Those who engage in commercial trading are given this kind of license. 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, like cars and software, can only be traded with a Commercial Trade License.
A trading business can be set up as a Limited Liability Company, or LLC, depending on how many shareholders it has. The minimum and maximum number of shareholders for a Limited Liability Company is one. The company’s liability is limited by its paid-up capital, and each shareholder’s liability is limited by the amount of money he or she has invested in the company. A subsidiary company is one that is owned by another company and not by individual shareholders.
As of June 1, 2021, Dubai Economy now permits foreigners to own 100% of about 1,000 specific commercial activities. Before this date, any mainland company had to have a Local Partner own 51% of its shares. The Local Partner had to be an Emirati, which is the term used to refer to UAE citizens, or a company incorporated in the UAE that was owned 100% by Emiratis. For companies engaged in commercial activities that are not mentioned by Dubai Economy, the rule is still very much in place. So, you should check with an experienced business setup consultant to see if the commercial license in Dubai activity your company wants to do is on the list or not.
• Sole Proprietorship
• Civil Company
• Limited Liability Company
• Branch Office
• Representative Office
Advantages of Commercial Trade License
-
- With a single Commercial Trade License, you can carry out up to ten related commercial activities.
- You are allowed to fully repatriate your capital and profits.
- As long as you have the necessary business premises, you may employ as many foreign workers as you choose.
- You can buy things from other countries and/or sell them to other countries.
Activities permitted under a commercial trade license
Several types of commercial activities are recognized by the Department of Economic Development (DED). The DED can provide you with a comprehensive list of permitted commercial pursuits. Several instances of legal business conduct in Dubai are shown below:
-
- Advertising services
- Automobile trading
- Beauty and baby care essentials
- Building maintenance services
- Cleaning services
- Cold storage
- Exchange and financial services
- Filling stations
- Flowers and plants trading
- General store
- General warehousing
- Home appliances trading
- Import and export
- Plumbing and sanitary contracting
- Radio, TV station, cinema theater equipment installation, and maintenance
- Rental services
- Restaurant management
- Self-storage services
- Surveillance services
For more information about commercial trade license, get in touch with our business consultants today. Our team at Invest First will assist you in obtaining a license as well as necessary approvals to get started.