Planning to start a business in Dubai, but among other difficulties, is having complete information about what is a commercial license in Dubai.
Starting a business in Dubai is a great idea, and one of the first things you need to do is get a commercial license. Think of it as a special key that allows you to open doors to many opportunities in this exciting city.
Dubai is a lively place where trade and business flourish. And getting a commercial trade license in Dubai is not just about following rules, it is a way to show that your business is trustworthy and meets the high standards of Dubai. Dubai is known for excellence, and having this license means your business is in line with that reputation.
While the process might seem complicated at first, RFZ is dedicated to making it easy so that you can start your business. With the right guidance,your dreams of starting a business in this amazing city can come true.
Dubai Commercial License Overview
In Dubai, getting a license is a must for all businesses. If you want to buy and sell things or provide services, you need a commercial license.
This license allows businesses to do business. It can be buying and selling things in the UAE, selling them to other countries, or just doing business in Dubai. Whether you deal with electronics, toys, food, packaging, or services like brokerage or real estate, the commercial license lets you do it if you follow the rules.
Dubai Commercial License Requirements
To get a commercial license in Dubai, you need to provide some important documents:
- A completed application form with the name of your company in both English and Arabic.
- The original rental agreement for your official business place.
- A letter from the Dubai municipality saying you can use that place for your business.
- Approval from the Department of Economic Development for the name of your business.
- Proof that you have paid the trade license fee.
- Passport-sized photos of everyone applying.
- A No Objection Certificate (NOC).
- A letter explaining what your business will do.
- A detailed plan for your business.
- Information about the money you are putting into the business (capital).
- Recent financial reports about your business.
- A special form called the Registry Identification form has been notarized.
Benefits of Obtaining A Commercial License in Dubai
- Getting a commercial license in Dubai helps businesses save on taxes, especially in certain free trade zones. They can also move their profits out of the country without any problems, giving them more financial flexibility.
- The renewal process of the commercial trade license of Dubai is really easy. Businesses do not have to go through tough audits, so it is simple and efficient to keep operating.
- The best thing about commercial license in Dubai is that it is very versatile. With one license, you can do up to ten different activities, including your main one. This makes it easy to try different things without needing lots of licenses.
- Having a commercial license also means you have a good relationship with the Dubai Economic Department (DED), which is important for business rules. Getting along with them helps your business run smoothly.
- Commercial license in Dubai is not just for local businesses. It opens up opportunities for international trade. Companies can do business globally, reaching a big market and expanding their business worldwide.
Cost of a Commercial License in Dubai
Getting a commercial trade license in Dubai can be costly. The basic fee for the license is around AED 10,000. But when you add up other expenses like visa charges, renting a space, and more, it can go beyond AED 30,000.
If you are looking for a more budget-friendly way to start a business in the UAE, you can consider “Free Zones.” These are areas where you can set up your business at a lower cost. And you don’t have to limit your search to Dubai, there are other emirates with cost-effective options.
The Process to Apply for A Commercial Trade License in Dubai
Collaborating with a knowledgeable RFZ advisor can make getting a commercial license in the UAE a straightforward process. Here is a simplified overview of the three key stages leading up to your license application:
First Stage: Deciding Between Mainland or Free Zone?
The first thing to figure out is whether you want to set up your business in a free zone or on the mainland.
Free zones offer some advantages like an easy setup process, ongoing support, and financial benefits like tax breaks and the ability to move money around without limits. There are different types of licenses available in free zones, depending on what kind of business you want to start.
Mainland businesses, on the other hand, can do business directly with the UAE market and can even bid for government projects, which can be very profitable.
The best choice for you depends on your business type, and a business expert can help you decide.
Second Stage: Selection of Business Name
Choosing the right name for your company in the UAE is important. There are specific guidelines to follow when selecting a name, and we at RFZ can help you with that.
You should avoid using inappropriate or religiously sensitive terms. Also, avoid using well-known organization names, and if you use your name, avoid abbreviations. It is also important to ensure that the name you want is available for registration.
Third Stage: Application for the License
The final step in this process is submitting your commercial license application. No matter if it is a Mainland Company or a Freezone Company, RFZ will assist you in setting up a company in any of the above-mentioned zones.
Renewal and Validity of Commercial Licenses in Dubai
In Dubai, a commercial license is valid for one year. After that, you need to renew it before it expires. The documents you need for the initial license are different from the ones required for renewal.
- To renew a commercial license, you will need:
- A copy or the original of your current license to confirm the details.
- A copy of the lease agreement for your business address to show that you are still operating there.
- If your business activities need specific approvals, you will need validation from the relevant authorities.
Tax Implications of Dubai Commercial Licenses
In Dubai, UAE, businesses need to consider corporate tax. In June 2023, the UAE government started a corporate tax that applies to all companies, whether they are from the UAE or other countries. The tax rate is 9%, and it’s calculated based on the money a company makes after taking out all the allowed expenses. Every year, companies must tell the government how much money they made and pay the tax they owe.
How do Dubai Commercial Licenses Compare to Other Licenses in the UAE
In Dubai, trade licenses are divided into different categories based on the kind of business activity. The main types of trade licenses in Dubai are:
Commercial License:
This license is for companies that buy and sell goods. If your business involves trading or different types of commerce, you need a commercial license.
Industrial License:
If your company wants to do manufacturing or any kind of industrial work, you must get an industrial license. This includes making finished goods from raw materials.
Professional License:
This license is for professionals, artists, and skilled workers. It covers services like consulting, training, and other professional services.
Tourism License:
Dubai is a big tourist destination, so businesses in the tourism and travel industry, like travel agencies, hotels, and tour operators, need a tourism license.
Conclusion:
To sum it up simply, starting a business in Dubai means getting a commercial license, which is a key to many opportunities. This license is not just a law, it shows that your business is trustworthy and meets the high standards of Dubai.
You can choose to set up your business in a free zone or the mainland, depending on your needs. Each has its advantages, like cost savings in free zones and direct trade opportunities on the mainland.
Getting the license involves specific paperwork, and it’s easier with help from experts. Renewing the license is also straightforward.
Dubai’s commercial license comes with a 9% corporate tax, so you need to plan for taxes too.
Overall, getting a commercial license in Dubai opens doors to a dynamic business world, both locally and globally, where your business can grow and succeed.
Getting a legal license in Dubai can be easy and smooth when you work with RFZ. Our experienced team knows the ins and outs and is ready to help whenever you need it.
Are you ready to make your business dreams a reality? Partner with RFZ, and let us do it together.
For a free consultation, contact us at+97145890815. You can also send us a WhatsApp message at +97145890815 or email your questions to info@rfz.ae.We are here to assist you!
FAQs
Following are the FAQ’S:
What is the difference between a commercial license and a professional license in Dubai?
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What is the cost of a commercial license in Dubai?
The cost of a commercial license in Dubai can vary. It depends on the type of business you are doing, where you are doing it (in Dubai itself or in a specific area called a “free zone”), and what your business needs. Usually, it can range from a few thousand AED to several thousand AED.
What are the different types of commercial licenses in Dubai?
Dubai has various types of commercial licenses to match different kinds of businesses. Some examples are:
- General Trading License: This is for businesses that want to do a lot of different types of trading.
- Commercial Brokerage License: If you’re a middleman helping people buy or sell things, this license is for you.
- Import/Export License: If your business is all about bringing things into Dubai or sending them out, this license is needed.
- Retail Trade License: For shops and stores selling things to people.
- Foodstuff Trading License: If you are selling food, this is the license for you.
- Real Estate Brokerage License: If you are in the business of buying or selling properties, this one’s important.
Logistics and Transport License: If your business deals with moving things from one place to another, this is the license you will need.
Read More : HOW TO GET A GENERAL TRADING LICENSE IN DUBAI
