The cost of a commercial license in Dubai is one of the most important requirements that must be researched if you want to establish a company in Dubai. The UAE government has imposed on entrepreneurs the condition of obtaining a commercial license in order to allow the activity to be practiced. The process of obtaining a commercial license is not easy and requires many steps, such as: going to a competent government agency in order to obtain a commercial license. The cost of a commercial license in Dubai varies according to the type of commercial activity that the investor wants to practice. In this article, we will learn about the cost of a commercial license in Dubai.
Commercial License in Dubai
The commercial license in Dubai is the official document that grants companies and individuals the right to practice their commercial activities within the emirate. This license is issued by the Department of Economic Development or by the competent authorities in the free zones, depending on the type of company and place of establishment. The types of commercial licenses vary based on the required activity, such as industrial, commercial, or professional licenses, and their fees vary according to the requirements of the activity and location. Obtaining a commercial license requires the submission of specific documents including the articles of association, activity details, and approvals from the competent authorities. Obtaining a license is an essential step for any business in Dubai, as it helps ensure that companies comply with local laws and provide a legal and organized business environment. In addition to the above, applicants for a Dubai trade license must adhere to the standards and regulations set by local authorities. The registration process involves submitting an application and providing supporting documents such as a passport, a lease contract for the business premises, and copies of the required licenses and approvals. Costs and timings vary depending on the type of activity and location, and may also include additional fees such as annual Dubai trade license renewal fees. It is essential to check the licensing requirements specific to the type of activity to avoid any potential delays or penalties. Ultimately, a Dubai trade license is key to starting a successful business, enhancing your ability to expand and innovate in a dynamic business environment.
Cost of a trade license in Dubai
The cost of a trade license in Dubai depends on several key factors, including:
Type of business activity: Different business activities may require different types of licenses and requirements, which affects the cost.
Place of incorporation: The cost of a license may vary depending on the free zone or economic zone you choose. Free zones in Dubai, such as Jafza or the Dubai International Financial Centre, may have different fees.
Legal type of company: Whether you are establishing a limited liability company, a private joint stock company, or any other type, the costs may vary accordingly.
Added services: Some companies offer additional services such as legal advice, document preparation, or recruitment procedures, and these services affect the overall cost.
Number of authorized activities: Some licenses allow only one activity, while others may include several activities. The costs of licenses that include several activities may be higher.
License renewal: The costs of renewing a license should be taken into account, as there are periodic fees depending on the type of activity and place of incorporation.
Taxes and government fees: The cost may also include other government fees, such as environmental fees or permit fees.
Work visa costs: The costs also include work visa and residency fees, which vary depending on the number of employees and nationalities.
Determining the exact cost requires consulting with a specialized consulting office or the company that helps you establish the company to obtain a comprehensive estimate based on your specific needs.
The importance of a commercial license in Dubai for establishing companies in Dubai
A commercial license in Dubai is essential for establishing companies in the emirate, and it is of great importance in several aspects:
Legal obligation: Obtaining a commercial license ensures that the company operates within a recognized legal framework, which protects it from legal violations and penalties.
Opening bank accounts: To obtain a commercial bank account in Dubai, it is required to submit a commercial license as a basic condition, which facilitates the management of funds and financial transactions.
Employment: A commercial license enables companies to issue work visas for their employees, which is necessary for hiring workers from outside the country.
Privileges and Opportunities: A commercial license gives companies the right to enjoy multiple benefits such as access to local and international markets, and joining wide commercial networks.
Business Operations: A commercial license helps companies conduct official business operations, including signing contracts, participating in government tenders, and dealing with suppliers and customers in legal ways.
Trust and Credibility: Having a commercial license enhances the company’s credibility in the eyes of customers, suppliers, and investors, which contributes to building a strong reputation in the market.
Expansion and Growth: A commercial license is an essential starting point for expansion and growth, as it provides the legal basis for expanding commercial activities into new markets and increasing business volume.
Therefore, obtaining a commercial license is not just an administrative procedure, but rather a vital element to ensure the success and continuity of businesses in Dubai, which contributes to achieving growth and expansion goals in a competitive and advanced commercial environment.
Steps to obtain a commercial license in Dubai
To obtain a commercial license in Dubai, a set of basic steps must be followed, which are as follows:
Determine the type of business activity: Before starting the application process, you must determine the type of business activity that the company will carry out, as this affects the type of license required.
Choose a company name: Choose a trade name that complies with local laws. The name must be distinctive and not used by other companies, and must follow the standards specified by the Department of Economic Development.
Determine the location of the activity: Secure a business location for the company. It may be necessary to sign a lease contract for an office or commercial headquarters that suits the type of activity.
Prepare the required documents: Collect the necessary documents.
Determine the type of legal entity for the company, such as a limited liability company (LLC), a private joint stock company, or any other type, based on your activity and requirements.
Submit your application for a commercial license to the Department of Economic Development in Dubai or to the responsible authority in the free zone you have chosen. You can also use consulting offices to help you submit the application.
Pay the fees required to obtain the commercial license. Fees may vary depending on the type of activity, location, and company type.
If your business requires additional approvals from other regulatory bodies (such as health or environment), these approvals must be obtained before the license is issued.
After reviewing the application and documents, the Department of Economic Development will issue the trade license. The license can be collected from the registration office or via digital means, depending on the system in place.
Make sure to renew the license regularly, as most trade licenses require annual renewal to maintain their validity.
Following these steps will help you obtain your trade license smoothly and legally, which will contribute to starting your business in Dubai effectively.
Types of Commercial Licenses in Dubai
In Dubai, commercial licenses vary according to the type of business activity and the field in which the company operates. The main types of commercial licenses in Dubai include:
Commercial License: Issued to companies that engage in commercial activities such as buying and selling and providing commercial services. This license includes activities related to wholesale and retail trade, distribution, export and import.
Industrial License: Issued to companies that engage in industrial activities such as manufacturing, assembly, and mining. This license includes companies that work in production and converting raw materials into finished products.
Professional License: Issued to individuals or companies that provide specialized professional services such as legal consulting, accounting, engineering, or medical services. This license includes activities that require specific skills or specialization.
Tourism License: Issued for tourism-related activities such as travel and tourism companies, hotels, and hospitality facilities. This license includes activities that aim to provide tourism and entertainment services.
Free Trade License: Issued in free zones and allows companies to carry out commercial activities within the free zone only. This license offers benefits such as tax exemption and 100% ownership for foreigners, but is restricted to activity within the free zone.
Business License: Issued to companies that employ workers. This license may be part of the process of obtaining a comprehensive commercial license, where work visas are issued based on the commercial license.
Determining the appropriate type of license depends on the business activity you wish to conduct and the location where you intend to establish the company, whether in the free zones or public areas in Dubai.
What do we provide you with regarding the cost of a commercial license in Dubai?
We have years of experience in establishing companies in Dubai.
We provide feasibility studies for projects to help entrepreneurs find suitable opportunities.
Providing offices and warehouses for companies.
Assisting with all legal and paperwork before the relevant government agencies.
Helping investors facilitate all procedures and obtaining a long-term investor residency.
Looking for help with obtaining a commercial license?
You can contact us and one of our experts will help you with all the procedures without you having to make an effort or waste time, and we will inform you of the ways to open a commercial register in Dubai in detail.
Frequently asked questions about the commercial license in Dubai
Is it possible to practice a commercial activity without obtaining a license?
No, practicing a commercial activity in Dubai without obtaining a commercial license is considered illegal and may expose the company to penalties and fines. Obtaining a license is a prerequisite for conducting any commercial activity legally.
What are the free zones in Dubai and how do they affect the commercial license?
Free zones in Dubai are special economic zones that provide commercial facilities and tax incentives. Companies established in these zones can obtain a free trade license, which allows them to benefit from 100% foreign ownership and tax reductions, but the activity must be confined to the free zone.
Is it necessary to renew the commercial license?
Yes, the commercial license must be renewed annually to ensure its continued validity. The renewal process includes paying fees and renewing the required documents, such as the lease contract and visas.
What is the appropriate license for a company working in the field of consulting?
Companies working in the field of consulting need to obtain a professional license, as this license includes activities that require specific skills or specialization.
