Commercial TradeLicense

Commercial Trade Licence

This type of License is issued to those who are into commercial trading. The difference between a General Trading License and a Commercial Trade License is that a Commercial Trade License is more specific in nature and covers a limited number of products. The General Trading License also doesn’t cover all goods and/or commodities; some items such as automobiles and software can be traded only with a Commercial Trade License.
Depending on the number of shareholders, a trading establishment can be incorporated as a Limited Liability Company. For a Limited Liability Company, the minimum number of shareholders is one and the maximum number is 50. The liability of the company is limited by its paid-up capital, and each shareholder’s liability is limited to his/her financial participation in the company. A subsidiary company is one that is owned by another company and not individual shareholders.
As of 1st June 2021, Dubai Economy now allows 100% foreign ownership for some 1,000 designated commercial activities. Prior to this date, any company established on the mainland had to have 51% of the company’s shareholding owned by a Local Partner. The Local Partner had to be an Emirati (this is the term used to refer to citizens of the UAE) or another company incorporated in the United Arab Emirates which was 100% owned by Emiratis. The rule is still very much in existence for companies that are into commercial activities not mentioned by Dubai Economy. So it is recommended that you check with an experienced business setup consultant to determine if the commercial activity proposed to be undertaken by your company is on the list or not.

Activities Covered by Commercial Trade License

Some of the activities that require a Commercial Trade License in the United Arab Emirates are as follows

Advantages of Commercial Trade License

How to Get a Commercial Trade License in Dubai

The first step is to decide on the name of your company. It may happen that the name that you have in mind has already been registered, so a good business setup consultant can run a search for you and see if the name is available. You can then proceed to form a company under this trade name. This step requires a company formation expert who can draw up the Memorandum of Association / Articles of Association and get the documents registered.
Once you have established your company, the next step is to get a Commercial Trade License for your company, paying the requisite fees. The fees vary, depending on the number of business activities included in the Commercial Trade License for your establishment and also on the type of company. The rule of thumb is that the higher the number of business partners, the more will be the fees payable. Similarly, having more activities included in the Commercial Trade License also increases the cost of the License. So there are no hard and fast answers to how much a Commercial Trade License costs in Dubai or elsewhere in the United Arab Emirates. The fees also vary by emirate, and a business setup consultant can help you determine the exact costs of getting a Commercial Trade License for the intended business activity by your proposed company.

Which is the best Business Setup Consultant in Dubai, UAE?

The right business setup consultant listens to you and your needs, advising you on company formation. At A&A Associate LLC, we work closely with our in-house team of legal experts to ensure that everything is done just the way it should be. We pay extreme attention to detail, because we know that it is the small details that make up the larger picture. Even after your company has been established, we continue to support you and your journey by offering you cost-effective bookkeeping, accounting, and audit solutions. This way, you can focus on what you do best – running your business.

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MD Abrar Mulla
Mohammed Abrar Mulla
Company Formation Specialist
Solve out the crucial procedures of business setup with MOHAMMAED ABRAR, passionate and efficient member of our team working hard to achieve customer satisfaction and obviously, he exceed your expectations. Having around 3+ years of experience, he identifies the best approach based on your business sector. With expert knowledge and huge network of contacts, mainland company formation is made easy!

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