How Holding Commercial Licenses Eases the Business Setup Process?

by Zaara 10, Sep 2019

Dubai has always been one of the most important centres for international trade due to its proper geographical location. Due to the economic boom, a significant amount of development has been taken place in Dubai as well as the UAE. Henceforth, there is now a massive market for all different types of products in Dubai.

For setting up a business in Dubai, the most important thing is to make the set up legal in the eyes of the law. So every business investor or an entrepreneur is responsible for the foremost thing which is obtaining a license for the particular business. So as per the rules prescribed by the Dubai Department of economy, it is mandatory to get a permit if you wish to set up a company here. Depending on the kind of business, one can get a license. Three important licenses are available for the business owners in Dubai. These are :

Commercial License

To set up a trading company, business investors are required to obtain a commercial license. A commercial license is something which will give the business owners the legal right to carry on particular trading activity. Also, there are specific listed licenses which are required for particular commodities. In Dubai, one will need special licenses from DED for trading products like medical products, alcohol etc. hence for the convenience the commercial licenses are generally divided into two types. These are- 

Commercial licenses, generally referred to as trading licenses are the basic license which is required for trading of goods in relation to a particular trading activity which is registered under the license. Hence, you are limited to certain goods for which you are registered. For example – if you are doing a hardware business under your company, then the activities coming under the hardware business can be done or carried by you and not any other activity which doesn’t come under the purview.

Whereas, in case of a general trading license, the said license will allow to retail and wholesale the business in relation to any goods within the UAE and even outside the UAE, except the prohibited goods under the law for which special permission is required to be taken. These goods include such as medical products or equipment's, alcohol etc. which requires special approval. The process of obtaining trading as well as a general license is pretty smooth, but one has to have a clear idea about every legal aspect required, including the documentation. The procedure for applying for a commercial license is provided under our company’s website under the head 

Advantages of Commercial License in Dubai

An entrepreneur planning to run a business in a smooth way would be required to get a trade license as per the UAE laws. If you are familiar with what a driving license is, then you understand the importance of a commercial license. A person driving without a driving license gets charged with fine and penalty or even imprisonment; likewise, a person carrying on a commercial business can get penalised with severe penalties and fine as per the UAE regulations. Henceforth, a company not having a trading license will be considered as an illegal business and therefore would attract stringent punishment regarding the same. The following are the beneficial aspects of getting a commercial license:

  • A trade licensed business will be enjoying greater goodwill and certainly will be attracting customers and business investors than an unregistered entity.
  • Protecting business investors or entrepreneurs from any liabilities.
  • Companies following proper legal business practises attracts many investment groups and sponsors in Dubai.
  • For ensuring the safety of one's business and non-closure of a company, one has to have a Trading license in Dubai.
  • Getting a trade license is better than paying for fines and penalties which are strict under Dubai regulations. Also, it costs a reasonable amount of money for obtaining a trading license.

Advantages of a General Trading License in Dubai

A General trading license for a company can be beneficial for business investors. Due to the attracting liberal policies under the governments' regime, many business investors are attracted to set up a business in Dubai. However, once you decide to carry out a business activity, it should be registered with the DED. There comes a time or circumstances wherein you would want to carry on certain other activity as well, here comes the importance of a general trading license. With a general trading license, one can carry on n number of activity in the company. Following are the significant benefits of getting a general trading license in Dubai:

  • Tax-free incentive, one of the important reason why people from all over the world want to set up a business in Dubai.
  • A large number of products, a general trading license provides access to more than one activity; hence, retail and whole for many activities are possible in general trading license.
  • Smooth and straightforward process, a general trading license is profitable as well as pretty easy to obtain in comparison to other licenses wherein the registration procedure is very lengthy. One can get a general trading license within a week from DED.
  • Hassel free sponsor to dependents, one huge advantage that a general trading license has is the investors can apply for visas for their employees as well as dependents with ease. The investors can sponsor their , which thus makes it easier for them to get visa easily.


Above mentioned are the few reasons why getting a general trade license eases the business process. If you want to apply for a commercial license, it is advisable to appoint an expert in relation to the licensing process as you may never know when you miss an important legal aspect. Our experts at Commtbiz are always there to help you in relation to setting up a business in Dubai as well as helping out with all the legal procedure for obtaining a license. For any queries in relation to the business in Dubai, you can always reach out to our expert team. Contact us. We would be happy to help.