The UAE is a hub for businesses of all sizes and types, offering various trade licenses depending on the nature of the business activity. As businesses grow and diversify, many entrepreneurs may find the need to convert their professional trade license into a commercial one to accommodate expanded business activities. Converting a professional trade license to a commercial trade license is a relatively straightforward process. Here are the key steps to follow:
- Assess Your Business Activities
Before initiating the conversion process, you must assess your business activities and determine the nature of the commercial activities you intend to pursue. You may want to include trading, selling, importing/exporting, or distributing goods, in addition to your service-oriented activities.
- Amend the Memorandum of Association (MOA)
If you are converting your business structure from a sole proprietorship (under a professional trade license) to a limited liability company (LLC) (required for a commercial trade license), you will need to update your company’s Memorandum of Association (MOA).
- Obtain Approval from Relevant Authorities
Once the MOA is updated, you will need to seek approval from the DED and other relevant authorities depending on your business activities. Ensure that you have all necessary approvals before proceeding with the license conversion.
- Submit an Application for License Amendment
You will need to submit an application to the DED for a license amendment, along with the required documents. The application will involve converting your professional license to a commercial one and updating your business details, such as business activities and structure.
- Lease a Commercial Space
If your new commercial activities require a larger office, warehouse, or retail space, you will need to lease the appropriate commercial premises.
- Pay the Fees and Obtain the Commercial Trade License
After submitting the application and documents, the DED will review your request for conversion. Once approved, you will be required to pay the necessary fees for amending your trade license. The fees vary depending on the type of business activities and the size of your office space.
Wrapping Up
Converting a professional trade license to a commercial trade license is a practical step for businesses looking to expand their activities from services to trading. The process involves amending your business structure, securing approvals, and updating your trade license with the DED. With the right guidance and planning, this transition can unlock new opportunities for growth and profitability in the UAE’s dynamic business environment.
