Obtaining a Business Licence in UAE: All You Need to Know About

Set up your business with the advanced market and stable economy in the UAE. However, start your business legally and avoid any consequences that you might encounter as a result of non compliance. The first step towards a safe business journey is to secure the right type of license as per the objective of your business. 

This article highlights the necessary details that you need to know about obtaining the business licence in the UAE. Get knowledge of the latest updates including the process benefits and eligibility to keep the start your business while staying  compliant.

Why Do You Need a Business Licence in UAE?

To function legally in any commercial activity within the premises of UAE, this legal document is mandatory to have. This way you are business will be able to gain access to various benefits and smooth operations. This may range from tax exemptions, banking facilities to government incentives and support. The business licence works as an evidence that your business is legitimized. Acquiring this licence is an unavoidable step for both small businesses and large scale enterprises. 

Types of Business Licences in UAE

The UAE houses number of diverse industries. For this, the relevant type of business licences are available that suit each type. Here’s a look at the categories. 

1. Commercial Licence

Suitable for businesses involved in trading activities, such as importing, exporting, or selling goods. Examples include electronics trading, food products, and textiles.

2. Professional Licence

Ideal for service-oriented businesses like consulting firms, freelancers, and educational institutions. This licence emphasizes the skill set and expertise of the professional.

3. Industrial Licence

This type of licence is valid for businesses who are involved in manufacturing or industrial activities. This may include steel production pharmaceuticals and food processing.

4. Tourism Licence

As a business owner this type of licence is mandatory to have if you function for the travel and tourism sector. The travel agencies, tour operators, and hospitality businesses can be included.

5. Freelance Licence

This one is designed newly and that encourages skilled individuals to work independently in specialized fields like media, IT, and education.

Steps to Obtain a Business Licence in UAE

In order to get the business license, follow the simple step-by-step instructions:

Step 1: Figure Out Your Business Activity

First thing first, decide  the nature of your business. The type of license you will choose depends on the activity and jurisdiction of your business. 

Step 2: Choose a Jurisdiction

The UAE is divided into three main jurisdictions:

• Mainland: Offers flexibility to trade across the UAE and beyond.
• Free Zone: Provides 100% foreign ownership and tax benefits.
• Offshore: Best for businesses focused on international markets.

Step 3: Register Your Trade Name

Your trade name must comply with the UAE’s naming guidelines. It should reflect your business activity and be unique.

Step 4: Submit Required Documents

Commonly required documents include:

• Passport copies of shareholders
• Proof of address
• Memorandum of Association (MOA)
• Business plan (for specific licences)

Step 5: Obtain Initial Approvals

Approvals from relevant authorities, such as the Department of Economic Development (DED), are required.

Step 6: Pay the Licence Fees

Fees vary depending on the type of licence and jurisdiction. These typically range from AED 10,000 to AED 50,000.

Step 7: Receive Your Business Licence

Once approved, your licence will be issued, and you can officially start operating your business.

Cost of Obtaining a Business Licence in UAE

Here is a table summarizing the average costs in 2024 for obtaining a business licence:

Note: Prices may vary based on jurisdiction and business activity.

Benefits of Having a Business Licence in UAE

1. Legal Compliance: A business licence ensures that your operations are legally protected.
2. Market Access: It allows you to operate and trade within the UAE and internationally.
3. Investor Confidence: Licenced businesses are more credible to investors and partners.
4. Tax Benefits: UAE’s tax policies, including 0% corporate tax in free zones, are highly advantageous.
5. Visa Eligibility: Business owners can sponsor visas for employees and dependents.

FAQs

How Long Does It Take to Get a Business Licence?

Typically, the processing for the licence depends on the type and completion of documents. It generally takes 1 to 4 weeks. 

Can Foreigners Own a Business in UAE?

Yes. The UAE enables 100% foreign ownership in free zones and for certain activities in the mainland.

Do I Need a Business Licence to Operate Online?

Yes, an e-commerce or professional licence is required to run an online business legally in the UAE.

Business Licence Dubai: Key Considerations

As important as Dubai is for tourism, it has become a progressive environment for the business sector in the UAE. To obtain a business licence in Dubai, ensure you:

• Select the right free zone for your business type.
• Understand additional requirements, such as office space or local sponsorship for specific mainland activities.
• Stay updated with regulations from the Dubai Economic Department (DED).

Simplify the Process with Connect Business Center

The process to obtain a business licence in the UAE should not be difficult and Connect Business Centre takes care of it. The professional team assist in the entire journey from choosing the ideal licence type to providing guidance for the documentation. With the experts’ insights, you are sure to stay compliant to the legal regulations. Our tailored solutions provide services as per your need.  

Count on us to experience the successful license processing within one of the world’s most business-friendly hubs. With the Connect Business Center by your side,  take the first step towards fulfilling your entrepreneurial goals.

Choose the right partner and follow the regulatory regulations that are demonstrated in this guide. Obtaining a business licence will keep your business safeguarded from any potential risk or penalties. Step forward in the market with the ideal licence type and ensure a seamless transition to entrepreneurial endeavours in 2024.