The Emirate of Dubai in the United Arab Emirates provides a variety of business licenses that suit the needs of investors. Types of commercial licenses in Dubai include the general commercial license, which allows the trade of various goods and products, the limited commercial license (LLC), which allows the establishment of a limited liability company with the participation of partners, and the industrial license, which allows companies to participate in production and manufacturing. In addition, there is the professional license, which allows individuals to practice a specific profession independently, and the tourist license, which allows companies to provide tourism services. This wide variety of business licenses in Dubai provides multiple options for investors and makes it easy to start a business in the emirate.
In this article, we will provide a comprehensive overview of the types of business licenses offered in Dubai, from national business licenses to investment and professional licenses. We will present the requirements for obtaining each type of license, including legal, financial and administrative requirements.
In addition, we will address the benefits and challenges of each type of business license, and provide tips on choosing the right license and promising areas to invest in. We will also explore the role of “Itqan” Company in facilitating the process of obtaining commercial licenses and providing the necessary support to investors and entrepreneurs.
With this valuable information and helpful guidance, you will have a comprehensive understanding of the types of business licenses available in Dubai and the city’s thriving business market. This article will help you make informed and successful investment decisions and achieve sustainable success in the business world in Dubai.
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In Dubai, there are multiple types of business licenses available in Dubai that suit different needs of investors and businessmen. Each type has its own requirements and powers, allowing investors to choose the license that suits the type of business activity they wish to practice. Here’s an overview of the types of business licenses in Dubai:
- Industrial commercial licence: issued to companies that wish to engage in industrial and manufacturing activities and produce goods.
- Commercial Trade License: Issued to companies that wish to engage in commercial activities such as selling local or imported goods.
- Professional license: Issued to an individual who wishes to practice a specific profession or provide a professional service, such as a doctor, lawyer, engineer, or artist.
- Tourist licence: issued for activities related to the tourism sector such as tourism agencies, hotels and restaurants.
- License invested in free zones: issued to companies that wish to benefit from the advantages and facilities available in free zones for trade and industry.
- License to invest in free zones: issued to companies that intend to invest in free zones designated for industrial, logistical and commercial companies.
Steps to obtain a commercial license in Dubai
Dubai is considered one of the most attractive cities for businessmen and investors in the world, as it provides a developed investment environment, excellent facilities, and easy commercial laws. If you intend to establish a business in Dubai, here are the steps to obtain a commercial license:
- Choosing the type of license: Before starting anything, you must choose the type of commercial license that is appropriate for your business. Do you need an industrial business license? Or a professional license
- Choose a business name: Select and register a company name that reflects your business and complies with local laws.
- Obtain the necessary approvals: Obtain the necessary approvals from the relevant authorities such as Dubai Municipality and the Department of Economic Development.
- Establishing a company: Determine the appropriate legal form of the company and follow the necessary procedures to establish it, whether it is a sole proprietorship, a limited liability company, or a partnership company.
- Submitting the application and paying the fees: Submit an application for a commercial license at the Dubai Department of Economic Development and pay the required fees.
- Get Approval: After reviewing the application and submitted documents, you will receive the business license approval decision.
- Receiving the license: After obtaining approval, you will be able to receive the final commercial license that qualifies you to practice your business activity in Dubai.
Fees required to obtain a business license in Dubai
The fees required to obtain a commercial license in Dubai vary depending on the type of company and its activity. Among the fees that may be required by the Dubai Economic Development Department (DED) to obtain a commercial license in Dubai:
1. Application submission fees: Application submission fees are collected when submitting the application to obtain a commercial license.
2. Annual licensing fees: Companies need to pay annual licensing fees to maintain the validity of their business license.
3. License renewal fees: Companies need to pay license renewal fees when their business license expires.
4. License amendment fees: Companies need to pay license amendment fees if they wish to amend some company data or the type of business activity.
5. Visa issuance fees: Companies need to pay visa issuance fees for foreign workers who work for them.
6. Stamp fees: Companies need to pay stamp fees when submitting some documents required to obtain a business license.
It should be noted that the fees mentioned above are approximate and may vary depending on the type of company and its activity. It is recommended to check the fees required to obtain the commercial license to be obtained through the Department of Economic Development in Dubai.
Documents required to obtain a business license in Dubai
The documents required to obtain a business license in Dubai vary based on the type of business activity and the type of business license required. Among the common documents required to obtain business licenses in Dubai are:
- A passport or national ID card for the founders and shareholders of the company.
- Certificate of Commercial Registration, which is a document proving the company’s registration in the Department of Commerce and Industry in Dubai.
- A financial report showing the amount of capital invested in the company.
- Lease contract for the office or main headquarters of the company in Dubai.
- A letter of approval from the relevant authorities, such as Dubai Municipality, Civil Defense, or the Department of Health in the Emirate of Dubai.
- Detailed plans for the business activity you wish to practice in Dubai.
Please note that the Dubai Department of Economic Development may request additional documents, and you should check the exact requirements to obtain each type of business license from the Dubai Department of Economic Development. The required documents must be submitted in English or translated into English by a certified translator.
Conditions necessary to renew a Dubai trade license
Companies in Dubai must adhere to some basic conditions for renewing a commercial license. These conditions include:
1. Updating the documents of the company, officials and employees, and confirming their authenticity by submitting the necessary documents.
2. Ensure that all fees related to renewing the commercial license are paid, by reviewing the fee schedule specified by the responsible authorities.
3. Conduct the necessary financial and accounting audit of the company by certified auditors, and submit the necessary reports to the responsible authorities.
4. Adherence to local laws and regulations, and updating the commercial license on time, which must comply with the conditions specified by the responsible authorities.
5. Obtaining the necessary work permits for the company’s employees, which must be updated if jobs or ranks change.
6. Commitment to providing a suitable workplace suitable for the company, which complies with occupational safety and health requirements. Renewing a commercial license in Dubai requires adherence to all these conditions and requirements, which must be provided on time and in the correct form to avoid possible penalties. Companies can also benefit from consulting and legal services to determine specific terms and requirements and adhere to them.
Advantages of obtaining a business license in Dubai
- One of the most important features of the license is complete exemption from paying taxes.
- The investor can trade outside and inside Dubai.
- You can get it easily, because it takes a week at most to extract it.
- Depending on the size of the office, many visas may be obtained through a general business license. As you can get
- Visas for dependents such as children, parents, husband, wife, and so on.
- Companies that possess a commercial license are allowed to return 100% capital.
At the conclusion of this article, we hope that you have benefited from the overview we provided about commercial licenses in Dubai in cooperation with Itqan Company. By partnering with Itqan, you can benefit from their extensive experience and knowledge in the field of business and legal affairs in Dubai.
Remember, obtaining a business license in Dubai is the first step towards building a successful and sustainable business in this dynamic business environment. By cooperating with Itqan Company, you can avoid the legal and administrative challenges and problems that you may encounter in the process.
It is important to remember that success in business requires good planning and appropriate advice, and Itqan Company is ready to provide support and assistance every step of the way to success.
Electronic merchant license
The e-merchant license in Dubai is considered one of the important licenses for individuals and companies wishing to engage in commercial activity over the Internet in the Emirate of Dubai. This license allows electronic stores the opportunity to operate legally and effectively, while adhering to the laws and regulations issued by the competent authorities in Dubai. This license is part of ongoing efforts to enhance the digital business environment and encourage innovation and leadership in the field of e-commerce.
Among the benefits of obtaining an electronic merchant license in Dubai:
- Business legitimacy: A legitimate license is granted to practice online business activity in Dubai.
- Consumer protection: Online stores adhere to laws and regulations that protect the rights and interests of consumers.
- Documentation of operations: The license facilitates the process of documenting and verifying the identity of electronic stores.
- Supporting innovation: The license encourages innovation and innovation in the field of e-commerce.
- Market access: The license helps you enter digital markets and compete effectively.
An e-merchant license in Dubai can be obtained by adhering to the requirements and conditions specified by the competent authorities, such as the Telecommunications Regulatory Authority and the General Authority for Regulating the Telecommunications Sector in Dubai (Dubai Media Incorporated). These requirements include providing the necessary documents and submitting through designated official channels.
Conditions for obtaining an electronic merchant license
To obtain an e-trader license in Dubai, several conditions must be met determined by the competent authorities, which usually include the following:
- Legal Registration: The applicant must be legally registered in Dubai, whether it is a local company or a subsidiary of a foreign company.
- Business Activity: The proposed e-commerce business activity must be compliant with the laws and regulations issued in Dubai and the UAE.
- Physical location: The applicant must specify his physical location where he carries out e-commerce activity.
- Financial Terms: Financial terms can include depositing a certain capital in a certain bank account or providing financial guarantees.
- Compliance with security controls: The applicant must adhere to security controls and standards for e-commerce, such as protecting customer data and electronic transactions.
- Providing the necessary documents: The applicant must provide a set of necessary documents, such as a copy of the commercial register, the incorporation document, the national identity of the owner or officials, and other documents as needed.
- Compliance with laws and regulations: The proposed work must be compatible with the laws and regulations issued by the official authorities in Dubai and the Emirates.
- Technical support: Some licenses may require the provision of a technical support system to customers.
These conditions depend on the details of the license and the entity granting it, so it is always preferable to check the specific conditions of the required license from the competent authorities.
Fees for issuing a dealer license in Dubai
Fees for issuing a merchant license in Dubai vary depending on the type of license and the company concerned. Here is an approximate example of the fees for issuing a dealer license in Dubai:
- Company establishment fees: These fees vary between individual companies, joint stock companies, and limited liability companies.
- Commercial license fees: depend on the type of commercial activity practiced by the person or company.
- Government services fees: These fees include services provided by government agencies to issue the license.
- Fees for documenting contracts and documents: These include the costs of documenting contracts and documents required to issue a license.
- Legal and accounting consulting fees: If you decide to use consulting services to assist in issuing the licence, there may be additional fees for this.
Please note that these fees depend on the legal and regulatory context in Dubai and may change over time. To obtain precise details about the fees for issuing a merchant license in Dubai, it is preferable to contact the relevant authorities directly or with Itqan Legal Consultancy and Specialized Business Company in Dubai.
What is an instant license?
An instant license in Dubai is a type of license that is issued quickly and immediately, and is generally concerned with licenses for simple and limited business activities. Sometimes called “Instant DIY License” or “Instant Business License,” it is aimed at individuals who want to start small businesses without the need for complex procedures or large investments.
Among the advantages of an instant license in Dubai:
- Speed: The license is issued quickly without significant delay, allowing individuals to start their work quickly.
- Low cost: The fees for obtaining this license are often low compared to licenses for large businesses.
- Flexibility: This license is suitable for small and micro businesses that do not require complex organizational structures.
- Ease of use: This license allows individuals to start working immediately without the need for many procedures.
- Permitted activities: This license usually includes activities such as small trade, self-employment, and limited services.
One point that must be taken into consideration is that an immediate license may be limited in the type of activities that can be practiced, and may not be suitable for complex commercial activities or that require large capital. Therefore, it is always preferable to consult the competent authorities in Dubai to determine whether this license is suitable for the type of business activity desired.
How to amend a trade license in Dubai
Amending a trade license in Dubai is a process that companies may need to update their information or expand the scope of their business activities. Here are the steps on how to amend a trade license in Dubai:
1. Determine the type of modification required
- Change of trade name: If you wish to change the name of your company.
- Add or remove a business: If you want to add new businesses or remove old ones.
- Change of office address: If you move your workplace to a new location.
- Change of partner data: If there are changes in the ownership of the company or partner data.
2. Preparing the required documents
- License amendment request form: It can be obtained from the Dubai Economic Development Department (DED) or through its website.
- Original commercial license: The original copy of the commercial license must be submitted.
- Supporting documents: such as a copy of the new lease contract in case of change of address, or documents proving the change of partners or business activities.
- Approval of relevant authorities: If the amendment requires special approvals from certain regulatory authorities.
3. Submit the application
- Visiting the Department of Economic Development: The application can be submitted in person at one of the Customer Service Centers of the Department of Economic Development in Dubai.
- Electronic application: You can also submit the application through the Department of Economic Development’s website or through its smart application.
4. Pay the required fees
Fees vary depending on the type of modification requested. Fees can be paid in cash or credit card at the service center or online.
5. Review the application
The Department of Economic Development reviews the application and documents submitted. This process may take a few business days.
6. Obtaining the amended license
After the application is approved, an amended business license will be issued that includes the required changes. You can collect it from the service center or download the electronic version from the website.
Important tips:
Check specific requirements: Requirements vary depending on the type of modification, so you must ensure that all conditions are met. Expert consultation: It may be useful to consult companies specializing in business services for appropriate support.
Amending a business license in Dubai can be a smooth process if the steps are followed correctly and the required documents are provided.
Frequently asked questions about types of commercial licenses in Dubai
What are the types of business licenses in Dubai?
- Commercial license: for retail, wholesale, import and export activities.
- Professional license: for professions such as consulting, legal services, medical services, engineering, and others.
- Industrial license: for projects related to industry such as manufacturing, production, and packaging.
- Tourism license: for travel and tourism activities.
- Contracting license: for construction and contracting activities.
What documents are required to obtain commercial licenses?
Required documents vary depending on the type of license, but usually include:
- Commercial license application.
- The company’s articles of incorporation and articles of association.
- Proof of trade name reservation.
- Lease or property ownership contracts.
- Approvals of other government agencies (depending on activity).
Can I change the type of commercial license after obtaining it?
Yes, you can submit a request to the Department of Economic Development to change the type of commercial license if you wish to change your business activity.
Is it possible to combine more than one type of activity in one license?
In some cases, you can combine more than one type of business activity into one license if these activities are compatible. The approval of the competent authorities must be obtained.
Can foreigners obtain business licenses in Dubai?
Yes, foreigners can obtain business licenses in Dubai, but in some cases they may need a certain percentage of a local partner.
What is the validity period of business licenses in Dubai?
Business licenses are usually valid for one year, but can be renewed annually.
What are the steps to obtain commercial licenses in Dubai?
The process begins with choosing the business activity, then reserving the trade name, and submitting a license application to the Department of Economic Development. All requirements must be met and the necessary fees must be paid.
Are there special conditions for certain types of commercial licenses?
Yes, there may be special conditions for some types of business licenses, such as obtaining approvals from specific regulatory bodies or meeting activity-specific requirements.