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The Essential Commercial License
Obtaining a Commercial License in Dubai is a pivotal step for entrepreneurs venturing into business within the region. It is a mandatory requirement to kickstart operations smoothly. Based on the nature of your business, you’ll need to apply for a specific license among the four main types available, each tailored to different business activities and operational areas.
These license categories, namely Professional, Commercial, Industrial, and Tourism, are issued by the Dubai Economic and Tourism Department (DET).
For individuals aiming to establish a trading enterprise in Dubai, securing a commercial license is imperative. This license empowers entrepreneurs to engage in the buying and selling of goods and services seamlessly.
What Does a Commercial License Entail?
To engage in buying and selling goods or participating in trading activities in the UAE, it’s essential to hold a valid Commercial License. This license is issued from three different jurisdictions within the UAE. Before applying for the Commercial License, investors must carefully consider and select the most suitable location for their business operations.
What Business Activities Fall Under a Commercial License?
Prior to applying for a commercial license in Dubai, it’s crucial to determine the specific trading activities and business category. Commercial licenses cover a range of activities related to buying and selling goods and services. Some of the primary activities falling under the commercial license in Dubai, UAE include:
1. Logistics
2. Import and export
3. Tourism and travel services
4. Brokerage
5. Sales of electronics and construction products
6. Real estate services
7. Rental businesses
Once the business activities have been identified, the next steps involve selecting a trade name and registering the company.
What Documents Are Required to Apply for a Commercial License in Dubai?
The Dubai Economy & Tourism (DET) issues a commercial license based on the documents you submit, which is valid for one year and requires renewal upon expiry.
Required documents for a Commercial License in Dubai include:
1. Completed application form with the name specified in both English and Arabic.
2. Lease contract form with the registered address of the company attached.
3. Partner Memorandum of Association (MOA).
4. Dubai Municipality Department permit sanctioning the business address.
5. Proof of license fee payment.
After verifying the submitted documents, DET will issue the Commercial License.
The steps for obtaining a commercial license in Dubai are straightforward. With assistance from a professional business consultancy like Bizvise, the process becomes easier. The official steps for obtaining a commercial license are outlined below:
Step 1: Confirm Business Activity
Decide on the business activities to be conducted, as additional approvals may be required based on these activities.
Step 2: Obtain Initial Approval
Submit the necessary documents to Dubai Economy & Tourism (DET) to apply for initial approval.
Step 3: Find a Reliable Local Sponsor
With the recent rule changes, expatriates now have 100% ownership in commercial licenses, eliminating the need for local sponsorship in the UAE.
Step 4: Formulate Legal Structure
Prepare the Article of Association (AOA) and Memorandum of Association (MOA) to establish the rules, regulations, and policies for the company.
Step 5: Select a Trade Name
Choose a trade name that adheres to strict naming rules, avoiding names of existing companies, offensive language, and abbreviations.
Step 6: Rent or Lease a Commercial Space
Rent or lease a commercial space for the business, ensuring it meets the required dimensions and legal formalities. Complete Ejari formalities for the leased space.
Obtaining a Commercial License in Dubai may be time-consuming, but consulting with an experienced business consultancy like Bizvise can streamline the process. Bizvise has helped numerous organizations acquire commercial licenses in Dubai, tailored to their business needs. For further inquiries, reach out to us for assistance.
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