Commercial License Setup In UAE

The UAE's strategic location attracts businessmen around the world. It forms a link between the East and the West. In addition, the infrastructure and business-friendly policies also lure businessmen. Businessmen willing to set up a business in the UAE, need to get a business trade license. A businessman has to decide the type of activity and region to select the type of business license. The major business licenses issued by the UAE authority are Industrial license, Professional license, Commercial license, or Tourism license. To set up a trading business in Dubai, one has to get a commercial trade license.

What is a Commercial license?

All commercial trade activities need a license. A trading activity refers to any activity involving buying or selling of any commodity or service. It encompasses businesses like general trading and specialized trading. Some of the businesses that need a commercial license are:

The commercial license is issued by the DED in Dubai mainland. In Free Zones, the license is issued by the respective Free Zone Authority. It is valid for 1 year and can be renewed later. Commercial license for Free Zone can be used in Free Zone only. A commercial license can be availed for branches and subsidiaries of foreign companies.


  • It permits the company to trade more than one product.
  • Can do trading in any region in the UAE.
  • Auditing is not compulsory for the renewal of the license.
  • Company in Free Zone enjoy 100% repatriation of profits and exemption from taxes.
  • Reporting of financial information is much easier than other types of licenses.
  • The company can carry out up to 10 business activities.
  • The company gets the opportunity to engage in various international activities.

Steps to get a commercial license

  • Firstly, the owner has to select the business type.
  • Secondly, the businessman has to get initial approval from the DED or Free Zone Authority.
  • Thirdly, the owner has to decide the business structure by drafting the MOA and AOA of the company.
  • Fourthly, the owner has to select a reliable sponsor. The sponsor may be a local service agent or a UAE national in the case of a company in the mainland.
  • Fifth, the businessman has to decide on a trading name for the business. The name should be selected according to the laws of the land.
  • Sixth, the owner has to select an apt office space.
  • Seventh, a commercial space has to be rented or leased.
  • Finally, the owner has to submit the required documents. The authority issues the license 3 days after the submission of documents.

Documents required

  • Application form
  • Lease contract
  • Copies of passport of each shareholder
  • A detailed description of the business plan
  • Reference certificate of financial statement
  • NOC from Sponsor
  • Letter of intent
  • Notarized copy of Registry
  • Latest photograph

The license thus issued is valid for 1 year after which it can be renewed. The renewed license is valid for 5 years.

Documents Required for Renewal of Commercial License

  • Copy or original license
  • Registered address lease contract
  • Approval from concerned authority
  • Details about staff accommodation


For any business concerned with trading activities, a commercial license is required. There are many advantages of acquiring a commercial license. Though issued for 1 year initially, it can be later renewed for 5 years. Beyond View assists you to avail of commercial license easily. For more details about a commercial license, contact Beyond View.   


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