What is a Commercial Activity License? 

Commercial license in Dubai allows an organization to import, trade and export goods and services within the boundaries of Dubai. Due to Dubai’s position in major markets throughout Africa, Asia, Europe and the Middle East, commercial licenses help in providing businesses with a viable method of expanding into these areas as well to participate in international trade relations both internationally and locally. 

How can you acquire a Commercial Activity License in Dubai? 

The process of obtaining a commercial license in Dubai requires several steps which can be made simpler by the benefit of ebs Chartered Accountants. There are certain commercial license in Dubai requirements which need to be fulfilled.  

• Determine Free Zone or Mainland Setup: The first step to start any business venture is selecting whether you want to establish it in a zone that is free or in a mainland location. Be aware of all the benefits that are available, support for businesses including financial incentives, licenses and kinds available when you think about the opportunity accurate fits the requirements of your company. The choice you make will be based on the kind of work that is in your hands. 
• Select a Company Name: Making the choice of a name for your company is one of the primary actions to start the UAE company. The choice you make should conform to established naming conventions, and stay clear of offensive words, as well as trademarked names for organizations that may cause legal problems in the future. Make sure it is registered. 
• Submit your License Application: The third and final step to creating a shop for business is submitting your commercial license application. If you’re planning to set up your shop at a location on the continent, submit your application direct to the Department of Economy and Tourism (DET). If not, you can apply directly for the Free Zone set up. Make sure to assure that all the necessary documents and proof of payment to obtain a trade license in the process of submitting this application. 

Documents required to obtain Commercial Activity Certificates in Dubai 

To obtain an activity permit for commercial activities in Dubai you must present these documents. 

• Filling out an Application Form: The first step to obtaining the commercial license required in Dubai is completing an application form that is available at DED or at their office. When filling out this form make sure you add precise information about your business, like the registered name of your company. 
• Register Lease Contract: The registered address for business requires an original copy of your lease agreement to be submitted and endorsed by the Dubai Land Department. 
• Passports of Shareholders: Each shareholder of your business includes partners, directors, and managing directors as well as other shareholders. This is required to provide duplicates of their passports to be included in the application process.  

• Passport Size Photos: Provide two passport-sized, color photos of every shareholder included in the submission package. 

Other documents might be required according to the nature of your business. For instance, if intend to export or import items, extra documentation such as a trade license issued by your country of origin and/or an official certificate of origin will most likely to be necessary. 

Cost of Commercial Activity License in Dubai 

The cost of a commercial license in Dubai ranges from AED 10,000 to AED 30,000.  

Documents needed for Commercial License Renewal in Dubai 

• Original copy of commercial license Dubai. 
• Lease contract for registered address (if needed). 
• Authority approvals (if required). 
• Information on accommodation for staff needs for foreign-owned companies. 

The license renewed for trade has an extended period of validity of five years. 

Advantages and Disadvantages of Acquiring a Commercial License in Dubai 

Advantages: 

• Legal Protection. 
• Access to local markets. 
• Acquisition of talented consultants. 
• Bank transactions become simpler. 

Disadvantages: 

• High Costs. 
• Limit Liability. 
• Complex regulations. 

There are many consultants in Dubai who can help you with your commercial trade licenses. It is always better to take help from the professionals so that there is not any issues in the processing of the license and the business follows all the rules and regulations. 

FAQs  

How much does a commercial license cost in Dubai? 

The License Fee is AED 12,000, with extra fees ranging from AED 150 to 500 for operations. Other costs, such as activity class guide fees, license translation, and replacements, must be considered. 

Who issues commercial licenses in Dubai? 

The Department of Economy and Transportation in Dubai and the Federal Ministry of Economy in UAE are responsible for issuing commercial licenses in the mainland. 

What is the difference between a commercial license and trade license in Dubai? 

The difference between a General Trading License and a Commercial Trade License is that a Commercial Trade License in Dubai is more specific in nature and covers a limited number of products.