If you have business plan in your mind to setup in Dubai or anywhere in UAE? Do you want to trade both goods and services in UAE or Internationally? then you will need to get commercial license in Dubai.
If you are planning to start your very own business in a foreign land, Dubai might be the perfect destination for you.The benefits of forming a business in Dubai are huge. Apart from the benefits of its location, Dubai also has a world-class infrastructure and a favorable business environment for new companies to grow.
However, before you can start your own company, you will need to meet the requirement of the Dubai government and follow the rules and regulations. One of the requirements of starting a business in Dubai is that you will need to obtain a business license to run your business operation legally. But first, you will need to decide what kind of business activities you want to perform in Dubai.
What is a Commercial License?
A commercial license allows you to trade both goods and services. You can perform a wide range of business activities with a commercial license. With a commercial license, you can trade both buy and sell goods inside and outside the UAE.
A commercial license will allow you to trade almost any kind of product like as- jewelry and toys to packaging, automobiles, computer systems, furniture, foodstuffs, readymade garments, virtual goods, software etc. You can perform some specific services like Brokerage or real-estate services with a commercial license.
Dubai Commercial License Activities List
The range of business activities you can perform under a commercial license is huge. With a commercial license, you can easily expand your business to different sectors.
Here are some of the business activities you can perform under a commercial trade license Dubai:
- Medical Commodities
- Aircraft and train spare parts trading
- Bags and Packaging material trading
- Beauty and baby care essentials trading
- Animal skin trading
- Flowers and plants trading
- Home appliances trading
- Medical Commodities
- Surgical Equipment
- Cleaning services
- Advertising services
- Foodstuffs
- Furniture
- Readymade Garments
- Software
- Computer Systems
- Communication Equipment
- Automobiles
- Logistics
- Import and export
- Brokerage
- Product-oriented sales (electronics, construction, shops, stores etc)
- Real Estate
- Rental business
The list of permitted business activities is much bigger than this. You can access the full list from the Dubai Department of Economic Development.
Steps to get your commercial license in Dubai
The process of starting a company and obtaining a commercial license in Dubai is quite straightforward. The simplified process of incorporating a company in Dubai is one of the many reasons that make Dubai a lucrative choice for entrepreneurs.
Here are the steps you will need to follow to acquire a commercial license in Dubai:
1. Select a Name and Legal Structure for Your Company
The first step of getting a commercial license in Dubai is choosing a name for your company. You will need to follow the rules and regulations of the Dubai government when choosing a name for your country. You will need to make sure that the name is unique within the UAE. The name must not contain any kind of profanity. Next, you will need to make sure that the name is available for registration. Once the name is locked, you will need to choose a legal structure for the company. There are options available to you to choose as the legal structure for your company:
- Sole Proprietorships
- Corporations
- Partnerships
- Limited Liability Company (LLC)
- Holding Company
- Free Zone Company
2. Choose the Business Activity You Want to Perform
Next, you will need to finalize the business activity you want to perform with your company. When choosing a business activity, you must make sure that the activity complements your skillset. You will also need to make sure that you have the capability, resources, and manpower to run this business activity. A commercial license will allow you to choose from a wide range of options. You can choose multiple business activities if you have the capabilities to do so. Once you have finalized your business activity, you can move on to the next step.
3. Choose the Location of Your Business Operation
Next, you will need to choose the location of your business operation. There are two options available to you to choose from. You can choose to run your business on the mainland or in one of the free zones. Both of them have advantages unique to them. The rules and requirements can also vary based on the location. If you choose to form your business in the free zone, you can enjoy benefits like 100% ownership, tax benefits, quick company incorporation, and no money restriction. On the other hand, you will need a local sponsor to start a business on the mainland. The local sponsor will need to own 51% of the company. However, starting a company in the mainland means your company will enjoy more traffic, and you can trade directly with the UAE market.
Source: https://www.companysetup.ae/commercial-trade-license/
