4 Types of Business License in UAE

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Business setup in Dubai

The UAE has extensive business licenses that meet specific investor requirements. The quantity of company registrations in the UAE has been showing constant traction over the years with more and more new company mergers. In this section we will analyze different types of business license in UAE.

Business setup in Dubai is a convenient and straightforward procedure. The government has simplified the process so that one can establish their business within few days. Understanding all about the legitimacy of the procedure suggests establishing up your business with the aid of a business consultant and being able to start your business easily.

To start a company in Dubai, there are many steps. The most crucial step is to pick a business activity to finalize the business license in UAE. One cannot establish operations in UAE without getting a valid business license.

The availability of various types of business licenses in the UAE allows foreign investors to completely start a company under a particular type of business license.
The UAE government regularly introduces entrepreneur-friendly center policies such as long-term residence visas, reducing some business set-up fees.
The UAE aims to take the economy to more elevated heights by inviting more investors to the UAE market and giving world-class infrastructure for business facilities.

Free Zones, Mainland and Offshore businesses in the UAE

Free Zones, Mainland, and Offshore give investors plenty of choices for Business Setup in Dubai. Based on the characteristics of your business, chosen business activities, and target audience. You can determine which business administration and business license in the UAE to set up the company, whether its Dubai freezone company formationĀ or mainland setup.

There are several business license types in the UAE for investors to take from, whether or not your business is equipped with any of the three business jurisdictions.

The motive behind taking the right business jurisdiction depends largely on whether you are targeting international markets or holding the UAE and the rest of the GCC markets for your company.

In the case of mainland company registration, a local sponsor (51% shares) ar erequired, and foreign individuals (49% shares) are required to start the company and its business operations in the UAE.

Working in the local market, applying for government contracts, setting up your business anywhere in the UAE, there are no limits to employee visa quotas, there are many benefits such as limited liability company formation.

In the case of free zones, you will get 100% foreign ownership, 100% repatriation of profits, customs duty exemption, world-class infrastructure, and easy company establishment benefits.

Which are the Types of business licenses in the UAE

Determining the right business license is very important and is one of the initial steps in the company establishment process in the UAE. Company activities in the UAE are mainly divided into four business licenses.
The following are the most common types of business licenses available in the UAE.

The commercial license in Dubai

Commercial licenses in the UAE are issued to companies employed in the purchase and sale of goods. Allows business licensed companies in Dubai to do business in the UAE or outside the UAE. There are different types of commercial licenses in the UAE for distinct business activities.

For instance, if you are only concentrated on trading in the local market, you can demand for a public trading license in the UAE.
Then, for any type of import/export, you have to register an import-export license from the appropriate business license issuing officials.
The UAE has particular business license types and business activity records for trading specific items, such as computers, automobiles, equipment, and construction materials.
When registering a company in the relevant free zones, mainland or offshore, the investor must select a specific business license in Dubai.

Here is a list of commercial business licenses possible for your specific business projects.

  • Publications and Media Material Speculation
  • Furniture business
  • Oil and gas business
  • Parts Spare Parts business
  • Gold and precious metals business
  • Business in Chemical Chemicals
  • Business in automobiles
  • Equipment Safety trade
  • And many others

Procedures for obtaining a Dubai Commercial License

It is necessary to understand that a company in Dubai cannot get a commercial license before actually merging. To do this, you need to follow the steps below:

  1. Choose the commercial form and the activities that meet the commercial license;
  2. Enlist the Company Memorandum and Articles of Association, which define the activities to be completed;
  3. Record the company with the Dubai Department of Economic Development and get a VAT number;
  4. Set the fee related to company registration and issuance of a commercial license.
    Once the company is filed, the license will be issued automatically.

The Professional license in Dubai

It is necessary for any individual or company involved in the use of individuals’ intellectual capabilities to have a professional license to operate their services in Dubai and the UAE.
If the partner is more than one person, the business entity can be designated as a civil work company.

Consulting, auditing, and constitutional services are under professional license in Dubai. IT service providers, specialists, technicians, and craftsmen can also apply for a professional license in the UAE.

List of business enterprises in the specified professional license level in the UAE

  • Consultancy services
  • Consultancies for Insurance
  • Consultancies for Insurance
  • Technology/ IT Consultancies
  • IT Infrastructure Consultancy
  • Environmental Advisers
  • Tax Advisers
  • Marketing professionals
  • Management Consultancies
  • And many others

Procedure for obtaining a professional license in Dubai

  1. Choose in the Local Service Agreement Form with a UAE Citizen from a Local Translator and obtain a Certified Form from a Public Notary Service
  2. Legal translator stamp is not needed if the contract is in Arabic
  3. Create a Memorandum of Association (MOA) with the sponsor
  4. Mention the sponsor’s initial fee in the contract
  5. If you are licensed by a civil company, you will need to fill in an application form and attest it.
  6. All partners/owners must be commenced at the notary to sign the court agreement
  7. Obtain permission from the municipality for the lease agreement
  8. Present all forms with attestation (each original copy)
  9. Submit copies of the Passport of Owner / Partners and NOC for NRI Owner / Partners (if any) at any branch of DED.
  10. Get a license by paying at the counter; A payment voucher will be issued at the same time

The industrial license in Dubai

Business licenses will be issued to businesses engaged in industrial and manufacturing activities in Dubai and the UAE. The firm must have a physical office in the UAE to issue an industrial license.

Specific industrial license types are available

  • Clothing license
  • Manufacture of meat products
  • Manufacture of dairy products
  • Feeding of animals and birds manufacturer
  • Carpet construction
  • And many others

Freelance Permit in Dubai

Freelancing is now getting popular in the UAE. Free zones in Dubai, Abu Dhabi, Ras Al Khaimah, and Fujairah offer freelance permissions to people.

These permits provide services to individuals in the communications, technology, arts, and entertainment sectors on a full-time and consultancy basis.

There are plenty of options to work legally for you across the UAE and over a wide area, allowing a freelancer permit with multiple free zones, which will support you obtain your residency visa and sponsor your family.

The opportunity is wide, some will depend on the activity/industry sector, everything can be done online, you need to review the list of professionals issued by the authority issuing the freelance permit, the price can vary considerably, before picking a particular free zone to operate its main shopping it is proper for your personal needs.

The UAE government has grown more and more a sponsor of freelancing, legalizing it was an important move to support more people and companies to participate, creating it easier and more pleasant for freelancers and increasing the number of freelancers based on the number of freelancers who operate in the sector this year.

In the context of COVID-19, freelancers have eternally been an engaging alternative for short- and long-term contracts for many companies looking for more accessible, flexible, and qualified talent for drawing. Hiring costs – visas, medical coverage, flights, etc., as well as the experience and value of hiring a staff member.

For instance, Dubai Media City, Dubai Knowledge Park, Dubai Internet City, Ras Al Khaimah Free Zone Authority, Fujairah Creative Zone offer freelance permits to individuals.
Freelancer licenses are distributed to the following creative and media professionals.

  • Performer
  • Animator expert
  • Audio / Sound Technician
  • Cameraman professional
  • Content provider
  • Copywriter professional.
  • Media Expert
  • And many others

Business Licensing Authority Dubai , UAE

The Department of Economic Development (DED) in Dubai is a government agency that publishes business license in Dubai to mainland companies.
When it gets to free zones, the business license is published by the respective Free Zone Authority. This also connects to offshore business types.
When beginning a new business, entrepreneurs face various important conclusions. First, what business activity are you going to trade-in?

It depends on the business you are operating to trade in and the business projects you want to take over.
Picking a business activity is confusing as there are more than 3000 exercises allowed to choose from in the UAE according to the DED and UAE Free Zone authorities.
Dubai draws more and more foreign investors due to its world-class facilities and support.

Free Zone Business Licenses are the most sought-after when you are contemplating starting your business in Dubai and enter the UAE and the global market.
Free Zone Company licenses are powerful because of the company formation, extensive business operations, and various business advantages for investors.

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