Do you have the right type of license for your business?

To launch a business in Dubai or elsewhere in UAE, you need to acquire a license first. The license is the fundamental rule of operating in Dubai that authenticates your businesses and makes you follow the relevant laws and rules of the land. The Dubai Department of Economic Development (DED) is chiefly responsible to regulate, licensing, permitting, classifying, and deciding the business operations in the city. To know about a suitable license, you must decide the location of your company. There are three types of locations namely Mainland, Freezone, and Offshore where you can set up a company in Dubai each with different licenses and costs.

  1. Mainland License: To open a business in the heart of the city, you need to have a mainland license issued by the Department of Economic Development. Since the license allows to operate in the main parts of the city, the Mainland License cost in Dubai is higher than other licenses because of numerous opportunities for growth and success.
  2. Freezone License: The Freezones are some designated areas in Dubai that allow a predefined business operation. The international investors prefer to obtain licenses to operate in the Best freezone in UAE to avoid tax regimes and enjoy 100% ownership.
  3. Offshore License: Dubai is the hub of offshore companies due to its tax-free regime and numerous opportunities to engage in global trade without a precondition for the owners to settle in Dubai.

After selecting the ideal location and jurisdiction for your business, the next step is deciding the right kind of trade license to operate in Dubai. The kind of trade license is dependent upon the nature of the business. It is highly important to know what kind of license is suitable for your business as owners are likely to get confused between different types of licenses. Other than the location, the licenses depend upon the nature of the business as well. For example,

  1. Commercial license – required for general trading of import and export of goods such as clothes, electrical items, food stock, furniture, etc.
  2. Professional License – required for services companies or individuals such as doctors, teachers, lawyers, engineers, craftsmen, IT, media, etc.
  3. Industrial License – required for manufacturing activities such as Textile Food Petroleum products, Paper production, Equipment/Appliance manufacturing, Metal casting, etc.
  4. Tourism License – required for travel, hospitality, and tourism industries
  5. Technical License – Technical Services license in dubai is required for HVAC works such as plumbing, tiling, concrete works, electrical fitting, insulation, cladding, plaster, false ceiling, cleaning services, flooring, carpentry, installation and maintenance works, etc.
  6. Delivery License – required for businesses that offer home delivery facilities