What is a Commercial Trade License and How You Can Get It?

UAE is becoming the world’s leading business attraction due to its business-supportive laws, tax-free regimen, and tremendous geological trade opportunities. To set up a trade business here in Dubai, you need to get a license first, and Vertex Global can help you with that. A commercial license is a must-have for business activities like selling, buying, importing, and exporting. 

Business Activities Permitted for Commercial License

You cannot run more than ten business activities with one license. The commercial license allows the following business activities:

  • travelling services
  • import/export general trading
  • Trade of electronic equipment.
  • Trade of construction raw material.
  • General retail. 
  • Rental business of automobiles.
  • Real estate business services

The Process of Obtaining a Commercial License

  1. Choose a suitable legal entity for your commercial business. 
  2. Determine what ten activities you want to opt for your business license. 
  3. Take a business partner on board and decide the share percentage and equity of profit and loss.
  4. Find the practical and reflective trade company name.
  5. Need to add the capital ratio in the registration form of the company. 
  6. Get an MOA signed. 
  7. Once all is done, a voucher will be handed to you, pay the mentioned fee. 

The commercial license cost is AED 10,000, and it includes all the expenses of initial approval, the trade name registration, and license issuance. 

The Required Documents for a Commercial License

  • You need a license application form with your trade company name. 
  • Tenancy contract for physical company address. 
  • The approval of an office location from DMBD (Dubai Municipality Building Department). 
  • Signed memorandum of association (MOA) by both investor and sponsor. 
  • Receipt of the license fee voucher. 

Submit all the cited documents to the Department of Economic Development (DED), and within a week, you can receive your commercial trade license with one-year validity.

The Advantages of Commercial License

  • You can easily apply for visas and get them instantly.
  • Affordable workforce for assistance. 
  • Complete exemption from corporate and income tax.
  • Complete freedom for local and overseas trade.
  • Extensive range of the goods to trade with a single license.

Difference Between Commercial & Professional Trade License

Often, investors get confused between professional and commercial trade licenses; the fundamental difference is between business activities and share distribution. 

  1. Commercial trade licenses allow various commercial trading activities, including retail, construction, automobile, real estate, electronics, etc. 
  2. A professional business license is for service-based businesses. This license covers advisory and consultancy services, computer services, audit services, medical and health-related services, and salon and holistic services. This license is purely based on a particular skillset and expertise. 

Another significant difference between these two types of licenses is that in a commercial license, the investor needs a local partner and has to give him 51% of the business shares of his company. However, for a professional license, there is no such condition. Instead, the investor will have 100% ownership of the company. For more information or if you need assistance regarding how to obtain a commercial or professional trade license, visit here.