The business-friendly environment of Dubai opens many opportunities for investors, entrepreneurs, and organisations aiming to create their presence in the region. However, if you are one of them, aspiring to dig into the economic potential of the place, you must first understand the different business licence types in Dubai. Here, we will provide an overview of the various business licences to help you opt for the right licence for your business. If you are all prepared to buy a business in Dubai, this short blog will guide you through applying for a business licence.
What is a Business Licence in Dubai (UAE)?
A business licence in Dubai is an official permit issued by the Dubai Department of Economic Development (DED) or an authorised free zone authority that legitimises a company or an individual to run business activities within Dubai. It is an essential document to form and operate a business, as it helps businesses operate within a legal framework and adhere to local laws and regulations. A licenced business is considered more trustworthy and credible, while a business without a licence is illegal.
Types of Business Licences in Dubai
The list below includes different types of business licences in Dubai that businesses must secure to conduct their intended business legally.
Commercial Licences
Companies that are engaged in trading activities related to goods, commodities, and services need this licence to run their business. It covers a wide range of activities that encompass logistics, car rentals, and real estate brokerage.
Industrial Licence
Industrial licences are for companies that are into manufacturing or industrial activities in Dubai. With this licence, businesses can assemble, produce, process goods, and manufacture. Companies can source raw materials either locally or can import them.
Professional Licence
Professional licences are for individuals and companies that provide specialised services depending on the qualifications and expertise of the service providers. This licence is for professionals who are skilled and possess the necessary academic qualifications to directly offer services to clients. This covers IT services, finance advisors, business analysts, medical professionals, visual content creators, beauty and personal care, etc.
Tourism Licence
A tourism licence is essential for individuals and companies providing tourism-related services in Dubai. The licence helps all tourism businesses adhere to the rules and policies set by the Department of Tourism and Commerce Marketing (DTCM), along with keeping up with the quality and reputation of Dubai’s tourism industry.
Agriculture Licence
For those involved in agriculture-related activities in Dubai, an agriculture licence is necessary for you. This licence will make you eligible for a wide range of agricultural operations and services. It will also ensure that the company is adhering to relevant regulations and standards in Dubai.
Craftsmanship Licence
Individuals and companies dealing in craftsmanship that involves skilled manual labour and trades will require this licence to conduct their business in Dubai smoothly. Activities include carpentry, plumbing, masons, artisans, and electrical work. This licence is essential if companies engage artisans to execute their tasks in the craftsmanship fields.
Final Thought
If you are planning to buy a business in Dubai, you will need to understand the rules and regulations of business in Dubai first. Every country has a rule for businesses that they have to adhere to for the smooth running of their business; failing which can bring closure of business. A business license is the most essential document for any business in Dubai to start a business. Moreover, you cannot obtain any licence for any business. You must obtain the licence for the business you deal in, or else you will not be allowed to conduct your business as per the law of Dubai. So, be careful about which licence you are applying for. If you find it very complex, you can talk to a professional consultant who will help you with the process of business licence issuance.
Author: Indicators Consulting
Indicators Consulting is a leading feasibility study and market research company in Dubai. Specialising in helping clients study market feasibility. We provide our clients with an extensive range of services, including feasibility studies, market research, competitive analysis, financial feasibility research, etc.
