Stepwise Method Of Obtaining a Commercial License in Dubai

Stepwise Method Of Obtaining a Commercial License in Dubai

Getting a valid commercial license Dubai has many advantages, as well as it is an easier license to get compared to other business licenses in Dubai. A company can trade in any region of the UAE and in more than one product by acquiring a commercial license. A commercial license can be renewed without any auditing and recruit foreign nationals by seeking employment visas for them.

In this post, we have broken down and elaborated all the steps that a company must take in order to get a commercial license in Dubai.

Steps Needed To Obtain Commercial License

The following steps describe how you can obtain a commercial license in Dubai. Some of the steps need to be pursued simultaneously, and the sequence of steps outlined here might change based on the amendments to the procedure from time to time. It is essential that your company is meticulous about complying with all the formalities to function smoothly in Dubai.

  1. Decide and confirm the business activity – You have to first select the type of business and the product that you want to trade in the UAE. Depending on the type of business activity, you might need to get additional approvals.
  2. Acquire initial approval – The DED (Dubai Economic Department) is responsible for issuing initial approval for a commercial license in Dubai. Apply to get the initial approval and submit all the necessary documents for the same.
  3. Look for a reliable sponsor – If you are looking to open your company in Dubai mainland, then as per federal laws, you need to have a local Emirati sponsor. 51% of the shares of the company will be held by the local sponsor, while the remaining 49% can be held by ex-pat and other shareholders.
  4. Legal structure formulation – The constitution of a business entity is defined by AOA (Article of Association) and MOA (Memorandum of Association). These documents must be prepared in both English and Arabic, and they lay down the rules and regulations that all stakeholders of the company must follow.
  5. Approval for Trade Name – You must choose an appropriate company name. Your company name has a huge impact on establishing a business in the UAE. There are strict (though pretty easy) naming conventions to follow. You can take the help of a company set up expert for this purpose. Most importantly, you must avoid any profane or offensive language while naming your company and also do not use names of well-known organizations. Another thing to keep in mind is that if you are naming your company after your name, then avoid abbreviations.
  6. Hiring office space – The next step is to rent office space though few business types might opt for Flexi office or virtual office. If you are leasing or renting an office space, then it needs to be registered at Ejari.
  7. Leasing or renting a commercial space – The commercial space you lease or rent has to have specific dimensions as prescribed by the authorities. All businesses need to have a commercial space that will be inspected by the officials to confirm that they conform to the dimensions and other legal formalities.
  8. Getting approvals from ministries – This is an additional approval that might not be needed urgently. You can obtain this approval even after commencing your business.

Donald Phillips