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Types of commercial licenses in Dubai

Types of commercial licenses in Dubai

Commercial licenses in Dubai are considered one of the basic elements that contribute to creating a prosperous and integrated business environment. Dubai occupies a prominent position as a global business center, attracting companies and investors from around the world thanks to its advanced infrastructure, attractive tax environment, and flexibility in commercial laws. However, to ensure compliance with laws and effectively regulate business activities, an appropriate business license is required.

There are many types of commercial licenses in Dubai , and they differ according to the nature of the business activity and the field in which the company operates. The main commercial licenses in Dubai include: the general commercial license, which allows the practice of a wide range of commercial activities, the industrial license, which is granted to factories and production projects, and the services license, which relates to companies that provide professional and commercial services. In addition, there is the tourist license, which deals with activities related to the tourism sector, and the professional license, which is designated for professional companies such as lawyers and consultants.

Obtaining a business license in Dubai is a necessary process for everyone who wants to start or expand their business in this vibrant city. The process includes submitting specific documents, meeting regulatory requirements, and ensuring compliance with local laws. These licenses aim to regulate the market and ensure the provision of services and products that comply with the high standards adopted by Dubai, which enhances the city’s reputation as a global center for business and investment.

Types of commercial licenses in Dubai
Types of commercial licenses in Dubai

Steps to obtain commercial licenses in Dubai

To obtain a business license in Dubai, you must follow a set of basic steps that ensure proper registration and compliance with legal requirements. Here are the steps to obtain a commercial license in Dubai :

  1. Determine the type of business activity: Determine the type of business activity you wish to engage in. Ensure that the activity is consistent with the activities approved by the Department of Economic Development (DED) or the competent authority in the free zone.
  2. Choose a business name: Choose a business name that complies with local laws, and the name must be available and not registered to another company. The availability of the name can be checked through the Department of Economic Development website.
  3. Choosing a business location: Select a location for the company headquarters, either in a free zone or non-free zones. A lease contract for the site must be secured and documented.
  4. Prepare required documents: Prepare and submit the required documents, which usually include: a copy of the passport, a copy of the ID card, the lease contract, the certificate of incorporation (if relevant), and the business plan.
  5. Submitting a registration application: Submit a registration application for a commercial license to the Department of Economic Development (DED) or the competent authority in the free zone you have chosen. You can submit the application online or in person at the service offices.
  6. Pay the required fees: Pay the fees required to obtain the business license, which includes registration fees, rent, and any additional fees related to the business activity.
  7. Approval and obtaining the license: After submitting all documents and paying fees, the Department of Economic Development or the competent authority will review the application. If approved, a commercial license will be issued, and you can collect it from the relevant office.
  8. Opening a commercial bank account: After obtaining the license, open a commercial bank account in the name of the company in one of the approved banks in Dubai.
  9. Securing additional licenses and permits: Depending on the type of activity, you may need to obtain additional licenses or permits from other government agencies, such as building permits or health licenses.
  10. Registration with the relevant authorities: Register the company with other relevant government authorities, such as the Tax Authority if the business activity requires this.

Types of business licenses in Dubai

Here is a table showing the types of business licenses in Dubai , with a brief description of each type:

License typeDescription
Commercial licenseIt is awarded to companies that conduct business related to buying, selling and general trade.
Industrial licenseIt is awarded to companies operating in the industrial field, such as manufacturing and production.
Professional licenseAwarded to businesses that provide professional services such as law, consulting, and medical services.
Tourist licenseIt is granted to companies that provide tourism services such as travel agencies, hotels, and tourist transportation.
Commercial license in free zonesIt is granted to companies that wish to operate within certain free zones, enjoying benefits such as tax exemptions.
E-commerce licenseIt is awarded to companies engaged in online commerce.
Building and construction licenseIt is awarded to companies working in the field of building and construction.
Services licenseAwarded to businesses that provide various services such as maintenance, logistics, and personal services.
Import and export licenseIt is granted to companies that import and export goods.
Investment licenseIt is granted to investors who wish to invest in specific projects.

This table provides an overview of the types of commercial licenses available in Dubai, and determining the appropriate license depends on the nature of the work and commercial activity you wish to undertake.

Documents required to obtain a business license
Documents required to obtain a business license

Documents required to obtain a business license

Obtaining a business license in Dubai requires submitting a set of basic documents that help complete the registration process and ensure compliance with legal requirements. The required documents may vary slightly based on the type of license and type of business, but in general, basic documents include:

  • Application for a commercial license: A completed and signed application form, which can be obtained from the Dubai Economic Department or through its electronic platforms.
  • Copies of passports: Colored copies of passports of all partners and major investors in the company.
  • Copies of residency: If partners and investors are residents of the UAE, copies of residency visas must be submitted.
  • Business Plan: A detailed business plan detailing the type of business activity, marketing strategies, and market analysis.
  • Memorandum of Association and Articles of Association: A certified copy of the Memorandum of Association and Articles of Association of the company, which must be notarized.
  • Statement from the property owner: If the office or shop is rented, a letter from the landlord must be submitted allowing the business activity to be registered in the property. The permit must include details of the property and the rental contract.
  • Licenses from the relevant authorities: Some commercial activities may require obtaining additional licenses from the activity’s regulatory authorities, such as the Ministry of Health or the Transport Authority.
  • Registration fees: Proof of payment of fees related to submitting the license application.
  • Certificate from the bank: It may be necessary to submit a certificate from the bank confirming the opening of a commercial account in the name of the company.
  • Personal photos: Personal photos of partners and investors, often passport-sized.
  • Work Visas: If there are resident employees, their work visas must be submitted.

At the conclusion of our article about business licenses in Dubai , we find that Dubai provides a unique business environment that combines rapid economic growth with regulatory flexibility, making it an ideal destination for investors and business owners from all over the world. Commercial licenses are one of the essential elements that contribute to achieving this success, as they provide a legal framework to regulate commercial activities and ensure their compliance with local and international laws.

There are various types of commercial licenses in Dubai to meet the needs of various commercial activities, ranging from general commercial licenses that allow the operation of a variety of businesses, to professional licenses that focus on providing specific services, to industrial licenses that support productive activities. Each type of these licenses comes with a set of requirements and procedures aimed at facilitating the work of companies and achieving stability in the market.

Through Dubai’s commitment to simplifying procedures for obtaining commercial licenses and providing continuous support to investors, it ensures the provision of a transparent and qualified business environment to support the growth and development of companies. These procedures contribute to reducing bureaucracy and speeding up processes, which enhances companies’ ability to expand and innovate.

Ultimately, understanding business licenses and being familiar with their requirements is an essential step for any investor or business owner who wants to take advantage of business opportunities in Dubai. Thanks to the legal and business stability that Dubai offers, businesses can achieve success and grow in a thriving business environment full of opportunities.

The most important frequently asked questions about commercial licenses in Dubai

How can I renew a commercial license?

A commercial license can be renewed by submitting a renewal application to the Department of Economic Development (DED) or the competent authority, submitting the required documents and paying the appropriate fees.

Is it possible to change the commercial activity of the license?

Yes, the commercial activity of the license can be changed, but this requires submitting an application to amend the license and submitting the necessary documents to the Department of Economic Development.

What are the fees related to commercial licenses?

Fees vary based on the type of license, business activity, and business location. Fees include registration costs, license renewal, and sometimes additional fees depending on the type of activity.

Can foreigners get a business license in Dubai?

Yes, foreigners can obtain a business license in Dubai, and in most cases, they can own companies 100% in free zones or through a local partnership in non-free zones.

What is the validity period of a trade license?

Typically, the validity period of a business license is one year, and it must be renewed before its expiration to ensure continued legal activity.