All companies in Dubai are required to obtain a business licence to operate legally and demonstrate compliance with the law. While obtaining a licence can involve significant costs, it also offers numerous benefits and opportunities once acquired.
There are different types of business licences in Dubai, depending on the nature of activities a company intends to carry out in the UAE. Each commercial licence generally permits up to ten specific business activities, except for a general trading licence, which allows trading across various commercial sectors.
What is a Business Licence in Dubai?
A business licence in Dubai provides a company with a legal identity, confirming its lawful status within the region. It establishes the company’s accountability for its operations and ensures compliance with local regulations. Additionally, it helps manage and protect the business in legal matters and defines its operational scope.
Types of Business Licence in Dubai
Obtaining a business licence is one of the first steps in establishing a company. To set up a business in Dubai, the authorities offer four main types of business licences, similar to other parts of the UAE. These are:
- Commercial Licence
- Professional Licence
- Industrial Licence
- Tourism Licence
Each licence type is regulated by different authorities and has specific requirements. Below is a detailed explanation of each type.
Commercial Licence in Dubai
A Commercial Licence permits companies to trade goods. Businesses holding this licence can import and export goods, carry out logistics operations, act as brokerage agencies, trade products, and offer rental services. This licence is essential for any entity wishing to trade within or outside Dubai.
Examples of Commercial Licence Activities:
- Trading in gold and precious metals
- Automobiles and spare parts
- Used furniture
- Oil and gas
- Chemicals
- Publications and media materials
- Safety equipment
- Various other trading sectors
Benefits of a Commercial Licence:
- Allows up to ten related business activities under one licence
- Multiple company type options available
- Enhanced legal protection through the Department of Economic Development (DED) and company registration
- Facilitates opening corporate bank accounts
- Simplified fiscal reporting with no corporate tax
- Affordable renewal fees
Professional Licence
A Professional Licence is required for businesses that provide specialised services based on professional knowledge. This applies to auditors, consultants, and other professionals. Companies with multiple male owners will be classified as a ‘Civil Works Corporation’ upon licensing. Expatriates with professional qualifications can have full ownership of their business.
Examples of Professional Licence Activities:
- IT and computer services
- Management consultancy
- Environmental consultancy
- Tax consultancy
- Insurance services
- Marketing services
- Real estate brokerage
- Commercial brokerage
- Various other professional services
Tourism Licence
A Tourism Licence is for businesses providing travel and tourism-related services. As Dubai is a leading tourist destination in the UAE, this licence is popular among hospitality and travel companies. It applies to businesses offering accommodation, recreation, tour management, and other related services.
Activities under a Tourism Licence:
- Outbound Tour Operator: Allows companies to plan and manage outbound trips for tourists travelling from the UAE to other countries.
- Inbound Tour Operator: Permits companies to organise tours to Dubai from other countries, including hosting exhibitions or conferences.
- Travel Agent: Enables businesses to operate a tourism agency, issue tickets, and provide visa assistance for travellers.
Activities Allowed Under a Commercial Licence in Dubai
Mainland Commercial Licence
A mainland commercial licence in Dubai allows businesses to engage in activities such as the import and export of goods, sale of electronic products, provision of brokerage services, real estate-related activities, sale of construction materials, and more. All permitted commercial activities under a mainland licence are approved by the Dubai Department of Economy and Tourism (DET).
Freezone Commercial Licence
Freezone commercial licences offer a broader range of activities that are tailored to the specific focus of each freezone. For example, freezones specialising in technology and IT may allow activities such as software development, e‑commerce, IT consultancy, and related services. Similarly, freezones focused on healthcare might permit activities such as trading in medical equipment and providing healthcare consultancy.
While there is some overlap between mainland and freezone commercial licences, freezone licences are generally more specialised, aligning with the industries each freezone is designed to support.
Cost of a Business Licence in Dubai
The cost of a business licence in Dubai generally ranges from AED 5,750 to AED 30,000. For a mainland business licence, the price typically falls between AED 6,000 and AED 27,000, while a Freezone business licence ranges from AED 5,750 to AED 30,000.
It is important to note that these figures refer to the cost of the licence alone and do not include additional expenses such as visas, renewal of trade license, or other charges related to your specific business activities.
How to Get a Business Licence in Dubai: Requirements and Step‑by‑Step Process
Step 1: Consultation
- Discuss your business requirements with a business setup consultant.
- Decide on the licence type, business activities, visa package, and office solutions.
Step 2: Prepare Documents
- Complete the licence application form, including Ultimate Beneficial Ownership details.
- Provide a copy of your passport.
- Submit a digital passport photograph.
- Submit Emirates ID and visa copy for UAE residents (if applicable).
Step 3: Registration
- The support team will register your documents through the relevant registration portal.
- Upon approval, e‑legal forms will be issued for signing before the incorporation documents are released.
Step 4: Licence Issuance
- A digital copy of the commercial licence will be sent by email.
- The original licence will be available for collection from the relevant office.
Documents Required
- Completed licence application form (including Ultimate Beneficial Ownership details)
- Passport copy
- Digital passport photograph
- Emirates ID and visa copy for UAE residents (if applicable)
Choosing a professional business setup service ensures a smooth process, offering tailored solutions to meet your needs and providing easy access to markets. Such services can guide you step‑by‑step to secure your commercial licence efficiently.
Simplifying Business Setup in Dubai
Obtaining a business licence in a dynamic city like Dubai requires expertise, knowledge of local requirements, and careful planning. This is where myOffice’s professional services come in to assist, guiding you through every step of the process to ensure a smooth and compliant setup.
In addition, myOffice offers flexible business workspace solutions, including virtual offices, that cater to modern business needs. These options provide a prestigious business address, administrative support, and access to fully equipped meeting spaces, ideal for entrepreneurs and companies seeking flexibility without the cost of a physical office.
They also offer tailored enterprise solutions covering company registration, licence procurement, infrastructure support, and compliance, offering a seamless path for businesses to establish and grow in Dubai.
Frequently Asked Questions
Do small businesses need a licence in the UAE?
Yes. If you engage in any commercial activity, including selling physical goods, providing services such as consultancy, or operating an e‑commerce business , you are required to obtain a business licence.
Are a business licence and a trade licence the same?
No. A business licence is a general permit that allows a business to operate, while a trade licence is a specific type of business licence for companies involved in the buying, selling, or trading of goods and commodities. In other words, all trade licences are business licences, but not all business licences are trade licences.
How much do I need to start a small business in Dubai?
For a mainland company, initial investment typically ranges from AED 50,000 to AED 300,000 or more. Free zone setups generally offer a more cost‑effective option, allowing businesses to start with as little as AED 10,000.
Can I sell online without a licence in the UAE?
No. Trading or conducting any business in the UAE without a valid business licence is prohibited by law. Penalties for unlicensed business activities can be as high as AED 500,000 (approximately USD 137,000). Selling via social media is also considered conducting an online business and requires proper licensing.
Which licence is best in the UAE?
There is no single “best” licence in the UAE. The most suitable licence depends on your business activities. A Commercial Licence is ideal for trading and retail, a Professional Licence is suited to service providers such as consultants, an Industrial Licence applies to manufacturing, and a Freelance Permit benefits individual professionals. You must also decide between a Mainland licence for operations across the UAE or a Free Zone licence for specific economic zone benefits.
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