At times, a business that initially registered with a professional license may decide to expand its activities to include trading, requiring the conversion to a commercial trade license. Converting from a Professional to a Commercial Trade License is a straightforward process but requires meeting specific criteria and following regulatory guidelines. In this article, we’ll walk you through the steps of how to convert your trade license in Dubai.
- Understand the Key Differences Between the Licenses
Before initiating the conversion, it’s important to understand the distinctions between a Professional Trade License and a Commercial Trade License:
Professional Trade License
Commercial Trade License
The major difference is that a Commercial License permits the business to engage in the buying and selling of products, whereas a Professional License is restricted to providing services.
- Review Your Business Activities
Converting a Professional Trade License to a Commercial Trade License typically requires expanding or altering your business activities. Therefore, it’s crucial to review your business activities and ensure they align with the requirements of a commercial license.
- Apply for a New Commercial Trade License
The process of converting from a Professional to a Commercial Trade License typically involves applying for a new commercial license. Here’s a step-by-step guide:
Step 1: Check Eligibility
Step 2: Update Business Activities
Step 3: Submit Required Documents
Step 4: Pay Fees
Step 5: Receive the Commercial License
- Update Your Legal Documents and Registrations
Once your commercial license is approved, there are additional steps to take to ensure that your business is fully compliant with the new license type:
Update Contracts and Agreements
Change Bank Account Details
Adjust Import/Export Permits
- Seek Professional Guidance
While converting your Professional Trade License to a Commercial Trade License can be done without too much difficulty, it’s often beneficial to seek guidance from a business setup consultant or a legal advisor who is familiar with the local regulations and the requirements of the Department of Economic Development (DED). They can assist you in ensuring that your application is complete, that you meet all necessary criteria, and that you avoid any costly mistakes in the process.
Final Wrapping
Converting a Professional Trade License to a Commercial Trade License is an important process if your business activities are evolving and you’re looking to expand into trading. While the process involves careful planning and documentation, it can open up new growth opportunities by allowing you to buy and sell goods in Dubai. By following the steps outlined above and seeking professional advice when needed, you can ensure a smooth transition to a commercial license and set your business up for continued success in the UAE market.
