In the United Arab Emirates, companies and individuals wishing to engage in commercial activities have multiple options for commercial licenses in the Emirates that suit their different needs and scope of business. Commercial licenses in the UAE include many types, ranging from individual licenses and partnerships to joint stock companies, private companies, and others. Financing and establishment are the basic things to start obtaining these licenses, and the requirements for each type differ in terms of the minimum capital required, administrative procedures, and regulating laws. Over time, the possibilities of obtaining commercial licenses in the Emirates have been enhanced thanks to legal and regulatory developments that facilitate the investment process and enhance the attractiveness of the local and international market. In this article, we will learn about the procedures necessary to obtain a commercial license in the Emirates? What are the types of commercial licenses in the UAE? .

 

Basic steps to obtain a commercial license in the UAE

To obtain a business license in Dubai , you must follow a number of basic steps that vary slightly depending on the type of business and the emirate in which you wish to invest. Here are general steps to obtain a commercial license in the UAE:

• Determine the type of commercial activity: Before starting the process of obtaining a license, you must determine the type of commercial activity that you wish to practice, whether it is general commercial, industrial, or professional.
• Choosing the appropriate location for the commercial activity: You must choose a suitable location that matches the type of commercial activity chosen, whether it is in a free zone, an industrial zone, or a commercial area.
• Choosing the legal formation of the company: A sole proprietorship, a limited liability company, a joint stock company, or a partnership can be established according to the activity and the size of the planned investment.
• Registering the company name: The company name must be registered and made sure that it is not similar to the names of other companies present in the local database.
• Preparing the required documents: The required documents include the passport of shareholders and directors, a no-objection certificate from the relevant government agencies, the articles of incorporation, the business plan, and other legal documents.
• Submitting a license application to the relevant authorities: The application must be submitted to the competent authority in the emirate in which you wish to invest, attaching all required documents and paying the necessary fees.
• Obtaining the necessary approvals and licenses: After studying the application and ensuring that all requirements are met, the commercial license and licenses necessary to start work are granted.
• Opening a bank account for the company: The company obtaining the license must open a commercial bank account for the purposes of financial operations and settlement of commercial operations.

What are the types of commercial licenses in the UAE?

In the UAE, there are several types of business licenses available that allow individuals and companies to conduct business legally and efficiently. The main types of business licenses in the UAE include:

1. General Commercial License: This license allows companies to practice general commercial activities such as selling products and services in the local market.
2. Professional License: This license is allocated to individuals who practice certain professions, such as doctors, lawyers, engineers, and accountants, and allows them to practice their professions independently.
3. Industrial License: This license allows companies to manufacture products in factories and industrial facilities.
4. Tourism License: Allows companies and individuals to provide tourism and travel services, such as tourism agencies, hotels, and restaurants.
5. Branch of Foreign Company License: It allows a foreign company to open a branch in the Emirates to practice a specific activity related to its main activity in its country of origin.
6. Licenses in free zones (Free Zone License): These licenses allow you to benefit from financial and operational facilities such as tax exemptions and customs facilities in designated free zones.

Documents and procedures required to renew commercial licenses

To renew a commercial license in the Emirates , the documents and procedures required vary slightly depending on the type of business activity and the emirate in which the renewal takes place. However, the general procedures and basic documents include the following points:

Required Documents:

• Renewal application form: Submitted by the employer or company official.
• Copy of current business license: A valid copy of a trade license, industrial license, or professional license must be submitted, depending on the type of activity.
• Current commercial register: A copy of the company’s commercial register issued by the competent government authorities.
• Additional Licenses and Approvals: If the company requires special licenses such as health licenses or environmental licenses, copies of these licenses must be submitted.
• Residencies and visas: Copies of the residency permits of company officials and workers if required.

Basic procedures:

• Submitting a renewal application: The employer or company official must submit an official application to renew the trade license to the competent authority. This is usually done online or in person at the office of the relevant authority.
• Examination and review: The application and attached documents are examined to ensure that they meet all required conditions and requirements.
• Payment of fees: The employer must pay the fees required for the renewal process, which vary according to the type of activity and the emirate.
• Application review: After paying the fees, the application and documents are reviewed by the competent authority, and an inspection visit may be arranged if necessary.
• Issuing a renewed license: If all requirements are met, a new license is issued or the current license is renewed for a new period, usually one year or more depending on the agreement and type.

Differences between regular commercial licenses and company licenses in free zones

This table summarizes the main differences between regular commercial licenses and company licenses in free zones in the UAE, which helps understand the differences in the legal and regulatory framework between the two options for investors and businessmen interested in investing in the country.

In the conclusion of the article that dealt with the types of commercial licenses in the Emirates , we can summarize the main ideas discussed. The United Arab Emirates is a prominent example of economic development in the region, and provides an advanced and diversified investment environment. Commercial licenses in the UAE are divided into several types that suit different types of businesses and activities, allowing investors and companies to choose the license that precisely meets their needs.

The most important frequently asked questions about commercial licenses in the UAE