Commercial Trade License
Commercial Trade License in Dubai
The Commercial Trade License is tailored for businesses engaged in commercial trading. Unlike the General Trading License, a Commercial Trade License in Dubai is more specialized, covering a limited range of products. Some items, such as automobiles and software, require a Commercial Trade License for trading.
A trading entity can be established as a Limited Liability Company (LLC), depending on the number of shareholders. An LLC can have a minimum of one shareholder and a maximum of 50. The company’s liability is confined to its paid-up capital, ensuring that each shareholder’s liability is limited to their financial contribution to the company. A subsidiary company is owned by another company rather than individual shareholders.
Effective from 1st June 2021, Dubai Economy permits 100% foreign ownership for around 1,000 specified commercial activities. Previously, mainland companies were required to have 51% of their shares owned by a Local Partner. This Local Partner had to be an Emirati or a company registered in the UAE with 100% Emirati ownership. While this rule remains applicable for commercial activities not covered by Dubai Economy’s list, it’s advisable to consult with a seasoned business setup consultant to verify whether your proposed commercial activity qualifies for 100% foreign ownership.
Activities Covered by Dubai Commercial Trade License
Certain activities in the United Arab Emirates necessitate a Commercial Trade License. Some of these activities include:
- 1. Automobiles
- 2. Computer Systems and Communication Equipment
- 3. Contracting
- 4. Foodstuffs
- 5. Furniture
- 6. Medical and Surgical Equipment
- 7. Readymade Garments
- 8. Software
Advantages of Commercial Trade License
With a Commercial Trade License in the United Arab Emirates, you can enjoy several benefits:
- 1. Engage in up to ten related commercial activities under a single license.
- 2. Fully repatriate your capital and profits.
- 3. Employ an unlimited number of foreign workers, provided you have adequate commercial space for them.
- 4. Import and/or export goods internationally.
Documents Required for a Commercial Trade License in Dubai
To acquire a Commercial Trade License in Dubai, you will need the following documents:
- 1.Completed application form with company name in both English and Arabic.
- 2. Original leasing contract for the registered office.
- 3. Permission letter from the Dubai Municipality allowing the use of the office as a business address.
- 4. Approval letter from the Department of Economic Development for the trade name.
- 5. Proof of payment for the trade license.
- Passport-sized color photos of the applicants.
- No Objection Certificate (NOC).
- Business intent letter.
- Comprehensive business plan.
- Details of shared capital.
- Financial statements.
- Notarized copy of the Registry Identification form.
How to Get a Commercial Trade License in Dubai
The initial step in establishing your business is selecting a company name. It’s possible that your desired name is already in use, so it’s beneficial to have a business setup consultant conduct a name availability check for you. Once you confirm the availability, you can proceed with registering your company under that trade name. This process involves drafting the Memorandum of Association and Articles of Association, followed by registering the documents.
After successfully forming your company, the subsequent step is obtaining a Dubai Commercial License. This involves paying the necessary fees, which can vary based on several factors. The fee structure depends on the number of business activities covered by the Commercial Trade License and the type of company you are establishing. Generally, a higher number of business partners and additional activities will increase the license fees.
The exact cost of a Commercial Trade License in Dubai or other emirates in the UAE can fluctuate and is influenced by various elements. Fees also differ between emirates. A business setup consultant can provide clarity on the specific costs associated with obtaining a Commercial Trade License tailored to your proposed business activity.
Which is the best Business Setup Consultant in Dubai, UAE?
The top business setup consultants in Dubai prioritize understanding your requirements and offering tailored advice on company formation. At B-FIRST BUSINESS SOLUTIONS, we collaborate closely with our in-house legal experts and company formation specialists in Dubai to ensure precise and efficient services. We emphasize attention to detail, recognizing that these nuances contribute to the overall success of your business.
Beyond assisting you in establishing your company, we remain committed to supporting your business journey. We provide affordable bookkeeping, accounting, and auditing services, allowing you to concentrate on your core business activities. With B-FIRST BUSINESS SOLUTIONS by your side, you can confidently focus on what you excel at – managing and growing your business.
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