01 Jan Commercial license in Dubai Free Zone
Dubai is considered one of the most prominent global destinations for business and investment, as it provides a distinguished economic environment that encourages growth and innovation. Among the most prominent advantages that Dubai offers to investors and entrepreneurs are the free zones, which provide multiple facilities and exemptions that help in establishing and managing businesses easily and effectively. A trade license in the Dubai Free Zone is one of the essential elements that enables companies to operate legally and carry out their commercial activities without complications. This license plays a pivotal role in attracting investors from all over the world, offering them many benefits such as full ownership of the business and exemption from taxes and customs duties. In this article, we will review the importance of a commercial license in the free zones in Dubai, the steps necessary to obtain it, in addition to the benefits that companies can achieve by operating in these zones.
Commercial license in Dubai Free Zone
Obtaining a commercial license in the Dubai Free Zone
The process of obtaining a business license in the Dubai Free Zone is a vital step for establishing and operating a business effectively. This process depends on a number of organized procedures that ensure ease and speed of completion. Below are the basic steps to obtain a commercial license in the Dubai Free Zone:
- Choosing a business activity: Determine the type of business activity you intend to practice in the free zone. The activity must be carefully selected to ensure its compliance with the requirements of the free zone.
- Choosing a free zone: Dubai includes many free zones, and each zone has special characteristics and advantages. Therefore, you must choose the free zone that suits the nature of your business activity and your needs.
- Submitting a license application: Submit an application to obtain a commercial license, providing all required documents, such as copies of passports for shareholders and directors, the company’s articles of incorporation, and a brief business plan.
- Application review: The relevant authorities in the free zone will review the application and submitted documents to ensure that they meet the specified conditions and standards.
- Obtaining approvals: You may need to obtain additional approvals from the relevant authorities based on the type of business activity.
- Issuance of a registration certificate: After reviewing and approving the application, a registration certificate is issued proving the company’s registration in the free zone.
- Payment of fees: Payment of the fees required to issue a commercial license, including registration fees, licensing fees, and other related fees.
- Receiving the commercial license: After paying the fees and completing all procedures, the commercial license is issued, which authorizes the company to practice its activity in the free zone.
- Opening a bank account: After obtaining a commercial license, a bank account can be opened in the name of the company in a local bank to facilitate financial operations.
- Starting a business: After completing all procedures and receiving the license, you can start practicing your business in the free zone.
These measures ensure the facilitation of the process of establishing companies in free zones in Dubai, which contributes to enhancing the investment climate and attracting more businesses to the emirate.
Types of commercial licenses in the free zone
| Type of license | the description |
|---|---|
| Commercial license | It is granted to companies that engage in commercial activities such as buying, selling, distribution, export and import. |
| Industrial license | It is awarded to companies engaged in manufacturing, production and assembly of products. |
| Professional license | It is awarded to companies and individuals who practice liberal professions such as consulting, auditing, and design. |
| Tourist licence | It is granted to companies operating in the tourism sector, such as travel companies, hotels, and tourist trips. |
| Agricultural license | It is awarded to companies that engage in agricultural activities such as farming, animal husbandry, and veterinary activities. |
| Free license | It is awarded to companies operating in free zones, and provides benefits such as full ownership and tax exemption. |
| Innovative license | It is awarded to companies that provide innovative solutions and products based on technology and innovation. |
| Health license | It is awarded to institutions working in the healthcare field such as clinics, hospitals and pharmacies. |
| Educational license | It is awarded to institutions that provide educational services such as schools, institutes and training centers. |
| E-commerce license | It is awarded to companies that operate online stores or provide online services. |
The importance of a commercial license in the free zone
Commercial licenses play a pivotal role in establishing companies in Dubai, as they are considered the official document that enables companies to carry out their activities legally and legitimately. Commercial licenses contribute to enhancing the confidence of customers and business partners, and are also considered a basic condition for commercial registration, opening bank accounts, and securing government and private contracts. In addition, commercial licenses provide a legal framework that protects the rights of investors and partners, and allows them to benefit from the tax facilities and exemptions available in Dubai. These licenses contribute to supporting the dynamic and thriving business environment in the emirate, making Dubai an attractive destination for entrepreneurs and investors from all over the world.
Commercial licenses play a pivotal role in establishing companies in Dubai, as they are considered the official document that enables companies to carry out their activities legally and legitimately. Commercial licenses contribute to enhancing the confidence of customers and business partners, and are also considered a basic condition for commercial registration, opening bank accounts, and securing government and private contracts.
In addition, commercial licenses provide a legal framework that protects the rights of investors and partners, and allows them to benefit from the tax facilities and exemptions available in Dubai. These licenses contribute to supporting the dynamic and thriving business environment in the emirate, making Dubai an attractive destination for entrepreneurs and investors from all over the world.
By offering a variety of types of business licenses that meet the needs of various economic activities, Dubai is able to attract a wide range of projects and companies, from small startups to major international companies. All these factors contribute to strengthening Dubai’s position as a major center for business and trade in the region and the world.
Papers required to obtain commercial licenses in the free zone
Requirements vary slightly between different free zones in Dubai, but in general, the paperwork required to obtain a business license includes the following:
- License application form: Fill out the application form to obtain a commercial license, which is available on the free zone’s website or from its offices.
- Brief business plan: Submitting a business plan that explains the nature of the business activity and the main objectives of the company.
- Copies of Passports: Provide clear copies of passports for all partners, shareholders and directors.
- Copies of residence visas: If partners or directors are residents of the UAE, copies of residence visas must be submitted.
- Personal photos: Submit recent personal photos of all partners and managers (passport size) .
- Company Articles of Association: Submit a copy of the company’s Articles of Association and partnership agreement if the company is a limited liability company or includes several partners.
- Lease contract or no-objection certificate: Submit a lease contract for the office or warehouse in the free zone, or a no-objection certificate from the free zone if the site has not yet been leased.
- Initial approval of the trade name: Obtaining initial approval of the company’s proposed trade name from the relevant authority in the free zone.
- No Objection Certificate (NOC): Submit a NOC from the current sponsor if one of the partners is residing in the UAE and currently working in another company.
- Signing the internal regulations: Signing the free zone’s internal regulations that define the company’s rights and obligations.
- Payment of fees: Payment of the fees required for the commercial license issuance process, which vary based on the type of activity and the chosen free zone.
It is important to note that some free zones may require additional documents based on the specific type of business activity, so it is always best to check the specific requirements of each free zone before starting the application process by contacting Itqan.
Types of commercial license in Dubai Free Zone
What is the free zone in Dubai?
The Dubai Free Zone is a special economic zone with a special legal and administrative system that aims to attract foreign and local investments by providing multiple incentives and facilities. These areas provide a suitable environment for establishing companies and practicing various commercial activities with great flexibility. Here are some of the characteristics and advantages that distinguish free zones in Dubai:
- Dubai free zones allow investors to own 100% of their companies without the need for a local partner.
- Most free zones offer full or partial tax exemptions for long periods of up to 50 years on income and profits.
- Complete exemption from customs duties on imported and exported goods inside and outside the free zone.
- Procedures for establishing companies in free zones are characterized by ease and speed compared to procedures outside them. These procedures include providing integrated services for registering companies and issuing commercial licenses.
- Free zones provide modern infrastructure that includes offices, warehouses, logistical facilities, and various support services to meet the needs of companies.
- Facilitating the process of opening bank accounts and obtaining other financial services with great flexibility.
- Free zones support a wide range of economic activities such as trade, industry, technology, financial services, media, logistics, and distribution.
- Facilitating procedures for obtaining work and residency visas for employees and workers in companies located in the free zones.
- Laws and legislation that support businesses, guarantee investors’ rights and provide a stable and transparent environment.
Some of the prominent free zones in Dubai
- Jebel Ali Free Zone (JAFZA): One of the largest free zones in the world, it includes thousands of companies from various sectors.
- Dubai Multi Commodities Center (DMCC): Specializes in trading commodities, jewelery and precious metals.
- Dubai Internet City (DIC): A hub for companies specializing in information and communications technology.
- Dubai International Airport (DAFZA): Provides logistical facilities and companies operating in the air cargo sector.
- Dubai Media City (DMC): Dedicated to companies working in the media and entertainment field.
These free zones contribute significantly to enhancing Dubai’s position as a global business and investment center, and provide a suitable environment for companies to grow and expand their activities.
In conclusion, a business license in the Dubai Free Zone is the key to success for any company seeking to launch and grow in a dynamic and stable business environment. These licenses provide many advantages that make Dubai an attractive destination for investors and entrepreneurs from around the world, from full foreign ownership and tax exemptions, to advanced infrastructure and flexible procedures. Obtaining a commercial license in one of the free zones in Dubai is not just an administrative step, but rather an investment in the future of the company and an opportunity to expand and flourish in a prestigious global market. With strong government support and ongoing facilities, Dubai remains the ideal choice for establishing a business and achieving sustainable success.
Frequently asked questions about a commercial license in the Dubai Free Zone
What are the main advantages of obtaining a business license in the free zone?
Advantages include full foreign ownership, tax breaks, customs exemptions, easy and fast incorporation procedures, advanced infrastructure, and access to a global market.
What are the basic steps to obtain a business license in the free zone?
The steps include submitting a license application, specifying the type of activity, submitting the required documents (such as articles of incorporation, passports, and lease contracts), paying the relevant fees, and completing the administrative procedures for the selected free zone.
Can I transfer my trade license from one free zone to another in Dubai?
Yes, a commercial license can be transferred between free zones in Dubai with the approval of the administrative authority for each zone.
What are the expected costs of obtaining a business license in the free zone?
Costs vary based on the type of activity and free zone chosen, and include administrative fees, rental costs and other services.
Are there restrictions on the type of commercial activities that can be practiced in free zones?
You should check the list of activities permitted in each free zone, as restrictions vary based on local legislation and administrative policies.