Securing a Commercial License for Your Dubai Business

14 Feb Securing a Commercial License for Your Dubai Business

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1 What is a Commercial License in UAE?

2 Steps to Obtain a Commercial License in UAE

3 Costs of Obtaining a Commercial License in UAE

4 Benefits of a Commercial License in UAE

5 Choosing Between Mainland and Free Zone Business Setup

How to Obtain a Commercial License in UAE

Starting a business in the UAE requires the right licensing. A commercial license in UAE is essential for trading and other business activities. Whether you want to establish a company on the mainland or in a free zone, securing a commercial license is a crucial step.

What is a Commercial License in UAE?

A commercial license allows businesses to engage in trading activities, including general trading, import and export, and sales of goods and services. This license category applies to various industries such as real estate, retail, and logistics.

Steps to Obtain a Commercial License in UAE

Here’s a step-by-step guide to securing a commercial license in the UAE:

1. Choose Your Business Activity

Decide on the nature of your business activities. The UAE has an approved list of activities businesses can conduct under a commercial license.

2. Select Your Business Jurisdiction

You can establish your business either in a UAE mainland area or within a free zone. Mainland companies allow operation anywhere in the UAE, while free zones offer tax benefits and 100% foreign ownership.

3. Register Your Business Name

Choose a unique trade name that complies with UAE regulations. The name should not contain offensive language or references to religious or political groups.

4. Obtain Initial Approvals

Approach the Department of Economic Development (DED) or relevant free zone authority for initial business approval.

5. Draft Your Memorandum of Association (MOA)

Drafting and notarizing the MOA is necessary for company formation in the UAE. This document outlines the business structure and stakeholder agreements.

6. Choose a Business Location

Securing a physical office or workspace is mandatory for a commercial license.

7. Submit Documents and Pay Fees

Required documents usually include:

Completed application form
Copy of passport and visa
Trade name reservation
MOA (for mainland businesses)

After document submission, pay the required licensing fees.

8. Receive Your Commercial License

Once all approvals are in place, the relevant authority issues your official commercial license, making your business legally operational.

Costs of Obtaining a Commercial License in UAE

The cost of a commercial license depends on factors such as business jurisdiction, office space, and additional approvals. Generally, fees can range from AED 10,000 to AED 50,000.