With the surge in the increasing business opportunities in the Gulf land, it has become a hotspot for many new and budding entrepreneurs. The land of the Saudis is favorable for the investors to set up a new trade. All they need to do is obtain a commercial license in Dubai. The license varies as per the business they run. The license is obtained depending upon :
- Company
- Region
- Business activity
The other types of licenses are- professional, industrial, technical, and manufacturing. But opting for the commercial license is better due to the Emirates’ trading position with markets like Asia, Europe, and MENA (Middle East North Africa).
Basically, for a hassle-free business set up in Dubai, obtaining a commercial license is a must. It lets you deal in products and you can import and export in and across UAE. The license helps one to sell everything such as toys, food items, etc. It is known to cover brokerage and real estate services as well.
Here’s a detailed guide on the Commercial license in Dubai.
What is a commercial license?
The first thing to know is what is it even? The commercial license holder can trade in goods and specific services. It involves goods that you sell and import in the UAE. Holding a commercial license in Dubaican help you import, export, and trade within UAE. This is the most popular license type as it lets sell services from toys to services like real estate.
To run a business in Dubai, obtaining a commercial license is mandatory.
Activities included under the commercial license
The commercial license obtainment requires you to finalize the trade that you want to engage in. The business license in Dubai requires one to outline the list of activities and the categories that they want to deal in. The major activities that fall under are as follows:
- Logistics
- Electronics
- Real estate
- Travel
- Rentals
- Construction
The obtainment of the license requires you to submit the relevant documents to the (DED) Department of Economic Development and the Federal Ministry of Economy. After which you can obtain the license.
A step-by-step guide to obtaining the license
Obtaining a business license in Dubai is not very difficult. Rather, it is a straightforward task.
Here are the steps that one needs to follow to get a license
1. Initial Requisites
The first and foremost step involves the steps listed below:
- Identifying the business
- Legal structure selection
- Initial approval from the authorities
The DED is the regulatory body that issues the initial approval for the license. Additional approvals are also required as per the activities selected.
2. Approval of trade name
The next step requires getting the name of the trade approved by the relevant authorities. While selecting the trade name one must adhere to the rules and regulations stipulated by the government of UAE. some basic rules are avoiding the memes that exist previously. The names must not include religious and political references.
3. The Memorandum of Association
The constitution of the business must include the MOA. According to the Company Law of UAE, it is essential to incorporate the MOA in the const8itutoion of the company. As it is essential in outlining the policies and regulations of the firm that the management and the employees need to follow.
4. Commercial Address
In order to obtain a commercial license in Dubai, one must have a commercial address in the UAE. The business needs to have a physical presence in the country. Be it in the form of a warehouse, office or shop, etc. the address must be in a commercial space and not a residential.
5. Submissions to the DED
The last and final step is to get the approvals from the relevant ministries and departments. Which is subjective to the business of everyone. Finally, all the documents are supposed to be submitted to the DED.
Documents required
The documentation process for applying for a Business License In Dubairequires a list of documents. The licensing process requires an articulate way to handle the paperwork and deadlines. The following is the list of documents required:
- Application form
- Leasing contract of the office
- DED approval letter for the company name
- Proof of payment
- Passport-sized color photograph of the applicant
- No objection certificate
- Business plan
- MOA
Fees of the license
The standard license costs about 10000 AED to 12000 AED. The variable costs incurred in obtaining the company name, capital, rent, approval charges, etc ultimately affect the total fee of the commercial license.
That was all for the step-by-step guide for obtaining a commercial license in Dubai. The above-mentioned information is ample to get your business rolling in UAE. To kickstart the global presence of your company, Dubai is the ideal location due to its constant business development which an entrepreneur needs the most.
