Acquiring a business license in the UAE is as essential as anything else. The rich and dynamic business hub of the UAE is more than just a landscape; it is an ecosystem full of opportunities. Recognising numerous business advantages, entrepreneurs and investors are eager to launch their businesses and operate them as soon as possible. In the UAE, a business license is not merely a document, but a mandatory requirement for operating legally within the country.
Recognising the necessity of obtaining a business license in the UAE, several key factors must be considered. Let’s learn more about the business license requirements in the UAE, along with other relevant details.
What is a business license?
A business license in the UAE is a legal permit for your business to operate freely without any interference. This official document is issued by the government authority responsible for overseeing business-related activities in the UAE. This is a must-have for operating a business, whether on the Mainland, in the Free Zone, or Offshore.
Jurisdictions for a business license
Mainland - A Mainland business license grants companies permission to operate in the mainland territory of the UAE. The mainland business license is issued by the Department of Economic Development (DED).
Freezones - Freezone business licenses are the most popular licenses in the UAE, as they offer numerous benefits to entrepreneurs and investors. The respective free zone authorities, including the DMCC, JAFZA, and Dubai Silicon, among others, issue this document.
Offshore - An Offshore license gives business owners the flexibility to start a company in a different jurisdiction than their home country. This license is issued by offshore registrars such as JAFZA Offshore or RAK ICC, among others.
Types of the UAE business license
The UAE government offers tailored licenses for all businesses. It is important to understand the types of licenses before starting a business in the United Arab Emirates. There are five major business licenses in the UAE.
- Commercial License
A commercial license is often given to companies that deal in buying, selling, or trading goods. It is obtained by large companies, especially those involved in import-export and real estate businesses.
- Professional License
A professional license is issued to individuals or companies that offer non-physical, service-based, or intellectual activities, such as education and mentoring. This license is a suitable choice for professionals seeking to establish a consultancy service. Professional licenses include Consultancy, Healthcare, Accounting, and Creative works, among others.
- Industrial License
As reflected by its name, an industrial license is designed for companies involved in manufacturing, industrial, or production businesses within the UAE. This license includes Manufacturing textiles, Food production, equipment fabrication, and other related activities.
- Tourism License
A tourism license is another essential document for businesses in the UAE, especially those involved in the travel and hospitality sector. This license encompasses tourism consultancy, travel agencies, and a range of other services.
- E-Commerce License
This license allows entrepreneurs and businesses to trade products and services online. Having an E-com license, one can trade via website, online marketplaces, apps, and social media. This license encompasses online retail, digital service sales, dropshipping, and other related activities.
Determining Whether Your Business Needs a License
Whether you're an investor looking to operate a business in the UAE or an entrepreneur seeking to kick-start your venture, a License is a must-have document to obtain. Whether it is a professional, commercial, or industrial activity, a trade license is mandatory. Here's how to determine if a business license is required in the United Arab Emirates:
A business license is required if:
- You're engaged in selling goods or services for profit
- You're registering a business or a trade name
- Your company requires a UAE corporate bank account
- You're hiring employees for your company
- You want to do freelancing in the UAE.
You don't need a business license if:
- The company isn't earning revenue from the business activity.
- You're working as an employee in any firm and not running a side business.
- You’re working as a remote employee for a foreign company.
How can Markai Corporate Services help?
To establish your company in a thriving business hub, preparation, precision, and guidance are essential. While the business license is a required document for every trade, we at Markai Corporate Services assist you in obtaining the correct trade license for your business at the right time, helping you unlock the potential of the UAE market.
