A commercial license in the Dubai Free Zone is the basic document for conducting business within the free zones in the city of Dubai. Possessing a commercial license in the Dubai Free Zone depends on establishing a business in Dubai, as the city of Dubai includes a large number of free zones that have many privileges. To attract investors from countries around the world.
The question of how to possess a commercial license in Dubai is an important matter that must be calculated accurately. In these coming lines, you will learn how to possess a commercial license in the Dubai Free Zone.
Advantages of a commercial license in Dubai
All sizes of trade licenses are granted in Dubai, starting from small to medium and large companies, and to all types of nationalities of companies. There are many advantages that the trade license grants to companies, which we will learn about in the following points:
- There are many free zones in Dubai available for various activities.
- Complete exemption from corporate and personal income taxes for 50 years.
- Dubai’s free zones have a strong and rapidly developing infrastructure.
- 100% foreign ownership of the company.
- 100% capital back
- Dual licensing opportunities.
- Freedom to form multiple options for administrative and legal structures.
- No restrictions on currencies.
- Freedom to employ foreign resources and human resources.
Commercial license in Dubai
A business license in Dubai is a legal document granted by the Department of Economic Development (DED) in Dubai, which allows individuals or companies to legally conduct business activities within the emirate. This license is an essential step in establishing a business and is necessary to determine the type of business activity that can be carried out, and to ensure that the company adheres to local laws and regulations.
Steps for a commercial license in Dubai
Obtaining a business license in Dubai requires following several main steps. These steps ensure that the process is consistent with local laws and regulations. Here are the basic steps to get a business license in Dubai:
Determine the type of business activity
The first step is to decide what type of business you want to engage in. There are three main types of business licenses in Dubai:
- Commercial licenses: for general trade and sale of goods.
- Professional licenses: for activities that require specific experience and skills such as consulting and services.
- Industrial licenses: for industrial and manufacturing activities.
Determine the legal form of the company
Choosing the legal form of the company, such as a limited liability company (LLC), a sole proprietorship, a branch of a foreign company, a partnership, a limited partnership, and others. The legal form depends on the number of partners and the nature of the business activity.
You must also choose an appropriate trade name and ensure its availability and compliance with local laws. Name availability and registration can be checked through the Dubai Department of Economic Development (DED).
Obtaining initial approvals
After determining the business activity, legal form, and choosing the name, initial approvals must be obtained from the Department of Economic Development (DED) and some other government agencies if the activity requires it.
There is also the preparation of the articles of incorporation and the partnership agreement (if any) and their notarization. These documents define the rights and duties of partners.
Choose a business location and register the business address
Renting an office or place to conduct business activity and registering the business address. The site must comply with standards set by the Department of Economic Development (DED).
You can also obtain final approvals and pay fees after completing the previous steps, submitting all the required documents and paying the fees for issuing the commercial license. Fees may include licensing costs, government approvals, and municipal fees.
Receiving the commercial license
After the documents are reviewed and approved by the Department of Economic Development (DED), the business license is issued. The business can then begin officially.
After receiving the license, the company must be registered with the Dubai Chamber of Commerce and Industry. This registration is necessary for companies that wish to do business in Dubai.
Apply for additional permits
Some commercial activities require additional permits from specific regulatory bodies, such as the Ministry of Health or Civil Defense, depending on the type of activity.
Following these steps will help facilitate the process of obtaining a commercial license and starting to conduct business in Dubai in a legal and regulated manner.
Commercial license to establish companies in Dubai
Obtaining a business license is a vital step for establishing companies in Dubai, and is of great importance for the following reasons:
Legal compliance
A trade license is a basic legal requirement for conducting any business activity in Dubai. Ensures compliance with local laws and regulations, helping to avoid legal problems and penalties.
You can also obtain a commercial license that gives the company official recognition from government authorities, which enhances confidence among customers, investors and business partners.
Enjoy economic benefits:
Dubai offers many economic incentives to investors such as tax exemptions and reduced customs duties. Obtaining a business license allows companies to take advantage of these advantages.
Expansion and market access
A commercial license allows companies to expand and access local, regional and international markets. Dubai provides an excellent business environment for companies seeking growth and expansion.
In addition, licensed companies can open commercial bank accounts in local and international banks. This facilitates financial operations and enhances the ability to deal with partners and customers effectively.
Recruitment and labor recruitment
A commercial license allows companies to recruit and employ local and international workers, which helps in building a qualified and highly efficient work team.
Licensed companies can also participate in government tenders and contracts, providing additional opportunities for growth and expanding the customer base.
Benefit from government services
Licensed companies enjoy access to a wide range of government services such as technical support, consulting and other facilities that support business growth.
Obtaining a commercial license can also enhance the company’s reputation and credibility in the market. The license is considered evidence of the company’s seriousness and commitment to professional and ethical standards.
The commercial license also provides legal protection for the company and its owner, which guarantees their rights and allows them to resort to the judiciary in the event of any disputes.
Therefore, obtaining a business license is not only a legal requirement but an essential element for achieving success and sustainability in Dubai’s competitive business environment.
Cost of a business license in Dubai
To obtain the cost of a commercial license in Dubai , you can visit the website of the Department of Economic Development in Dubai or contact them directly to obtain current information about license fees and costs related to establishing a business, or communicate with Itqan Company, which helps you know all the costs of obtaining a commercial license in Dubai. Fees and costs may change based on the type of business and current legal requirements.
To obtain the cost of a commercial license in Dubai without providing prices, it is preferable to contact directly with the Department of Economic Development in Dubai or the relevant government services offices. They can provide accurate and up-to-date information about the fees and costs related to issuing a business license for your specific economic activity. It is recommended to take advice from Itqan’s business professionals to ensure full compliance with the legal requirements and expected costs of starting a business in Dubai.
Types of business licenses in Dubai
There are many distinct types of commercial licenses that we have listed for you so that you are familiar with all the details about the commercial license to establish a company in Dubai . Here is a table showing the types of commercial licenses available in Dubai:
| Type of license | the description |
|---|---|
| Commercial license | For those wishing to engage in commercial activities such as general trade, selling goods and distributing products. |
| Professional license | For activities that require specific experience and skills such as consulting, educational services, and medical services. |
| Industrial license | For activities related to industries and manufacturing, including production, assembly and manufacturing. |
| Tourism license | For tourism-related activities such as travel agencies, hotels, and organizing tours. |
| Agriculture license | For activities related to agriculture, animal husbandry and other agricultural activities. |
| Free professions license | For individuals who wish to practice freelance professions such as writing, translation, and creative services. |
| Franchise license | For companies that operate under a commercial franchise system and need a license to practice the activity according to specific conditions. |
These types cover a wide range of commercial, industrial and service activities, making it easier for investors to choose the appropriate type for their business activity in Dubai.
Establishing a company in the Dubai Free Zone
Establishing a company in the Dubai Free Zone in cooperation with Itqan is a strategic step for ambitious entrepreneurs and investors. Our company is considered one of the most prominent companies specialized in providing comprehensive consulting and management services for establishing businesses in free zones in Dubai. The incorporation process begins with providing customized advice to choose the appropriate type of company, whether it is a free zone limited liability company (FZ-LLC), a free zone enterprise (FZE), or a branch of a local or foreign company.
Itqan then assists clients in preparing and submitting all required documents, and coordinates with the relevant government agencies to obtain the necessary licenses quickly and efficiently. In addition, Itqan provides integrated services including account management, human resources and logistical support, ensuring the establishment and operation of the company smoothly and effectively in Dubai’s dynamic business environment. With Itqan, investors can focus on growing their business and achieving their business goals while they handle the complex legal and administrative aspects.
Types of companies registered under a commercial license in the Dubai Free Zone
Contact us now. We at Itqan offer you special offers to establish a company in Dubai and obtain a commercial license in the Dubai Free Zone to turn your business ideas into reality.
- Free Zone Company (FZE): You need to document some required documents. All types of companies can be established and only a commercial office is required.
- Free Zone Establishment (FZE): Documentation of some required documents, and all types of companies can be established, obtaining a commercial office, and registering the company as a free zone establishment.
- A branch of a foreign company outside the UAE: The parent company requires ownership of the branch. All types of companies can be established and only a rental office is required to conduct business.
- A branch of a company from within the UAE: requires submitting a valid license from the department responsible for granting licenses and obtaining an office to practice work.
Itqan Company services in establishing companies in Dubai
Itqan Company is one of the companies specialized in establishing companies in Dubai, and offers a wide range of services to help establish companies effectively and in compliance with local laws and regulations. Here are some of the services that Itqan Company may provide in establishing companies in Dubai:
Establishment consulting
Providing comprehensive consultations to determine the best type of legal company (such as limited liability company or sole proprietorship) based on the client’s needs and the type of business activity.
Our company’s team also works to help clients complete the legal procedures required to establish the company, such as preparing legal documents and registering them with the relevant government agencies.
Arranging approvals and licenses
Providing assistance in obtaining the necessary approvals and licenses from relevant government agencies, such as the Department of Economic Development in Dubai and the Ministry of Commerce and Industry.
Trademark Registration:
Assisting clients in registering their trademarks to protect their rights and ensuring their legal and orderly use. Support is also provided in arranging the company’s financial and accounting affairs, such as opening commercial bank accounts and preparing the necessary accounting records.
Arranging visas and residency
Assisting clients in arranging work visas and residency for foreign employees working in the company.
Ongoing administrative and legal support is also provided to the company, including legal advice, contract management, and liaison with government authorities.
Human resources management services
Assist the company in human resources management, including preparing human resources policies, hiring procedures, and employee training.
Itqan Company usually works closely with clients to accurately understand their needs and provide customized solutions that meet their specific requirements and ensure the company is established successfully and on time.
At the conclusion of this article, we realize the importance of a trade license in Dubai as an essential tool for establishing companies and operating businesses legally and orderly. Adhering to local procedures and laws to obtain a business license helps in achieving success and growth in the dynamic business environment of Dubai.
By obtaining a trade licence, businesses can take advantage of the economic and legal advantages available in Dubai, build a strong reputation and credibility in the market, and expand the range of customers and business partners.
Frequently asked questions about the advantages of a commercial license in Dubai
What are the advantages of obtaining a commercial license in Dubai?
- Dubai provides a sophisticated and flexible work environment with business-friendly laws.
- Access to an international and diverse consumer market.
- The ability to benefit from modern infrastructure and high-quality services.
What types of business licenses are available in Dubai?
- General trading license.
- Professional trade license.
- Industrial trade license.
Can I apply for a business license in Dubai without having a local partner?
Yes, foreigners can obtain a business license in Dubai by taking advantage of a partnership with an Emirati citizen or by taking advantage of available legal structures such as free zones.
