Commercial Licence in Dubai
  • December 13, 2022

Dubai, a leading innovation hub, boasts the Arab world’s 100 promising startups. The strategic trading location and socio-economic reforms made the emirate one of the most popular economic business set up destinations. So, if you want to set up a business in Dubai, you must determine the licence type you require for your business. 


Types of Business Licence in UAE

The nature of the economic activity defines the legal form of the company and the type of licence required. 


There are various types of licence available in the UAE :

1. Commercial, 2. Tourism, 3. Industrial, 4. Professional 5. Agriculture


The Commercial Trade Licence allows you to trade, import, and export products and services throughout the UAE. It also includes some services like brokerage and real estate services.


With more than 2,000 business activities, one can have up to ten business activities under one commercial licence. 


In this article, we will provide all the information one needs to know about a commercial licence in Dubai. 


Activities under Dubai Commercial Trade Licence 

The Department of Economy and Tourism (DET) approves commercial activities, including:

1. Foodstuff

2. Trading of automobiles and auto spare parts

3. Building construction materials and maintenance services

4. Appliances and electronics trading

5. Import and export

6. Tourism and travel

7. Software and computer product trading

8. Real estate-related services

9. Brokerage services

10. Rental services

11. Logistics


Benefits of a Dubai Commercial Trade Licence

The Department of Economy and Tourism (DET) develops economic plans and policies, identifies and supports strategic sectors and provides services to domestic and international investors and businesses.


The most common form of the company under a commercial licence is a limited liability company (LLC) in the Dubai mainland or any free zone. Foreign companies can start a branch for trading activities in Dubai with a commercial trade licence.


A commercial licence under a free zone allows you to repatriate 100% of the profits and capital in addition to other benefits of respective free zones. 


There are numerous benefits to establishing a business with a commercial licence:

- Possibility of import and export items. 

- If you take a commercial licence in a free zone, the companies can enjoy all the benefits of the specific free zone.

- International companies can open a branch in Dubai with a commercial licence.

- Commercial licence allows companies to choose their business location anywhere in Dubai.


Documents required for a Commercial licence

1. Initial approval and all the submitted documents receipt.

2. Lease contract for the office.

3. Approvals from Dubai Municipality for office address. 

4. Memorandum of association (MOA)

5. Approval by the DET for the company name.

6. Proof of trade licence fee payment.


How to get a Commercial Licence in Dubai?

The following steps with all documents will assist in getting a commercial licence in setting up the business.


Business activity: Choose the business activity you want to start as per your business plan. And get the initial approval by submitting relevant documents from DET for the commercial licence. 


Jurisdiction: Identify the location to set up the business. When you select the legal entity- Free zone or mainland setup, both legal forms come with its benefits. 


Company name: The company name should adhere to the standards of the government authority. 


Office Space: You can rent an office space with the complete registration of Ejari and legal formalities. 


How can Ascent Partners help?

Ascent Partners is a boutique consultancy providing bespoke, end-to-end solutions from company formation to VAT Consultancy, Accounting, and Bookkeeping services for entrepreneurs looking to set up their next venture in the UAE. We work alongside you to strategise, startup, and scale your business in Dubai.