Types of commercial licenses Dubai The Emirate of Dubai is famous for its open and business-friendly economic environment, as it offers a wide range of commercial licenses to local and international investors. This diversity of license types allows companies to choose the structure that best suits their activity and operational needs.

In this article, we will go into detail about the types of business licenses available in Dubai and how to choose the most appropriate one for each business activity. We\’ll take a look at national trade licenses, industrial licenses, and professional licenses, focusing on the advantages and requirements of each type. We will also highlight how to make the most of the options available and achieve sustainable success in Dubai\’s diverse business environment.

Commercial licenses are considered a vital basis for business success, as they represent the gateway that opens the doors for companies to carry out their activities legally and legitimately in the emirate. Through this article, in collaboration with Itqan, we will explore the types of Dubai business licenses and the steps needed to obtain them, giving readers a deeper understanding of how to start a business in this dynamic city. Whether you are looking to start a small sole proprietorship or aspire to establish a large multinational company, in this article you will find the information you need to move forward on your journey towards business success in Dubai.

Types of business licenses in Dubai

Types of business licenses in Dubai

Dubai is considered one of the most prominent business destinations in the world, providing an encouraging investment environment and diverse opportunities for establishing businesses. To begin your journey in the world of entrepreneurship in Dubai, you must obtain the appropriate commercial license. There are several types of commercial licenses available in Dubai that suit the requirements of different businesses and commercial activities. Different types of commercial licenses are available to meet the needs of different companies. Here are some of the main types of business licenses in Dubai :

• Sole Proprietorship License : Issued to individuals wishing to carry out commercial activities on their own without partners.
• Limited Liability Company License : Issued to companies consisting of partners who bear limited liability according to their share in the capital.
• Limited Liability Company Commercial License (LLC License) : Issued to companies consisting of partners who bear comprehensive and limited liability for debts.
• Civil Company License : Issued to professionals such as doctors, lawyers, engineers, and consultants to carry out their activities independently.
• Public Joint Stock Company License : Issued to companies that can publicly subscribe for their shares and trade them on the stock exchange.
• Private Joint Stock Company License : Issued to companies in which there are a small number of shareholders, and the shares are not publicly tradable.
• Free Zone License : It is issued in the various economic free zones in Dubai, and provides great facilities for expatriate companies, including full ownership by foreigners and tax and customs exemptions.
• Tourism Establishment License : Issued for activities related to tourism and hospitality, such as hotels, restaurants, and tourism agencies.
• Cultural Institution License : Issued for cultural and artistic activities such as art galleries and cultural centers.
• Industrial License : Issued to companies that produce goods and products in various industrial sectors.
• Construction License : Issued to companies specialized in construction and civil engineering.
• E-commerce License : Issued to companies that sell goods and services over the Internet without the need for a physical location.
• Marketing and Advertising License : Issued to companies working in the field of marketing and advertising, including advertising agencies and companies specializing in digital marketing.
• Technology and Innovation License : Issued to companies working in the fields of technology and innovation, such as startups and advanced technology companies.
• Sports License : Issued for sports activities such as sports clubs, sports training facilities, and sporting events.
• Research and Development License : Issued to companies that specialize in research, development, and innovation of new products and services.

Requirements for obtaining a commercial license in the free zone

Obtaining a business license in a free zone in Dubai requires compliance with several procedures and requirements. These requirements can vary based on the type of business and the particular free zone. However, here is a list of some general requirements that may be necessary:

1. Submit an application: Submit an official application to obtain a commercial license in the free zone.
2. Identify the business: Determine the type of business you intend to do and ensure it complies with local regulations.
3. Choosing the legal structure: Determine the company’s structure and legal type, whether it is a sole proprietorship, limited liability company (LLC) or joint stock company.
4. Choosing a location: Providing a lease contract or confirmation of the company’s legal address in the free zone.
5. Submitting documents: Submit all necessary documents, such as passports, personal photos, and incorporation documents (if the company is already registered).
6. Capital: Some free zones may require the provision of capital required to establish the company.
7. Insurance: Provide the required insurance documents, if there are insurance requirements.
8. Company Registry Updates: If the company is already registered, any necessary updates must be submitted to the company registry.
9. Signing agreements: Signing any relevant agreements or contracts with the administrative body of the free zone.
10. Identification of directors: Identify the directors and key officers of the company and submit documents relating to them.

The cost of obtaining a business license in Dubai

The cost of a business license in Dubai depends on several factors, including the type of business activity, company structure, and geographical location in the free zone. The cost of the license and associated fees changes depending on tax regulation and government legislation at a given time, and there may also be additional costs for additional services. Here is an overview of some of the factors that affect the cost of obtaining a business license in Dubai:

• Type of business: The cost is related to the type of business activity the company does. Some activities may require higher fees than others.
• Company Structure: The type of legal structure of the company (e.g. sole proprietorship, joint stock company, limited liability company) can affect the cost. For example, sole proprietorship licenses may be less expensive than LLC licenses.
• Geographic region: The free zone you choose to establish the company can affect the cost of the license. Fees vary from one free zone to another.
• Government fees: There are government fees related to registering the company and obtaining the necessary licenses.
• Additional Services: If you require additional services such as attorney services, marketing services, or consulting services, there may be additional costs.
• Annual costs: There may be annual costs for renewal and maintenance, and these costs may vary depending on the type of license and business activity.

Basic steps to renew a business license in Dubai?

Basic steps to renew a business license in Dubai?

Renewing a business license in Dubai requires following certain procedures to ensure legal business continuity. Here are the basic steps to renew a business license in Dubai:

1. Start at the right time: There may be a certain period of time in which the license renewal process must begin. It is preferable to start this work at least two to three months after the expiration of the current license.
2. Update information: Update all company information, such as office address and contact details.
3. Submitting the required documents: You may need to submit some necessary documents for renewal, such as a copy of the rental contract and personal photos of the owner or manager.
4. Verify payment of fees: Check the amounts due for the renewal process and pay the required fees. These fees can include costs for renewing the license itself and administrative fees.
5. Submitting an application: Submit an official application to renew the license to the competent government body. This body may be the Business and Professions Regulatory Authority (DED), the Production and Manufacturing Authority (DPM), or the relevant authority in the free zone if the company is located there.
6. Compliance check: You may be required to undertake an inspection to check compliance with local regulations and legislation.
7. License Update: After the renewal application is approved, your business license will be updated, and you can receive the updated version.
8. Updating employee and contract documents: Make sure any company employee or contract documents are updated based on new changes.

Learn about the types of commercial licenses in Dubai

In conclusion, Dubai is distinguished by providing a comprehensive range of types of commercial licenses that suit the needs and requirements of various businesses. No matter your business, you will find a suitable license in Dubai.

If you are a local business owner, you can obtain a national business license that allows UAE nationals to establish and operate a business in Dubai.

If you want to deal with the global market, you can take advantage of an offshore business license or a free license. These licenses allow you to own and manage an independent company with 100 percent ownership by a foreign investor, while having complete independence in running the business.

If you work in specific economic sectors such as industry, technology, research and development, you can benefit from an industrial licence, a technological licence, or a research licence. These licenses provide access to special facilities and certain government benefits that support your business in those sectors.

Advantages of obtaining a commercial license in Dubai

Obtaining a business license in Dubai provides many advantages and opportunities for investors. Here are some key features:

• Legislative structure and stability: Dubai has a strong legislative structure and political stability environment, making it an attractive destination for business.
• No personal income taxes: Dubai does not impose taxes on personal income, which means investors keep a large portion of their profits.
• Diversified economy: Dubai has a diverse economy that includes many sectors such as tourism, real estate, trade, and financial services, providing multiple business opportunities.
• Strategic location: Dubai\’s location is strategic, as it is located at the intersection of the main trade routes between the East and the West, which facilitates access to global markets.
• Advanced infrastructure: Dubai has an advanced infrastructure that includes airports, ports, and advanced transportation networks, which facilitates transportation and distribution operations.
• Government guidance: The government in Dubai encourages economic diversification and provides support to investors through encouraging policies.
• Free Zones: Dubai provides many free zones that provide tax benefits and facilities to companies located there.
• Ease of business procedures: The government is constantly improving business procedures and facilitating administrative procedures to encourage investors to establish and expand their businesses.
• An international and diverse community: Dubai has an international and diverse community, which enhances opportunities for expansion and building networks of economic relations.
• Information Technology and Innovation: The use of technology and innovation is promoted in Dubai, which contributes to improving business effectiveness and enhancing competitiveness.

In short, understanding the types of business licenses in Dubai is vital for any investor who wants to start his business in the city. Through cooperation with Itqan Company, we find that commercial licenses represent an essential step for business success, as they provide flexibility in choices, costs, and procedures. These licenses provide the opportunity for investors to select the appropriate business activity according to their needs and objectives. Therefore, understanding the types of licenses and the benefits and conditions associated with them enables anyone to make sound and informed decisions in the process of establishing a company in Dubai .

The most important frequently asked questions about types of commercial licenses in Dubai