Starting a business license UAE and why it is necessary
The necessity of a license
Doing business in the UAE without a license is illegal. This document is essential, alongside the company’s founding papers. The license reflects the legal status of the enterprise, information about the founders, the legal address, permitted activities, and the registration date. All types of licenses are issued for one year. Later, they need to be renewed on time. It is better to start this process by 2-3 weeks before the expiration date.
Starting the procedure
The licensing process begins with choosing the type of activity and the company’s location. In the UAE, there are several types of companies: offshore, onshore, local (local), and free zone companies. To obtain a license, you will need to collect a package of documents depending on the type of activity, submit an application to the relevant authorities, and wait their decision.
Trade license category in UAE
In the Emirates, the list of allowed activities includes around 2000 positions. Generally, all types of business licenses in Dubai and the UAE can be divided into 4 major categories:
- commercial (trade);
- industrial;
- professional;
- tourism.
Commercial licenses
Trade licenses come in two types: general and specialized. A general commercial or trade company license in UAE is issued by the Department of Economic Development. It allows the sale of an unlimited number of goods. A specialized license usually regulates the number of product categories.
Industrial licenses
To obtain an industrial license, you will need to develop a business plan, secure an environmental permit by proving that your production does not harm the environment, and sometimes modify your warehouse to meet the required standards for product storage.
Professional or service licenses
To receive a professional activity permit, you must verify your expertise. For example, if you plan to provide engineering services, you must prepare relevant documents about your education and professional development, such as diplomas and certificates. In some cases, you will need to pass accreditation.
Tourism licenses
The tourism business is regulated by the UAE Department of Tourism. To engage in the tourist business, you need to obtain a corresponding tourist license: local or international. The requirements for this license are pretty stringent: you will need a business plan, bank guarantees, and additional permits from the police and various departments. Staff must also verify their qualifications by completing relevant courses and passing exams.
The types of trade license in Dubai and the UAE above are among the most in demand. However, with the emergence of new types of activities and the state’s encouragement of new technologies, other demands may arise. For example, the freelance license for providing IT services is currently popular. Another interesting option is the investment (financial) license, which is used to open commercial banks or cryptocurrency exchange services.
How business licensing works in the UAE
The process of licensing a business in the UAE can be roughly divided into the following stages:
- Analysis of the competitive environment.
- Choosing a registration location according to business goals.
- Choosing the type of activity.
- Selecting the organizational and legal form of the company.
- Collecting the necessary documentation.
- Submitting the license application to the relevant authorities.
- Meeting the requirements of local authorities and various departments, from confirming the registration address to undergoing certification (if necessary).
- Waiting for the decision on license issuance.
- Receiving the license valid for 1 year.
Suppose errors are found in the documents during the decision-making process, such as missing documents, copies not notarized, or papers not translated into English/Arabic. In that case, the application will be rejected until the errors are corrected.
Additional information about company licenses
The licensing process is quite complex. You can find more details in the article: “How to get business license in UAE”. However, be warned that without understanding the specifics of local laws and documentation rules, the process may take weeks or even months. Each error will cost time and additional effort.
By turning to our company, Dynasty Business Adviser, for the evaluation of a business idea or an established business ready to expand into another country, you will receive a guaranteed outcome. Our experienced specialists know how to prepare documents so they are accepted on the first attempt, difference between commercial and professional license Dubai, Dubai trade license check, or how to check company license in Dubai. Even if you prefer to go through the process independently, legal consultation will help you avoid serious mistakes.
The UAE business license cost
A business license in Dubai cost is influenced by:
- type of activity;
- business location;
- the legal form of the enterprise;
- need for a business plan;
- number of employees requiring certification.
On average, a small business license cost in Dubai, renowned for its numerous free economic zones, ranges from 8,000 to 10,000 dirhams. A professional license in Dubai and other emirates starts from 15,000 dirhams. You can get detailed pricing for other types of business licenses in Dubai or other emirates during a consultation.
|
Type of activity |
Visa |
Cost |
|---|---|---|
|
Package with Trading License |
1 visa |
AED 16 900 $4,630 |
|
Package with Service License |
1 виза |
AED 16 900 $4,630 |
|
Service license + Flexi desk |
no visa |
AED 12,900 $3,540 |
|
Service license + Flexi desk |
1 visa |
AED 16,900 $4,630 |
|
Service license + Flexi desk |
2 visas |
AED 18,900 $5,180 |
|
Trading license + Flexi Desk |
no visa |
AED 12,900 $3,540 |
|
Trading license + Flexi Desk |
1 visa |
AED 16,900 $4,630 |
|
Trading license + Flexi Desk |
2 visas |
AED 18,900 $5,180 |
|
Cost |
||
|---|---|---|
|
Reservation of company name and registration of license |
AED 14,800 $4,050 |
|
|
Notary fees and articles of association |
AED 3,100 $850 |
|
|
Company immigration card and E-signature card |
AED 2,520 $690 |
|
|
Resident visa of the founder |
AED 5,110 $1,400 |
|
|
Total |
от AED 25,530 от $6,990 |
|
Type of activity |
Visa |
Cost |
|---|---|---|
|
Trading / Service / E-commerce license + Flexi Desk |
no visa |
AED 8,000 $2,200 |
|
Trading / Service / E-commerce license + Flexi Desk |
1 visa |
AED 15,000 $4,110 |
|
Trading / Service / E-commerce license + Flexi Desk |
2 visas |
AED 22,000 $6,030 |
|
General trading + Flexi Desk |
no visa |
AED 15,000 $4,110 |
|
General trading + Flexi Desk |
1 visa |
AED 22,000 $6,030 |
|
General trading + Flexi Desk |
2 visas |
AED 29,700 $8,140 |
|
General trading + Flexi Desk |
3 visas |
AED 29,700 $8,140 |
|
Premium license + Flexi Desk |
no visa |
AED 15,000 $4,110 |
|
Premium license + Flexi Desk |
1 visa |
AED 22,700 $6,220 |
|
Premium license + Flexi Desk |
2 visas |
AED 22,700 $6,220 |
|
Premium license + Flexi Desk |
3 visas |
AED 34,700 $9,510 |
|
Freelance permit |
1 visa |
AED 10,000 $2,740 |
How we assist with business license Dubai and other emirates
Dynasty Business Adviser provides comprehensive “turnkey” business licensing services. Our tasks include drafting, processing, notarizing documents, their legalization, registering a legal address, opening a bank account, and providing legal support. We handle requests of any complexity level, working with small, medium, and large businesses. Whether it’s obtaining a commercial license in Dubai for professional activities or arranging a technical service license cost in Dubai, we handle these tasks with equal efficiency. Our 8 years of experience, established connections, and highly qualified team in international law contribute to our success.
When you entrust the task of licensing a business to our team, you get a guaranteed result and open up new opportunities in this economically developed and prosperous country!
