28 Jan The cost of issuing and canceling a commercial license in the Dubai Free Zone
Find out the cost of issuing and canceling a commercial license in the Dubai Free Zone, because the Dubai Free Zone is one of the most attractive destinations for investors and entrepreneurs thanks to its flexible economic environment and advanced business environment. Many individuals and companies seek to obtain a business license in this region to take advantage of the unique advantages it offers, such as tax exemptions and full ownership of the business. Obtaining a business license is an essential step to starting any business in the Dubai Free Zone, but there are also cases that require the cancellation of this license. This article discusses the steps and procedures for issuing and canceling a commercial license in the Dubai Free Zone, highlighting the legal and administrative aspects that investors must know to ensure a smooth process.
Commercial license in Dubai is an official document issued by the competent authorities that enables individuals and companies to legally practice various commercial activities within the emirate. This license is considered an essential step for starting any business activity and gives its holder the right to conduct the business specified in it.
Types of business licenses in Dubai
Here is a table showing the types of commercial licenses in Dubai with a brief explanation of each type:
| Type of license | the description |
|---|---|
| Commercial license | It is issued to companies that wish to engage in commercial activities such as buying, selling, distribution, import and export. |
| Industrial license | It is issued to companies that wish to carry out industrial activities such as manufacturing, assembly and packaging. |
| Professional license | It is issued to individuals and companies that provide professional and advisory services such as accounting, consulting, and technical services. |
| Tourist licence | It is issued to companies operating in the tourism sector, such as organizing trips, tourism and travel services. |
| Free license | It is issued to companies that wish to conduct business within free zones, and provides benefits such as full ownership and tax exemptions. |
This table provides a quick overview of the types of business licenses available in Dubai, explaining the purpose of each type.
Requirements for obtaining a business license in Dubai
- Determine the business activity : You must precisely define the business activity you wish to practice.
- Choosing a trade name : A suitable trade name must be chosen and approved by the competent authorities.
- Determine the legal form of the company : such as a limited liability company (LLC), sole proprietorship, joint stock company, etc.
- Obtaining approvals from competent authorities : Some activities require approvals from specific government agencies.
- Preparing legal documents : such as the company’s articles of association and articles of association.
- Office Leasing : A lease contract must be provided for the office or space that will be used for the business activity.
- Submitting the application and paying the fees : Submitting the application to the competent authorities and paying the prescribed fees.
Advantages of obtaining a commercial license in Dubai
Obtaining a business license in Dubai comes with many advantages that make it an attractive destination for investors and entrepreneurs from all over the world. Below are the most prominent of these features:
- Ease of establishment and procedures : Dubai provides fast and simplified establishment procedures compared to many other countries.
- Advanced Infrastructure : Dubai includes a world-class infrastructure of transportation networks, communications, and logistics services.
- Tax exemption : Most free zones in Dubai exempt companies from taxes on income and profits for periods of up to 50 years, subject to renewal.
- No personal income tax : Dubai does not impose taxes on individual income, making it an attractive destination for professionals and entrepreneurs.
- Full ownership : In free zones, foreign investors can own companies 100% without the need for a local partner.
- Access to global markets : Dubai is located in the heart of the world, making it easy to access European, Asian, and African markets.
- International airports and ports : Dubai includes advanced airports and ports that facilitate international shipping and transportation operations.
- Supportive legal system : Dubai provides a transparent and advanced legal system that protects investors’ rights and provides a stable business environment.
- Continuous updating of legislation : Dubai continues to update its laws and legislation to keep pace with global developments and improve the business environment.
- Investment incentives : Dubai offers many incentives to investors such as land grants, soft loans, and technical support.
- Electronic government services : Dubai provides advanced electronic government services that facilitate procedures and reduce the time required to complete transactions.
- Diversity of sectors : Dubai supports a wide range of economic activities such as trade, industry, tourism, financial services, and technology.
- International events and exhibitions : Dubai hosts many international events and exhibitions that provide great opportunities for communication and marketing.
- Community Infrastructure : Dubai provides high-quality community facilities and services such as education, healthcare, entertainment, and housing.
- Safety and stability : Dubai is known as one of the safest and most stable cities in the world, making it a preferred destination for living and working.
- Government programs and initiatives : The Dubai government launches many initiatives and programs to support entrepreneurs and startups.
- Developed financial sector : Dubai has a developed financial sector that provides a wide range of financial and banking services, including financing and investment.
Obtaining a business license in Dubai opens wide doors of investment and business opportunities, benefiting from a favorable business environment and many advantages that make Dubai one of the best business destinations in the world.
The cost of issuing a commercial license in the Dubai Free Zone
Issuing a commercial license in the Dubai Free Zone depends on several factors that affect the total cost. Here are the most important factors to consider:
- Type of business activity : License fees vary depending on the business activity (commercial, industrial, service, consulting, educational, etc.). Some activities require higher fees or additional procedures.
- Company size : Company size depends on the number of employees and office space required, which affects the cost of licensing.
- Selected Free Zone : There are several free zones in Dubai, each with different fees and conditions. Some free zones may offer special offers and incentives.
- Number of visas required : Issuing visas to employees requires additional fees, and the larger the number of employees, the higher the costs.
- Office Space : Office or warehouse space rental costs vary based on location and space required.
- Registration fees and legal procedures : These fees include company registration and legal documentation procedures, and may vary from one free zone to another.
- Additional service costs : such as license issuance fees, annual renewal fees, and health insurance costs for employees.
- Facilities and Services : Some free zones provide additional facilities and services such as logistical support and training, which may have additional fees.
- Capital Requirements : Some activities require specific capital to be demonstrated, which may affect initial costs.
It is important to conduct careful research and communicate with the competent authorities in the specific free zone to obtain accurate and comprehensive estimates of all costs related to issuing a commercial license.
How to cancel business licenses in Dubai
Cancellation of a commercial license in the Dubai Free Zone
Cancellation of a commercial license in the Dubai Free Zone is a procedure that is carried out at the request of the license holder when he wishes to end his commercial activity. This procedure requires following some legal and administrative steps to ensure that the license is properly canceled and all financial and legal obligations are cleared. Here are the main steps to cancel a business license in the Dubai Free Zone:
Steps to cancel a commercial license in the Dubai Free Zone
- Submitting a cancellation request : An official request to cancel the commercial license must be submitted to the concerned authority in the free zone. The required form can be obtained from the free zone website or from their offices.
- Liquidation of financial obligations : All financial dues related to the company must be settled, including government fees, licensing fees, office rents, and utility bills.
- Cancellation of visas : If there are work visas issued to employees, they must be canceled and proof of their cancellation must be provided. This requires contacting the Dubai Residency and Foreigners Affairs Department.
- Return of permits and documents : Hand over all permits and documents issued to the company such as security cards, free zone entry permits, etc.
- Liquidation of contracts : Liquidation of any existing contracts with suppliers or customers, and ensuring that there are no ongoing legal obligations.
- Closing bank accounts : Submit a request to close the company’s bank accounts after settling all financial transactions.
- Submitting the required documents : Submit all required documents such as the original commercial license, articles of incorporation, and liquidation certificate from the legal auditor if required.
- Obtaining a cancellation certificate : After completing all procedures and submitting the required documents, a license cancellation certificate will be issued by the relevant authority in the free zone.
In conclusion, a business license in Dubai Free Zone is a key to success and prosperity in a competitive and supportive business environment. Dubai’s free zones offer unique benefits such as tax exemptions, full business ownership, and advanced infrastructure, making it an ideal destination for investors and entrepreneurs from all over the world. Understanding the procedures and requirements for issuing and canceling a commercial license contributes to achieving a successful start for your business. With continued government support and innovative legislation, Dubai remains a global hub that attracts investments and helps achieve sustainable economic growth. Seize the opportunity and benefit from this ideal environment to achieve your business and financial goals in one of the most prosperous cities in the world.