE.
Step 3: Register Trade Name
In the third step, you have to choose the trade name of your business according to the UAE naming regulations. You have to register the trade name with the relevant authorities for approval.
Step 4: Apply for Initial Approval
In the fourth step, you must apply for initial approval from the relevant authority based on your chosen jurisdiction. This step shows that your business idea and selected name are accepted, and you are allowed to continue with the setup process.
Step 5: Prepare Documents
In the fifth step, you need to gather all the necessary documents as per the commercial license requirements in the UAE. The required documents are listed below according to your chosen jurisdiction and selected business activities.
Step 6: Submit Application
After preparation of all the documents, you have to submit an application for your trade license along with the required documents. You can submit the online application for your trade license to the DED or Free Zone Authority according to the jurisdiction you choose.
Step 7: Secure Office or Workspace
In this step, you need to secure an office space or workspace for your business in the UAE. If you are opening a mainland company, you must rent an office and get an Ejari-registered tenancy contract. For Free Zones, you can choose between a flexi-desk, shared office, or private office, depending on your budget and space needs.
Step 8: Pay Fees
After submitting the application and fulfilling the requirement of securing an office space, you are required to pay the license fees. The license costs vary based on your business activity, location, and whether you are setting up on the mainland or in a Free Zone. You may also pay charges for additional approvals and fulfilling legal requirements.
Step 9: Receive Your License and Start Operating
After payment, the authority will review your complete application. If everything is in order, they will issue your commercial license. After getting the license, you can open a corporate bank account, apply for investor or employee visas and start business operatons in the UAE.
Documents Required to Obtain a Dubai Commercial License:
To apply for a commercial license, you need to prepare the following documents, depending on whether you are setting up in a mainland or Free Zone jurisdiction.
- A completed application form
- No Objection Certificate (NOC)
- Passport copies of the business partners and shareholders
- Passport-size color photos of the applicants
- Initial approval certificate
- Trade name reservation certificate
- Share capital details (if required)
- Complete business plan
- Financial statements
- Ejari tenancy contract or other proof of business address.
- Memorandum of Association (MOA)
- Local service agent agreement (if applicable)
Depending on your business activity, external approvals may also be required from specific authorities.
Cost of Getting a Commercial License In Dubai:
The minimum cost for obtaining a commercial license in Dubai starts from AED 12000 and goes upto AED 20,000, depending on the chosen Free Zone and package. The overall cost may vary based on several factors, including the jurisdiction (Mainland or Free Zone), the number of business activities, office space requirements, and additional services such as visa allocation and others.
Cost In Dubai Mainland:
On average, the cost for a DED-issued commercial license in Dubai ranges from AED 10,000 to AED 25,000, excluding visa costs.
Cost In Dubai Free Zone:
The commercial license cost in the Free Zones varies with different Free Zones and business packages in the UAE. On average, the commercial license cost starts at AED 12,900. However, some additional cost factors may also involve visa fees, extra approval fees, etc.
Now Consultant offers cost-effective packages to get a commercial license in either the mainland or the Free Zone in the UAE.
FAQs
Can I Add Multiple Activities To My Commercial License?
Yes, Dubai and the UAE regulations allow you to add multiple related activities under one commercial license. However, you may require additional approvals or separate licenses if you want to add different or unrelated activities to your commercial license.
Do I Need a Local Partner To Get a Commercial License In Dubai?
Not necessarily. In Free Zones, commercial license holders can have 100% ownership of their business. For mainland businesses, foreign investors can also retain full ownership of commercial licenses under recent UAE laws.
How Long Does It Take To Get a Commercial License In The UAE?
The timeline varies by authority but generally ranges from 3 to 7 working days, provided all documents are prepared accurately and no external approvals are required.
Can a Commercial License Holder Sponsor Employees or Dependents?
Yes, commercial license holders can sponsor employees and dependents. The number of visas allowed depends on your office space and license package.
How Can We Help You?
At Now Consultant, we help businesses obtain commercial license in Dubai, UAE. Our expert guidance covers everything from selecting the right jurisdiction and business activities to preparing documents and meeting regulatory requirements.
We help you choose the best jurisdiction based on your goals, assist in reserving trade names, handle documentation with accuracy, and ensure your business structure complies fully with UAE laws. We help you avoid costly fines in business operations, meet all legal obligations, and get required approvals on time.
