Licences & changes
The commercial licence
For buying and selling goods. The most common licence in the country and the one most often loaded with activities the company will never use — which costs nothing at the counter and a great deal at the bank.
What it covers
What this licence actually permits.
A commercial licence covers trading activities — importing, exporting, distributing and reselling goods — as well as a range of commercial services such as logistics, real estate and general contracting depending on the authority. It is the default category for any business whose revenue comes from selling something physical, and it is the licence type under which most UAE companies are registered. Activities are selected from the authority's list, and the number permitted on a single licence varies by authority.
The decision that matters is how many activities to include. Adding them at incorporation costs little, sometimes nothing up to a limit, and founders reasonably take a few extra in case the business evolves. The cost appears later, at the bank. Compliance categorises a company on the broadest activity present on the licence rather than the one the founder emphasises, so a consultancy with a dormant general trading line is assessed as a general trading company — the hardest category to bank in the country. The flexibility is real; so is the price, and almost nobody is told about the second at the point they are offered the first.
At a glance
- Covers
- Import, export, distribution, resale, and defined commercial services
- Activity list
- Selected from the authority's schedule; limits vary
- General trading
- A broad variant permitting most goods — hardest to bank
- Customs code
- Required before importing or exporting
- VAT
- Registration once taxable supplies exceed AED 375,000
- Premises
- Mainland requires registered tenancy; free zones vary
What it costs
The procedure
What the amendment involves.
- Select activities that describe what you will actually doNot what you might do. Adding one later is a straightforward amendment.
- Avoid general trading unless you need itIt permits almost anything and is read by banks accordingly.
- Check whether the activity needs external approvalFood, pharmaceuticals, medical devices, telecoms equipment and many others require a second regulator.
- Register for a customs code before the first shipmentIt links to the licence and expires with it.
- Review the activity list at each renewalRemoving a dormant activity is cheap and improves the banking position.
Related
Questions
A licence permitting trading activities — importing, exporting, distributing and reselling goods — plus a range of commercial services depending on the authority.
It varies by authority. Several permit a number of related activities within one licence fee, with charges beyond that.
It offers maximum flexibility and it is the hardest category to bank. Unless you genuinely trade across unrelated product categories, specific activities are better.
Yes, by amendment. It is a routine filing with a fee, which is why over-selecting at the start is unnecessary.
One question
What are you actually trying to change?
Name, activity, manager or address — each is a formal amendment with its own fee, and most require a fresh MOA addendum before the licence is reprinted. Bundling several amendments into one submission usually costs less and takes no longer than doing them one at a time.
How amendments runOr just ask usShare transfers are notarised, not administrative. Every shareholder signs or is represented under an attested power of attorney, the bank has to be told, and the UBO register updates within days rather than at the next renewal.
Transferring sharesOr just ask usThen do it properly rather than letting the licence lapse. An abandoned company accrues renewal penalties, immigration liabilities and a corporate tax deregistration fine, and it blocks the shareholders from clean incorporations later.
Closing down cleanlyOr just ask us