Everything You Must Know About a Commercial License in Dubai Mainland

Everything you must know about a commercial license in Dubai

Foreign investors interested in initiating the process of business setup in Dubai mainland must obtain a trade license for their desired activity. The Department of Economic Development (DED), issues Professional, Commercial, Industrial and Tourism license to investors to carry out various activities. A Commercial licence must be obtained if entrepreneurs wish to carry out trading activities in Dubai. Business setup consultants in Dubai can help you obtain a commercial license without any hassle.

Obtaining a commercial license in Dubai allows the license holders to trade anywhere in the UAE without restrictions. Moreover, commercial license holders can boost their trading business by leveraging Dubai’s strategic location, robust infrastructure, provision for 100% ownership, ease of doing business etc. Read ahead to grasp everything you must know about a commercial license in Dubai:

What Are the Activities Permitted by a Commercial License in Dubai?

Investors whose proposed business activity involves the selling or trading of goods are required to obtain a commercial license in Dubai. The license permits lucrative business activities such as general trading, electronic trading and even software trading. It means a DED commercial license is ideal for conducting both general trading and specialised trading activities in the UAE. It means, that businesses planning to carry out trading of goods, commodities and services need to apply for a commercial license in Dubai mainland.

Business setup consultants in Dubai can advise foreign investors on the activities permitted under a commercial license. Meanwhile, check the list given below to get a glimpse of the activities permitted in a mainland commerce license issued by (remember that this is not an exhaustive list):

  • Foodstuff trading
  • Retail & Wholesale trading
  • Communication
  • Transportation
  • Financial Intermediation
  • Construction
  • Trading of Electrical goods
  • Activities of import & export
  • Perfumery
  • Building Materials trading
  • Fuel & Petroleum Products
  • Sale of electronic goods
  • General Trading
  • Medical Equipment Trading

Commercial Activities with 100% Ownership

Excluding the activities of strategic impact, 100% foreign ownership is now possible on more than 1000 commercial license activities. The DED has issued a list of 100% ownership activities after amending certain provisions of Federal Law No 2 of 2015 on Commercial Companies. The amendment is in line with the Federal Decree-Law No 26 of 2020.

What Are the Benefits of a Commercial License in Dubai?

By obtaining a Commercial License in Dubai mainland, business owners can enjoy the following benefits:

  • Ability to carry out up to 10 activities under one trade license
  • License holders are allowed to trade in several similar goods under one license
  • Ability to carry out international trading such as exports, imports and re-exports
  • 100% foreign ownership in more than 1000 selected activities
  • Ability to easily obtain employment visas for foreign workers
  • Ability to hire a large number of foreign employees

Process of Obtaining a Dubai Mainland Commercial License

Obtaining a commercial license in Dubai mainland is a straightforward process. However, investors need to comply with all the mandatory steps of business setup in Dubai to obtain the DED approval for the license. To avoid any delays or errors, it is advisable to apply through business setup consultants in Dubai. You need to execute the following steps involved in the process of obtaining a Commercial License in Dubai mainland:

  • Choose your preferred business activity
  • Determine an appropriate legal form
  • Select and reserve a trade name with DED
  • Get DED’s initial approval
  • Sign the Memorandum of Association (MoA)
  • Get external approvals in case of special activities
  • Rent or lease a space or shop; get Ejari
  • Submit all the documents including the lease agreement and external approval
  • Make the fee payment to the DED
  • Receive the trade license

Is Any Special Approval Required?

As per the regulations of business setup in Dubai, certain activities that are classified as special activities require approval from concerned ministries or government authorities. A commercial license permits a wide range of business activities of which some are classified as special activities. You can understand special activities by consulting with company formation consultants in Dubai.

Consult with the Top Businesses Setup Consultants in Dubai, UAE

Foreign investors must obtain a commercial license in Dubai to carry out trading activities such as import, export, and trading of some of the most sought-after products. However, it is advisable to apply for the license through the best business setup consultants in Dubai as foreign investors will be unaware of the local laws and regulations. Company formation experts in Dubai such as Jitendra Business Consultants (JBC)  can advise the investors on the UAE immigration and labour laws. We have a team of highly qualified professionals who can help you navigate external approvals, bank account opening, visa processing etc. Being one of the leading providers of business setup services in Dubai, JBC can help you set up a company without any hassle.

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