business setup in dubai

Types of Business Licenses in Dubai

Starting a company in UAE may be challenging if you are not aware of the process. A Business Setup in Dubai needs hard work and the supervision of a trusted consultant. Hence, getting the necessary rights and licenses to operate a company in the nation lawfully is very crucial. Thus, always seek professional help and guidance to make your license approval process easier. In this blog, we will tell you about various types of business licenses in Dubai and their importance. 

So, every commercial activity inside the Emirate of Dubai requires the relevant commercial licenses. As per the statistics, Dubai gave 72,152 professional business licenses in 2021. Quite impressive, isn’t it?  Therefore, before starting a new business activity, one must have every detail planned out. 

Why is a business license important for starting a business in Dubai?

For a company to begin operations in Dubai, it will first need to apply for a business license. Hence, obtaining a business or trade license is not only obligatory but also a prerequisite. Therefore, a professional business license establishes your company’s reputation and the nature of your business.

Is a trade license the same as a business license?

A Commercial License in Dubai is necessary for businesses that want to conduct more than ten commercial activities under their trade license. It is the most basic trade license available, and it covers a wide range of available and tangible commodities. This includes general trading, clothing, real estate, hardware, and construction.

Which Government agency do I need to contact for a trading license in Dubai?

The Department of Economic Development issues commercial and professional licenses for businesses in Dubai. Hence, the regulatory body’s permission is essential if you want to establish your business presence and obtain a trading license.

business setup in dubai

Does a commercial trade license necessitate collaboration?

A commercial license is a legal requirement for doing business in the UAE (UAE). If the business is operating in mainland Dubai, a commercial trade license will require a partnership with a UAE national. The business partner you collaborate with must be a UAE national who owns 51% of the company’s shares. The government’s Department of Economic Development (DED) in Dubai issues the initial clearance. Note that each Emirate has its protocols and procedures.

Is a license necessary to start a business in Dubai?

Commercial, industrial, and professional licenses are the most common licenses for establishing a business in Dubai. Hence, getting your trade license takes around a week or more when you receive your initial approval.

Please note that several different forms of business licenses are available from DLD. Hence, obtaining a business license in the free zones of Dubai might be different. 

You can obtain a business license in Dubai within these 3 primary categories.

  • Business license 

Companies that engage in commercial trade activity involving goods, commodities, or services are eligible for commercial licenses. Thus, before applying for a commercial license, one must first select what activities they want to do.

  • Professional license

Individuals and businesses are granted professional licenses based on their educational qualifications. Thus, a professional license makes businesses eligible to start a profession in which they are skilled.

  • Industrial license 

Industrial licenses are necessary to start a manufacturing or industrial business in the UAE. Thus, entrepreneurs can manufacture goods using local or imported raw materials with an industrial license.

However, the government also provides several other licenses that are specialized for specific activities.

  • Commercial Business License In Dubai

Businesses that engage in general contracting must get a Commercial License in Dubai to operate legally. With this license, enterprises having headquarters in the UAE can do business inside and outside the nation’s borders. Companies dealing in real estate, healthcare, and other goods and services must obtain commercial business licenses in Dubai. However, other businesses also require commercial business licenses.

  • Agricultural Business License In Dubai

In Dubai, you must apply for an agricultural business license if your firm utilizes property to grow crops or deal in pesticides. 

  • Craftsmanship Business License In Dubai

In Dubai, this business license form is necessary for investors who operate independently. Carpenters, blacksmiths, electricians, plumbers, and other skilled laborers fall under this category. 

  • Professional Business License In Dubai

A professional business license in Dubai is for any firm that uses the intellectual talent of people. Thus, you can register the firm as a Civil Works Company if many individuals own it. Insurance, consulting services, taxation, and marketing are typical professions requiring a professional license in Dubai.

  • Industrial Business License In Dubai

Manufacturing business owners have to get industrial business licenses. Large-scale producers and other such businesses often seek an industrial company license. Therefore, companies seeking this license must have a physical office in the United Arab Emirates.

  • Tourism Business License In Dubai

Only businesses specializing in tourism activities are eligible for this business license in Dubai. This category includes travel companies, hotels, cruise ships, floating eateries, and other related businesses. 

business setup in dubai

In Dubai, how do you get a business license?

The Method for Obtaining a Dubai Business License

Businesses that meet the following requirements are awarded a Trade License in Dubai: 

An investor must choose the activity and name for company registration in Dubai. Also, if it is a professional license, UAE residents must be appointed as the firm’s service agent. However, for commercial and industrial licenses, the participation of a local sponsor is not required.  Thus, the foreign nationals may become 100 percent shareholders of the company.

  • Prepare an MOA or Local Sponsor Agreement with the local sponsor if the license category is professional.
  • Submit a DED Application Form to gain permission for the business activity and name specified.
  • Attach the Legal Documents before applying to the Department of Commercial Registration
  • You also need enough office space to operate your firm.
  • Complete your Tenancy Agreement before submitting your license application.

Required Documents to Obtain a Business License

To apply for a Company License in Dubai get the following documents handy:

  • Photocopies of the investor and manager’s passports and visas
  • Complete application
  • Lease Arrangement
  • Three Name options for business name reserve
  • Degree document attested (in some cases)
  • Experience certificate (in some cases)

In Dubai, how can I renew a business license?

Renewal of a Business License is a straightforward procedure. Hence, check the License Validity on the original paperwork to get started. Additionally, its status may be checked online. Before submitting a renewal application, complete this checklist:

  • Organize all of Your Documents
  • Complete the Renewal Application
  • Submit Payment for the Renewal Charge

The government of Dubai grants enterprises that have missed their renewal due to a 30-day grace period. However, renewal applications beyond this period will result in a fine for the firm. The price ranges from 250 to over a thousand Dirhams depending on the circumstances.

Is it difficult to apply for a business license in Dubai?

If you have the proper guidance, applying for a Business License in Dubai is pretty straightforward. Thus, if you want to prevent rookie errors, it might be beneficial to seek professional help.

We are your one-stop shop to get assistance for a professional business license. Our team of specialists provides the finest and most comprehensive range of services. Therefore, we will assist you in completing an error-free license application from start to end. 

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