Types of business licenses in Dubai

Types of business licenses in Dubai

Types of business licenses in Dubai

The primary requirement for starting a business in Dubai is obtaining a business license. Whether you’re starting a professional company or planning to establish a commercial company, a permit is a must-have document to run your business legally in Dubai. The Department of Economic Development (DED) in the UAE issues licenses for businesses operating within the UAE Mainland. On the other hand, Free Zone licenses are issued by the local authorities in the zone itself. The major business licenses in Dubai, UAE, are Commercial, Professional, and Industrial.

Let’s know more about the types of business licenses in detail to get clarity on whether they can be used.

Commercial License?

As the name suggests, these licenses are available to businesses that operate in the trading, import-export, food, and other general trade sectors. This license is also issued by the Department of Economic Development (DED). Commercial licenses enable ventures to engage in various trades and other general trading activities. Businesspersons and foreign traders can only hold up to 49% legal stakes under this trade consent.

Dubai offers various schemes for foreign entrepreneurs, attracting many budding entrepreneurs to establish a commercial business in the city. The stakeholders have fewer duties and responsibilities when a Limited Liability Company (LLC) is formed with a UAE national, which lowers the possibility of any financial disasters.

Professional License?

As a commercial license grants permission for general trades, professional licenses are available for service businesses, including accounting services, technical projects, medical services, educational hubs, and consulting services. A professional license offers 100% ownership of a company. It means that any service-based business entrepreneurs can leverage the whole possession covered by this legal license.

Industrial License

Industrial licenses are availed for big industrial or manufacturing activities in Dubai. Entrepreneurs can assemble and process goods using both local and imported raw materials. These industrial licenses can be used for;

  • Food
  • Textile
  • Metals
  • Equipment and engines
  • Petroleum products
  • Paper

Tourism License

Companies involved in industries such as hotel rentals, vacation rentals, cruises, restaurants, guesthouses, travel agencies, and other related services must be licensed to operate.

Agriculture License

The Agriculture License permits a person to pursue various activities, including growing and harvesting crops, trading in pesticides and crops, establishing greenhouses, and offering agricultural consulting services.

Craft-based Business License

The license for craft businesses is for those carrying out or supervising work in electrical, carpentry, plumbing, and related fields. The permit must be applied for through companies that employ artisans.

Operating a business without a license is strictly prohibited in the UAE and may result in a severe penalty or even a ban.  The license is also inflated annually, lest a fine be imposed for delay.

E-Commerce License

Setting up and running an e-commerce enterprise can be highly lucrative, considering that internet retailing is a massive global business.  Therefore, you can obtain an e-commerce business license in the United Arab Emirates to conduct electronic sales and purchases.

Eligibility Criteria to Avail Business Licenses in Dubai

  1. Deciding on the business activity: It is essential to determine your business activity to obtain a specific license that meets your work requirements.
  2. Choose a business structure: Pick a suitable business structure for the business you wish to incorporate. These structures include- LLC, Sole Proprietorship, Partnership, and Holding Company.
  3. Choosing a Business Name: It is essential to select a suitable business name for your company. The UAE government has its own set of rules regarding company names; one must follow these rules to run a business smoothly.
  4. Select a location: The advantage of starting a business in Dubai is that it offers various business zones. You can choose between Free Zones and the Mainland, depending on your business structure and the type of activity.

Conclusion

The United Arab Emirates presents numerous business opportunities. Entrepreneurs simply need to accomplish a few key tasks before launching their business. Since the launch of a venture or availing a trade license isn’t as easy as it seems. Therefore, Markai Corporate Services extends its full support to the existing businesspersons and new entrepreneurs. We assist you in expanding your business to strategic locations in Dubai, helping entrepreneurs choose the license that best suits their business requirements. In the constantly evolving business landscape, it presents a perfect opportunity to achieve your goals and embark on a journey in Dubai's thriving global business market. Contact us today to start now.