Everything You Need to Know About Commercial License in Dubai Mainland

An investor planning to set up a trading business in Dubai is required to get a Commercial License from the Department of Economic Development (DED). The commercial license is issued for the businesses that focus on activities including wholesale and retail trade, construction, transportation, stockpiling, communication, financial intermediation, real estate, and leasing. In short, a commercial license is for those businesses that are engaged in activities that require capital to be practised.

Business setup consultants in the UAE with knowledge of local regulations recommend investors including startups to check the list of activities issued by the DED under the commercial license while planning to start a trading business in the UAE.

Types of Businesses That Can be Setup Under Commercial License

More than 2000 activities are listed in the DED and it’s a strenuous job browsing over each of the activities. However, hiring the best business setup specialists could help the investors avoid these hassles. The following are some of the major types of business activities permitted under the Commercial License:

  • Foodstuff trading
  • Retail& Wholesale trading
  • Communication
  • Transportation
  • Financial Intermediation
  • Construction
  • Trading of Electrical goods
  • Activities of import & export
  • Perfumery
  • Building Materials trading
  • Fuel & Petroleum Products
  • Sale of electronic goods
  • Domestic Gas Distribution

The Process of Obtaining a Commercial License in Dubai

The commercial license can be obtained through the normal procedure and also the ‘instant’ way. The entrepreneurs can obtain a commercial license through the following steps:

1. Select Business Activity

The selection of the business activity is the first step in applying for a commercial license from the DED. According to the DED, the activity type determines the type of license and hence activities listed under the commercial license type should be chosen.

2. Select Legal Form

Legal form is only a description of the type of business to be set up. Investors should co business type, business activities, the number and the nationality of owners and the ownership options while selecting the legal form.

3. Select the Final Trade name of the Business

Investors should choose a name for their company in accordance with the general trade name guidelines. The DED mandates that the trade name should be related to the license type.

4. Apply for the Initial Approval

Businesses need to get an Initial Approval Certificate from the Dubai DED, which states the DED has no objection to the applicant setting up a business. Getting this certificate allows the investor to proceed further with the procedure of getting a commercial license.

5. Prepare MOA & LSA Agreement

The entrepreneur and the business partners are required to draft and sign a Memorandum of Association (MOA) depending on the legal form. Investors can enlist the services of reputed business setup consultants to get guidance on this process.

6. Establish Office Rental Space

The DED mandates that all the business setups in Dubai should have a physical address. The owners of the proposed business may sign their tenancy contract with the landlord and register the contract with Ejari for attestation.

7. Collect Business License

After successfully completing all the steps, the DED will issue the license. The DED will issue a payment voucher or a transaction number, which can be used as a reference when payment is being made.

Getting a Commercial License Made Easier with DED’s Instant License System

Getting a commercial license in Dubai has been made easier and quicker with the introduction of the instant license initiative by the DED. The instant licensing system allows entrepreneurs to obtain a commercial license in just one step. The process effectively eliminated the earlier requirement of the company’s Memorandum of Association (MoA). However, the MoA only needs to be submitted within a year of obtaining a license or upon license renewal. And the investors do not have to rent an office for a year.

Renewal of Commercial License

DED will issue a commercial license after all the relevant documents are submitted. However, the commercial license is valid for a year and can be renewed. Business setup specialists recommend submitting the following documents at the time of commerce license renewal:

  • Trade License copy
  • Lease contract of the official site for the first year
  • MoA of the company

Why Choose Jitendra Business Consultants?

Jitendra Business Consultants (JBC) is one of the leading business setup consultants in Dubai, UAE. JBC’s highly qualified business setup specialists have provided the most efficient business setup solutions for numerous clients. JBC understands its clients and helps them devise robust strategies for establishing a company in Dubai. JBC’s clientele includes individual entrepreneurs, multinational companies, SMEs and international investors who have accomplished business stability and growth with our high-class, end-to-end business setup solutions.

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