What are the types of commercial licenses in the UAE

٠٨ يناير What are the types of commercial licenses in the UAE

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The UAE is an ideal business and investment destination, offering a flexible and supportive business environment. Commercial licenses vary in the UAE to suit different types of businesses and economic activities. Whether you are planning to establish a small project or a large company, understanding what are the types of commercial licenses in the Emirates? It will help you make the right decision and ensure compliance with all local regulations.

The types of business licenses in Dubai vary depending on the type of business activity you intend to engage in. Commercial licenses can be divided into four main categories: commercial licenses, industrial licenses, professional licenses, and tourist licenses. Each type of license meets specific needs and requires a specific set of documents and procedures.

Commercial licenses are granted for businesses related to general trade such as retail and wholesale trade. This license is the most common and is used by companies that deal in the buying and selling of goods. As for industrial licenses, they are intended for companies that manufacture products and transform raw materials into finished goods. This license requires additional approvals from the relevant authorities to ensure compliance with industrial and environmental standards.

What are the types of commercial licenses in the UAE?

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Commercial license in Dubai

In order to be able to practice any commercial activity in Dubai, you must first know the commercial license in Dubai and its different types. In the event that you want to practice any type of commercial project that can be practiced in Dubai, in this case you must send an email to the website for the classification. Activities, with a clear statement of your commercial activity that you want to practice so that you can obtain a license for it from the body responsible for issuing these licenses.

However, the Licensing Department, as well as the Commercial Registration Department, have provided many quick services by launching this initiative called the Instant License, which can make businessmen obtain that license very quickly and within a time not exceeding five minutes as well, and after that It is possible for all partners to come to these specialized centers to obtain the license in order to obtain this license.

How to obtain commercial licenses in the UAE

Obtaining a commercial license in the UAE requires following a set of regulatory and administrative steps. The UAE provides a flexible and attractive business environment for local and international investors, making the process of obtaining a commercial license easier and clearer. Here are the main steps to obtain a commercial license in the UAE:

Determine the type of business activity: You must determine the type of business activity you want to practice. You must choose the activity carefully because this will determine the type of business license you need.
Choosing the legal form of the company: Depending on the business activity and type of company (such as limited liability company, sole proprietorship, branch of a foreign company, etc.), the appropriate legal form must be chosen.
Choosing a trade name: A trade name must be chosen that complies with the laws and regulations of the Department of Economic Development in the relevant emirate. The trade name must clearly reflect the company’s activity and not contain any inappropriate or illegal terms.
Submitting a trade name application: After choosing a trade name, an application must be submitted to obtain approval from the Department of Economic Development. After approval, the name is reserved for a specific period.
Preparing required documents: Required documents usually include:

Copies of passports of shareholders and directors.
A copy of the Emirates ID card (if one of the shareholders is a resident of the UAE).
Business plan (if required).
The company’s articles of incorporation and articles of association (for limited liability companies).

Submitting an application for a license: The application must be submitted with the required documents to the Department of Economic Development in the relevant emirate. Additional approvals from other government agencies may be required, depending on the type of business.
Choosing a business location: A business location must be rented or purchased and the lease or ownership contract must be submitted as part of the required documents. The website must comply with local regulations for doing business.
Obtaining additional approvals: Depending on the type of business, you may need to obtain additional approvals from the relevant local authorities or ministries.
Payment of fees: The fees required to issue a commercial license must be paid. Fees vary according to the type of business activity and type of license.
License issuance: After completing all procedures and paying fees, a commercial license is issued, allowing you to start practicing business activity.
Cooperation with Itqan Company: Itqan Company can facilitate the process of obtaining a commercial license by providing professional consultations and integrated services that include preparing documents, submitting applications, and following up on procedures with government agencies. Thanks to its deep experience and precise knowledge of the regulatory procedures in the Emirates, Itqan ensures that the incorporation process is completed quickly, efficiently and without any complications.

Types of business licenses in Dubai

Dubai is characterized by a wide variety of types of business licenses in Dubai , which allows investors and entrepreneurs to choose the license that suits the nature of their business and their needs. Here is an overview of the main types of business licenses in Dubai:

Type of license	the description
General Trading License	It allows the company to engage in all types of commercial activities, including wholesale and retail trade.
Free Zone Company License	It allows the company to operate within a designated free zone in Dubai, providing some tax and customs benefits.
E-Trading License	It allows businesses to sell goods and services online without the need for a traditional store.
Gulf Partnership License (GCC Partnership License)	It allows Gulf citizens to partner with local partners in Dubai for commercial projects.
Joint Stock Company License	It allows the company to raise capital from several shareholders, and it is considered a closed or open joint stock company.
Sole Proprietorship License	It allows an individual to establish and manage a commercial company in Dubai.
Professional Business License	Granted to individuals or companies that provide professional services, such as consulting, legal, or accounting services.
Industrial License	Designed for companies working in the field of manufacturing and production.
Tourism License	Dedicated to companies operating in the tourism sector, such as travel agencies, hotels and tourism companies.

Types of business licenses in Dubai provide multiple investment opportunities for investors, helping them achieve their business goals efficiently and effectively. By understanding the options available and the requirements for each type of license, investors can make the right decisions to achieve sustainable success in Dubai’s dynamic business market.

Commercial licenses in the UAE

The difference between local companies and foreign companies in the Emirates

In the UAE, local companies and foreign companies differ in several aspects, and here are the most prominent differences between them:

Property:

Local companies: The local company must be owned by Emiratis at a rate of no less than 51%, and foreign partners can benefit from the remaining percentage.
Foreign companies: Foreign partners can own a 100% stake in foreign companies, with some necessary conditions and licenses.

Licenses and permits:

Local companies: Local companies may need additional licenses or permits from the relevant government agencies.
Foreign companies: Foreign companies may be required to obtain special licenses and permits before starting business.

Laws and regulations:

Local Businesses: Local businesses are subject to local laws and regulations in addition to federal laws.
Foreign Corporations: Foreign corporations are subject to federal and provincial laws, as well as regulations governing foreign businesses.

direct foreign investment:

Local companies: Foreign investments in local companies are considered foreign direct investment and are subject to its own regulation.
Foreign companies: Foreign companies are generally considered foreign direct investments and are subject to relevant regulations.

Taxes:

Domestic Corporations: Domestic corporations may be subject to a certain percentage of taxes on profits.
Foreign companies: Foreign companies may be subject to the same taxes on profits, but there may be double taxation avoidance agreements between countries.

These are some of the key differences between local companies and foreign companies in the UAE, and foreign investors should consider these differences when deciding on the type of company they wish to establish.

Changing the type of commercial license in the UAE

To change the type of trade license in the UAE, the following steps must be followed:

Study the requirements: Before embarking on the process of changing the type of commercial license, you must familiarize yourself with the requirements and procedures involved in this process. Research and consult with relevant authorities such as the Department of Economic Development in the emirate in which the company is based.
Contact the competent authority: Contact the local Department of Economic Development or the entity responsible for registering companies to obtain the necessary information and direct you in the procedures that must be followed to change the type of commercial license.
Completing forms and documents: Changing the type of license may require submitting additional forms and documents. You may need to submit a license type change request form and documents proving your eligibility for the change.
Payment of fees: You must pay the fees required to change the type of commercial license. Fees may vary according to the emirate, type of company and the change requested.
Review and approval: Your application and submitted documents will be reviewed by the competent authority. If the license type change is approved, updating procedures will be done in the relevant records.
Updating documents and contracts: After changing the type of license, you may need to update documents and contracts associated with the company, such as commercial contracts, bank accounts, and rental contracts if there are changes in the business activity or organizational structure of the company.

You must contact the responsible authority in the emirate in which the company operates to obtain updated and detailed guidance on the procedures and requirements for changing the type of commercial license.

Documents for obtaining commercial licenses in the Emirates

To obtain a business license in the UAE, you will need to submit a set of documents and procedures that may differ slightly from one emirate to another. However, there are a set of basic documents that are generally required in all emirates. Here is a list of these documents:

Commercial license application form: Fill out the form for applying for a commercial license from the Department of Economic Development in the relevant emirate.
Copy of passport: for all partners in the business activity.
A copy of the Emirates ID: for all partners and investors.
No objection certificate: If one of the partners is an employee in a government or private entity, you may need a no objection certificate from his current employer.
Personal photo: of the applicant.
Business plan: depends on the type of business activity required to be licensed.
Lease contract: A copy of the lease contract for the property that will be used as the company’s headquarters, with a certificate from the Real Estate Regulatory Authority stating that the property is suitable for commercial use.
Initial approval: from the authorities competent for the specific commercial activity, such as the Ministry of Health if the activity is related to health or the Ministry of Education if the activity is related to education.
Articles of Association: If the activity is a company, the Articles of Association are submitted.
Approval from the municipality: You need to obtain approval from the municipality of the relevant emirate on the geographical location of the project.
Payment of fees: Pay the fees required to obtain a commercial license.

Cost of a business license in Dubai Free Zone

It is now possible in Dubai to know the cost of a commercial license in Dubai by using this instant license, which enables you to avoid the many sufferings that you go through during the stage of obtaining the commercial license, and it also saves you a lot of time and effort as well.

The method of obtaining an instant license makes you learn faster the cost of a commercial license in the Dubai Free Zone and enables you to obtain that license while saving a lot of time. This new project is part of the UAE’s developments to help citizens in the process of obtaining commercial licenses and thus helps citizens speed up these services. To them and make it easy and fast to find out the cost of a business license in the Dubai Free Zone.

One of the simplest ways to help you get that simple estimate of the commercial license in the Dubai Free Zone is to use this portal for estimating the cost of issuing the license, which is located in Dubai Economy. This portal enables you to obtain that approximate estimate of all the expenses and fees that you must pay from In order to obtain a commercial license.

Procedures for establishing a company in Dubai

Dubai is one of the most attractive cities for investors and entrepreneurs in the world, providing an ideal environment for establishing companies and starting businesses. It provides investors with diverse opportunities and great flexibility in choosing company types and establishment procedures, making it an ideal destination for building a successful business. Here is an overview of the basic procedures for establishing a company in Dubai :

Determine the type of company: The investor must determine the type of company he wishes to establish, whether it is an individual company, a joint-stock company, a company in free zones, or others.
Choosing a trade name: You must choose a suitable name for the company and ensure its availability and compliance with local laws and legislation.
Submitting the application and documents: The application for obtaining a commercial license is submitted 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.
Application review: After submitting the application and documents, the application is reviewed by the competent authorities, and this step may require a certain period of time to review the applications and make decisions.
Pay fees and obtain approval: After processing and approving the application, the investor must pay the prescribed fees and obtain the final business license.
Company incorporation and registration: After receiving the trade license, the company is established and officially registered in the Dubai Commercial Registry.
Obtaining work permits: After establishing the company, the necessary work permits must be obtained for each employee working in the company, and this is done through the relevant government agencies.
Compliance with local legislation and controls: The company must adhere to all local legislation and controls related to business in Dubai, in order to ensure legal compliance and avoid potential problems.

Investment costs in Dubai

In order to be able to invest in Dubai and start practicing your activity, you must know the costs of investing in Dubai. With the advantage of tax exemption available in Dubai, it has made it an attractive factor for all investors, but you must keep in mind the costs of investing in Dubai and be aware of those fees that It is required in order to obtain those commercial licenses necessary for you to practice your activity in Dubai.

Therefore, the Dubai website of the Department of Economic Development has provided this data through which the investor can estimate the amounts required to obtain licenses. One of the costs of investing in Dubai is that the company owner must have a minimum amount of capital in the event that he practices his activity in the free zone. You must also know the amounts related to sponsoring the employees working in this company and all the possible amounts for importing its own goods in order to start practicing the activity, as all of these are considered investment costs in Dubai.

how to invest in Dubai

In order to learn how to invest in Dubai, you must know the best ways to invest in Dubai, which is real estate investment. Dubai has become one of those distinguished centers for real estate investors. In order to learn how to invest in Dubai, you must know that real estate investment achieves many of these gains. A good business for investors. You can buy that room in a hotel and then rent it, and through that you can obtain rent on an ongoing basis. You will have tried one of the methods of real estate investment in Dubai and learned how to invest in Dubai.

The most important frequently asked questions about commercial licenses in the UAE

What are the basic requirements for obtaining a commercial license?

Basic requirements include: choosing the appropriate business activity, submitting the required documents, securing a business location, paying the prescribed fees, and obtaining the necessary approvals.

What are the steps that must be followed to obtain a commercial license?

The steps include: defining the business activity, choosing the legal form, submitting the application and documents, paying the fees, and waiting for approval.

How long does it take to obtain a business license?

This varies depending on the type of activity and the competent authority, and obtaining a license often takes between two weeks to two months.

What are the costs associated with obtaining a business license?

Costs vary depending on the type of activity and location, and include registration fees, site costs, and government fees.

Can I apply for a commercial license myself or do I have to use the services of a consulting office?

You can apply yourself, but using the services of a specialized consulting firm can speed up the process and ensure compliance with all laws and regulations.