What are the types of business licenses in Dubai?

A business license granted in Dubai serves as official validation for your company, allowing you to operate legally within the region. Moreover, it serves the vital purpose of identifying both you and your company. It holds you accountable for your economic transactions while also protecting public health and safety.  On the other hand, it enables governmental organizations to supervise and monitor business activities in the city.

The Department of Economic Development (DED) is an entity of the government in charge of licensing enterprises and individuals who want to conduct business in Dubai. The issuance of business licenses in the UAE falls under the jurisdiction of the Department of Economic Development. DED is the entity that not only issues business licenses but also regulates business licensing procedures.

A DED-licensed business is referred to as a “local company” in the industry. It is important to remember that the Department of Economic Development only registers and licenses mainland enterprises, whereas free zone companies are licensed by private agencies. 

There are three primary categories of business licenses in Dubai and throughout the UAE.

1. Commercial license for trading businesses

In Dubai and the UAE, a corporate entity must obtain a commercial trade license to conduct any commercial operations. This license allows organizations to operate both within the country and internationally. Depending on the business’s trading activities, entrepreneurs can acquire various types of commercial trade licenses, crucial for their company’s growth. From retailing and construction to public transit and property development, a commercial trade license is essential for various industries, including healthcare.

The advantages of obtaining this license are manifold: it provides management and protection for businesses, allows for up to ten activities from same group under a single license, covers multiple related company practices, and facilitates connections with the ROC and Department of Economic Development. Upon registration, businesses have the flexibility to choose from numerous available business forms.

Commercial license activities in Dubai

1. Raw Materials Trading
2. Investment in Commercial Enterprises & Management
3. Grains, Cereals & Legumes Trading
4. Adhesives Trading
5. Goods Wholesalers
6. Automobiles.
7. Computer Systems and Communication Equipment.
8. Contracting.
9. Foodstuffs.
10. Furniture.
11. Medical and Surgical Equipment.
12. Readymade Garments.
13. Software.

2. Professional license for service-related businesses

In Dubai, obtaining a professional license from the Department of Economic Development (DED) is essential for individuals or businesses providing professional services to customers. This license serves as a testament to the firm’s or individual’s credibility and expertise in their respective profession or field. Only those with proven qualifications and experience can be granted such licenses. Whether it be consultants, accountants, attorneys, or other professionals, anyone looking to establish a business in their respective field can obtain a professional business license in Dubai.

The advantages of acquiring such a license are numerous, including the ability to legally operate and offer services to consumers and businesses throughout the UAE. Additionally, professionals can actively participate in events and opportunities related to their field of expertise. Furthermore, foreign entrepreneurs with a professional license can fully own their company with 100% ownership rights, enjoying the benefits of sole ownership.

Professional license activities in Dubai

1. Information Technology Network Services
2. Marketing Services Via Social Media
3. Computer Systems & Communication Equipment Software Design
4. Information Technology Consultants
5. Accountants, Auditors, and Financial Advisors.
6. Advertising Professionals.
7. Entertainment Artists.
8. Architectural Consultants.
9. Teachers and Educational Professionals.
10. Business Consultants.
11. Lawyers and Legal Advisors.

3. Industrial License for Manufacturing Goods

In Dubai, businesses involved in manufacturing or industrial operations require an industrial trade license, which comes with several advantages. Obtaining this license allows enterprises to enjoy privileges provided by the UAE government to promote industrial development and attract investments.

Entrepreneurs can benefit from specially designed rental conditions for industrial premises, including discounted sites to facilitate business expansion. Additionally, discounted rates for essential utilities such as power and water further incentivize industrial growth and development.

Industrial license activities in Dubai

1. Gold and precious stone cutting manufacturing
2. Manufacturing and maintenance of light aircraft
3. Processing of meat
4. Production of batteries
5. Creating various home appliances
6. Assembling air conditioning units
7. Manufacturing of advertising and ornamental models
8. Petroleum products manufacturing
9. Structural steel, steel workshops, and tools
10. Processing of raw materials

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With our expertise and comprehensive understanding of the licensing procedures, we liaise directly with the Department of Economic Development (DED) to obtain all the necessary approvals efficiently. Moreover, we go the extra mile by taking care of your business license renewals annually, safeguarding you from potential delays and penalties.

Whether you seek information on business licensing in different regions, want to understand the distinction between mainland and free zone licenses, or wish to estimate the cost of a business trade license in Dubai, our consultants are ready to address all your queries.

1. Commercial License: The commercial license is the most common type of business license in Dubai. It is designed for companies engaged in trading activities, whether it's buying or selling goods. Companies involved in activities like imports, exports, retail, logistics, and real estate require this license. The commercial license is straightforward to obtain and is crucial for businesses that deal in a wide range of trading activities.

2. Professional License: Professional licenses are tailored for service providers, artisans, craftsmen, and professionals. This license is necessary for individual practitioners and companies offering services like consulting, auditing, accounting, and other professional services. One of the unique aspects of a professional license in Dubai is that it allows for 100% foreign ownership, which is highly advantageous for international entrepreneurs.

3. Industrial License: An industrial license is required for businesses involved in manufacturing or industrial activities. This license necessitates having a physical warehouse or factory and is essential for companies engaged in the production, transformation, or manufacturing of goods. Companies with an industrial license also need to adhere to environmental and safety standards set by the Dubai government.

4. Tourism License: Given Dubai's status as a global tourist destination, the tourism license plays a pivotal role. This license is required for businesses like travel agencies, tour operators, hotels, and event management companies. The tourism license is a gateway for businesses to tap into Dubai's thriving tourism and hospitality sector.

5. E-Commerce License: The e-commerce license is designed for businesses that operate online. This includes online retail, digital marketing services, and any business that sells goods or services through an electronic platform. With the rise of digital commerce, this license is becoming increasingly popular and relevant.

6. Free Zone License: Dubai's free zones offer specific licenses for businesses operating within these zones. These licenses come with a host of benefits, including tax exemptions, repatriation of profits, and 100% foreign ownership. The type of free zone license required depends on the nature of the business activity and the specific free zone's regulations.