Commercial Trade
License
A Commercial Trade License is a necessary requirement for companies involved in commercial trading activities. Unlike a General Trading License, the Commercial Trade License is more specific in nature and covers a limited number of products. It is important to note that the General Trading License does not cover all goods and/or commodities, some items such as automobiles and software can only be traded with a Commercial Trade License.
Incorporating a trading establishment as a Limited Liability Company is possible depending on the number of shareholders. A Limited Liability Company requires a minimum of one shareholder and a maximum of 50 shareholders. The liability of the company is limited by its paid-up capital, and each shareholder’s liability is limited to their financial participation in the company. A subsidiary company is one that is owned by another company and not individual shareholders.
As of 1st June 2021, UAE Economy allows 100% foreign ownership for some 1,000 designated commercial activities. Before this date, any company established on the mainland had to have 51% of the company’s shareholding owned by a Local Partner. The Local Partner had to be an Emirati or another company incorporated in the United Arab Emirates, which was 100% owned by Emiratis. The rule is still very much in existence for companies that are into commercial activities not mentioned by Dubai Economy. So it is recommended that you check with an experienced business setup consultants to determine if the commercial license activity proposed to be undertaken by your company is on the list or not.
Mainland Company
The following are the types of mainland companies in the United Arab Emirates:
- Sole ProprietorshipÂ
- Civil CompanyÂ
- Limited Liability CompanyÂ
- Branch OfficeÂ
- Representative Office
Activities Covered by Commercial Trade License
Some of the activities that require a Commercial Trade License in the United Arab Emirates are:
- AutomobilesÂ
- Computer Systems and Communication EquipmentÂ
- ContractingÂ
- FoodstuffsÂ
- FurnitureÂ
- Medical and Surgical EquipmentÂ
- Readymade GarmentsÂ
- Software
Advantages of Commercial Trade License
Some of the advantages of obtaining a Commercial Trade License in Dubai are:
- You can undertake up to ten allied commercial activities with a single Commercial Trade LicenseÂ
- You are allowed to fully repatriate your capital and profitsÂ
- You can hire as many foreign workers as you want, as long as you have the commercial space to employ themÂ
- You can import items from abroad and/or export them overseas
How to Get a Commercial Trade License in Dubai
The first step to obtain a Commercial Trade License in Dubai is to decide on the name of your company. The name you have in mind may already be registered, so it is advisable to consult with a business setup consultants who can run a search for you and see if the name is available. Once the name is confirmed, you can proceed to form a company under this trade name. This step requires a company formation expert who can draw up the Memorandum of Association / Articles of Association and get the documents registered.
Once you have established your company, the next step is to obtain a Dubai Commercial License for your company, paying the requisite fees. The fees vary depending on the number of business activities included in the Commercial Trade License for your establishment and also on the type of company. The higher the number of business partners, the higher the fees payable. Similarly, having more activities included in the Commercial Trade License also increases the cost of the license. The fees also vary by emirate, and a business setup consultants can help you determine the exact costs of getting a Commercial Trade License for the intended business activity by your proposed company.
Why Choose Highgate Business Management Consultants?
At Highgate Business Management Consultants, we understand that starting a business in a foreign country can be a daunting task, especially when it comes to legal requirements and licensing procedures. That’s why we offer comprehensive business setup solutions to help you navigate the complex process of obtaining a Commercial Trade License in Dubai.
Our team of experienced consultants has in-depth knowledge of the local laws and regulations, and we are committed to providing personalized services tailored to meet the unique needs of each client. We offer end-to-end solutions that include everything from company formation to obtaining a Commercial Trade License and beyond.
Our business setup consultants will guide you through the entire process, starting with selecting the right business structure for your company, to drafting legal documents, obtaining necessary approvals, and finally obtaining your Commercial Trade License. We pride ourselves on our attention to detail and customer service, and our team of experts is always available to answer any questions you may have.
Why Choose Dubai for Your Commercial Trade License?
Dubai is known for its thriving business environment, and it offers several advantages for those looking to start a business. As of 1st June 2021, Dubai Economy now allows 100% foreign ownership for some 1,000 designated commercial activities, making it easier for foreigners to start a business in the city. Dubai is also strategically located between Europe, Asia, and Africa, making it an ideal location for businesses looking to expand their reach.
Dubai offers a tax-free environment, which means that businesses are not subject to corporate or personal income tax. The city also has a robust infrastructure and is home to several free zones, each with its own set of benefits and advantages.
At Highgate Business Management Consultants, we can help you navigate the complex process of obtaining a Commercial Trade License in Dubai and ensure that you take full advantage of the many benefits that the city has to offer. Our team of experts is always available to answer any questions you may have and provide you with the guidance and support you need to start and grow your business in Dubai.
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