05 Jun Types of commercial licenses in Dubai and their issuance costs
In this article, we will take a general overview of the types of commercial licenses available in the Emirate of Dubai, and we will focus on how to obtain these licenses in cooperation with Itqan Company. Dubai is considered one of the most attractive business destinations in the world, providing a distinguished and encouraging business environment for local and international companies.
Establishing a company in Dubai requires obtaining the appropriate trade licence, which is essential for the success of business in the emirate. Itqan Company provides its services to investors wishing to establish their companies in Dubai, and helps them choose the types of commercial licenses in Dubai, the appropriate issuance costs, and complete all necessary procedures.
There are several types of business licenses in Dubai, including industrial, commercial, service, and craftsmen’s licences, which differ in terms and requirements. Itqan Company provides consultations to investors to help them choose the appropriate license according to the type of business activity they wish to practice.
In cooperation with Itqan Company, investors can obtain full support to establish their companies in Dubai, starting from analyzing the market and choosing the appropriate economic activity, all the way to completing all required legal and administrative procedures.
In short, Dubai, in cooperation with Itqan Company, is an ideal destination for establishing companies, as investors are provided with the necessary support to successfully start their businesses in this modern and prosperous emirate.
Types of commercial licenses in Dubai and their issuance costs
The difference between licenses to establish a company in Dubai and establish a company in the free zone
The licenses required to establish a company in Dubai and in the free zone are related to the type, size of the company and its activity. Here is a table showing the difference between the licenses required to establish a company in Dubai and establish a company in the Dubai Free Zone:
| Type | Establishing the company in Dubai | Establishing the company in a free zone in Dubai |
|---|---|---|
| License | You need a license from the Dubai Economic Development Department (DED). | Licenses vary depending on the type of free zone, and usually require a license from the competent authority in the free zone. |
| Possession | Company incorporation requires a local partner (national partner) if the company is less than 100% owned by the foreign company. | Foreign companies can own 100% without the need for a local partner in free zones. |
| capital | Depending on the type of company and activity, it can be high for some types. | It may be much lower in free zones compared to incorporation in Dubai. |
| Taxes | Companies are subject to 0% income tax in the emirate. | Free zones are considered tax-free for up to 50 years. |
| Practical laws | Subject to general UAE labor laws. | It enjoys independent labor laws that differ from the general laws in the emirate. |
Please note that this information is subject to change and details of licenses and terms may vary depending on the individual situation and practical applications of each company.
Steps to obtain a commercial license in Dubai
Here are the general steps for obtaining a commercial license in Dubai , which consist of several points that we have listed for you so that you are familiar with all the details of the commercial license, which are as follows:
- Choosing the type of license: Start by determining the type of commercial license you need, whether it is commercial, industrial, service, or other.
- Choosing a company name: Choose an appropriate name for your company, which must be in line with the rules of the Ministry of Commerce and Industry in Dubai.
- Preparing documents: Prepare the documents required for the license application, which may include a passport, personal photos, address confirmation document, and others.
- Submitting a license application: Submit the license application to the Department of Economic Development in Dubai, and pay the required fees.
- Waiting for approval: After submitting the application, you may need to wait for approval from the relevant authorities in Dubai.
- Sign the agreement and pay: After approval, sign the agreement and pay the remaining final fees.
- Receiving the license: After completing the procedures and paying the fees, you will receive your commercial license.
These steps are general and their details may vary depending on the type of business activity and the relevant regulatory body in Dubai. Therefore, it is always important to check the current laws and regulations before starting any procedure or communicating with Itqan Company, which is one of the pioneers in the field of investment in Dubai and establishing companies.
How to obtain licenses to establish a company in Dubai
To obtain the necessary licenses to establish a company in Dubai , you must follow several steps. First, the investor must choose the type of company he wishes to establish, in addition to the following steps:
- Choose the type of company: Select the type of company you wish to establish, such as a sole proprietorship, joint stock company, or limited liability company.
- Choosing a company name: Choose a name for the company and make sure it does not conflict with the names of companies previously registered in Dubai.
- Prepare the required documents: Prepare the documents required to register the company, such as the registration application form, the partnership document (if the company is a partnership), and the identity cards of the partners.
- Submitting an application to the Department of Economic Development: Submit the application and required documents to the Department of Economic Development in Dubai, and pay the prescribed fees.
- Waiting for approval: After submitting the application, you may need to wait for approval from the relevant authorities in Dubai.
- Completing the legal procedures: After approval, sign the necessary contracts and agreements and pay the final fees.
- Receiving the license: After completing the procedures and paying the fees, you will receive the final license for your company.
It should be noted that these steps depend on the type of company and the current laws and regulations in Dubai, so it is always preferable to consult Itqan Company experts to ensure full compliance with legal requirements.
Cost of a business license in Dubai
We in our company will help you obtain the commercial license at the lowest cost and in the fastest time, thanks to our many years of experience in the field of obtaining commercial licenses in Dubai.
- The cost of a commercial license in Dubai varies from one free zone to another, and here are the most important points in this regard that will help you understand the topic further.
- The fees for obtaining a commercial license differ from others depending on the nature of the activity, as the costs for a commercial license differ from those for an industrial and professional license, although the industrial license is the most expensive.
- Costs specific to the size of the company, large or small, the number of employees, and the location to establish the company.
You will also need to know the cost of the area license, the cost of the building license, and the visa costs, so calculating the cost of a business license in Dubai consists of several components.
Types of business licenses in Dubai
Please visit the following table, which shows the types of commercial licenses in Dubai and some basic information about each type:
| Type of license | the description |
|---|---|
| Commercial license | It allows companies to engage in general commercial activities inside and outside Dubai. Includes sole proprietorships, limited liability companies, partnerships and freelancing companies. |
| Industrial license | It allows companies to manufacture products within Dubai. This license requires a specific production site and compliance with occupational safety and health standards. |
| Services license | It allows companies to provide certain services within Dubai, such as consulting, training, marketing, logistical and financial services. |
| Craftsmen license | It allows individuals to practice handicrafts and craft professions in Dubai. This license requires knowledge and experience in the field in which you want to work. |
| Foreign branch license | It allows foreign companies to open branches in Dubai. The foreign branch must be a subsidiary of a parent company which must be registered in a country other than Dubai. |
| Professional license | It allows independent professionals to practice their professions in Dubai, such as doctors, engineers, lawyers and accountants. This license requires professional certificates and licenses from the relevant bodies. |
| Distribution license | It allows companies to distribute products and goods in Dubai. This license is subject to certain conditions regarding stock, distribution, and transfer. |
| Tourism license | It allows companies to provide tourism services in Dubai, such as tourist trips, hotels and tourist transportation. This license requires licensing from local tourism authorities. |
This table shows the variety of commercial licenses available in Dubai, allowing investors to choose the license that suits their business activity and operational needs.
How to obtain licenses to establish a company in Dubai
Types of business activities in Dubai
In Dubai, there are many business activities that can be carried out under the appropriate business licences. Here are some common types of businesses in Dubai:
- General trade: includes the wholesale or retail sale of goods and products, and includes all types of goods from clothing and electronics to food and furniture.
- Professional services: such as engineering, legal, financial, and administrative consulting.
- Light and heavy industries: such as food manufacturing, metals, plastics, and chemical products.
- Technology and communications: such as software development, providing information technology services, and installing and maintaining networks.
- Construction and civil engineering: such as building construction, real estate project development, and architecture.
- Tourism and hospitality: such as operating hotels and resorts, organizing tourist trips, and providing accommodation and entertainment services.
- E-commerce: such as buying and selling products online, and providing digital services.
- Education and training: such as providing training courses, private education, and developing educational curricula.
These are just some examples of business activities available in Dubai, and there are many other activities that can be practiced according to market needs and legal requirements.
The importance of obtaining a commercial license in Dubai
Obtaining a commercial license in Dubai is an essential and crucial step for any company that desires success and continuity in the growing commercial market in Dubai. It is of great importance for several reasons, which are represented in the following points:
- Legal Compliance: Doing business in Dubai requires obtaining a business licence, which is a necessary legal requirement to ensure compliance with local laws and regulations.
- Trademark Protection: By obtaining a trade license, you can protect your brand and ensure that it is not used by others without permission.
- Facilitating financial operations: A business license is a prerequisite for opening a commercial bank account, which facilitates the management of the company’s financial operations.
- Attracting customers and partners: Obtaining a commercial license gives you credibility in front of potential customers and partners, which helps attract them and build strong business relationships.
- Expansion and Growth: With a business license, you can expand your business and grow further by exploring new business opportunities in Dubai and the UAE.
- Obtaining Insurance and Other Licenses: A business license can be a requirement to obtain business insurance and some other licenses you may need to conduct your business legally and safely.
In conclusion, we discover that choosing a business license in Dubai can be a crucial step towards building a successful and sustainable business in this vital economic emirate. By cooperating with Itqan Company, investors can obtain the necessary support and guidance to choose the appropriate license and complete all procedures with ease. Itqan Company can also provide accurate information about the costs of issuing commercial licenses in Dubai, and this can be a decisive factor in making the right investment decisions. Investing time and effort in understanding the types of commercial licenses and analyzing their costs well may open the doors of success and prosperity for investors in the growing Dubai market.
Frequently asked questions about types of commercial licenses in Dubai
What types of business licenses are available in Dubai?
There are different types of business licenses available in Dubai, including general business licenses, industrial licenses, service licenses, craftsman licenses, foreign branch licenses, professional licenses, and others.
Which trade license is most suitable for a small business in Dubai?
For small businesses, a general business license or services license may be most appropriate, as these licenses allow a wide range of business activities.
What are the expected costs of obtaining a business license in Dubai?
Costs vary depending on the type of business license and the business activity chosen. Generally, the costs of obtaining a business license in Dubai can range from several thousand to several tens of thousands of UAE dirhams.
Can foreign companies obtain a license to open a branch in Dubai?
Yes, Dubai allows foreign companies to open branches in the emirate, by obtaining a foreign branch license.