Commercial License

Dubai Commercial License Setup

Obtaining a business license in Dubai involves getting approvals from the government and economic department. A commercial license is a perfect choice for companies engaging in trading or buying and selling goods. Usually buying and selling refer to as trading in the UAE and Dubai. If you choose a business activity that is classified under commercial activity. You will be issuing a commercial license by law. The activities such as logistics, car rental, and real estate brokerage are classified as commercial activities. Even though they are providing services.

A commercial trade license in Dubai is very important for an entrepreneur who wishes to start a new company or a company having multiple trading activities in Dubai, UAE. A trade license is a must if you are going to start a wholesale business in Dubai. If you have a trade license then you can start any commercial companies in any of the Emirates.

Limited Liability Company

A Commercial license company can be set up as a where 51% of its shares should own by UAE Nationals and the remaining 49% is open to foreign ownership. If the company is planning to sell goods in Dubai & UAE markets then the ideal choice is to incorporate or set up a Limited Liability Company in Dubai UAE.

A Commercial license can be formed within one of the free zones in Dubai or in the UAE. In some of the free zones in the UAE, it is possible to start Limited Liability Companies. Whereas in other free zones it is a Limited Liability Partnership. It is possible to set up with a suffix “FZ-LLC” which stands for “Free Zone – Limited Liability Company”. In some free zones or “FZC” – which stands for “Free Zone Company”. The main advantage of Free Zone Company is that you will get 100% ownership in your business. Free Zones companies in UAE are exempt from the 51% – 49% minimum shareholding rule that is a must outside the free zones. You can choose to incorporate a commercial license within a Free Zone if your company is planning to export goods.

For Free zone Company, if you wish to sell goods within UAE. It requires you to appoint a distributor and you cannot invoice your clients directly. All the invoicing should take place through the distributor.