A commercial license is the perfect choice for companies engaging in trading or buying and selling goods. Usually buying and selling is referred to as trading in the UAE and Dubai. If you choose a business activity that is classified under Commercial Activity, you will be issued with a commercial license by law. The activities such as logistics, car rental and real estate brokerage are classified as commercial activities, even though they are providing services.
A Commercial License company can be setup as Limited Liability Company, where 51% of its shares should owned by UAE Nationals and the remaining 49% is open to foreign ownership. If the company is planning to sell goods in Dubai & UAE markets then the ideal choice is to incorporate or set up a Limited Liability Company in Dubai UAE.
A Commercial License can be formed within one of the free zones in Dubai or in the UAE. In some of the free zones in UAE it is possible to setup Limited Liability Companies, whereas in other free zones it is Limited Liability Partnership. It is possible to setup with a suffix “FZ-LLC” which stands for “Free Zone – Limited Liability Company” in some freezones or “FZC” – which stands for “Free Zone Company”. The main advantage with Free Zone Company is that you will get 100% ownership in your business. Free Zones companies in UAE are exempt from the 51% – 49% minimum shareholding rule that is must in outside the free zones. You can choose to incorporate a Commercial License within a Free Zone, if your company is planning to export goods. For Free zone Company if you wish to sell goods within UAE, it is required to appoint a distributor and you cannot invoice your clients directly and all the invoicing should take place through the distributor.
A Commercial License can be formed as a Branch of a Foreign Company will get 100% ownership in Dubai, UAE.