11 Types of Business Licenses in Dubai, UAE

Dubai has established itself as a major international business destination for entrepreneurs in recent years. Due to the wide variety of business opportunities Dubai offers, many budding entrepreneurs are drawn to the city. In fact, there are various types of trade license in Dubai that meet diverse business aspirations. It’s a golden ticket that opens doors to an ocean of possibilities.

Determining the right trade license type is pivotal when establishing a business in Dubai. In this blog, we have compiled all the essential information on the types of trade licenses in UAE.

Different Types of Trade License in Dubai

Each trade license in Dubai caters to a specific business activity. Setting up a business in Dubai requires entrepreneurs to choose the most appropriate one from the Dubai business license types in accordance with their business activities. This choice largely depends on whether the business operates within freezone, mainland, or offshore zones. Below is a list of the different trade license category in UAE:

1. Commercial License

A commercial license is issued to individuals/companies engaged in buying and selling goods such as computers, automobiles, equipment and much more. This type of license allows trading activities within and outside the UAE. There are also specialised commercial licenses for certain business activities, such as:

• Publications and Media Materials Trading
• Used Furniture Trading
• Oil & Gas Trading
• Spare Parts Trading
• Gold & Precious Metals Trading
• Chemicals Trading
• Automobile Trading
• Safety Equipment Trading

2. Professional License

A professional license is designed for individuals with academic qualifications, professional proficiency, and intellectual expertise. Individuals in the IT sector, health sector, etc., can apply for a professional license in the UAE. This license type also includes business entities registered as civil works companies with multiple owners. Below mentioned are some of the specialised fields covered by the professional license:

• Consultancy and services
• Accounting services
• Insurance Consultancies
• Computer Consultancies
• Information Technology Consultancies
• IT Infrastructure Consultancy
• Environmental Consultants
• Tax Consultancy
• Marketing Consultancies
• Management Consultancies

3. Industrial License

This license is reserved for businesses or individuals manufacturing materials and products across multiple industries in Dubai. To obtain this license, the company must maintain a physical office within the UAE. Below are some of the specific types of industrial license:

• Garments Manufacturing
• Appliance and Machinery Factory
• Wood Products and Furniture Manufacturing
• Meat Products Manufacturing
• Dairy Products Manufacturing
• Animal & Birds Feed Manufacturing
• Carpet Manufacturing

4. Freelance Permit

The next in the trade license types in Dubai is the freelance permit. A freelance permit is the ideal choice for individuals seeking self-employment opportunities. Several free zones offer this permit, making it easier for individuals to seek independent work besides regular jobs. A freelance permit caters to several creative professionals, such as:

• Actors
• Animators
• Audio/Sound Engineers,
• Cameraman
• Content Providers
• Copywriters
• Media Specialists

5. Tourism License:

Every year, countless tourists visit Dubai owing to its scenic beauty and architectural marvels. A tourism license is perfect for entrepreneurs working within the tourism sector. This license allows individuals to provide services within the travel and tourism industry. A tourism license is a testament to a business’s credibility. With a tourism license, businesses can offer a wide range of services such as:

• Tour Operations.
• Travel Agency Services.
• Hospitality Management
• Leisure Activities
• Event Management

6. Agricultural License:

An agricultural license is meant for individuals and businesses involved in agriculture and crop-related activities. Entities engaged in the following activities are required to obtain it:

• Crop Cultivation and Harvesting
• Trading Of Pesticides
• Installation Of Greenhouses
• Agricultural Consultancy Services
• Fisheries and Livestock Farms
• Agricultural consultancy service providers and others in the same field

7. E-commerce License:

An e-commerce license in Dubai permits business to sell products online through marketplaces, personal websites, social media, and more. It is one of the most sought-after licenses in the UAE, especially for startups and entrepreneurs who want to avoid the hassle of a physical retail store.

8. Crafts License:

A crafts license is issued to the individual who practices any specialized craft for earnings. Their work includes physical work and skills. Examples include plumbers, carpenters, blacksmiths, etc. Such professionals would need a crafts license in Dubai to operate legally.

9. Healthcare License:

The healthcare sector of Dubai is known for its state-of-art technology and solutions. Those looking to start their business or professional journey in healthcare sector of Dubai must obtain healthcare business license. Along with that, they must also get the DHA license from Dubai Healthcare Authority. The license must be acquired for activities, such as:

• Ambulatory Centers
• Private Clinics and Hospitals
• Nursing Services
• Personal Training Services
• Healthcare Consultancy

10. Real Estate License:

Dubai stands out as one of the richest cities in the Middle East with stunning and diverse residential, commercial and industrial properties. Businesses and individuals operating in the real estate sector need to obtain real estate license in Dubai, for activities such as:

• Real estate brokerage
• Property development
• Real estate consultancy
• Rental management

12. Education License:

For starting and running a business in education sector in Dubai, one must get the education license. An approval from the Knowledge and Human Development Authority (KHDA) would be also needed. This license is available for broad range of services, including:

• Starting educational institutions
• Teaching services
• For operating ed-tech platform

How to choose the right Trade License in UAE

Trade licenses delineate the specific areas in which enterprises are allowed to operate. It plays a critical role in Dubai’s diversified economy by supporting the expansion of businesses and industries. These licenses establish distinct jurisdictions for transparency, improve customer service, and simplify corporate processes. They also foster strong market ties.

When deciding on the appropriate trade license for your business in the UAE, there are some factors that you must consider, such as the nature of your business, your location and your business goals. For trading activities, you must choose a commercial license in the UAE, and if you are a professional expert, then a professional license would be the correct choice. Similarly, if you want to operate in free zones, you must get a freezone trade license, and for the mainland, a mainland license.

A business formation consultant at Dubiz can help you determine which of the common types of trade license in Dubai is best for your business.

Process to apply for a UAE Trade License

Now that we have gone through the major types of trade license in Dubai, let’s now look at the process to obtain one. Here is a step-by-step guide to obtain a trade license in the UAE.

1. Choosing your business location:

To select the right trade license for your business you need to evaluate mainland and the various free zones, each catering to a specific industry and choose the most suitable jurisdiction as per your requirements. It is advisable to select an economic zone that aligns with your potential clients, infrastructural needs, and your customer base.

2. Trade name selection:

You can seek the help of our professionals at Dubiz to assist you in selecting an acceptable business name. Please note that you must choose a name that complies with the naming conventions in the UAE. Make sure your chosen name does not violate the moral code, nor should it hurt public sentiment.

3. Notarize the company documents:

As the application process is going on, you need to secure notarisation for essential documents such as Memorandum of Association (MOA) and Articles of Association (AOA).

4. Submit the license application:

A set of essential documents such as identity proof, trade name confirmation, and license application, along with the business plan, need to be submitted to the Department of Economic Development (DED) in Dubai as well as to the Department of Tourism and Commerce marketing. In case of freezone, you would need to make application for license with the respective freezone authority.

5. Issuance process:

The trade license will be issued after the Department of Economic Development or the freezone authority approves the application. This process takes approximately two weeks on average.

Please note that the process may vary based on the different Dubai trade license categories.

Basic Documentation for Trade License Application

Here the list of general documents that you may need for all types of trade license in Dubai:

• Filled application form
• Business plan
• Tenancy agreement for office space, if needed
• Passport and visa copies of investors/managers
• Trade name registration certificate
• NOC from local sponsor, if applicable
• Initial approval and additional approvals

There may be specific requirements based on the type of license you want to apply for. For personalized assistance, contact Dubiz experts.

Simplify your Trade License with Dubiz!

Selecting the ideal trade license can be a tedious task. However, seeking the help of professional consultants can simplify this process. At Dubiz Business Setup, we handle everything, from assisting you in selecting the appropriate trade license to obtaining the required permission from the appropriate authorities.

To learn more about trade licenses in the UAE, or guidance related to your business setup in Dubai, book a free consultation with our experienced professional at Dubiz Business Setup.

📞 Call: +971 56 369 5485

💬 WhatsApp: +971563695485

📧 Email: info@dubiz.co

Frequently Asked Questions (FAQs)

1. Which business license is best in UAE?

UAE offers various types of trade licenses in Dubai and otehr Emirates which are tailored to different business needs. The best business license in UAE for you depends on your nature of business, budget, preferred jurisdiction and business goals. Some of the popular business license options in Dubai include general trading license, consultancy license, e-trader license, etc.

2. Do small businesses need a license in UAE?

Businesses, small or large, belonging to any sector need to obtain appropriate trade license in UAE for operating legally.

3. How much does a business license cost in UAE?

The cost of a business license in UAE varies from type to type. A professional license on the mainland would cost you around AED 24,000*, a mainland LLC license would cost around AED 24,900* and a freezone license can start from around 11,500*. Should you need more information, please reach out to our experts at Dubiz.

4. Can foreigners apply for UAE trade license?

Yes, foreign entrepreneurs can apply for various UAE trade license categories. However, they must diligently fulfill all the eligibility, documentation and legal requirements.

5. Who issues trade license in UAE?

For mainland, trade license issuance is handled by the Department of Economic Development (DED). For freezone, the regulatory authority of that particular freezone will be responsible for issuing licenses to businesses operating within it.

6. What are the 11 types of business license in UAE?

There are 11 types of business licenses: Commercial license, Industrial license, Professional license, E-commerce license, Crafts license, tourism license, agricultural license, Real estate license, Freelance permit, Healthcare license, and Education license. A license may include more than one business activity.