You are currently viewing The Advantages Of A Commercial Business License For Trading in Dubai
The Advantages Of A Commercial Business License For Trading in Dubai

The Advantages Of A Commercial Business License For Trading in Dubai

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
Building Maquettes & Models Requisites Trading
Used Tires Waste Trading
Acids and Alkaline Trading
Adhesives Trading
Advertising Requisites Trading
Agarwood and Incense Trading
Agricultural Equipment and Accessories Trading
Agricultural Equipment and Machinery Spare Parts Trading
Agricultural Pesticides Trading
Agricultural Tools Trading
Agricultural Tractors and Machinery Trading
Air-condition and Refrigeration Spare Parts Trading
Air-Condition Trading
Aircraft Scrap and Used Spare Parts Trading
Aircraft Spare Parts and Components Trading
Airline Inflight Products Trading
Airport Equipment Trading
Animal and Poultry Farms Equipment Trading
animal fodder supplements trading
Animals & Birds Feed Trading
Animals and Birds Requisites Trading
Antennas Trading
Aquarium and Display Cases Trading
Aquatic & live Animals Trading
Arabwear Trading
Artificial Flowers and Plants Trading
Astronomy, Earthquakes & Meteorology Monitoring Equipment Trading
Audio Recorded Media Trading
Audio-Visual, Recording Equipment and Accessories Trading
Authentic Antiques, Artefacts and Artworks Trading
Auto Accessories Trading
Auto Spare Parts and Components Trading
Auto Washing Equipment Trading
Automatic Gates and Barriers Trading
Baby Care Requisites Trading
Baby Food Trading
Babywear Trading
Bakeries and Flour Mills Equipment Trading
Balloons Trading
Bamboo, Cane and Wicker Products Trading
Basic Industrial Chemicals Trading
Beauty and Personal Care Equipment Trading
Beauty and personal care Requisites Trading
Bicycles and Spare Parts Trading
Biodegradable & Compostable Products Trading
Birds Trading
Blank Cassettes Trading
Blankets , Towels and Linens Trading
Blast Furnaces and Smelters Trading
Bolts, Nuts, Screws and Nails Trading
Books Trading
Bottled Water Trading
Bovine Semen Trading
Bread and Bakery Products Trading
Bricks Making Equipment Trading
Bricks Trading
Building and Construction Materials Trading
Building Cleaning Equipment Trading
Building Hardware and Tools Trading
Building Metal Products Trading
Buses , Trucks Trading
Calculators and Spare Parts Trading
Camping Requisites Trading
Canned and Preserved Food Trading
Caps and Lids Trading
Car Parking Systems & Equipment Trading
Carbon Control Systems Trading
Cargo Containers Trading
Dates Trading
Decoration Materials and Partitions Trading
Detergents, Sanitizers and Disinfectants Trading
Diesel Fuel Trading
Disinfecting Booths and Equipment Trading
Diving Equipment Trading
Domestic Kitchen and Fixture Trading
Doors, Windows and other Plastic Building Products Trading
Dried Vegetables and Fruit Trading
Dry Batteries Trading
Dry Ice Trading
Educational Aids Trading
Egg Trading
Electric Cars Trading
Electrical and Electronic Appliances Spare Parts Trading
Electrical Fittings Trading
Electronic Cards Trading
Electronic Games and Amusement Centre Equipment Trading
Electronic Precision Instruments Trading
Emergency Collection Trading
Engineering Designing Instruments Trading
Engines and Machinery Spare Parts Trading
Environment Protection Equipment Trading
Equipment E-Trading
Events Organizing & Managing
Extracting and Drilling Equipment and Machinery Trading
Face Masks and Gloves Trading
False Ceilings Trading
Fencing and Barbed Wire Trading
Fibre Glass Products Trading
Fibre Optic Products and Requisites Trading
Films and Photography Materials Trading
Filters and Purification Devices Trading
Fire Extinguishing Materials Trading
Fire Fighting and Safety Equipment Trading
Fire Fighting Pipes Trading
Fire Resistant and Retardant Materials Trading
Fire Resistant Doors Trading
Fish and Meat Wastes Trading
Fishing Tackles Trading
Flags and flagpoles Trading
flavours and fragrances trading
Flour Trading
Flowers & Ornamental Plants Trading
Fly Ash Trading
Fodder Trading
Food and Beverages Trading
Food Supplements Trading
Foodstuff E-Trading
Franking Machines Trading
Fresh and Chilled and Frozen Meat Trading
Fresh Fish & Marine Animals Trading
Frozen Fish and Seafood Trading
Frozen Poultry Trading
Fuel Trading
Garbage and Waste Collection Containers Trading
Garden Equipment Trading
Garments Accessories Trading
Garments, Textiles and Gifts E-Trading
Gas Cylinders Trading
Ghee and Vegetable Oil Trading
Gifts Trading
Glass and Mirrors Trading
Glass Bottles Trading
Glass Waste Trading
Gliders, Sailplanes and Spare Parts Trading
Global Positioning Systems (G.P.S) Trading
Grains, Cereals and Legumes Trading
Insulation and Protection Materials Trading
Invitation and Greeting Cards Trading
Ironmongery Trading
Irrigation Equipment and Requisites Trading
Jet Ski Trading
Jewellery and Precious Stones E-Trading
Jewellery Trading
Juice Trading
Kids Rides and Games Trading
Laboratories Chemicals Trading
Laboratories Tools and Requisites Trading
Ladies’ Garments Trading
Laundry and Dry Cleaning Equipment Trading
Life Saving Equipment Trading
Lifts, Escalators and Spare Parts Trading
Light Aircrafts Trading
Light Fittings and Fixtures Trading
Lighting Equipment and Requisites Trading
Lighting Poles Trading
Livestock Trading (Outside UAE)
Locks and Keys Trading
Lubricants and Grease Trading
Magnetic Technology Equipment Trading
Marble and Natural Stones Trading
Measuring and Control Systems Trading
Meat and Fish Processing Equipment and Machinery Trading
Medical Gas Trading
Medical, Surgical Articles and Requisites Trading
Medical, Surgical Equipment and Instruments Trading
Medicinal Chemical Trading
Medicines Trading (Outside UAE)
Men Underwears Trading
Men’s Garment Trading
Metal Alloys Trading
Metal Blinds Trading
Metal Cans and Containers Trading
Metal Drums and Barrels Trading
Metal Ores Trading
Metal Rope trading
Metal Wires Trading
Meteorite Trading
Military cloth ware and requisites Trading
Mind Abilities Development Equipment Trading
Mobile Phones & Accessories Trading
Mobile Phones Numbers Trading
Monetary and Banking Equipment Trading
Motion Picture Trading
Motor Vehicles Batteries Trading
Motorcycles Spare Parts & Accessories Trading
Motorcycles Trading
Multi-Dimensional Images Trading (HOLOGRAM)
Musical Instruments and Requisites Trading
Natural Extraction Machinery & Equipment Trading
Natural Herbs Trading
New Automobile Trading for Export
New Motor Vehicles Trading
Newspapers & Magazines Trading
Non Edible Oil Trading
Non Ferrous Metal Trading
Non-Manufactured Precious Metal Trading
Novelties Trading
Nuts Trading
Occupational Hygiene and Safety Requisites Trading
Off Road Karts and Spare Parts Trading
Office Equipment Trading
Office Furniture Trading
Oil Drilling Rigs & Equipment Trading
Oilfield Chemicals Trading
Poultry Trading
Power Generation, Transmission, and Distribution Equipment Trading
Pre-Fabricated Houses Trading
Precision Dies Trading
Printing Equipment and Instruments Trading
Protective Garments and Vests Trading
Publications and media Materials E-Trading
Pumps, Engines, Valves, and Spare Parts Trading
Racing Cars Trading
Radio, T.V. Stations, Cinema and Theatre Equipment Trading
Raised Access Computer Floors Trading
Raw Materials Trading
Ready-mix Concrete Trading
Readymade Garments Trading
Refined Oil Products Trading
Refrigeration and Cold Storage Equipment Trading
Household Electrical Appliances Trading
Reinforcement Steel Bars Trading
Representative Office
Resort Management
Robotics & Smart Machines Trading
Rock Wool Trading
Ropes, Sacks and Jute Bags Trading
Rubber Trading
Safe Transport Specialized Vehicles Trading
Salt Trading
Salted, Preserved Fish and Seafood Trading
Sand, Gravel and Stones Trading
Sanitary Ware Trading
Satellite Receiving Equipment Trading
Satellites’ Components & Spare Parts Trading
Scaffolds Trading
Scales and Dry Measures Trading
Schools, Hospitals and Laboratories Furniture Trading
Scientific and Laboratory Equipment Trading
Scooters Trading
Scrap and Metal Waste Trading
Sea Cleaning Equipment Trading
Security Systems & Equipment Trading
Seeds Trading
Sewing and Embroidery Requisites Trading
Sewing Machines and Spare Parts Trading
Ships and Boats Trading
Shoe Trading
Shop Fittings Trading
SIM Trading
Simulation Equipment and Systems Trading
Slippers and Sandals Trading
Smelters and Furnaces Refractory Materials Trading
Snack Food Trading
Soap and Hair Care Products Trading
Soap and Hair Care Products Trading
Soft Drinks and Carbonated Water Trading
Solar Energy Systems and Components Trading
Space Resource Trading
Special Fabrics and Fibres For Construction Trading
Specialized Photographic Equipment and Processing Materials Trading
Specialized Vehicles Trading
Spectacles and Contact Lenses Trading
Spices Trading
Spinning Spare Parts Trading
Sponge Mattresses Trading
Sport and Recreational Events Tickets E-Trading
Sport Equipment Trading
Sports Fields and Halls Equipment Trading
Sports Wear Trading
Stationery Trading
Steel and Basic Steel products trading
Commercial Business activities trading in dubai

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 !

This Post Has 3 Comments

Comments are closed.