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It is no news that the United Arab Emirates (UAE) stands as a dynamic hub for global business, attracting entrepreneurs from around the world. If you're considering establishing a business in the UAE, it is important to understand the various types of business licenses you may need to get and the process to obtain them. In this guide, we'll explore each business license available in the UAE and provide you with the steps to secure them.
A business license is a legal document or permit that allows an individual or entity to operate a business in a specific location. In the UAE, licenses are issued by each emirate’s economic department, such as the Department of Economy and Tourism (DET) in Dubai, or by the authority of the free zone where your business is based. Some activities also need approval from a federal ministry.
Obtaining a business license in Dubai is a regulatory requirement aimed at ensuring that businesses comply with local laws, regulations, and zoning ordinances. The specific requirements for obtaining a business license can vary widely depending on the location and the type of business. Some businesses may be required to obtain multiple licenses or permits, such as health permits, building permits, or environmental permits, in addition to the basic business license.
A commercial license allows companies to trade products and offer services within and with the UAE. A commercial license is a great option for businesses looking to take part in both local and international trade relationships.
Step 1: Choose a company name
When choosing a name, you have to consider the rules and regulations of the UAE government. The name must be void of any profane, offensive, or blasphemous language, and should not have the name of any existing, well-known organization.
Step 2: Choose a legal structure
The next thing is to determine the structure of your business. When choosing a structure, consider the advantages and disadvantages and the financial implications of your choice. The business structures in the UAE include:
Sole Establishment
Civil Company (for professional activities)
Limited Liability Company
Public or Private Joint Stock Company
Branch of a foreign or UAE company
Step 3: Select a location
Another important decision is your business location. Would you prefer a business on the Dubai Mainland, or within the Free Zone? Consider the pros and cons of each location as they relate to your business before deciding.
If you would like a seamless process, it would be a good idea to consult the International Free Zone Authority (IFZA) throughout the process of obtaining your commercial license. They are a leading provider of business setup solutions in Dubai, ready to provide valuable advice and guidance throughout the process.
Step 4: Apply for your commercial license: If your business is on the mainland, you can apply at the Department of Economy and Tourism (DET), which was formed from the former Department of Economic Development (DED) and the Dubai Department of Tourism and Commerce Marketing (DTCM). If it’s in a free zone, you can apply online or at one of the free zone's local offices. At these locations, pick up the commercial license application form and complete it.
Step 5: Put your application documents together
The needed documents for a commercial license in the UAE include:
A completed commercial license application form with the full business name in English and Arabic.
Proof of payment of the application fee made to the specified bank (the fee varies by emirate, licensing authority, and business activity, so check the current fee schedule before you pay).
Business address permission from the Dubai Municipality’s Building Department.
Two coloured passport photos.
Residency / Visit visa.
Memorandum of Association: Since 2021, foreigners can fully own mainland companies for most business activities, so a local sponsor or partner is no longer required. Exceptions apply to some regulated sectors, such as banking, insurance, and defense.
Your comprehensive business plan.
Original lease or tenancy contract for the use of the registered business address (registered with Ejari in Dubai)
Your share structure of shareholders.
During this extensive paperwork process, you may need a company like Translayte to provide certified translations of international documents not in Arabic or English, so they are valid in the UAE.
Many UAE authorities ask for an Arabic translation by a legal translator licensed by the UAE Ministry of Justice, and documents issued abroad usually need to be attested (legalised) in the country that issued them and by the UAE Ministry of Foreign Affairs before you use them.
Step 6: Submit your commercial license application
The final step is submitting your commercial license application to the Department of Economy and Tourism (DET) if you applied to set up on the Mainland. If you applied to a Free Zone, submit your application there.
Types of business licenses in the UAE
A professional license is required for individuals and companies engaged in various professional activities. A UAE professional license is mandatory for those providing specialized services in fields such as consultancy, law, engineering, healthcare, media, and other professions.
Step 1: Select and register a trade name
When choosing a business name, consider UAE government rules and regulations.
Step 2: Determine your business activities
To get approval for a UAE professional licence, you must determine what activities your business will be engaging in and submit an accurate description of it.
Step 3: Put together the necessary paperwork
The documents needed for a professional license in the UAE include:
A filled-out application form.
Your business name reservation certificate from the Department of Economy and Tourism (DET).
Copies of your and your business partner’s passports.
Emirates ID and Visa copies.
Initial approval from the relevant authorities such as DET, DM and RTA.
No Objection Certificates from your local sponsors.
A copy of your local partner’s naturalization book.
A notarised Local Service Agent (LSA) agreement, if your activity requires one. Foreign professionals can own 100% of a professional business, but some structures, such as a mainland sole establishment, still need a UAE national to act as a Local Service Agent. The agent has no ownership stake or share of profits and only helps with government procedures.
A copy of your Local Service Agent’s Emirates ID, if you appoint one.
As with a commercial license, international documents not in Arabic or English require certified translation. To get accurate translations, use a professional certified translation service in the UAE.
Step 4: Submit your application to the Department of Economy and Tourism (DET)
UAE professional licenses are issued by the DET in Dubai, so after gathering all the required documents, go to the DET and submit them. A representative will review them, and if your application is approved, you’ll be asked to make a payment (the fee varies by emirate and business activity), and then you can receive your professional licence.
Industrial licenses regulate and oversee industrial activities within the UAE. These licenses are essential for businesses engaging in manufacturing, processing, and industrial activities. The Department of Economy and Tourism (DET) issues industrial trade licenses in Dubai. Industrial projects are also regulated at federal level by the Ministry of Industry and Advanced Technology (MoIAT).
Step 1: Get approval from the relevant authorities
Get approval from the relevant government departments before applying for your industrial license. These authorities include the Department of Economy and Tourism (DET), the Ministry of Health, the Ministry of Interior, the National Media Council, the Ministry of Environment and Water, the UAE Media Council, the Ministry of Climate Change and Environment, and the Chamber of Commerce and Industry, depending on the type of service you plan to provide. This approval is issued as a certificate.
Step 2: Organise the paperwork
Documentation for an industrial license in the UAE includes:
Approval documents from all the relevant authorities.
A copy of your passport and residence permits.
Your detailed business plan and report of your factory.
A copy of your trade license.
A copy of your balance sheet.
A copy of your partnership contract (if applicable).
Other relevant documents for an industrial license in the UAE may include:
A notarised Memorandum of Association.
Your company’s registration documents.
Copies of passports of your shareholders.
Details of any UAE national partner or Local Service Agent, if your structure or activity requires one.
Residence visas of your employees.
Your land lease agreement.
For documents that need notarized translations for industrial license approval, choose Translayte for a seamless process. Our expert linguists guarantee accuracy, reliability, and precision, making Translayte your trusted partner for efficient and professional translation services.
Step 3: Submit your application
Visit the Department of Economy and Tourism (DET) and submit your paperwork. A representative will assess it, and you will be issued a license in about three months if you are successful.
How to obtain business licenses in the UAE
In the United Arab Emirates (UAE), the tourism sector is regulated through tourism licenses. The Tourism License, also known as the Tour Operator License, is for businesses involved in one or more aspects of the tourism industry.
Types of UAE tourism licenses
Inbound tourism license: This license is required for inbound tour operators to conduct tours within the UAE.
Outbound tourism license: This license allows tour operators to organise tours for UAE residents to destinations outside the UAE.
Travel agency license: This license is for travel agencies. It allows them to conduct business such as visa support, travel accommodation, ticket booking, touring, etc.
Tour guide license: This license is for individuals who wish to work as tour guides in the UAE. If you want to work as a tour guide, you must have strong knowledge of the sites, history, and culture of the area where you want to work.
Step 1: Choose a company name that complies with government rules.
Step 2: Choose between a mainland and a free zone jurisdiction.
Step 3: Define the activities your business will be engaging in.
Step 4: Gather the documents listed below.
Essential documents for a UAE tourism business license
Your completed application form from the Department of Economy and Tourism (DET)
Copies of your international passport.
Your managing director’s professional and educational certifications with at least one of the following:
A degree with a major in Tourism and Travel.
No less than 3 years of working experience in tourism if he holds a university degree in any other course.
At least 5 years of work experience in the tourism field if he holds a general secondary school certificate.
You and your manager’s Police Clearance Certificates from the UAE Police Department.
Approval from the Department of Civil Aviation and the Department of Economy and Tourism (DET).
Your business’s feasibility study.
An undertaking to provide clients with complete and correct information on the tour packages offered by your establishment.
An undertaking to respond within one week to any complaint filed with the DET against your establishment.
An undertaking to provide the DET with any other needed document such as data or statistics.
An undertaking to inform the DET of the name of your managing director and of any change that may occur in this regard.
A signboard at the entrance of your travel agency stating working hours in Arabic and English.
Step 5: Submit your application to the Department of Economy and Tourism (DET). Getting approval for a tourism business license in the UAE takes about four to six weeks.
The freelance license in the UAE, also known as the Freelancer Permit, allows individuals to work as freelancers without needing specific company sponsorship. This license benefits individuals who want to offer professional services on a temporary or project basis.
Step 1: Pick up a form at any free zone authority of your choice.
Step 2: Fill out the form, submit it with a copy of your passport, business plan, and reference letter, and wait for a confirmation letter.
Step 3: Once you receive the letter, sign it and attach the following documents:
The completed application form.
A copy of your passport.
Your business plan.
Your qualification certificates.
Your CV.
A No Objection Certificate signed by your sponsor to transfer your residence visa to a freelance visa.
A certificate of good standing from your bank.
Your portfolio containing your previous work.
Step 4: Pay the necessary fees.
Step 5: Collect your UAE freelance license.
The agriculture license in the UAE allows individuals or companies to engage in agricultural activities within the country. This license is essential for those looking to establish agricultural businesses, cultivate crops, or engage in agriculture-related activities. The Ministry of Climate Change and Environment issues agricultural licenses.
Step 1: Choose a suitable business location in one of the three areas.
Step 2: Choose a business activity that best suits your needs.
Step 3: Choose and register a trade name that complies with UAE government regulations.
Step 4: Choose a Legal Structure.
Step 5: Compile your documents and submit your application to the Ministry of Climate Change and Environment.
Documentation for an agricultural license in the UAE includes:
Copies of Passports for all Shareholders.
Photocopies of your visas.
Two Passport Photographs.
Entry visa information and stamp pages.
Your Memorandum of Association.
Your Articles of Association.
Step 6: Collect your license within a few days.
The UAE charges a federal corporate tax of 9% on taxable profits above AED 375,000, and profits up to that amount are taxed at 0%.
This affects which licence and location make sense for you. Mainland companies are generally taxed under this regime. Free zone companies that qualify as Qualifying Free Zone Persons can benefit from a 0% rate on qualifying income, but non-qualifying income is taxed at 9%.
Small businesses with revenue of AED 3 million or less can elect for Small Business Relief for tax periods ending on or before 31 December 2026. Every business with a licence must also register for corporate tax with the Federal Tax Authority, even if it owes no tax.
Check your eligibility with the Federal Tax Authority or a tax adviser before you decide between a mainland and a free zone licence.
With a clear understanding of the available license types and a systematic approach to the application process, you can establish a strong foundation for your business ventures. Seeking professional advice, getting good-quality certified translations, and staying informed are essential for ensuring a successful business experience in the UAE.
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