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Commercial Trade License In Dubai

Commercial Trade License in Dubai

This type of License is issued to those who are into commercial trading. The difference between a General Trading License and a Commercial Trade License is that a Commercial Trade License in Dubai 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 items such as automobiles and software can be traded only with a Commercial Trade License.

Depending on the number of shareholders, a trading establishment can be incorporated as a Limited Liability Company. For a Limited Liability Company, the minimum number of shareholders is one and the maximum number is 50. The liability of the company is limited by its paid-up capital, and each shareholder’s liability is limited to his/her 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, Dubai Economy now allows 100% foreign ownership for some 1,000 designated commercial activities. Prior to 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 (this is the term used to refer to citizens of the UAE) 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 consultant to determine if the commercial license in dubai activity proposed to be undertaken by your company is on the list or not.

Activities Covered by Dubai Commercial Trade License

Some of the activities that require a Commercial Trade License in the United Arab Emirates are as follows

Advantages of Commercial Trade License

Documents Required for a Commercial Trade License in Dubai

To obtain a commercial trade license in Dubai, the following documents are needed: