There’s no doubt that Dubai has become one of the world’s most energetic and appealing business centres with a diversified and expanding economy which welcomes entrepreneurs and businesses of all countries to its market.
The first thing to think about if you’re considering opening up a business in Dubai is the right business license. A mistake here could have serious consequences. Given the various kinds of business licenses available, each catering to different sectors and industries, investors and entrepreneurs can find it a little difficult to navigate.
So here we will discuss the most suitable license type for each area of business and how you can best decide which is the right one for your organisation. As always, it’s worth consulting with a company formation specialist to ensure you are getting the very latest information and to avoid any delays or potential penalties.
So we will start by breaking down the different license areas and what each of them really mean, then we will talk about where you can apply for your license.
Types of business licenses in Dubai
As we have mentioned, in Dubai obtaining the correct business license is essential if you’re going to operate both legally and efficiently. The emirate offers various types of business licenses, each designed to cater to different industries and sectors. Understanding the specific license requirements is crucial for entrepreneurs and investors seeking to get off on the right foot as they establish or even expand operations in Dubai.
Below, we break down the main types of business licenses available in Dubai.
- Commercial: Commercial business licenses are given to firms dealing in general trading and contracting. The license allows UAE-based companies to operate in the UAE as well as internationally. Firms needing commercial business licenses in Dubai are generally those dealing in real estate, healthcare, transport, publishing, media, oil and gas, and so on. There are a number of areas, so if you think your activity might fit into this category, be sure to consult a specialist who can guide you.
- Agricultural: If your enterprise uses land for farming crops, keeping livestock, maintaining fish farms, constructing greenhouses or trading in pesticides, then you will need to get an agricultural business license in Dubai. As with the commercial license, this isn’t an exhaustive list of activities that fall under ‘agricultural’.
- Craftsmanship: Any employee who works independently and does a particular trade for profit has to acquire this type of business license in Dubai. This can include carpenters, blacksmiths, electricians as well as plumbers and other related fields.
- Professional: Any individual or company that wants to make a profit by using the intellectual skills of individuals has to get a professional business license in Dubai to start a business. Businesses most often falling under the professional license in Dubai would be involved in insurance, consultancy services, IT, tax, management, marketing and many more.
- Industrial: Industrial business licenses are required for manufacturing firms. To get a manufacturing license you should have a physical or bricks-and-mortar office in the UAE. Activities that would require an industrial license would include large-scale manufacturers of items such as dairy products, bird and animal feed, meat products, carpets and many other areas.
- Tourism: Fairly obviously, if your business is involved in tourism then this is the type of business license you would need in Dubai. Areas might include tourist agencies, hotels, cruise liners, floating restaurants, tourist camps and other similar businesses.
Choosing the appropriate business license in Dubai really is central to ensuring that you comply with local regulations and operate correctly within your industry. Whether you’re involved in commercial, agricultural, craftsmanship, or any other area, each license type has specific criteria that must be met. By understanding the nuances of each license, entrepreneurs can find their way through the regulatory landscape and set their businesses up for long-term success in Dubai.
Where to apply for a business license in Dubai
This is fairly straight-forward. You can apply for registration through the Department of Economic Development (DED) in the emirate you’re going to be operating in. You may be able to do this directly through their website or app. If your company is going to be set up in a free zone, then the respective free zone authority will issue the necessary business license.
About Worldwide Formations
Worldwide Formations has been a trusted source of corporate advisory services since 2008, providing customised solutions for entrepreneurs and companies seeking to set up or expand in the UAE. We are here to help you set up with the correct business license for your sector. With experience in every facet of business setup in Dubai and the broader UAE, we are an officially registered agent in all major jurisdictions, including mainland and free zones in the UAE. Our clients come from more than 90 countries, and we offer bespoke services addressing operational, financial, and legal requirements in a broad range of industries.
From trade licenses to company registration, the processing of visas and continued compliance, we cover every step required for an efficient setup. Get started with us today on the path to success. Contact us today.
