The Advantages Of A Commercial Business License For Trading in Dubai

Dubai is a commercial hub that offers investors and traders numerous opportunities to grow their businesses. With a strategic location, world-class infrastructure, and a favorable business environment, Dubai has become a preferred destination for traders looking to establish their presence in the Middle East. One of the essential steps to starting a trading business in Dubai is obtaining a commercial business license. In this article, we will explore the advantages of a commercial business license for trading in Dubai, what commercial trading is, how to start a trading company, what types of commercial trading activities can get approval, and the requirements for obtaining a commercial business license in Dubai.

What is Commercial Trading in Dubai?

Commercial trading in Dubai involves the purchase and sale of goods and services for profit. Companies engaged in commercial trading are licensed by the Dubai Department of Economic Development (DED) to carry out their business activities. Commercial trading covers a wide range of activities, including import, export, wholesale, and retail trading. The Dubai government has established a range of business zones and free zones to support commercial trading activities, making it easier for traders to set up their businesses.

How to Start a Trading Company in Dubai?

Starting a trading company in Dubai involves several steps. Here is a simple process:

1. Determine the type of trading activity: You need to decide on the type of trading activity you want to engage in, such as import, export, wholesale, or retail trading.
2. Choose a company name: You need to choose a unique company name that complies with the DED’s naming conventions.
3. Determine the business structure: You need to decide on the business structure, such as a sole proprietorship, partnership, or limited liability company (LLC).
4. Obtain initial approval: You need to obtain initial approval from the DED for your company name and business activity.
5. Draft the memorandum of association (MOA) and the articles of association (AOA): The MOA and AOA outline the company’s objectives, structure, and operational procedures.
6. Register the company: You need to register your company with the DED and obtain a trade license.
7. Obtain necessary permits: Depending on your trading activity, you may need to obtain additional permits and licenses, such as an import/export license, a customs code, and a commercial license.

What Type of Commercial Trading Activities can get approval?

The DED approves several types of commercial trading activities, including:

• Import and export of goods
• Wholesale trading
• Retail trading
• Distribution and storage
• General trading
• Commercial agencies
• E-commerce
• Service trading

You can apply for multiple activities under a single commercial license in Dubai, provided they fall under the same business category.

What are the Requirements to get Trading License in Dubai?

To obtain a commercial business license for trading in Dubai, you need to meet the following requirements:

1. Legal structure: You need to establish a legal entity, such as a sole proprietorship, partnership, or LLC.
2. Business activity: You need to specify the business activity you want to engage in, such as import/export, wholesale trading, or retail trading.
3. Trade name: You need to choose a unique trade name that complies with the DED’s naming conventions.
4. Local sponsor: If you are establishing an LLC, you need to have a local sponsor who holds a 51% stake in the company.
5. Business plan: You need to submit a detailed business plan outlining your trading activities and objectives.
6. Premises: You need to have a physical address for your business premises.
7. Capital: You need to have a minimum capital requirement, depending on the type of business activity.
8. Permits and approvals: You may need to obtain additional permits and approvals, such as an import/export license, a customs code, and a commercial license

The cost of obtaining a commercial business license in Dubai varies depending on several factors, such as the type of business activity, the legal structure, and the location of the business. Here are some of the costs associated with obtaining a commercial business license in Dubai:

• Trade name reservation fee
• Initial approval fee
• Commercial license fee
• Establishment card fee
• Immigration card fee
• Sponsorship fee (for LLC)

The total cost of obtaining a commercial business license in Dubai can range from AED 15,000 to AED 35,000, depending on the above factors. It is important to note that these fees are subject to change and do not include additional costs such as rent, visas, and permits.

How Legal House can help You ?

At Legal House ,as a company fromation service providers in Dubai,we can assist you in obtaining a commercial business license.What we do :

1. Business Setup Consultation: We can provide you with a detailed consultation on the type of commercial license that suits your business requirements. And also advise you on the legal structure of your business and the necessary documentation that you need to submit to the authorities.
2. Documentation Assistance: Wecan help you in preparing the required documentation for obtaining a commercial license, such as the memorandum of association, power of attorney, and other legal documents. & also help in translating the documents into Arabic, which is required by the authorities.
3. Application Submission: We can submit your application for a commercial license on your behalf and follow up with the authorities for approvals. This includes completing the necessary forms, paying the fees, and submitting the application to the relevant authorities.
4. Local Sponsorship: In Dubai, it is mandatory for foreign investors to have a local sponsor for certain types of commercial licenses. Service providers can assist in finding a reliable local sponsor and preparing the necessary sponsorship agreement.
5. Company Formation: We can also assist in setting up your company in Dubai by providing you with a range of business support services such as office space, banking, and accounting services.

Hassel Free to contact us today !