Question 1

Q-1. Are Trade License and Commercial License same in UAE?

Accepted Answer

No, they are not exactly the same. A Trade License is a general term for any business permit in the UAE, granting overall permission to conduct various activities. A Commercial license is a specific type of Trade License, precisely tailored for businesses involved in buying, selling, importing, and exporting goods. Other types include professional and industrial licenses, each for distinct business activities.

Question 2

Q-2. What is the cost of a Commercial license in UAE?

Accepted Answer

The cost varies widely depending on several factors. These include the specific business activity, your chosen jurisdiction (mainland or free zone), the need for office space, and visa requirements. Initial setup prices typically range from AED 6,000 to AED 50,000 or more, with free zone options often being more budget-friendly than mainland setups.

Question 3

Q-3. How to renew a Commercial Trade license?

Accepted Answer

Businesses can renew their Commercial trade license online through the DED or relevant free zone authority portals. The process involves ensuring your tenancy contract is valid, submitting required documents like your old license and passport copies, and paying the renewal fees. It is highly advisable to initiate the renewal process at least one month before expiry to avoid penalties and ensure continuous legal operation.

Question 4

Q-4. How to check a Commercial Trade license online?

Accepted Answer

You can easily check a Commercial license online by visiting official government websites. These include the Dubai Department of Economic Development (DED) eServices portal, the National Economic Register (NER), or the Ministry of Human Resources and Emiratisation (MOHRE) Inquiry Services. Simply enter the company's trade name or its unique license number to view details like its status, expiry date, and registered business activities.

Question 5

Q-5. What documents are needed for a Commercial Trade License?

Accepted Answer

Key documents required for a Commercial Trade License include passport copies of all owners and partners, a Memorandum of Association (MOA) outlining the business structure, and proof of office address, like a tenancy contract or Ejari certificate. You will also need a trade name reservation certificate, initial approval from the relevant authority, and potentially a No Objection Certificate (NOC) from a current employer if applicable.

Question 6

Q-6. What’s the validity period of a UAE Commercial license?

Accepted Answer

A UAE Commercial license is generally valid for one year from its issuance date. However, some free zones offer more flexible options, including multi-year licenses that can extend for 2 or 3 years, depending on the specific package chosen. This provides businesses with longer-term stability and reduces the frequency of administrative renewals.

Question 7

Q-7. Can a Commercial license holder operate across the entire UAE?

Accepted Answer

It depends on the type of Commercial license. A mainland Commercial license allows unrestricted trade across the entire UAE and internationally, including direct engagement with the local market. However, a free zone Commercial license primarily permits operations within its designated free zone or internationally. For direct trade on the UAE mainland, a free zone company typically needs a local distributor or to open a mainland branch.

Question 8

Q-8. What happens if I don't renew my Commercial license on time?

Accepted Answer

Failing to renew your Commercial license on time can lead to significant penalties. These include fines, which can start from AED 250 per month and increase to AED 5,000 if business activities continue after expiry. Your business also risks suspension or blacklisting by authorities, and residency visas linked to the license may be canceled. This can disrupt banking access and existing contracts.

Question 9

Q-9. Do I need a physical office for a Commercial license?

Accepted Answer

For mainland Commercial licenses, a physical office space is generally a mandatory requirement, often with a stipulated minimum area. Proof of this address, like a tenancy contract or Ejari certificate, is essential. In contrast, many free zones offer more flexible options, including flexi-desks or virtual offices, which can reduce initial setup costs and provide greater operational flexibility.

Question 10

Q-10. What are the main types of Trade Licenses in the UAE?

Accepted Answer

The UAE offers several types of Trade Licenses, including:

Commercial License – for buying/selling goods
Professional License – for services, consulting, freelancers
Industrial License – for manufacturing or production
Tourism License – for travel, tour, and hotel-related businesses
Specialized licenses like E-commerce and General Trading fall under the Commercial category.

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