Through its partnership with Itqan, the UAE offers exciting investment opportunities and a legislative environment that attracts investors from all over the world. One of the basic steps to start a business in the UAE is to obtain a business license. A business license plays a vital role in determining the scope of business a company can undertake, as well as its legal and tax obligations.

The UAE offers several types of commercial licenses to suit the needs of different companies, such as industrial, commercial, and professional licenses. Conditions for obtaining a license vary depending on the type of activity, location, and legal and procedural requirements.

It is important to understand that any business practice in the UAE requires a valid business license, and failure to comply with this requirement may result in legal penalties. Therefore, investors and new companies should do good research and professional advice before starting business in the UAE.

Commercial license in the UAE

It is considered an essential step for establishing and operating companies. A trade license provides a legal framework for trade activity and specifies permitted activities and applicable restrictions. The process of obtaining a commercial license requires the submission of specific documents and documents and compliance with the legal and regulatory requirements in force in the UAE.

There are different types of commercial licenses in the UAE, including the national licence, the local licence, the free licence, the industrial licence, and others. Those wishing to establish must know the details of each type of license and the specific requirements and procedures for obtaining them.

The UAE commercial license is available in several categories, including sole proprietorships, limited companies, partnerships, real estate companies, and others. The appropriate category must be selected according to the company’s activity and business requirements.

By using a commercial license, companies can operate legally in the Emirates and benefit from the available benefits, such as obtaining a bank account, registering employees, dealing commercially with government and private agencies, and other commercial benefits.

Those wishing to establish in the Emirates should consult with local consultants or consulting offices to obtain accurate and updated guidance regarding the commercial license, procedures and requirements for establishing a company in the Emirates.

Types of commercial license in the UAE

In the Emirates, there are several types of commercial licenses in the Emirates that can be obtained according to the needs and circumstances of each company, including:

1. Individual commercial licence: allows one individual to practice commercial activity in his or her personal name.
2. Limited Liability Company (LLC): An LLC can be owned by a company or individuals, and has specific administrators.
3. Joint stock company: allows multiple shareholders to contribute to the capital and manage the company.
4. Public Company: Allows an unlimited number of shareholders to contribute capital and contribute to management.
5. Partnership: Allows multiple partners to share management, profits and losses.
6. Foreign branch: A foreign company is allowed to open a branch in the Emirates.
7. Free Company: Free zones provide a different business environment with tax exemptions and flexible business laws.

Procedures for obtaining a commercial license in the UAE

Procedures for obtaining a commercial license usually include the following steps:

• Choosing a business activity: Determine the type of business activity you want to practice.
• Determining the location: Choosing a suitable location to carry out the activity, whether it is within the emirate itself or in free zones.
• Company registration: Submit a registration application and submit the required documents to the competent authorities, such as the Department of Economic Development or the Economic Authority of the Emirate of Dubai.
• Payment of fees: Pay the prescribed fees for registering the company and obtaining a commercial license.
• Review and approval: After submitting the application and required documents, they are reviewed and approved by the competent authorities.
• Receiving the license: After approval, the commercial license is received, which confirms the legality of practicing the commercial activity.

These are the general steps, and procedures and requirements can vary based on the type of business activity and the emirate in which it is registered. It is always recommended to check the exact requirements for each case with the relevant authorities.

Necessary requirements to apply for a commercial license in the UAE

Requirements for obtaining a business license vary depending on the type of activity and where the company is desired to be established, but in general, here are some common necessary requirements:

1. Registration Application Form: A specific registration application form must be submitted with personal information and details about the company to be established.
2. Copy of passport: for both founders or shareholders.
3. Recent personal photos: of the founders or shareholders.
4. Business plan: A detailed description of the company’s activity and future plans.
5. A copy of the lease or space use permit: proving the location of the company’s office.
6. Required fees: The prescribed fees must be paid to submit the license application.
7. Legal declarations: You may need to sign legal declarations or enter into agreements.
8. Additional documents: The specific company may require additional documents depending on the type of activity, such as financial reports or special permits.

The validity period of the trade license in the UAE

The validity period of a commercial license in the Emirates varies according to the type of license and the competent regulatory authority, and usually ranges between one and five years, and it can be renewed after expiration. For example:

1. General commercial license: It may be valid for one year and can be renewed annually.
2. Business license for SMEs: It may be valid for two or three years and can be renewed.
3. Commercial license in free zones: may be for a longer period of up to five years or more.
4. Commercial license for self-employed professions: It may be for one year and is subject to renewal.

Fees required to obtain a commercial license

The fees required to obtain a commercial license in the UAE vary according to the type of license, company category, and geographic region. Usually includes the following fees:

1. Company registration fees: Includes company registration and licensing fees with the relevant authorities and various government bodies.
2. Legal consultation fees: You may need legal advice to prepare the necessary documents and documents to obtain the commercial license.
3. Licenses and permits fees: depend on the type of commercial activity and include fees for obtaining an activity license and the necessary permits from the competent authorities.
4. Office and business address fees: If you need to rent an office or obtain a business address in the free zone, there may be additional fees for this.
5. Value Added Tax (VAT): If VAT applies in the UAE, there may be tax charges related to the business activity.

Advantages and incentives for a commercial license in the UAE

Advantages and incentives for obtaining a commercial license in the UAE include:

• Encouraging business environment: The UAE provides a dynamic business environment that encourages entrepreneurship.
• Economic stability: The UAE enjoys economic and political stability, which makes it an ideal place for investment.
• Diversity of the economy: The diversity of the economy in the UAE provides multiple opportunities for businesses in various sectors such as real estate, trade, services, and tourism.
• Government Facilities: The UAE government provides facilities and support to companies through a range of programs and initiatives.
• Advanced infrastructure: The UAE has an advanced infrastructure that includes airports, ports, and communications networks.
• Strategic location: The UAE is located in a strategic location at the intersection of continents, making it a center for global trade and commerce.
• Tax exemptions: Many free zones in the UAE provide tax exemptions and customs discounts for companies.
• Access to regional markets: The UAE enables companies to access regional and global markets through a developed network of communications and transportation.

A commercial license in the UAE is considered one of the basic and necessary steps to start a business in the country. Itqan Company provides distinguished services to help obtain commercial licenses in the Emirates, and always strives to meet customer needs in the best ways.

A trade license in the UAE includes many benefits, including the ability to work legally and access the local and global labor market. The license also provides stability and trust to customers and business partners.

It is worth noting that obtaining a commercial license in the Emirates requires compliance with some legal conditions and procedures, and this process is facilitated thanks to Itqan Company’s experience in this field.

In short, it is an essential and crucial step for the success of any business, and Itqan Company provides the support and services necessary to achieve this goal with all efficiency and professionalism.

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