How to get a Commercial Trade License in Dubai?

Get a Commercial Trade License in Dubai

You might be surprised to learn that the United Arab Emirates (UAE) has experienced immense growth in 2023, with trade exceeding 1 trillion dirhams and reexporting crossing 300 billion dirhams. This means you can earn countless profits by starting your own business in Dubai. 

Are you wondering about starting your business in domestic and international trade in Dubai? If yes, you must obtain a commercial trade license in this Emirate to start this business legally in Dubai. 

Stop worrying if you don’t know the exact process to get a commercial license for your business in Dubai and spend some time with us. Here, we will explore the steps to get a commercial trade license in this city. Plus, we will share some essential information about Commercial trade licenses in Dubai. 

Commercial trade license - Overview

A commercial trade license allows you to trade goods and services in Dubai. With this license, you can conduct many business activities and trade domestically and internationally. From toys to automobiles, furniture, and, virtual goods, you can purchase and sell a variety of products in Dubai with this license. 

With the help of a commercial trade license, you can also give specific services, such as brokerage or real estate services in Dubai. With Dubai’s strategic location that is surrounded by the significant markets of the Middle East, Africa, Europe, and more, the commercial trade license is a perfect option for individuals and businesses looking to establish their presence in this city. 

What are the business activities you can conduct with the Commercial Trade License?

Indeed, the Commercial Trade License lets you perform your trading business in Dubai. But you cannot conduct all business activities in Dubai with a Commercial Trade License in this city. Therefore, you should have a look at the allowed business activities that are mentioned below:

• Medical and Surgical Equipment
• Readymade Garments
• Software
• Automobiles
• Computer Systems and Communication Equipment
• Contracting
• Foodstuffs
• Furniture
• Brokerage
• Advertising services 

Besides these business activities, you can conduct other countless business activities in Dubai with the Commercial Trade license. Therefore, we recommend you visit the official website of the Dubai Department of Economic Development (DED) to get the complete list of allowable business activities with the Commercial Trade License in Dubai. However, you can also contact Flyingcolour Business Setup to get this list. 

What are the steps to get a commercial trade license in Dubai?

Commercial Trade License is essential if you want to conduct your business in Dubai. However, you should follow some steps to obtain this license. Below is the list of Steps to get commercial trade license in Dubai:

1. Choose a trade name and legal structure.

Initially, you should choose the appropriate trade name for your business in Dubai. It would be best to select a unique name that matches the rules and regulations of Dubai. The name you choose for your company must not include any kind of profanity. Moreover, you should ensure your chosen company is available for registration in Dubai. 

After locking the trade name for your company, you should move forward to selecting a reliable legal structure for your company. Remember, you can choose from the different ranges of legal structures, ranging from corporations, partnerships, limited liability companies (LLC), holding companies, sole proprietorships, and free zone companies.

2. Select the business activity. 

After choosing the trade name and legal structure, you should decide what type of activities you want to conduct in your business. In short, you should finalize the nature of your business activities, whether your business activities involve manufacturing, trading, or professional services. 

While selecting business activities for your company, you should consider your skill set, resources, and manpower. However, a Commercial Trade License lets you select from a wide range of business activities. In addition, you can conduct different activities if you are capable of doing so.

3. Choose a location.

Next, you must find a reliable location for your business in Dubai. At this stage, you can choose between the Dubai Free Zone and the mainland for your business. While choosing a reliable location for your company, you should consider the available advantages of both options, like business support, financial incentives, and more. The decision you make will depend on your business nature. 

If you decide to start your business in the Free Zone, you can enjoy complete foreign ownership, fast business setups, tax benefits, and much more. On the other hand, you will need a local partner to start your business in the Mainland. The local sponsor will own 51 percent of your company. However, you can enjoy targeting a wide audience and direct trade in the UAE market. Apart from benefits, the rules and regulations of both areas are also different. Therefore, you should choose a location carefully for your business to get a Trade License in Dubai. 

4. Submit the application

Next, you should submit the application for your commercial trade license in Dubai. If you are starting your business in the Mainland, you should apply to the Department of Economic Development (DED). In contrast, you should submit this application to the relevant Free Zone authority if you want to start your business in the Free Zone. However, you can also submit it online. 

5. Submit the relevant documents.

After submitting the application for your Commercial Trade License in Dubai, you should submit the required documents to verify and approve your application. The documents you want to submit depend on the business activities you choose. When submitting the documents, you should give accurate and updated data, otherwise, you need to restart the whole process.

6. Pay the fees and get the license.

Once your application is approved, you must pay the required fees. Remember, you should wait for some time for approval. After paying the fees, you can collect the commercial Trade License from the local office and commence your business operation in Dubai. 

How can Flyingcolour Business Setup help you?

To start a business that trades internationally and locally, you should obtain a commercial trade license in Dubai. The process of getting this license involves several complex steps that need proper guidance. Flyingcolour Business Setup can guide you through the complete process of getting this license. Moreover, our experts can help you to set up your business in Dubai. 

To learn more about starting a commercial trade license in Dubai, book a free consultation with one of the Flyingcolour team advisors.

Please note that this article was published on  30/05/2024 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.