Thinking about launching a business in Dubai and want to trade physical products? You’ll need a commercial trading license! Unlike a professional license that’s limited to service-based businesses, a commercial license is all about trading goods. This license allows you to sell or trade items like electronics, software, and general merchandise. If you’re starting a business in the trade of goods or commodities, a commercial license is your key to success in Dubai.
In this article, we’ll cover how to get a commercial license in Dubai, the license costs, and which business activities it covers. Let’s dive right in to see what a commercial license can do for your business plans!
Who Issues a Commercial License?
In Dubai, commercial licenses can be issued in Mainland Dubai or Free Zones. Here’s what that means:
Mainland Dubai:
A mainland commercial license allows you to do business throughout the UAE with no geographic restrictions, meaning you’re not limited to any specific area or zone. For mainland businesses, the most common company structure is a Limited Liability Company (LLC). An LLC gives you flexibility and full access to the UAE market - a great option if your business needs to reach customers across the country.
Free Zones:
In contrast, Free Zones are specific areas in Dubai designed to support certain business types. A Free Zone commercial license allows you to operate within the boundaries of a designated Free Zone. Free Zones are often ideal for export-focused businesses, with benefits like 100% foreign ownership, tax incentives, and simplified setup processes. However, Free Zone licenses restrict your business activities to within the zone unless you partner with a distributor for sales across the UAE.
Mainland vs. Free Zone - Which is Best?
It depends on your business goals! If you want to access the entire UAE market, a mainland license is perfect. If your focus is international exports, a Free Zone setup might be a better fit. Reach out to us and let us help you choose the best option.
Cost of a Commercial License
Starting with AED 12,000 in Dubai Mainland, the cost of a commercial license depends on the specific business activity you choose. Remember, though, that this covers just the license itself. Additional costs will vary depending on your business setup. For example, if you’re opening a grocery store, you’ll need to account for rent, fit-out expenses, and a 5% market fee on the lease.
Curious about the full costs for your business? Connect with CSPzone! Share your business plan, and we’ll provide a clear estimate and guide you through choosing the best business activities for your setup.
How to Get a Commercial License in Dubai
Ready to get started? Here’s a simple step-by-step guide to setting up your business in Dubai:
1. Choose Your Business Activities:
Begin by selecting your approved business activities, as they’ll determine the scope of your license. Make sure the activities align with your business goals!
2. Pick a Trade Name:
Choose a name that represents your business and follows Dubai’s naming guidelines. Avoid religious or political references, and make sure it’s unique in Dubai.
3. Get Initial Approval:
Submit your application to the Department of Economic Development (DED) for a mainland license, or the relevant Free Zone authority. This initial approval means your business plan meets Dubai’s regulatory standards.
4. Draft a Memorandum of Association (MoA):
For LLCs, the MoA outlines roles, responsibilities, and ownership terms. In the mainland, this will also include appointing a local service agent if required.
5. Secure a Physical Office or Store Lease:
Dubai requires businesses to have a physical location. Once you have your lease agreement, you’re one step closer!
6. Obtain External Approvals (If Needed):
Some activities need further approvals from Dubai Municipality or specialized authorities, so check if any apply to you.
7. Make the Final Payment:
After completing all the above steps, make the final payment to activate your commercial license. Now, you’re officially ready to start trading!
Need help through these steps? CSPzone is here to guide you through the licensing process, making sure each step is smooth and clear. We’re your partner in making your business vision a reality.
Activities Allowed Under a Commercial License
Your commercial license allows a variety of activities, depending on your business type. Here are some of the most popular activities that fall under a commercial license:
Foodstuff Trading:
For businesses involved in trading food items—whether fresh, packaged, or frozen.
Readymade Garments Trading:
Perfect if you’re in the retail clothing or fashion sector.
Flowers and Plants Trading:
Ideal for businesses dealing with live plants, flowers, and garden supplies.
Home Appliances Trading:
If you’re into electronics or household appliances, this license has you covered.
Building Materials and Maintenance Services:
Ideal for companies in the construction supply or maintenance sector.
Exchange and Financial Services:
If your business involves currency exchange or other financial services, this license is the one you need.
Packaging Material Trading:
Perfect for companies specializing in packaging supplies.
These are just a few options! There are numerous approved activities under a commercial license, and selecting the right ones is essential to meeting your business needs.
Free Zone Commercial License
A Free Zone commercial license is tailored for businesses operating within specific Free Zones, each designated for different types of trade. Free Zones are often attractive due to benefits like 100% foreign ownership, simplified tax structures, and other incentives. However, Free Zone licenses restrict business to the area, so if your customers are mainly within the Free Zone or international markets, this setup may be ideal.
Popular Free Zones in Dubai for Commercial Licenses
Dubai has around 50 Free Zones, each with unique features and business benefits. Here are a few popular ones for obtaining a commercial license:
DAFZ (Dubai Airport Free Zone Authority):
Perfect for commercial store, import export, logistics, aviation, and international trade businesses.
IFZA (International Free Zone Authority):
Known for its cost-effective business setup solutions and wide range of activities.
JAFZA (Jebel Ali Free Zone):
A hub for shipping, manufacturing, and logistics.
DMCC (Dubai Multi Commodities Centre):
Ideal for commodities, trade, and finance sectors.
RAKEZ (Ras Al Khaimah Economic Zone):
Offers a range of flexible business setups at competitive rates.
Sharjah International Airport Free Zone:
Known for logistics, aviation, and international trade businesses.
With so many options, selecting the right Free Zone can be challenging. CSPzone can help you decide the best fit based on your business goals and industry focus.
And remember - commercial licenses are available across other Emirates, too, including Sharjah, Abu Dhabi, and Ajman.
Ready to Set Up Your Business? Contact CSPzone!
At CSPzone, we specialize in making the process easy and clear. Get in touch, share your business plan, and let our experts guide you through every step - from choosing the best license type to calculating total costs. Ready to start? Reach out to us today and let’s bring your business ideas to life!
