A business license is mandatory if you need to do business in UAE. The dual business license is the popular business license in UAE and some of the free trade zones in the country offer dual business licenses for investors. UAE offers different types of business licenses for investors involved in various sectors, business activities, and industries. These licenses in UAE will allow the investors to conduct their business in mainland, free zones, and offshore. Economic diversity in the country has made the UAE a suitable choice for foreign investors.
UAE is now considered a hub for international trade and due to this, foreign investors are choosing UAE to expand their business. As an initiative to improve economic diversity, the UAE government offers tax benefits for foreign investors in different industrial sectors. To conduct business operations in the UAE, a company or a person should have a valid business license. In this blog, we will discuss different types of business licenses in the UAE.
These are the major business licenses in the UAE for foreign investors
Trading license
Investors can engage in trading activities within their industry by acquiring a valid trade license. In UAE a standard trading license typically covers 4 to 5 business activities, with the option to add more for an additional fee. The UAE’s strategic location makes it an ideal hub for expanding market reach, including opportunities for export to international markets. There is no minimum capital requirement to obtain a trading license, although the company capital will be determined based on the number of shareholders and operational needs.
Commercial license
A commercial license is necessary to establish businesses like retail shops, supermarkets, restaurants, and more. This license will allow you to involve in business activities such as import and export. Obtaining a commercial license in the UAE can enhance your business profitability, offering significant opportunities in sectors such as real estate, retail, and export.
You can be involved in several business activities with this license such as tourism, automobiles, international trade, financial services, and home appliance trading.
Industrial license
An industrial license in the UAE requires a significant investment but offers the potential for higher profits. This license grants the right to establish a factory and develop products. The UAE government also provides strong support for exports, making it a valuable opportunity for manufacturing industries. To obtain an industrial license, a capital investment of AED 250,000 is required. Additionally, the manufacturing company must employ at least 10 people and have the necessary physical workspace. Depending on the nature of your industry, you will also need to secure the appropriate permits from relevant authorities.
Professional business license
A professional business license in the UAE is essential for professionals such as doctors, engineers, architects, and others. This license enables them to establish a company and obtain a license based on their qualifications and expertise. For specific industries, such as real estate and construction, investors must pass an examination conducted by Dubai Economy. Similarly, in the healthcare sector, approval from the Ministry of Health is required, along with meeting the criteria set by the Dubai Health Authority. The professional business license is a popular option in the UAE for Free Zones. Additionally, certain business activities may require pre-approval and consent from the relevant UAE ministries.
E-commerce License
This is one of the major licenses that foreign investors are seeking due to the consumer market in the region. An E-commerce license will provide you with the right to conduct your trade and services through online channels for your customers in different parts of the world. If you have an E-commerce license in UAE, then you can set up your business either in the mainland or in the free trade zones.
Service License
A Service License in the UAE allows companies to offer services in non-commercial sectors such as consulting, education, and more. Similar to the professional business category, this license is ideal for businesses in fields like consultancy, IT services, project management, and various other service-oriented industries. There is a growing demand for service companies in the UAE, driven by local organizations and emerging markets in neighbouring Asia and Africa. The best way to obtain a Service Business License is through the UAE’s Free Zones, which provide world-class infrastructure and streamlined company formation processes.
How Jitendra Business Consultants will help you to obtain the right business license?
Choosing the right business license for your industry will allow you to conduct the relevant business activities for your industry. Foreign investors should be aware of the types of business licenses in UAE and also regarding the required approvals for it. Acquiring a business license in UAE could be a complex process for foreign investors who are not familiar with the local laws and you need to seek the assistance of a local professional to handle this.
Jitendra Business Consultants is the major business setup consultant in UAE. Our professionals can help you obtain the relevant business license based on the nature of your industry operations and requirements. We do provide several other services such as company registration, trademark registration, copyright registration, audit and taxation, corporate tax advisory, VAT, and transfer pricing services.
