When you begin planning to set up your business in Dubai, it’s not just about the infrastructure, thriving market and tax benefits, but it also has its technicalities behind it. One of the most important ones to consider is choosing the right business license.
After you finalize the jurisdiction you plan to operate in, your next step is obtaining your business license.
Majority of jurisdictions in the UAE offer a wide variety of 2000+ business activies for entrepreneurs to choose from when setting up a new business, giving them a wide range of activities to choose from
However, if you don’t select the right business activities based on the type of business license you have obtained, you would likely face legal trouble.
The UAE offers 3 categories of business licenses for entrepreneurs to choose from:
- Commercial license
A commercial license is the best option for companies that associate with buying, selling, and trading activities, such as retail, e-commerce, general trading, etc. This license allows companies to operation locally and internationally
Some of the business activities companies with a commercial license can choose include …
2. Professional license
A professional business license is an ideal choice for entrepreneurs with expertise in certain industries that can allow them to operate in areas they specialize in. This license allows 100% foreign ownership in both, mainland and freezone.
Companies with a professional license can choose from a variety of activities, such as…
3. Industrial license
An industrial license is required for companies that conduct industrial and manufacturing activities in the UAE. This license allows businesses to undertake manufacturing activities, converting raw materials to finished goods, and many other industrial nature activities.
An industrial license is issued by the Department of Economic Development (DED), and companies with this license can choose from business activities such as…
The costs and application procedures can completely differ based on the type of license entrepreneur(s) obtain, and the emirate in which they operate in
There are certain jurisdictions that allow one company to have more than one business license, such as Sharjah Publishing City (SPC), International Free Zone Authority (IFZA), which can allow them to operate in multiple business activities.
Choosing the right consultant is key, as being a first time entrepreneur can make the process of setting up a business stressful, but having the right business consultants to advise you toward the right entrepreneurial direction makes the process 10x easier.