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Types of Business license in Dubai, UAE

UAE requires entrepreneurs and companies to get a trade license to conduct business in the country and free zone jurisdiction. Having a trade license ensures your customers that you are a legitimate business following the local law and regulation.

When you plan to form a new company in the UAE, you will have to apply for your business’s right license to ensure the smooth and hassle-free working of your business. The type of your business operation, your company’s structure, and the permit are the things that directly affect your business license.

Requirements to getting Trade License

Fulfil some legal formalities and requirements before applying for the trade license in Dubai. Please look at the following criteria:

• Decide the business activity and operations. Decide whether your business type is professional, industrial, or commercial.
• Decide the activity of your business.
• Decide the right trade name for your business.
• Decide the legal structure of your business and company.

Business License in Dubai

Three types of trade licenses that you need to consider when you start a land business in Dubai:

Commercial License

Companies that deal with the purchase and sale of goods and commodities, or all types of trade activities, requires a commercial trade license to operate in the UAE. This license can be used to form Limited Liability Companies (LLC) or establish the only formation. It can be used for a particular trade and general trading activities in the UAE.

There are various types of commercial trade licenses in the UAE. You must apply for the right kind of commercial trade license that will allow you to carry out special trading activities for your business.

Broadcasting and Communication Companies, Rental Transportation Services, Retail Companies, Construction Companies, Health Business, Real Estate Business, and Other General Trading Entities also need to submit a commercial trade license.

The businesses that come under commercial license are as follows:

• Oil and Gas Trading
• Chemical Trading
• Automobile Trading
• Furniture Trading
• Precious Metal Trading
• Safety Equipment Trading
• Spare Parts Trading
• Media Materials Trading
• And So On.

Professional Trade License

The UAE government requires businesses and entrepreneurs to get a professional license from the Department of Economic Development (DED) before providing their professional services to clients.

The main aim of issuing of a professional license is to determine that the person or business is eligible to provide services in certain professions. The issuance of this license generally requires applicants to show individual skills or training.

All professionals, specialists, and artisans need to get a professional trade license to do business in Dubai.

Several businesses set up structures can be formed with professional licenses: Limited Liability Companies where local sponsors accommodate 51% of companies; civil companies and the only establishment in which foreign investors have 100% ownership of their company.

However, in preparing civil companies or the only company, UAE citizens must be appointed as a local service agent (LSA) to complete legal formalities.

The businesses that come under Professional license are as follows:

• Tax consultancy Services
• Business Management Consultants
• Environmental Consultants
• Marketing Consultancy
• Insurance Consultancy
• IT Consultancy
• Computer Consultancy
• And So on.

Industrial License

Businesses who want to carry out industrial or manufacturing activities in the UAE must obtain an industrial trade license, which will enable them to be involved in activities related to converting natural ingredients or entering natural resources into their final products.

This license is issued by DED approval, but additional may be needed from the Ministry of Finance, the Ministry of Energy, and the Infrastructure and other authorities, depending on industrial activities involved.

The businesses that come under Industrial license are as follows:

• Diary Manufacturing
• Carpet Manufacturing
• Garments Manufacturing
• Meat Production
• Animal Food Manufacturing
• Bird Food Manufacturing
• And So on.


It is illegal to do business in UAE without a license; Good, which is decent, and even the prohibition of activity will result. Besides, the right needs to be updated every year to avoid penalties.

However smooth this process seems, it is very complex, and your small mistake cant keep you away from getting the license and doing business in Dubai, UAE. So take the help of business setup experts or expert pro services in Dubai, and they will ensure that you have the hassle-free business setup process. The experts and professionals will also help you through the complete process of license renewal Dubai and get a trade license in Dubai at low cost and fast speed.