Cost of commercial license in Dubai

١٥ مارس Cost of commercial license in Dubai

١٥ مارس POSTED AT
English
itqanteam

Dubai is one of the world’s leading business and economic hubs, with a dynamic and conducive business environment for businesses and investors. One of the most important factors that any business or service provider should consider is the cost of a business license in Dubai. A business license is one of the essential elements in setting up and operating a business in Dubai.

The cost of a business license in Dubai varies depending on several factors, including the type of business activity, the size and location of the company, as well as additional costs related to licenses and additional services. It is important to be aware of these factors and understand how they affect the cost of a business license.

A trade license allows companies to obtain legal permission to conduct business in Dubai and is a key to entering the market and building trust with customers and business partners. Therefore, anyone who intends to set up a company in Dubai should consider the cost of obtaining a trade license as an essential part of the cost of starting a business.

In this article, we will analyze the cost of Commercial License in Dubai And the factors that influence it, in addition to reviewing the options available to companies and providers of commercial services, with the aim of understanding how to plan and manage this cost efficiently.

Cost of commercial license in Dubai

جدول المحتوى

Commercial License in Dubai

Commercial License in Dubai It is the key to entering the world of business and trade in the Emirate of Dubai, as this license is considered the official document that allows individuals and companies to practice various commercial activities in the local market. Dubai is considered one of the most attractive destinations for businessmen and investors worldwide, and the effective commercial licensing system in Dubai contributes to facilitating and encouraging the establishment of companies and registration of commercial activities.

The types of business licenses available in Dubai vary according to the chosen business activity and the legal structure of the company. A sole proprietorship, joint stock company, or limited liability company can be established. Foreign investors can also establish their companies in free zones such as the Dubai World Trade Zone.

Obtaining a business license in Dubai involves certain procedures, including selecting the business activity, submitting the application, paying the required fees, submitting the necessary documents to the Department of Economic Development or the competent authority, and waiting for the license approval. Some business activities may require additional licenses or approvals from other government agencies.

By facilitating the process of obtaining trade licenses and providing a favorable business environment, Dubai is one of the most attractive cities for business and investment. The trade license plays a vital role in stimulating economic growth and supporting sustainable development in the Emirate of Dubai.

Basic steps to obtain a trade license in Dubai

to get Business License in DubaiThere are several basic steps you need to follow. Here is a summary of the steps you need to take:

Select business activity: Start by determining the type of business you want to conduct. This business must be in compliance with Dubai laws and regulations.
Choosing a legal structure: Decide on the corporate structure that best suits your business needs, whether it is a private joint-stock company, limited liability company, or other.
Choosing a trade name: Choose a name for your company that complies with Dubai company registration laws. Make sure the name is available and not already taken.
Obtaining the necessary approvals: In some cases, you may need to obtain prior approvals from the relevant government authorities before submitting a commercial license application.
Submission of the application: Submit the commercial license application to the relevant government authorities in Dubai, attaching all required documents and the prescribed financial fees.
Obtaining final approvals: After fulfilling all requirements and submitting the necessary documents, your application will be reviewed and the commercial license will be officially granted.
Issuance of commercial license: After your application is approved, your company’s trade license will be issued, and you can now start practicing your business in Dubai.

Cost of commercial license in Dubai

Cost of commercial license in Dubai It depends on several factors, including the type of business, the structure of the company, where it is established, and other additional factors. The fees required vary between small, medium, and large companies, and may be lower for companies established in economic freedom zones than for companies established in onshore areas. The cost is calculated Commercial License in Dubai Generally based on the following factors:

Business type: License fees are determined based on the type of business activity, with fees varying by sector and industry.
Company structure: License fees can vary depending on the company structure, such as a sole proprietorship, limited liability company, or joint stock company.
The company’s website: License fees vary between land areas and economic freedom zones, with license fees being lower in economic freedom zones.
Document preparation costs: You will have to bear the costs of preparing the legal documents required for registration, such as articles of association and other administrative documents.
Administrative fees: In addition to the license fee, there may be other administrative fees related to the registration and certification process.

Differences between commercial licenses available in Dubai

Dubai is one of the world’s most important business hubs, with a dynamic and diverse business environment that attracts companies and investors from all over the world. One of the essential steps to take when starting a business in Dubai is to obtain the right trade license. But before deciding on the right type of trade license, it is important to understand the differences between the licenses available. Below is a table showing the main differences between the types of trade licenses available in Dubai:

Type	the description	Features	Defects
Sole Proprietorship License	Issued to individuals who wish to practice commercial activities individually.	– Simple and low-cost incorporation process. – Allows the individual to maintain complete control over the business.	– The person takes full responsibility for debts and losses. – Trust in the brand may be lower than other companies.
Public Joint Stock Company	It consists of a group of shareholders who share risks and profits in a certain proportion according to their shares in the company.	– Provides an opportunity to increase capital through the sale of shares. – Shareholders have specific rights and responsibilities according to their shareholding percentage.	– Requires more complex establishment and management procedures than other licenses. – Requires compliance with accurate financial reporting requirements and review by the competent authorities.
Private Joint Stock Company	Similar to a public joint stock company, but suitable for small or family businesses that do not require attracting outside shareholders.	– Provides the same financial benefits as a general shareholding but at a lower cost. – Family shareholders or limited partners can participate in the management of the business.	– The possibilities for increasing capital may be limited compared to public participation. – Requires compliance with accurate financial reporting requirements and review by the competent authorities.
Limited Liability Company	Issued to a group of shareholders who bear the company’s liability only to the extent of the contributed capital.	– Shareholders have limited legal and financial protection. – Administrative and financial process is less complex compared to public companies.	– The possibilities for increasing capital may be limited compared to public shareholding. – Some administrative and financial requirements specific to limited companies must be met.

This table provides an overview of the business licenses available in Dubai and the differences between them in terms of legal structures, responsibilities, advantages and disadvantages.

Renewing a trade license in Dubai

Procedures required to renew a trade license in Dubai

To renew a trade license in DubaiThere are several steps that must be followed. Here is a summary of the steps required:

Check expiration date: Before you start the renewal process, make sure you know the expiration date of your current trade license. You can usually find this information on the license itself or on the website of the relevant government agency.
Update information and documents: Ensure that all company information and documents are up to date and current. You may need to provide any updates or amendments to official documents such as address, legal responsibilities, and shareholders, if there are any changes.
Pay renewal fees: Pay the required fees to renew your trade license. These fees must usually be paid before you submit your renewal application.
Submission of the application: After updating all the information and paying the fees, you may need to submit a formal application to renew your trade license. This application can be submitted online or in person at the relevant government agency’s office.
Waiting for approval: After submitting the application, the renewal process may require review and approval from the relevant authorities. You must wait for final approval before receiving the renewed license.
Receiving the renewed license: After the renewal application is approved, the renewed trade license will be issued. Receive the license and ensure that all the correct details are on it.

Documents required to obtain a commercial license in Dubai

to get Business License in DubaiA set of required documents and papers must be submitted. These documents vary slightly depending on the type of company and business activity, but in general, the basic papers you may need include the following:

Commercial License Application Form: The trade license application form provided by the local authorities in Dubai must be completed.
a copy of the passport: A colour copy of the passport of the owner or main founder of the company must be provided.
Personal Photos: Photographs of the owner or key managers of the company may be required.
Action Plan: A comprehensive business plan must be submitted that outlines the company’s activities and future plans.
lease: If the company intends to rent a place to conduct business, a lease or rental license must be submitted.
Insurance Certificate: Insurance for employees, equipment and property may be required.
Financial documents: Some companies may be required to provide financial documents such as annual accounts and income and expense projections.
Licenses and permits for business activity: All necessary licenses and permits to operate the chosen business must be in place.
Authorization form: If you use an attorney or legal advisor to represent you before the relevant authorities, you may need to provide an authorization form signed by the owner.
Other documents: Other government entities in Dubai may require additional documents depending on the nature of the business and their legal requirements.

At the end of this article, we find that the cost Commercial License in Dubai It is an essential element to consider when establishing or renewing businesses in this vital economic city. The costs of a business license reflect many factors, including the type of company, the type of business activity, the size of the company, and additional administrative costs.

The costs of business licenses in Dubai vary greatly between different types of companies, with simple licenses such as a sole proprietorship or private joint stock company being less expensive than public joint stock companies or limited liability companies.

Despite the costs, we must understand that a trade license is a fundamental investment in the future of the company, as it represents the legal gateway and the basic basis for conducting business activities in Dubai. In addition, we must consider that the trade license indicates the company’s commitment to local laws and regulations, which contributes to building trust with customers and business partners.

Ultimately, businessmen and investors should carefully study the expected cost of a commercial license and ensure that they have the financial resources to cover these costs, taking into account the expected returns and opportunities for growth and expansion in the Dubai business market.