18 June, 2024

Business License in Dubai and the UAE

business license in dubai

Securing a business license in Dubai is mandatory for all companies wishing to operate legally within the emirate. While the cost of acquiring a license may be substantial, the post-acquisition benefits and incentives are significant.

Understanding Business Licenses in Dubai

A business license in Dubai grants your business a legitimate identity and confirms its legal status within the region. This license ensures that your company operates responsibly, protects its legal interests, and is accountable for its actions.

Types of Business Licenses in Dubai

Dubai offers several types of business licenses, each tailored to specific business activities. Typically, each license covers up to ten business activities, except for a general trading license, which allows for a broader range of commercial activities. The main types of business licenses in Dubai are:

  1. Commercial License: For companies engaged in trading activities, such as buying and selling goods, importing/exporting, and logistics.
  2. Professional License: For businesses providing professional services, like consultancy, IT, and auditing.
  3. Industrial License: For businesses involved in manufacturing and industrial activities.
  4. Tourism License: For businesses operating in the travel and tourism sector.

Commercial License in Dubai

A commercial license allows companies to engage in trading activities, including the import and export of goods, logistics, and brokerage services. With this license, businesses can trade in various sectors such as:

Benefits of a Commercial License

  • Allows up to ten related activities under one license
  • Diverse company structure options
  • Enhanced business security through registration with the Department of Economic Development (DED)
  • Facilitates the opening of corporate bank accounts
  • Simplified fiscal reporting with no corporate tax
  • Affordable renewal process

Professional License in Dubai

A professional license is necessary for businesses offering professional services based on individual expertise, such as consultants, auditors, and IT professionals. This license allows expatriates to have full ownership of their business.

Examples of Professional Licenses

Tourism License in Dubai

A tourism license is essential for businesses in the travel and tourism industry, such as tour operators, travel agents, and hospitality providers.

Categories of Tourism Licenses

  • Outbound Tour Operator: Organizes trips from the UAE to other countries.
  • Inbound Tour Operator: Manages tours to Dubai from other nations.
  • Travel Agent: Provides air ticketing and visa assistance services.

business license in uae

Business Licenses in UAE Jurisdictions

  1. Mainland License: Issued by the Department of Economic Development (DED) of each emirate, this license allows businesses to operate within the local UAE market.
  2. Freezone License: Granted to businesses operating within designated free zones, allowing for specific business activities with various benefits such as tax exemptions.
  3. Offshore License: For businesses operating outside the UAE’s registered jurisdiction, issued by authorities like JAFZA, RAKEZ, and IFZA, primarily to save on taxes and hold assets.

cost of a business license in dubai

Cost of a Business License in Dubai

The cost of a business license in Dubai ranges from AED 5,750 to AED 30,000, depending on the type of license and business activities. Additional costs may include visas and other expenses. Consulting with an experienced business setup consultant like RadiantBiz can provide precise cost estimates and guidance.

Advantages of a Business License in Dubai

  • Legal Recognition: Validates your business’s legal status and operations.
  • Tax Benefits: Simplifies tax filing and potentially reduces business expenses.
  • Liability Protection: Offers varying levels of personal financial protection based on the license type.

apply for business license in dubai

How to Apply for Business License in Dubai,  UAE

To acquire a business license in Dubai, follow these steps:

  1. Choose your business activity and name.
  2. Prepare a Memorandum of Association (MOA) or Local Service Agent (LSA) agreement if necessary.
  3. Submit your application to the DED along with required legal documents.
  4. Secure a tenancy agreement for your office space.

Required Documents for Business License in Dubai, UAE

  • Passport and visa copies of the investor and manager
  • Completed application form
  • Tenancy agreement
  • Company name reservation
  • Attested degree certificate (if required)
  • Experience certificate (if required)

Validity and Renewal of a Business License in Dubai

A business license in Dubai is typically valid for one year, with the option to renew annually. Delays in renewal can result in fines, but the Dubai government offers a 30-day grace period.

Renewal Process of Business License in Dubai

  1. Arrange all necessary documents.
  2. Complete the renewal application form.
  3. Pay the renewal fee.

How RadiantBiz Can Assist in Business License in UAE

RadiantBiz offers comprehensive support for obtaining and renewing business licenses in Dubai. Our team of experts ensures a smooth application process, helping you avoid common mistakes and select the right license for your business needs.

For more information on securing a business license in Dubai or the UAE, contact RadiantBiz for expert guidance and support.