Obtaining a business license is crucial to successfully starting a business. This process includes several steps and procedures that must be followed carefully. Dubai is considered among the easiest places to obtain a business license, with local authorities offering simple and efficient procedures. In this article, we will explore how to obtain a business license in Dubai with simplified steps that are available to all investors. We will cover the necessary procedures, such as choosing the appropriate type of license and submitting the required documents, as well as guidance on how to carry out the steps smoothly and without hassle.

With Itqan, you can benefit from their experience in the field of business licenses in Dubai. They provide professional advice and support in preparing documents and dealing with relevant government agencies. With their extensive knowledge of procedures and requirements, they can simplify the process and save you time and effort.

With Itqan, obtaining a commercial license in Dubai becomes possible and easy. You will enjoy comprehensive and specialized support that will make it easier for you to realize your dreams of establishing and operating your own company in Dubai.

How do I get a business license in Dubai?

To obtain a business license in Dubai , you must follow the following steps:

1. Choosing a business: Before starting the process of obtaining a business license, you must determine the type of business activity you want to practice.
2. Choose the type of company: The company can be a sole proprietorship, limited liability company, partnership or subsidiary, depending on the business and specific needs.
3. Choosing a company name: You must choose a unique and appropriate name for the company, ensure that it has not already been used by another company, and must be in line with local laws and regulations.
4. Submitting a license application: The application for a commercial license must be submitted to the relevant authority, which is the Department of Economic Development in Dubai.
5. Determine the location of the company: The company must be located and a suitable office or commercial headquarters must be rented in one of the approved commercial areas.
6. Submitting the required documents: A set of documents must be submitted, such as the passport of the owner or founders, a properly filled out application form, a business activity form, a lease contract, and other required documents depending on the type of company.
7. Payment of fees: You must pay the fees required to obtain a commercial license, which vary depending on the type of company and commercial activity.
8. Completing the necessary procedures: After accepting the application, submitting all required documents, and paying the fees, the application will be reviewed and the necessary examination conducted before issuing the commercial license.
9. Determining the tax license and visas: After receiving the business license, you must register for the tax license and arrange the necessary visas for employees if they are required.
10. Starting a Business: After completing all procedures and obtaining a business license, you can start doing business in Dubai legally.

Areas in which a business license can be obtained in Dubai

A business license in Dubai can be obtained for a variety of business fields. Here are some common areas where a business license can be obtained in Dubai:

• General trade: includes the sale of products and goods in general without major restrictions on the type of products.
• Retail trade: A license can be obtained to sell products directly to end customers, whether these products are clothing, household appliances, electronic devices, or others.
• Professional Services: Includes professional services such as engineering, legal, accounting, interior design, real estate, and others.
• Light and small industries: A license can be obtained to establish a small factory to produce products such as food, clothing, furniture, or wood industries.
• Tourism and Hospitality: These fields include hotels, restaurants, tourism agencies, travel services, and entertainment.
• Technology and Communications: These fields include software development services, website design, web hosting, information technology, and others.
• Medicine and health care: includes general and specialized medical services, medical clinics, pharmacies, beauty centers, and others.
• Construction and Real Estate: These fields include construction services, real estate development, real estate brokerage, property management, and engineering design.

Types of business licenses available in Dubai

Of course, here is a table showing the types of business licenses available in Dubai:

Type of license	the description
Individual company license	It allows an individual to conduct business individually without the participation of other shareholders.
Limited Liability Company (LLC) License	It allows the participation of shareholders and determines the responsibility of each shareholder according to the size of his contribution to the capital.
Joint Stock Company License	It allows the sale of shares to raise capital, and a board of directors is formed to manage the company\\\’s affairs.
Free Zone Company License	It is granted in the free zones in Dubai, allowing full foreign ownership, customs facilities, and low taxes.
Professional License	It allows the practice of liberal professions such as medicine, engineering, law, accounting, consulting, and other technical services.
E-Trader License	It allows products and services to be sold online without the need for a physical business location.
Branch of Foreign Company license	It allows foreign companies to open branches in Dubai, while the parent company continues to have full responsibility for its branches.
Dubai Mainland License	It allows companies registered in mainland Dubai to conduct business inside and outside the emirate while adhering to local laws.

 

Commercial license in Dubai

 

Costs of obtaining a business license in Dubai

Business license costs in Dubai may vary depending on several factors such as the type of company, type of business, location, and local legal requirements. However, here is a general estimate of some of the costs that may be involved in the process of obtaining a business license in Dubai:

1. Registration fees: These fees include the application submission fee and the basic registration fee paid to the concerned authority, and these fees can range from several thousand to several thousand UAE dirhams.
2. Legal agency or legal advisor costs: You may need to obtain legal advice or employ a legal advisor to assist you in the process of obtaining the license, and this may incur additional costs.
3. Rental costs for the office or commercial headquarters: An office or commercial headquarters must be rented to the company, and rental costs depend on the office’s location, area, and facilities.
4. Additional service fees: Some additional licenses may require payment of additional fees such as maintenance fees and general services fees.
5. Insurance costs and guarantees: Some licenses may require the purchase of insurance policies or the provision of financial guarantees as part of the conditions for obtaining the license.
6. Taxes and additional fees: Additional taxes and fees related to the operation of the company such as VAT, license fees, etc. must also be considered.

 

Tax procedures related to business licenses in Dubai

In Dubai, there are certain tax procedures that companies must adhere to once they obtain a business license. These procedures usually include:

• Value Added Tax (VAT): Since 2018, the UAE has imposed value added tax (VAT) on some goods and services at a standard rate of 5%. Businesses whose annual revenues exceed their expected VAT registration must register and file tax returns regularly.
• Other local taxes: Some business activities may be exempt from VAT but may be subject to other local taxes such as corporate tax or sales tax.
• Tax reports: Companies must submit periodic tax reports to the relevant tax authorities, and must adhere to the deadlines for submitting these reports.
• Compliance with international tax regulations: Since Dubai and the UAE adhere to international tax standards, companies may have to comply with some international regulations such as providing international corporate account disclosures.
• Accounting and Financial Documentation: Businesses must maintain accurate records of financial transactions and financial reports to meet tax disclosure and reporting requirements.
• Tax Consulting: It is helpful to consult on taxes with local accountants or tax consultants to ensure full compliance with local tax laws and regulations.

In conclusion, the process of obtaining a business license in Dubai shows how easy and efficient business procedures are in the city. By following the correct steps and submitting the required documents, investors can obtain a business license quickly and easily. This allows them to start their business with confidence and reassurance in an encouraging and supportive business environment in Dubai. Opportunities are not limited to Dubai residents only, but also include foreign investors who want to exploit the city\\\’s diverse market potential. Therefore, obtaining a business license in Dubai is an essential and vital step for success in the booming business world in the UAE.

The most important frequently asked questions about a commercial license in Dubai