It is almost impossible to set up business without a trade license in Dubai. That being said, depending on the nature of your trade and objectives, you will need to find the right trade license for your business.
So how many trade licenses are there? Depending on a few key factors, you can either apply for a commercial license, industrial license or for a professional one. In this article, we will focus on just the commercial and professional Dubai trade.
How do you decide which license to apply for?
There are a few key features that sets the two licenses apart, and thus have their own advantages. Dubai trade licenses differ from each other in terms of ownership, trade license Dubai fees, share capital and liability.
What exactly is a commercial trade license Dubai?
Simply put, a commercial trade license in Dubai is issued to a business regarding any type of commercial activities. Both general traders and specialized traders can avail commercial trade license in Dubai. Retail companies, construction companies, real estate businesses and other general entities also need to avail commercial trade license in Dubai.
What exactly is a professional trade license Dubai?
Professional trade licenses are required for all service-oriented companies. Dubai professional trade license are granted based on the applicant’s educational entitlement and area of expertise, and acquiring the trade license include several factors.
What other factors change with the licenses?
- Ownership.
When it comes to commercial trade license in Dubai, an expat or foreign investor can legally own 49% of the total shares and the rest will be owned by a UAE national or local service agent.
When it comes to a professional license, an expat will have 100% ownership and can become the sole owner. - Share capital.
To setup a commercial business with a commercial trade license, the minimum share capital amount required is DHS 300,000.
As for professional license, the minimum share capital is DHS 150,000. - Government license fees.
Trade license Dubai fees is also different for commercial and professional license. Commercial trade license fees is higher than Professional trade license fees. - Liability.
Commercial trade license in Dubai gives companies limited liabilities. This changes with Professional trade licenses, where the liability of the company is unlimited. If a Professional trade license holder wants to limit their liabilities, they will need to change their suffix to L.L.C. However, if the company limits its liabilities, the ownership will also get divided between an expat and UAE national.
What are the benefits of each trade license in Dubai?
| Benefits of Professional license | Benefits of Commercial license |
|---|---|
| Fixed annual fee for professional license holders | With the commercial license, you have several options for the type of company you want to register as and can perform a maximum of ten activities. In fact, you can undertake several similar business activities against one license. |
| Applying for visas for employees and having transparent dealings with clients. | If you have this trade license in Dubai, you can avail residence visa for your employees and company management, as well as get assistance for opening corporate bank accounts. |
| It is best fitted for skilled professionals planning on setting up businesses in Dubai. | Lastly, the trade license renewal in Dubai becomes more cost-effective. |
What does not change with any of the trade licenses?
Regardless of which trade license in Dubai you are applying for, it is important to make sure you have your trade license renewal done on time. Furthermore, there are a lot of other factors to keep in mind when applying for a trade license in Dubai. The most cost effective and time saving way to deal with all of this is to partner with a Business Setup firm. They can keep the process going smooth while you focus on growing the business. And the best place to start would be with Company Setup Consultancy Dubai.
For further information and assistance on how to get Trade license or renewal of trade license, trade license fees or any kind of assistance you need, speak with our experienced consultants. Book your FREE consultation today at +971 558654072 or drop us a line here.
