A commercial license in the Dubai Free Zone is the basic document for conducting business within the free zones in the city of Dubai. Possessing a commercial license in the Dubai Free Zone depends on establishing a business in Dubai, as the city of Dubai includes a large number of free zones that have many privileges. To attract investors from countries around the world. The question of how to possess a commercial license in the Dubai Free Zone is an important matter that must be calculated accurately. In these coming lines, you will learn about how to possess a commercial license in the Dubai Free Zone and the advantages of a commercial license in Dubai.

A business license in Dubai is an important and exciting business opportunity. To take full advantage of the available features and benefits, Itqan Company can be used as a consulting partner to provide professional support and guidance. Itqan has extensive experience in the field of business licensing in Dubai and providing specialized legal and financial services. In this comprehensive article, we will explore the advantages of a business license in Dubai, from simple registration and licensing procedures, tax benefits and rebates, easy access to global markets, cutting-edge infrastructure, and a sustainable business environment. We will also highlight the role of Itqan Company in providing support and professional advice to investors who wish to obtain a commercial license in Dubai, as Itqan will assist them in all the necessary steps to obtain the license and exploit the full advantages available. This article will be a comprehensive guide for investors seeking to understand the advantages of obtaining a business license in Dubai, and cooperation with Itqan Company will ensure that they make the most of these advantages and achieve success in the dynamic business environment in Dubai.

Steps to obtain a commercial license in Dubai?

Here are general steps to obtain a business license in Dubai:

1. Choosing a business: Determine the type of business you want to engage in, and make sure it complies with local laws and regulations.
2. Choose legal formation: Decide on the type of legal formation of the company, such as sole proprietorship, limited liability company, or foreign company branch.
3. Choosing a Company Name: Choose a unique name for your company that complies with local regulations and follows Dubai business naming guidelines.
4. Determine the location of your business: Choose a location for your business that is compatible with your type of activity and local laws.
5. Determine capital: Decide how much capital you will invest in your company and which may require financial support.
6. License application: Submit an application to obtain a license from the competent authority in Dubai, whether it is the Dubai Economic Development Department (DED) or one of the free zones.
7. Signing the contract and paying the fees: After your application is approved, you must sign the official contract and pay the required fees.
8. Determine the legal officer: You may need to specify a director or legal officer for the company, depending on the type of company.
9. Social Security and Tax Registration: You may have to register your company with local Social Security and tax authorities.
10. Receiving the license: After meeting all conditions and paying the fees, you will obtain your commercial license.

Types of business licenses available in Dubai ?

There are several types of business licenses available in Dubai, and these licenses vary depending on the type of business activity and local requirements. Here are some of the main types:

1. Sole Proprietorship License: Allows one individual to establish and operate a business under a personal name.
2. Limited Liability Company License: Allows multiple shareholders to establish a company, where the shareholders are liable for debts with a specified percentage of the capital.
3. Joint Stock Company License: Allows companies to raise capital through the public issuance of shares.
4. Private Shareholding Company License: Allows multiple shareholders to establish a limited liability company.
5. Free Zone Company License: Allows companies to benefit from tax exemptions and customs facilities in free zones such as Jebel Ali Port or Dubai International Trade.
6. Craftsmanship License: Allows individuals to practice crafts and craft professions.
7. Branch License: Allows foreign companies to open a branch in Dubai for further commercial activity.
8. Investment Company License: Allows investment companies to establish and manage their investments in Dubai.

Renewing business licenses in Dubai ?

Renewing business licenses in Dubai requires several steps, which generally follow a similar approach to renewal processes in most places. Here are general steps to renew a commercial license in Dubai:

• Early Planning: Plan your license renewal in advance before it expires.
• Updating documents: Check all documents required to renew the license and make sure they are up to date.
• Payment of fees: Pay the fees related to the renewal process. The specified fees must be verified by the competent authority.
• Submitting the application: Submit the renewal application to the competent authority, whether it is the Dubai Economic Development Department (DED) or one of the free zones.
• Examination and Verification: There may be examination and verification of documents submitted. You must ensure that all required documents are provided.
• Signing the contract: After approval, you may need to sign the new contract for the license.
• Payment of the final fees: Make sure to pay the final fees related to the renewal process.
• Receiving the renewed license: After completing all procedures and paying the fees, you will be able to receive the renewed license.

Tax benefits available to business license holders in Dubai?

In many Dubai free zones, business license holders enjoy important tax benefits. These benefits are part of Dubai’s strategy to attract investments and enhance the business environment. Here are some of the tax benefits available in Dubai free zones:

1. Full exemption from personal and corporate taxes: In many free zones, companies enjoy complete exemption from taxes on profits for a specified period, and this exemption may be renewed based on specific agreements.
2. Exemption from customs duties: Companies in free zones can benefit from customs exemptions on their imports and exports.
3. Providing an easy tax structure: The tax system in Dubai offers a simple and transparent tax structure, which makes managing tax matters easier.
4. No taxes on capital or funds: In many cases, no taxes are imposed on capital or funds in free zones.
5. Intellectual property rights: Dubai free zones provide effective protection for intellectual property rights and encourage innovation and investment in this field.
6. Freedom of cash transfer: Banking policies in Dubai allow freedom of cash transfer of profits and funds easily.

Types of commercial license in Dubai

Commercial license in Dubai Free Zone

All sizes of commercial licenses are granted, starting from small to medium and large companies, and for all types of nationalities of companies. There are many advantages of a commercial license in Dubai for companies that we will learn about in the following points: 

• There are many free zones in Dubai available for various activities.
• Complete exemption from corporate and personal income taxes for 50 years.
• Dubai’s free zones have a strong and rapidly developing infrastructure.
• 100% foreign ownership of the company.
• 100% capital back
• Dual licensing opportunities.
• Freedom to form multiple options for administrative and legal structures.
• No restrictions on currencies.
• Freedom to employ foreign resources and human resources.

Special requirements for foreign investors to obtain a business license in Dubai?

Below are some special requirements that may be relevant to foreign investors wishing to obtain a business license in Dubai . Please keep in mind that this information is subject to change and may differ based on the type of activity and the competent authority.

1. Partnership with an Emirati citizen: In many cases, obtaining a business license in Dubai requires a partnership with an Emirati citizen. This is done through a local partnership contract, where the citizen owns a certain percentage of the company.
2. Registration in a free zone: Foreign investors can consider establishing their company in one of the free zones in Dubai. These areas provide tax exemptions and customs facilities and allow foreigners to own a large or complete percentage of the company.
3. Registration in special economic zones: Dubai has several special economic zones, such as “Dubai South,” “Dubai International Financial Center (DIFC),” and “Jebel Ali Free Zone (JAFZA),” where foreign investors can obtain business licenses with a percentage of ownership. perfect.
4. Use of agents: In some sectors, foreign investors are allowed to use local agents to represent them in the company.
5. Investment visa: Business license holders in Dubai can obtain an investment visa that allows them to reside in the emirate.
6. Financial Capital: Some businesses and licenses may require a minimum financial capital.

Types of companies registered under a commercial license in the Dubai Free Zone 

• Free Zone Company (FZE)

You need to document some of the required documents. All types of companies can be established and only a commercial office is required.

• Free Zone Establishment (FZE)

Documenting some required documents, all types of companies can be established, obtaining a commercial office, and registering the company as a free zone establishment.

• A branch of a foreign company outside the UAE

The parent company requires ownership of the branch, and all types of companies can be established, and only a rental office is required to conduct business. 

• A branch of a company inside the UAE.

It is required to present a valid license from the department responsible for granting licenses and obtain an office to practice work.

Contact us now. We offer you special and unique offers to establish companies in Dubai and obtain a commercial license in the Dubai Free Zone to turn your business ideas into reality.

At the conclusion of this article, it clearly appears that a business license in Dubai represents a real opportunity for those wishing to build their business future. Through its flexibility, speed of issuance, and low costs, a business license gives individuals and companies an exceptional opportunity to thrive in Dubai’s dynamic and thriving business environment. By relying on these advantages, investors can make the most of growth and expansion opportunities in the global business market.

The most important frequently asked questions about the commercial license in Dubai