Business licenses are one of the main steps to successfully start a business. The UAE offers a fruitful and favorable environment for both local and international investors, and the process of obtaining a commercial license is an essential part of this process. In this article, we will discuss how to obtain a commercial license in the Emirates and the basic steps that must be followed to ensure the success of this process.

The process of obtaining a commercial license begins with identifying the chosen business activity, as it must be in line with local laws and regulations. Next, the investor must determine the appropriate legal form of the company and submit the necessary documents, including copies of passports and copies of ID cards of shareholders and directors.

After preparing the documents, the application for a commercial license in Dubai is submitted to the competent authorities in the relevant emirate. At this stage, you may be required to pay fees that vary depending on the type of activity and location.

After reviewing the application and documents, the competent authorities issue approval and issue a commercial license for the company. Investors should be aware of the legal obligations and regulations that must be adhered to after obtaining the license.

In short, everyone who wants to start a business in the UAE must begin the process of obtaining a commercial license carefully in accordance with applicable legal procedures and regulations. By relying on professional advice and collaborating with reliable consulting companies such as Itqan, this process can be facilitated and potential obstacles avoided, leading to a successful start-up of a business in the UAE.

Documents required to obtain a commercial license

The documents required to obtain a business license in Dubai,  United Arab Emirates, vary according to the type of business activity and the type of company to be established. But in general, the following documents may be required:

• A copy of the passport or ID card of the owner/founders.
• A copy of the lease or ownership contract for the office in which the company will be established.
• A copy of the experience certificate and academic qualifications required for the business activity (if required).
• An authorization letter if another person is appointed to manage the company.
• A letter of support from the local bank confirming the founders’ ability to finance the company.
• A list of business activities that the founders wish to engage in.
• Application form for obtaining a commercial license.

There may be different additional requirements between emirates and between different business activities. It is recommended to check the specific requirements for each emirate and for each type of company and commercial activity before starting the process of obtaining a commercial license in Dubai .

The importance of a commercial license in the Emirates

The Dubai trade license is considered one of the most important legal documents that companies and individuals need to work in the United Arab Emirates. The importance of obtaining a commercial license is represented in the following points:

1. Compliance with laws and legislation: Working in the United Arab Emirates requires compliance with local laws and legislation, and companies and individuals obtain a commercial license after submitting the necessary documents and ensuring compliance with the conditions and requirements specified by the law.
2. Obtaining permits and permission: Some commercial activities may require obtaining special permits from the competent authorities, and a commercial license allows companies to obtain these permits and permission to practice commercial activity.
3. Obtaining banking services: Most banking services in the Emirates require obtaining a commercial license, and the license allows companies to obtain bank accounts and conduct banking transactions.
4. Obtaining visas: Working in the UAE requires obtaining a visa, and a commercial license allows company owners to obtain visas for workers and visitors.
5. Trust and credibility: A commercial license constitutes strong evidence of the company’s legitimacy and credibility, and increases the confidence of customers, suppliers, and partners in dealing with it.
6. Obtaining government facilities: A commercial license allows companies to obtain government facilities available to companies, such as tax reductions and financial aid.

In general, obtaining a business license is essential for companies and individuals who want to operate in the United Arab Emirates, and helps to comply with local laws and legislation and achieve success in business.

Types of business licenses in Dubai

In Dubai, there are a variety of types of business licenses available that allow investors to establish and operate their businesses. These licenses include a variety of options to suit the needs of different companies and the type of business they want to do. Below is an overview of the most important types of business licenses in Dubai :

1. General Trading License: This license allows companies to engage in all types of commercial activities, including wholesale and retail trade.
2. Free Zone Company License: This license allows companies to operate within a specific free zone in Dubai, and provides some tax and customs benefits.
3. E-Trading License: This license allows companies to sell goods and services online without the need for a traditional store.
4. Joint Stock Company License: This license allows the company to raise capital from several shareholders, and it is considered a closed or open joint stock company.
5. Sole Proprietorship License: This license allows an individual to establish and manage a commercial company in Dubai.
6. Professional Business License: This license is granted to individuals or companies that provide professional services, such as consulting, legal, or accounting services.
7. Industrial License: Designated for companies operating in the field of manufacturing and production.
8. Tourism License: Designated for companies operating in the tourism sector, such as travel agencies, hotels, and tourism companies.

Requirements for issuing a commercial license 

There are some requirements that must be met to issue a commercial license, which are the following:

• Providing a contract to appoint a service agent.
• The existence of a contract appointing a certified company agent.
• Bring the company’s articles of incorporation duly certified for the business.
• Obtaining the approval of other government agencies for the activity in accordance with the principles of companies of all types.
• Submit a copy of the lease contract authentication certificate issued by RERA (Real Estate Regulatory Agency in Dubai).
• Bring the initial approval receipt and all previously submitted documents.

Trade license fees 

Commercial license fees in Dubai vary depending on the type of license, the commercial activity, and the emirate in question. Here is an overview of some of the approximate fees that may be associated with the process of obtaining a business license:

• Basic licensing fees: These fees change according to the type of license and commercial activity. This fee includes the cost of issuing the basic licence.
• Annual renewal fees: Business license holders must pay an annual fee to renew the license and continue conducting business activity.
• Permit and license fees: Some commercial activities may require paying additional fees to obtain special permits or licenses from the relevant authorities.
• Processing and administration fees: These fees may include the costs of processing applications and managing the administrative procedures related to obtaining the license.
• Legal and accounting consultation fees: You may need to pay fees for legal and accounting consultations to assist you in the process of obtaining a license and operating the company.

Conditions for renewing a commercial license in Dubai

Renewing a commercial license in Dubai is an important procedure to ensure the continuity of business activity in a legal and regular manner. Here are some common conditions that must be adhered to to renew a trade license in Dubai:

1. Geographical presence and commercial address: The company must have a valid and approved commercial address in the Emirate of Dubai.
2. Health and social insurance: The company must provide proof of its employees’ insurance against health and social risks in accordance with local laws and regulations.
3. Obligations with government authorities: The company must be in compliance with all financial and legal obligations with government authorities in Dubai, such as payment of fees, taxes, and tax reports.
4. Submitting financial reports: The company must submit the required financial reports, such as financial statements and annual reports, in accordance with approved accounting standards.
5. Obligations with labor: The company must adhere to all laws and regulations related to labor, such as providing salaries and incentives regularly, and submitting the necessary reports to the Labor Regulatory Authority.
6. Updating data: The company must regularly update all data and information related to the company according to local requirements, such as changes in shareholders, directors or address.
7. Pay the required fees: The company must pay the fees required for the commercial license renewal process according to the specified schedule.

Establishing a company in Dubai

Establishing a company in Dubai represents an important and exciting investment step for investors and entrepreneurs. Dubai features advanced infrastructure and a favorable business environment, making it an ideal destination for starting and growing a business. Establishing a company in Dubai is a process that requires several steps and specific legal and administrative procedures.

First, the investor must determine the type of company suitable for his business activity, whether it is an individual company, a joint stock company, a company in free zones, etc. After that, the investor selects the company name and ensures its availability and compliance with local laws and legislation.

Then, the investor submits an application for a commercial license to the competent authorities in Dubai, along with submitting the required documents such as a copy of the passport, personal photos, and the lease contract or ownership document.

After submitting the application, the application is reviewed by the competent authorities, and after approval, the investor must pay the prescribed fees to obtain a commercial license.

By receiving the final business license, the investor can start the business and work towards achieving his business goals in Dubai, and take advantage of the vast opportunities that the city offers for business and investment.

Costs of establishing a company in Dubai

The costs of establishing a company in Dubai may vary based on several factors such as the type of company, the size of capital, and additional services that you may need. However, the basic costs of setting up a company in Dubai can be divided into major components that include:

• Licensing and registration fees: The cost of these fees depends on the type of company you wish to establish, whether it is an individual company, a limited company, or a company in free zones.
• Legal Consultation Fees: In some cases, you may need legal advice to assist you in the company formation process and ensure compliance with local laws.
• Professional services fees: such as legal services, accounting, and assistance with documentation and document preparation.
• Required capital: Some types of companies may require a specific minimum capital, which can vary depending on the type of company and business activity.
• Office and infrastructure costs: These costs include office rent, furnishings and equipment costs, communications, and general services.
• Permits and Permits Fees: The process of establishing a company can involve obtaining special permits such as building permits or industrial licenses, and these may require additional fees.
• Advertising and Marketing Costs: You may need to invest in advertising and marketing for the new business to attract customers and build brand awareness.

In conclusion, we find that obtaining a commercial license is a crucial step in the entrepreneurs’ journey towards building a successful business in Dubai. This license is key to opening the doors to financial opportunities and investigations in the dynamic and diverse business environment in the Emirate of Dubai.

By adhering to specific legal and administrative procedures and requirements, investors and entrepreneurs can obtain a business license smoothly and efficiently. This essential procedure is the main gateway to enter the business world in Dubai, where they have the opportunity to explore a wide range of sectors and business activities.

In addition, Dubai’s well-developed infrastructure and conducive business environment provide strong support to business owners. The local government encourages investment and innovation, and strives to facilitate administrative procedures and improve the business environment by developing economic regulations and policies.

The most frequently asked questions about the commercial license