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.

 

 

Tpes 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 the professional licenses, 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

A 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 ex-pat and a UAE national.

 

 

Additionally, by 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 of 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.