14 Jan Fees and types of commercial license in Dubai
Dubai is considered one of the most prominent economic and commercial destinations in the world, as it occupies a prominent position as one of the most important commercial and financial centers in the Middle East. Dubai’s dynamic market attracts many investors and entrepreneurs from around the world, enhancing the diversity of economic and commercial activities in the emirate. In this context, the commercial license plays a pivotal role in organizing and controlling economic activities, as it is the basic step that must be taken to start any commercial project.
The Dubai government offers a variety of commercial licenses that meet the needs of various sectors and industries. These licenses are divided into several main types, including the commercial license, the professional license, and the industrial license, each of which serves a specific category of commercial activities according to its specific nature and requirements.
In this article, we will review the different types of commercial licenses in Dubai, in addition to the fees related to obtaining them and the procedures necessary to obtain them. We will provide you with a comprehensive guide that will help you understand the process of obtaining a commercial license in Dubai , making it easier for you to successfully start your business in this vibrant and developed city.
Fees and types of commercial license in Dubai
Types of business licenses in Dubai
Dubai is considered one of the most prominent global destinations for business and investment, and provides an encouraging and distinguished business environment. Businesses in Dubai are regulated through a business licensing system aimed at facilitating operations and ensuring compliance with local laws and regulations. Commercial licenses in Dubai are divided into three main types: the commercial license, the professional license, and the industrial license. We will review below the details of each type.
- Commercial license
A trade license in Dubai is the basic license granted to companies and institutions that operate in the field of traditional commercial activities such as buying, selling, importing and exporting. This license covers a wide range of business activities that can include retail and wholesale trade, food trade, household items, electronic equipment, clothing, and other goods and services. A business license is essential for any person or company that wants to do business in Dubai legally and officially.
- Professional license
A professional license is granted to individuals and companies that provide specialized services based on technical skills and knowledge, such as consulting services, legal services, medical, educational, and engineering services, and other professions that require professional qualifications and certificates. This type of license focuses on providing services based on experience and professional competence, not on selling goods.
- Industrial license
The industrial license is intended for companies and institutions operating in the field of industry, production and manufacturing. This license includes activities related to the production of goods and products, assembly of materials, manufacturing, packaging, and distribution. An industrial license is necessary for companies aiming to set up factories or production units in Dubai, and they need to comply with quality and environmental safety standards set by government agencies.
By selecting the appropriate type of business license, entrepreneurs and investors can choose the category that suits the nature of their business, making it easier for them to start their business activity in Dubai in a systematic and efficient manner.
License extraction fees in Dubai
The fees for obtaining a commercial license in Dubai are one of the basic elements that business owners must take into consideration when starting to establish a business. These fees vary based on the type of license required and associated services. Here is a comprehensive look at the various fees required to obtain a commercial license in Dubai :
- Government fees
Government fees are the fees imposed by official authorities in Dubai to regulate the process of issuing commercial licenses. These fees vary based on the type of license and the business class it belongs to. For example, fees for a basic commercial license may be lower than fees for an industrial license that requires more procedures and permits. Government fees include commercial registration fees, security approval fees, and technical inspection fees, in addition to the fees for issuing the license itself.
- Administrative fees
In addition to government fees, there are administrative fees related to administrative procedures and services provided by official authorities to facilitate the process of obtaining the license. These fees include the cost of processing applications, administrative reviews, and issuing the necessary certifications and permits. It may also include fees for special services such as courier services, copying services, and document legalization.
- Additional fees
Additional fees include any other costs that may arise from the process of obtaining a commercial license. These fees may include the costs of legal advice or financial advice, as well as subscription fees to chambers of commerce or relevant professional bodies. Additional fees may also include advertising and publishing costs, which may be necessary for some businesses.
In general, fees for obtaining a commercial license vary based on the type of business activity, its size, and geographical location. Therefore, business owners are advised to contact the relevant official authorities and obtain accurate information about the required fees before starting the process of establishing a business in Dubai.
Procedures for obtaining a license in Dubai
The process of obtaining a business license in Dubai is one of the basic steps that every investor must follow to establish his business legally. These procedures are a set of organized steps that make it easier for investors to start their projects efficiently and smoothly. Below is a breakdown of these procedures:
- Apply online
The online application service is one of the most popular and easy ways to obtain a business license in Dubai. This service allows investors to submit their applications from anywhere and at any time without the need to visit government offices. Investors can access the official website of the Department of Economic Development in Dubai and follow the instructions provided to submit the application. This includes filling out the required electronic forms, uploading the necessary documents, and paying the specified fees via electronic payment gateways. After submitting the application, the documents are reviewed by the competent authorities, and then the license is issued if all conditions are met.
- Personal submission
Although online application services are available, some investors prefer to apply in person for a business license. Investors can visit the service centers of the Department of Economic Development in Dubai, where specialized staff are available to assist applicants in filling out the forms and submitting the required documents. Personal application requires the applicant to appear in person or on his behalf, submit the required original documents and copies, in addition to paying the prescribed fees. This option is suitable for people who prefer direct communication and immediate support and assistance.
- The required documents
The process of obtaining a commercial license in Dubai requires submitting a set of necessary documents to ensure that all legal and administrative conditions are met. These documents include:
- Copy of passport: A clear copy of the passport must be provided to all partners and managers in the company.
- Personal photo: Submit a recent personal photo for both partners and managers.
- Approval of the competent authorities: Sometimes, some commercial activities may require obtaining prior approval from the relevant competent authorities.
- Lease contract: Submit a copy of the lease contract for the company’s headquarters, certified by the competent authorities.
- Company incorporation form: Provide the company incorporation form that includes the names of partners, percentage of shares, and details of the business activity.
Once all required documents are submitted and fees are paid, the Department of Economic Development reviews the application and documents, and if all requirements are met, a business license is issued, allowing the investor to start his business in Dubai legally and officially.
In conclusion, it can be said that obtaining a business license in Dubai is an essential step for anyone who wants to start a business in the emirate. The diversity of licenses available – whether commercial, professional or industrial – reflects the diversity of the economy in Dubai and opens wide horizons for entrepreneurs and investors. In addition, understanding the various fees, whether governmental, administrative or additional, helps in financial planning and preparing the required budget.
Simplified, online procedures make the application and license process quick and efficient, enhancing Dubai’s attractiveness as a global business hub. Finally, the commitment to submit the required documents accurately and in a timely manner is a crucial factor to ensure that the process runs smoothly and avoids any unnecessary delays.
Dubai continues to provide an encouraging environment for business and investments thanks to its advanced infrastructure and effective government procedures. Therefore, understanding all aspects of obtaining a business license can be key to achieving success and growth in this dynamic and thriving market.
The most important frequently asked questions about the commercial license in Dubai
How long does the process of obtaining a business license in Dubai take?
The process of obtaining a business license usually takes two to four weeks, depending on the type of activity and the speed of preparing documents.
Can the trade license be renewed?
Yes, the business license must be renewed annually. Renewal requires submitting an application to the Department of Economic Development, paying the prescribed fees, and submitting any necessary documents or reports.
What are the necessary procedures to amend the commercial license?
To amend the commercial license, such as changing the trade name or activity, an application must be submitted to the Department of Economic Development, along with the necessary documents such as the amended Articles of Association.
Is it possible to obtain a commercial license for foreign companies?
Yes, foreign companies can obtain a business license if they cooperate with a local partner in the case of limited liability companies (LLC) or by establishing a company in free zones that allow full foreign ownership.
What are the steps to obtain a business license in Dubai?
Choosing a trade name, preparing and submitting the required documents, obtaining approval for the name, submitting the application to the Department of Economic Development, paying the fees, and receiving the license.