Types of Business Licenses and Activities in UAE
The United Arab Emirates is the top-ranked business hub across the world. Dubai attracts foreign investors by its strategic location.
Prior to starting a business in Dubai, it is advisable to understand the jurisdictions and types of companies that may suit one’s business requirements.
The company may be set up either in the mainland, or free zone or as an offshore company depending on the nature of business. The entrepreneur can choose the license based on the activities and services he wishes to start.
UAE government has made certain process to establish a new business in emirates of UAE. Obtaining initial approvals, preparation & execution of the legal documents, obtaining office, submission of documents, making payment and issue of license completes the incorporation. Following the issue of the license, the process of opening bank accounts and obtaining visas can be initiated.
Jurisdiction & Types
- On-shore companies or Mainland Companies have a presence in mainland United Arab Emirates. These companies require a UAE national as local sponsor or service agent, except in cases where all the investors are from the GCC countries.
- Free Zone companies usually employed by foreign investors operating within Dubai’s free zones. These companies provide tax-free benefits especially to traders and businesses related to import and export.
- Offshore companies which allow full foreign ownership and are employed as asset, properties or holding companies established to operate outside the country of registration.
Types of Business Licence in UAE
Well begun is half done!
Business Activities are classified into four business licenses as follows:
- Commercial License:
A commercial activity license is issued to a company when it is involved in any sort of commercial trade activity and in trade related to any goods, commodities and services. The General and specialized traders can avail a commercial license in UAE.
There are various business activities that come under the Commercial License such as,
- Transport, shipping and storage
- Restaurants and coffee shops
- Consumer Stores Group, etc.
- Professional License:
Professional License is issued to individuals or a group of people whose work is dependent on their skills and talents such as,
- Management Consultancy & Services
- Auditing Firm
- Law Firm
- Computer Consultancy
- Insurance Consultancy
- Industrial License:
An industrial license is offered for business activities like the manufacturing of materials and products in industries. Some of the Industrial activities are as below:
- Food Mills and Packaging
- Carpet Manufacturing
- Fodder and fertilizers manufacturing
- Lighting equipment manufacturing
- Manufacturing of chemicals
- Food industries, etc.
- Freelance License:
Freelancing activity has already gained popularity across the UAE. The free zones of Dubai, Abu Dhabi, Fujairah, and Ras Al Khaimah are offering the Freelance Work Permit for individuals.
Freelancer License is issued to following creative professionals:
- Audio/Sound Engineer
- Cameraman, etc.
Looking to start your dream business in the UAE?
First, make a list of your desired business activities and consult a company formation consultant, they can help you to get all activities in a single license.
Contact Profound Business Services to start your dream business in the UAE. Drop an email at firstname.lastname@example.org or Whatsapp me on +971 55 209 6715.