A commercial trade license is necessary for any business engaged in buying, selling, or other types of trade activities in the UAE. This license is valid for both specialized trading and general trading activities in the UAE, and it can be used to establish a limited liability company or a sole establishment.

In the UAE, there are various types of commercial trade licenses. To be able to conduct trading activities distinctive to your company, you must apply for the appropriate type of commercial trade license. Companies that provide renting transport services, retail, construction, healthcare, property investment, telecast and communications, as well as other trading company entities, must also submit an application for a commercial trade license.

The process to obtain a Commercial License in Dubai-UAE

The Department of Economic Development in Dubai is responsible for managing license registration. It indicates that you must request a commercial trade license from DED officials. However, it is strongly advised that you seek help from experts if this is your first time setting up a business in the UAE. The steps you must take in order to obtain a commercial license in Dubai are listed below:

• Determine your business activities

Choosing the business activities you want to carry out is the first step. However, you can evaluate the activity list and seek advice from a business expert if you are unsure about which activities to choose.

• Determine your business structure

There are many different company structures. However, Limited Liability Companies, General Partnerships, and Sole Proprietorships are the most common in Dubai.

• Select a trading name

You must register a company name as a trademark. Only names that are not already in use in the UAE may be chosen.

• Get the initial approval.

After deciding on the necessities, you must complete an application to get the initial approval from Economic Development Department in Dubai.

• Choose an office location

In Dubai, you must avail of office space for your company. But if your particular business doesn’t need a physical location, you can choose virtual office space in Dubai.

• Submit the documentation and make the payment.

The required documentation must be submitted, and the payment associated with the payment voucher must be completed, as the final step. The commercial trade license will then be made available by the DED within a few days.

Benefits of Acquiring a Commercial License in Dubai

Due to several factors, the commercial license is among the most widely used business trade licenses in Dubai. The advantages of the commercial licence in Dubai are as follows:

• In one commercial trade license, a maximum of ten activities may be chosen.
• You can select the type of company structure you want to register from a huge variety.
• Under a single license, you can carry out a number of related business operations.
• Trading businesses that operate under a commercial license are excluded from audit requirements for license renewal.
• There are no individual taxes and very low corporate taxes.
• After liquidation, you can relocate all capital and transfer all revenues to your home country.
• If you have the necessary office space, you can employ foreign workers and sponsor their visas.
• The commercial trade licence enables you to both import and export goods internationally.