Commercial License in Dubai

Commercial License in Dubai

Investors need to apply for a mandatory license to start a business in Dubai. The licenses vary with the type of business and the region of operation. These licenses are issued by the government agency named Department of Economic Development or DED. The major licenses issued are listed below:

  • Professional License
  • Commercial License
  • Industrial License
  • Tourism License

Individuals planning to set up a trading business in Dubai need to acquire a commercial license in Dubai, which allows one to buy and sell goods and services.


What is meant by Commercial License?

In order to buy and sell any commodities or goods or involve in a trading activity, companies in Dubai, UAE have to possess a valid Commercial License. Therefore, if you are planning to set up a business activity connected with trading in Dubai – apply for a Commercial License – it is as simple as that. Commercial License in UAE is issued from 3 jurisdictions. The investor may select from any of the 3. The investor should opt for the most feasible location prior to applying for the Commercial License.

Business Activities that come under Commercial License

Prior to the application for a commercial license in Dubai, one needs to decide on the trading activities that are going to be conducted under the same. Have a clear understanding of the type or category of your business activity before you set up a business in Dubai. Business activities related to buying and selling and certain service-oriented endeavours come under Commercial License. The major activities that come under the commercial license in Dubai, UAE are listed below.

    • Logistics
    • Import and export
    • Tourism and Travel
    • Import and Export
    • Brokerage
    • Product-oriented sales (electronics, construction, shops, stores etc)
    • Real Estate
    • Rental business

After deciding on the business trading activities, choose your business trade name and register it. Following this, submit all the relevant documents to the Department of Economic Development and the UAE Federal Ministry of Economy to get your commercial license in the country.

Documents needed to apply for a Commercial Licence in Dubai

The DED will issue a commercial for your business in Dubai based on the documents you submit. The commercial license in Dubai will be valid for one year; after expiry, you need to renew it. Here are the documents needed to apply for a Commercial License in Dubai.

Fill the name of the company in an application form. The name should be specified in both English and Arabic.

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

Sponsor/partner MOA

Dubai Municipality Department permit sanctioning the business address

License Fee proof.

DED issues the Commercial License after verifying the above-mentioned documents.

Commercial License Renewal in Dubai – Documents needed

The validity of the license is 1 year and therefore it is mandatory to renew the same when it reaches the expiry. The documents needed to obtain the Commercial license and the ones needed for license renewal are not identical. You have a different group of Documents for License renewal. And they are listed below.

Copy/original of license

Registered address lease contract (copy)

Concerned authority approvals (if needed)

Information regarding staff’s accommodation, applicable to foreign shareholder firms.

After you have accomplished the license renewal, the renewed trade license has an extended validity of 5 years.

Advantages of UAE Commercial License

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.