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Business Setup

Types Of Business License in Dubai

By Admin 

Comprehensive Guide to the Types of Business Licenses in Dubai

The United Arab Emirates (UAE) consists of seven emirates, each with its own set of rules and regulations. Licensing requirements may vary between emirates, and the type of license you need depends on the nature of your business activities.

Here are some common types of business licenses in the UAE:

Commercial License

A Commercial License is a common types of business licenseĀ  issued to companies involved in trading activities. The specifics of the Commercial License can vary between emirates and free zones.

Below are some common types or categories of Commercial Licenses in the UAE:

  • General Trading License: Allows a company to engage in a broad range of trading activities, including the import, export, distribution, and sale of various goods.
  • Specific Trading License: Grants permission for specific types of trading activities. For example, a company might obtain a license specifically for electronics trading or automotive trading.
  • Foodstuff Trading License: Specifically for businesses involved in the import, export, and trading of food products.
  • Textile Trading License: Issued to companies engaged in the trading of textiles and related products.
  • Auto Parts Trading License: Allows businesses to trade in automotive spare parts.
  • Medical Equipment Trading License: For companies engaged in the import, export, and trading of medical equipment and devices.
  • Electronics Trading License: Specifically for businesses dealing with the import, export, and trading of electronic goods.
  • Building Materials Trading License: Issued to companies involved in the trading of construction and building materials

Industrial License

Required for businesses engaged in manufacturing or industrial activities.

Professional License

A Professional License is typically issued to individuals or firms providing professional services in various fields. The specific types of Professional Licenses may vary between emirates and free zones.

Here are some common categories of Professional Licenses in the UAE:

  • Consultancy License: Issued to individuals or companies providing consultancy services in areas such as management, finance, human resources, and business strategy.
  • Engineering Consultancy License: For firms and individuals offering engineering consulting services, including architectural and design services.
  • Medical License: For healthcare professionals, including doctors, dentists, and other medical practitioners.
  • Legal Consultancy License: Issued to law firms and individuals providing legal services.
  • Accounting and Auditing License: For firms and individuals offering accounting and auditing services.
  • Architectural License: For professionals and firms engaged in architectural design and related services.
  • IT Consultancy License: For companies and individuals providing information technology consulting services.
  • Educational Consultancy License: Issued to firms providing educational consulting services, including academic advising and career counselling.
  • Media Consultancy License: For businesses providing media-related consulting services, such as advertising and public relations.
  • HR Consultancy License: For firms providing human resources consulting services, including recruitment and training.
  • Marketing Consultancy License: Issued to companies and individuals providing marketing and market research services.
  • Environmental Consultancy License: For firms engaged in environmental consulting services.

Tourism License

Mandatory for businesses operating in the tourism sector, including travel agencies and tour operators.

Freelance Permit

In January 2022, several emirates in the UAE offer Freelance Permits to individuals who wish to work as freelancers or sole practitioners. This allows individuals to operate independently without the need for a local sponsor or a physical office space. However, it’s important to note that specific regulations and procedures may vary between emirates.

Here’s a general overview of the Freelance Permit in the UAE:

  • Dubai: In Dubai, the Freelance Permit is typically issued by the Dubai Media City (DMC) or the Dubai Creative Clusters Authority (DCCA). The permit is available for individuals in various professional fields, including media, technology, education, and design.
  • Abu Dhabi: Abu Dhabi also offers a Freelancer License, which is administered by the Department of Economic Development (DED) in Abu Dhabi. It allows individuals to provide professional services on a freelance basis.
  • Sharjah: Sharjah provides a Freelance Permit through the Sharjah Media City (Shams) Free Zone. It is available for individuals working in media and creative industries.
  • Ajman: Ajman Free Zone Authority (AFZA) offers a Freelance Permit for individuals who want to work independently within the free zone.
Requirements for a Freelance Permit

While specific requirements may vary, common criteria for obtaining a Freelance Permit may include:

  • Submission of a business plan or proposal.
  • Educational or professional qualifications relevant to the field of work.
  • Proof of experience or a portfolio of previous work.
  • Passport copy and visa copy.
  • No objection certificate (NOC) from the current employer (if applicable).

It’s crucial to check with the relevant free zone authority or Department of Economic Development in the specific emirate where you plan to operate for the most accurate and up-to-date information. Regulations may change, and new options may become available. Additionally, it’s advisable to seek professional advice or consult with business setup service providers for guidance on the application process and requirements.

  • Investment License: The UAE offers various types of licenses and permits for businesses, including investment-related licenses. The specifics of an “Investment License” can vary between emirates and may depend on the nature of the investment and the industry involved. Below is a general overview, but it’s important to note that regulations may have changed, and it’s advisable to check with the relevant authorities or seek professional advice for the latest information.
  • Other Emirates and Free Zones: Each emirate may have its own licensing authority and regulations. Free zones in the UAE, such as the Dubai International Financial Centre (DIFC) or the Abu Dhabi Global Market (ADGM), have specific regulations and licensing procedures tailored to attract investment in financial services and other sectors.
Requirements for Investment Licenses

The requirements for obtaining an investment-related license can vary but may include:

  • Business plan detailing the investment activities.
  • Proof of financial capability.
  • Passport copies of shareholders.
  • No objection certificate (NOC) from relevant authorities.
  • Approval from regulatory bodies if the business falls within specific regulated sectors.

It’s recommended to engage with business setup consultants or legal advisors who are familiar with the specific regulations in the emirate where you plan to invest. They can guide you through the licensing process and ensure compliance with current regulations. Additionally, contacting the respective Department of Economic Development or the relevant free zone authority is essential for the most accurate and up-to-date information.

Healthcare License

For businesses in the healthcare sector, such as clinics and medical service providers.

Real Estate License:

Obtaining a real estate license is a necessary step for individuals or companies engaged in real estate activities. Real estate licenses are typically issued by the respective emirate’s regulatory authority or Department of Economic Development. The specific requirements and processes can vary between emirates. As of my last knowledge update in January 2022, here is a general overview of the process to obtain a real estate license in the UAE:

Common Types of Real Estate Licenses:
  • Real Estate Brokerage License: For companies or individuals involved in brokering real estate transactions, connecting buyers and sellers, landlords, and tenants.
  • Real Estate Developer License: For entities engaged in real estate development, including the construction and sale of properties.
  • Real Estate Management License: For companies providing property management services, overseeing rental properties, maintenance, and other related activities.
General Steps to Obtain a Real Estate License
  • Business Plan: Prepare a detailed business plan outlining your real estate activities, market analysis, and financial projections.
  • Legal Structure: Choose an appropriate legal structure for your real estate business, such as a sole establishment, limited liability company (LLC), or others, depending on the emirate.
  • Trade Name Approval: Select a unique trade name for your real estate business and obtain approval from the relevant authorities.
  • Office Space: Depending on the emirate, you may need to secure a physical office space that meets the regulatory requirements.
  • License Application: Submit the required documents, including your business plan, trade name approval, office lease agreement, and other relevant documents, to the Department of Economic Development or the regulatory authority in the respective emirate.
  • Approval Process: The licensing authority will review your application, and if everything is in order, they will issue the real estate license.
  • Fee Payment: Pay the applicable fees for the real estate license.
  • Compliance and Regulations: Ensure compliance with all regulatory requirements and adhere to real estate regulations in the emirate.
Important Documents for Real Estate License Application
  • Trade name reservation certificate.
  • Passport copies of shareholders or partners.
  • Memorandum of Association (MOA) for companies.
  • Office lease agreement.
  • Business plan.
  • No objection certificate (NOC) from relevant authorities.
  • Any other documents as specified by the licensing authority.

It’s crucial to check with the specific Department of Economic Development or regulatory authority in the emirate where you plan to operate for the most accurate and up-to-date information. Additionally, engaging with professional business consultants familiar with the real estate sector in the UAE can help navigate the licensing process more efficiently.

  • Education License:

For educational institutions and training centers

  • E-commerce License:

E-commerce businesses in the UAE typically require specific licenses to operate legally. The type of license may vary based on the emirate and the specific activities of the e-commerce business.

Below is a general overview of the process and requirements for obtaining an e-commerce license in the UAE:

  • Determine the Business Structure: Choose an appropriate legal structure for your e-commerce business. This could be a sole establishment, limited liability company (LLC), or other structures depending on the emirate.
  • Choose a Trade Name: Select a unique trade name for your e-commerce business and obtain approval from the relevant authorities.
  • Apply for Initial Approval: Submit the necessary documents to the Department of Economic Development (DED) or the relevant free zone authority in the emirate where you intend to establish your e-commerce business. This may include passport copies, business plan, and details about the business activities.
  • Legal Structure and License Type: Specify that you are seeking an e-commerce license and clarify the nature of your online business activities.
  • Obtain Office Space (if required): Depending on the emirate, you may need to have a physical office space. Some free zones offer virtual offices to meet this requirement.
  • Security Approval (for certain activities): Some e-commerce activities, especially those involving online payments and financial transactions, may require additional security approvals from relevant authorities.
  • Trade License Issuance: Once the approval process is complete, the relevant authorities will issue the e-commerce trade license.
  • Registration with Other Authorities: Depending on the nature of your e-commerce business, you may need to register with other authorities, such as the UAE Central Bank or specific industry regulators
  • Visa Processing (if required): If you plan to have employees in the UAE, you may need to process employment visas for them.
  • Compliance: Ensure compliance with all relevant laws and regulations related to e-commerce activities in the UAE.
Common Documents Required
  • Passport copies of shareholders or partners
  • Business plan detailing the e-commerce activities.
  • Memorandum of Association (MOA) for companies.
  • No objection certificate (NOC) from relevant authorities.
  • Trade name reservation certificate.
  • Office lease agreement.
  • Other documents as specified by the licensing authority.
  • Media License:

For businesses operating in the media sector, including publishing, broadcasting, and advertising.

  • Restaurant License:

Necessary for businesses in the food and beverage industry, such as restaurants and cafes.

  • Tech License:

For companies involved in technology-related activities.

It’s important to note that each emirate in the UAE may have its own licensing authorities and specific requirements. The Department of Economic Development (DED) in each emirate is typically responsible for issuing business licenses. Additionally, free zones in the UAE may have their own set of regulations and licensing procedures. Always check with the relevant authorities or consult with a business advisor to ensure compliance with the latest regulations.


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