What is Commercial Trade License in Dubai?

The commercial license is acquired when a business activity involves selling (trading) of products. Under this license, various types of activities are approved, such as general trading, electronic trading, and software trading. A commercial license is suitable for both general traders and specialized traders in Dubai and across the UAE. Trading companies in Dubai involved in the trading of goods, commodities, and services can apply for the issuance of the commercial license.

Businesses related to retail, construction, and real estate industries are also required to obtain a commercial trade license. When you start a business in Dubai, you need to acquire a business license to operate the business legally. There are several types of business licenses, and you need to obtain one of them depending on your business activity.

This license is usually granted for a limited liability company that provides shareholders with limited debts and liabilities. For the commercial business, license is LLC (Limited Liability Company) where Dubai National is 51% shareholder and ex-pat investor is 49% shareholder. However, 100% of assets and profit and loss is protected in favour of ex-pat investor by an internalhttps://dedcafe.ae/service/llc-company-formation-in-dubai/ agreement signed between UAE National and ex-pat investor Dubai.

Types of Activities Carried Out Under Dubai Commercial Trade License

All commercial activities are approved by the Department of Economic Development (DED). The following activities can be carried out with a commercial license in Dubai:

• Aircraft and train spare parts trading
• Bags and Packaging material trading
• Beauty and baby care essentials trading
• Animal skin trading
• Amusement equipment and supplies trading
• Exchange and financial services
• Flowers and plants trading
• Home appliances trading
• Filling stations
• Foodstuff supply
• Building maintenance services
• Surveillance services
• Cleaning services
• Advertising services
• Readymade garments and many more

Benefits of Acquiring a Commercial Trade License

A commercial license not only serves as the regulation but also protection for trading companies in Dubai.

• Under one commercial trade license, you can carry out a minimum of ten business activities.
• You have multiple choices to select the type of company you want to register.
• You can conduct several similar business activities under one license.
• You enjoy exemption from taxes and the free repatriation of capital gains when used in a free trade zone.
• You have the opportunity of engaging in international trading activities.
• It facilitates the easier procedure for obtaining employment visas for foreign workers. It allows a company to hire a large number of foreign employees.
• Trading companies that operate under a commercial license don’t need to be audited to renew their license.
• The procedure for obtaining a commercial trade license in Dubai is the easiest of all.

However, when your business involves very specific activities, a commercial license alone would not suffice. For that, you will also need to obtain special permits and authorizations. When a company carries out activities that are covered under more than one license, it might need additional licenses to remain in compliance with the UAE business laws.If you are also planning to set up a company for commercial trading of products and services, it is best to get the guidance and complete information through a reliable and competent business consultant in Dubai.

PROFESSIONAL TRADE LICENSE IN DUBAI

Dubai is a business home since the lifestyle and luxuries it offers are unrivalled in the globe. To grow professionally in Dubai, it is essential to grasp the procedure that Dubai uses to maintain a professional atmosphere for any organisation. UAE has been embracing international investors in its working centre in a very investment-friendly environment. However, by having a strong legal structure in place, Dubai protects company privacy and security. All of which is possible through the proper documentation of every single business. Working in Dubai, in particular, requires a variety of licenses and permissions for both small and medium-sized enterprises

Professional trade licenses are required for all service-oriented companies. Dubai professional trade licenses are granted based on the applicant’s educational entitlement and area of expertise, and acquiring the trade license includes several factors.

Unlike industrial and commercial licenses, a professional license allows 100% ownership for foreign investors, permitting them the advantages of a sole proprietorship. It is mandatory to appoint a UAE national as a local service agent to complete the judicial formalities. Apart from charging a fixed annual fee for the service offered, the agent will not have any direct involvement. They will have no equity and are also not liable to pay for the liabilities of the company. One has to approach the Department of Economic Development (DED) to get a professional license as it handles all the activities related to licenses in Dubai.

 

How to Get a Professional License in Dubai?

• The first and foremost step while applying for a professional license is to make a clear description of the activities undertaken in one’s business.
• The next step would be to appoint a local service agent who would look after all the legal formalities in order to obtain a professional license in Dubai.
• After the appointment, get initial approval from the DED.
• Apart from this, you have to reserve a name for the business (pay a fee for the same) and then submit all the necessary documents to the DED for approval.

Procedure to Get a Professional License in Dubai

• Fill the local service agreement form with the UAE national from a local translator and get the form attested from a public notary service
• A legal translator seal has not required if the agreement is in Arabic
• Make a Memorandum of Association (MOA) with the sponsor
• Mention the sponsor’s early fee in the agreement
• If you are getting a license for a civil company then you need to fill one more application form and get it attested
• All the partners or owners have to attend the notary to sign the court agreement
• Get approval from the municipality for the tenancy contract
• Submit all the forms with attestation (one original copy each)
• Submit passport copies of owner/partners and NOC for expatriate owner/partners (if any), at any branch of the DED
• Make payment at the counter and get the license; a payment voucher would be issued at the same time
  
   
   

The professional license Dubai cost is approximately AED 10,310 which includes the following.

• Professional license fees
• Service agent fees
• Trade name fees
• Market fees (depending upon the tenancy amount)
• Administrative service fees
• Government cultural fees
• Local fees, etc.

Documents Required to Get a Professional License in Dubai

• Filled application form to get a professional license
• Copies of the passports of owners or partners
• Copy of local partner’s naturalization book
• A No-Objection Certificate (NOC) from sponsors for foreign partners if the ex-pat is already on an employment visa. If the shareholder is on a visit visa, then his or her UID number is required
• The foreign partners have to submit a copy of the visit, tourist or transit visa
• Initial approval from the relevant authorities, depending on the type of activity to be undertaken (e.g., the Municipality, RTA, National Media Council, etc.)

  Additionally, with acquiring a professional license in Dubai, there are numerous possibilities that opens up for you, you are legally allowed to work for or give your services to any customer, client, or employer in the United Arab Emirates, and you are allowed to participate in activities that are compatible with your credentials and area of competence. Unlike industrial and commercial licenses, a professional license allows foreign investors to possess the complete ownership of the company, giving them the same rights as a limited company. Also, it is mandatory that you keep in mind that not having an expired license and permit can land you in problem. So it is recommended that you must acquire a license or if in case yours has expired get your license renewed.

  DED is specially dedicated for all sort licenses and permits services. You can get all the services online or even by visiting DED in Dubai. The process of obtaining a professional license from DED is extremely simple; all you have to do is follow a protocol. To obtain a professional license in Dubai, you must submit a BR1 form, a trade name, an Ejari certificate, and a tenancy contract. You can also contact DED if you don’t have any of the possessions listed. They provide a wide range of services, including the ones mentioned for acquiring a professional license in Dubai.

  Every business requires some form of license, and many may require several licenses and permissions to operate in Dubai. The licenses and permissions required by your business will vary depending on where you reside and the sort of business you run. In Dubai, not possessing a professional license might get you into trouble. So, even before you consider starting or expanding your business in Dubai, you should first research and analyse the number of licenses and approvals that will be required of you.

Factors That Change With the Licenses

Ownership

When it comes to commercial trade licenses in Dubai, an expat or foreign investor can legally own 49% of the total shares and the rest will be owned by a UAE national or local service agent.

When it comes to a professional license, an expat will have 100% ownership and can become the sole owner.

Share Capital

To set up a commercial business with a commercial trade license, the minimum share capital amount required is DHS 300,000.

As for professional license, the minimum share capital is DHS 150,000.

Government License Fees

Trade license Dubai fees are also different for commercial and professional licenses. Commercial trade license fees are higher than Professional trade license fees.

Liability

Commercial trade license in Dubai gives companies limited liabilities. This changes with Professional trade licenses, where the liability of the company is unlimited. If a Professional trade license holder wants to limit their liabilities, they will need to change their suffix to L.L.C. However, if the company limits its liabilities, the ownership will also get divided between an expat and UAE national.