Types Of Business Licenses In Dubai | Business License Types
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Types Of Business Licenses In Dubai
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A business license is the most vital document a business requires when it comes to set a company or business in Dubai or any other Emirates of the United Arab Emirates (UAE). For every type of company formation in Dubai, business licenses are a compulsory requirement. Setting a new business or company in Dubai can be compelling anticipation, and various variables require to be considered. But the most crucial of all is business licenses in Dubai. Suppose the suitable licenses are not present with the management. In that case, the company may have to face additional fees, penalties, operational restrictions, and many more or may eventually have to shut down the company. So before you start any business in Dubai, it is essential to know about the types of business licenses in Dubai.

Getting a business license is a significant step in setting up a business in Dubai. The business licenses are varied upon numerous factors such as the activity being performed, the company’s size, the jurisdiction in which the company is being set up, and several other factors. A business or trade license is not only a formality in Dubai; it is something of a need. The business license determines the nature of your business activity and validates your company. Department of Economic Development (DED) in Dubai is the authority that offers licenses to businesses in Dubai. DED has classified each and every business under several licenses, offering them eminence according to your business activity.

Dubai DED is the organization that does not only offer business licenses but also manages the process related to business licensing. A Dubai based business license legitimize your company as a legal entity verified to do business. Not only this, but the business license also identifies you and your enterprise. The business licenses take accountability of your commercial proceedings and also protects the public safety and health.

Here Are The Types Of Business Licenses In Dubai

There are mainly four types of business licenses in Dubai and across the United Arab Emirates (UAE) such as Commercial License for general trading businesses, Industrial Licenses for manufacturing products, Professional License for service-related businesses, and Tourism license for travel and tours industry.

1. Commercial license  

A commercial license is mandatory for the general trading business. Commercial trade license is issued to a company comprised of any sort of commercial trade activity. All commercial trade activities in Dubai or all over the UAE requires a commercial trade license. The general traders and specialized entrepreneurs can make use of a commercial license in Dubai. Commercial trade licenses can be allowed to a business or company involved in trades associated with services, goods, and commodities. Commercial trade license caters as a requirement for the regulations and protection for such types of companies and businesses.

2. Industrial License

The industrial and manufacturing companies are required to have an industrial license in the United Arab Emirates (UAE). The Department of Economic Development (DED) issued this license. To get this license, approval from the Finance and Industry Ministry and other judiciaries are compulsory. This type of license is issued to an organization that transforms natural resources or alter raw material. An industrial license is valid for a limited period subject to consent with the situations mentioned throughout the issuance. Industrial License commits the company to have a physical warehouse inside the country.

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3. Professional License

A professional license is for service related business. The professional and specialists require a professional license in Dubai and other Emirates of the United Arab Emirates (UAE). A service-oriented company varies on a professional’s skill. So, therefore, in order to set up a business in UAE, the professional and specialists require to get a professional license in Dubai or other emirates of UAE. The professional licenses in the UAE are allowed based on the educational entitlement and area of expertise. Obtaining a professional license involves several factors such as documentation, municipality formalities, approvals from the Chamber of Commerce, and many more.

4. Tourism License 

Tourism trade license is required for the tour and travel industry in Dubai and other Emirates in UAE. United Arab Emirates (UAE) is a preeminent tourism hub and has a high demand for businesses associated with tourism. This kind of license in the UAE will also be offered by consolidated licenses for commercial and tourism activities. If you plan to set up businesses like tours and travel companies, restaurants, hotels, or even rent a car company, you need a tourism license. A tourism license will not only clarify the procedure of setting up your company but will also increase the tourism business’s authority.

Each and every business licenses in Dubai are industry determined; when some licenses would be suitable for some businesses, others may not be appropriate for the associated business activities. This signifies that you can apply for a type of business license in Dubai varying on the industry, structure of the company, business activity, etc.

Also read, How much Small Business License Cost in Dubai

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