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License to Succeed: How to Set Up Your Business in Dubai the Right Way

Globally, Dubai is one of the most striking destinations for investors and entrepreneurs. Its tax-friendly policies, world-class infrastructure, strategic location and vibrant business network make it a dynamo for progress. However, before you start your business in Dubai, obtaining the right business license is compulsory.

A business license in Dubai is commonly a legal document dispensed by the government that endorses you to conduct comprehensive types of business activities issued by The Department of Economy and Tourism (DET) for mainland businesses and one of Dubai’s 30+ free zone authorities. Selecting the right license is critical for taxation, legality, business operations, and even marketing your business.

In this blog, we’ll walk you through everything you need to know about getting a business license in Dubai, the process, types and costs. Leela International will guide you whether you are an established company or start-up and looking for business setup in Dubai.

Types of Business Licenses in Dubai

1. Commercial License

This is the most common license for business in Dubai that are buying, selling, importing, or exporting goods and is simply named trade license issued by relevant free zone authorities or DET (mainland) and ideal for Wholesalers, Retailers, import/export businesses, and logistics companies. It covers;

Common Trade Licenses:

2. Professional License

This license is for companies or individuals offering consultancy, intellectual, and service-based activities allowing 100% foreign ownership even in mainland setups and perfect for consultants, freelancers, and service providers. It covers;

3. Industrial License

License is issued by Dubai Municipality and other authorities for physical warehouses or industrial sites, ideal for businesses involved in the assembling, manufacturing, or processing of goods suitable for factories and large-scale production facilities. It Covers;

4. Tourism License

Issued by DET and Dubai’s Department of Tourism and Commerce Marketing (DTCM) to businesses operating in the travel and hospitality industry, which is a core sector of Dubai’s economy Ideal for hotel operators, Travel entrepreneurs and tourism start-ups. It Covers;

5. Freelance License

Freelance License issued by Free zones like Dubai Media City, Dubai Internet City, and Dubai Design District (D3) for independent professionals who want to legally operate in Dubai without opening a full company which has huge benefits such as Lower cost, no physical office required, eligible for residence visa ideal for solo entrepreneurs and Digital freelancers. It Covers;

6. E-Commerce License

It is issued by DET (for mainland) and free zones such as Dubai CommerCity or DSO for businesses that operate primarily through websites or online platforms ideal for Digital-first brands and online-only stores. It covers;

7. Agricultural License

Agricultural License issued for businesses engaged in aquaculture, farming, or agricultural consulting Ideal for Sustainable and agro-tech businesses but it’s mandatory to have land approvals and compliance with environmental and municipal regulations. It covers;

8. Craftsmanship License

Also called an artisan or manual skills license, this is meant for individuals or small firms offering traditional trades and handcrafts issued by DET or applicable free zones ideal for artisan entrepreneurs, skilled tradespeople and workshop businesses. It Covers;

Steps to Get a Business License in Dubai, UAE

Select a Business Activity
Legal Structure Selection
Approve Trade Name
Notarize and the Memorandum of Association (MOA)
Pick a Business Location
Submit Licensing Application
Get Final Approval
Collect Your License

Benefits of a Business License in Dubai, UAE

Enhanced Reliability

Funding Opportunities

Acquire Tax Benefits

Few Trade Boundaries

Basic documents required for a Business License in UAE

Duly filled application form
Business activity master plan
Copy of passport of every stakeholder linked with your business legally
Certificate of reference from the bank or two years financial statements
Sponsor’s No Objection Certificate (NOC)
Dispatch of intent
Notarized copy of registry identification form
The manager or the director’s passport size photograph
Particulars of share capital

FAQ: Business License in Dubai

What is the difference between a business license and a trade license?

A trade license is a type of business license that specifically covers trading activities. All trade licenses are business licenses, but not all business licenses are trade licenses.

How long does it take to get a business license?

Usually between 3 to 10 working days, depending on the activity and authority.

Can I own 100% of my business as a foreigner?

Yes. Most sectors now allow 100% foreign ownership, especially in free zones and selected mainland sectors.

CONCLUSION

Choosing the right business license in Dubai is the foundation of your legal and successful business setup in Dubai. There are numerous licensing categories, including trade, professional, industrial, tourism, and more, so it’s critical to align your choice with your goals.At Leela International, we take the complexity out of licensing so you can focus on growth.

Reach us to License Your Dream and Launch Business in Dubai