The difference between the commercial license and the commercial register in the Emirates In the United Arab Emirates, the commercial license and commercial register are considered two vital parts in the process of establishing companies and registering businesses. Each holds a unique and important role in regulation, transparency and legal compliance. A commercial license is a document issued by government agencies to allow companies and individuals to conduct commercial activities in the Emirates. On the other hand, the commercial registry is considered an official record that contains detailed information about the company, such as its name, type, address, and objectives, and this record is used to document and record official information related to the company.
The commercial license and commercial register in the UAE differ in several aspects. The commercial license is granted to companies and individuals to allow them to practice specific commercial activities, while the commercial registry is used to record and document official information about the company and not to grant commercial powers. The trade license is also renewed regularly according to local laws, while the commercial register is always valid unless there is a significant change in the company information.
The difference between a commercial license and a commercial register in the Emirates
| Element | Commercial license | commercial register |
|---|---|---|
| Purpose and function | It grants its owner the authority to practice the commercial activity specified in it. | Documents and records official and detailed information about the company. |
| Validity | It grants the authority to practice commercial activity to a company or individual. | It does not give authority to practice the activity, and reflects official information about the company. |
| Renewal | The license must be renewed regularly in accordance with local laws. | Always valid unless there are significant changes to company information. |
| Legal use | It is considered a detailed document of the business activity and must be displayed in business operations. | It is considered an official record of company information and is used in legal and financial operations. |
| the cost | Its cost varies depending on the type of activity and the size of the company. | Depends on the fees required to register and update company information. |
| Legal obligations | The company must comply with the laws related to the license. | Used for legal compliance and documentation of official company information. |
This table summarizes the main differences between a trade license and a commercial registry in the UAE, making it easier to understand the different roles each plays in the process of establishing a company in the UAE and operating a business.
The difference between a commercial license and a commercial register in the Emirates
Documents required to obtain a trade license and commercial register
To obtain a trade license and commercial register in the UAE, you usually need to submit a set of basic documents. The required documents can vary slightly depending on the business and type of company, but typically, they include the following key documents:
Commercial license
- Application form: You must fill out a designated application form to obtain a commercial license, which specifies the type of business activity and company details.
A copy of the personal ID: A colored copy of the personal ID of the company owner or legal representative.
A copy of the passport: If the company is owned by a foreigner, a color copy of the passport is required.
Registration Certificate: Residents need to submit a registration certificate from the Department of Economic Affairs.
Lease Contract: A copy of the lease contract for the company’s headquarters.
Certificate of Financial Honesty: Resident individuals need a Certificate of Financial Honesty.
Approval of government agencies: Some commercial activities may require prior approval from the relevant government agencies.
commercial register:
- Application form: Application form for commercial registry registration.
Commercial license document: A copy of the commercial license issued by the competent authority.
Registration certificate: The registration certificate issued by the authority responsible for the commercial registry.
Address confirmation document: A document proving the address of the company\\\’s main headquarters.
A copy of the personal ID or passport: of the company owner or legal representative.
Lease Contract: A copy of the lease contract for the company’s headquarters.
You should always check the documentation requirements required from Itqan Company, as the requirements can vary slightly depending on the emirate and type of business activity.
Fees required to obtain a commercial license and commercial register
The fees required to obtain a commercial license and commercial register in the Emirates vary based on several factors such as the type of business activity, the size of the company, and the emirate in which the company is established. Generally, fees can be divided into two main types:
Fees for obtaining a commercial license:
Fees for obtaining a commercial license in the UAE range depending on the type of business activity and the size of the company.
Some niche or larger businesses may need to pay additional fees to obtain special permits or approvals.
Commercial registration fees:
Commercial registry registration fees also vary depending on the business activity and company size.
There may be annual fees for renewing the commercial register, and these fees vary depending on the activity and company.
It is important to confirm the specific fees required to obtain a commercial license and commercial register from the relevant competent authorities in each emirate, as fees can vary based on the legislation and laws of each emirate and the type of activity.
Renewal of the commercial license and commercial register
The process of renewing the commercial license and commercial register depends on the legal and regulatory system in each emirate in the Emirates, and the procedure and fees required vary accordingly. Here is generally how to renew a trade license and commercial register:
Renewal of commercial license:
- Check the license expiration date: Before starting the renewal process, check the expiry date of the business license to ensure how much time is left for the renewal.
- Fill out the renewal form: You may need to fill out a designated business license renewal form, which specifies basic information about the company, financial details, and business activity.
- Submitting the required documents: You may need to submit some documents such as a copy of the current license, insurance policy, and address document.
- Payment of fees: The required fees must be paid to renew the license, and fees can vary based on the type of activity and the size of the company.
The renewal of the commercial register:
- Check the expiry date of the commercial registry: Check the expiration date of the commercial registry and the documents required for renewal.
- Fill out the renewal form: You may need to fill out a designated commercial registration renewal form, which includes basic information about the company and financial details.
- Submitting the required documents: You may need to submit some documents such as a copy of the current commercial registry, insurance policy, and address document.
- Payment of fees: The fees required to renew the commercial registration must be paid, and the fees vary based on the type of activity and the size of the company.
It is always advisable to check with the competent authorities in the relevant emirate to obtain precise details about the renewal procedures and fees required to ensure full and smooth compliance with the procedures.
The difference between a commercial license and a commercial register in the Emirates
How we can help you choose what\\\’s right for you
Itqan Company can help you choose the appropriate option between the commercial license and the commercial register according to the needs and circumstances of your company. Here are some steps that can help with this choice:
- Evaluation of business activity: Itqan Company can help you evaluate your company’s activity and understand its nature and financial and commercial goals. This includes examining the legality of your business and the legal requirements for establishing it.
- Analyze the legal requirements: You must review the legal requirements in the emirate in which you intend to establish the company. There may be differences in laws and regulations between emirates, so these aspects must be carefully examined.
- Determining the legal structure: Based on the evaluation of the business activity and legal requirements, Itqan Company can help you determine the appropriate legal structure for your company, whether this is through obtaining only the commercial license, the commercial register, or both.
- Compare benefits and costs: Benefits and costs can be compared between a business license and a commercial registry, including fees, legal obligations, and financial details. This helps in making the optimal decision based on accurate information.
- Legal advice: Itqan can provide customized legal advice that helps understand the available options and clarify the main points and potential risks of each option.
- Implementation and follow-up: After making the decision, Itqan Company can implement the necessary procedures to obtain the commercial license or register in the commercial registry, in addition to following up on any ancillary procedures such as renewal and legal compliance.
In short, Itqan Company can provide the necessary consultations and services to help you choose the appropriate option between the commercial license and the commercial register based on the individual circumstances of your company and its legal and commercial requirements.
In conclusion of the article, the difference between a trade license and a commercial register in the UAE shows the importance of understanding the legal and regulatory procedures for establishing and operating companies. While a trade license gives its holder the authority to conduct business activity, a commercial registry records the company\\\’s official information. By collaborating with professional experts, companies can benefit from the appropriate choice between a trade license and a commercial register and achieve legal compliance and business success.
Frequently asked questions about the difference between a commercial license and a commercial register
What is the difference between a trade license and a commercial register in the UAE?
A commercial license is a document granted by the competent authority (such as the Department of Economic Development) to companies and individuals to carry out commercial activities. As for the commercial registry in the Emirates, it is a detailed registration document that contains company information such as its name, type, address, and objectives.
Can a company obtain a commercial license without a commercial register?
No, it is not possible to obtain a commercial license without registering the company in the commercial registry. The commercial registration is considered an essential procedure for establishing a company and allowing the practice of commercial activities.
What documents are required to obtain a trade license and commercial register?
The required documents vary depending on the type of company and the chosen economic activity. Generally, this includes a copy of personal identification, a copy of the passport (for foreigners), a health insurance certificate, and a rental contract (if required).
What are the fees required to obtain a trade license and commercial register?
Fees depend on the type of activity, type of company, and location, and more precise details can be obtained from the competent authority.
Do the trade license and commercial register need to be renewed regularly?
Yes, the commercial license and commercial register must be renewed regularly in accordance with local laws and legislation. In the event of non-renewal, fines or penalties may be imposed.
