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The economic sector in Dubai is well established and this is the reason why many foreigners
invest in businesses and becoming businessmen. However, the government puts stringent
measures involving protection of the local industries against foreign take over. Every business in
must get a specific trade license in Dubai for its industry. Your choice depends on what your
business does in Dubai.
Key Takeaways
- Commercial License: For trading, importing/exporting goods. Allows multiple activities, 100% foreign ownership, and tax perks.
- Professional License: For service providers like consultants. Easier setup, full ownership, and visa sponsorship.
- Industrial License: Required for manufacturing. Offers lower utilities, government support, and favorable rentals.
Main Types of Trade Licenses in Dubai
Dubai has four main types of business licenses. You need one of these to run a legal business in
the city:
- Commercial License
- Industrial License
- Professional License
- Tourism License
Each type of business license in Dubai has a different use. For trading, you require a
commercial license while for offering service, you need a Professional License, for involving in
travel and tourism related work you require a Tourism License while for production of goods
you require an Industrial License. Picking the right one is key to following local laws.
What Is A Commercial License in Dubai?
Among those issuing licenses, there is the commercial license which is issued by the Department
of Economic Development (DED). This is a popular type of license which allows companies to
engage in the export of products in Dubai. They include businesses which primarily involve in
the buying and selling of goods such as imports and exports, and distributing companies,
wholesalers and retailers.
A commercial license makes your business legal in Dubai. You need it to use Dubai’s key
resources like international airports, trading hubs, and ports. It’s also a must-have for global trade
through Dubai.
Benefits of Getting a Commercial License in Dubai
A commercial license provides opportunities that assist companies in expanding and operating
efficiently. Here are some big advantages:
- Multiple Business Activities: You can define up to ten related business activities underone commercial license so you have the flexibility of expansion and modification here.
- Sending Profits Home: This license allows you to freely transfer your profits back toyour home country thus enabling easy and safe cross border transactions.
- 100% Foreign Ownership: Foreign investors are allowed to own their investments100% for firms established in any of the free zones of Dubai. It means that you can still
- select the locality by yourself without having to rely on a local partner.
- Easier Import & Export: A commercial license is helpful in importing and exporting products which enable you to undertake international business without complications.
- Tax Benefits: It should be noted that Dubai is one of the most tax-liberal places in the world. Although there is no personal income tax in the country and business taxes are comparatively low, it means that with a Commercial License, companies may save a lot, much if they are located in free zones where the taxation might be even lower.
- Worldwide Connections: Dubai hooks up companies with desirable markets in the Middle East, Africa as well as Asia. By obtaining the commercial license, many trading partners are accessed enabling the businesses expand their market to the international market.
What Is a Professional License in Dubai?
Besides being great for trade, Dubai also draws top experts from around the world. These skilled
workers offer valuable services in fields like consulting, law, accounting, and more. To work
legally in Dubai, these experts need a professional license.
The professional license is an official document that shows a person can offer services in the
United Arab Emirates. People with this license must follow the government’s safety and health
rules. This license matters a lot to both the expert and the government. It makes sure the services
meet quality standards.
For the expert, this license is a must to work legally. For the government, it ensures businesses
follow rules and provide good quality services. Services that usually need a professional license
include consulting, auditing, design, tourism, education, and other jobs that need special skills.
Benefits of a Professional License in Dubai
The professional license offers several perks for service-based businesses. Key advantages
include:
- Access to Skilled Workers: Dubai attracts many professionals. Having a professional license lets you hire from this talented group to build a strong team for your service business.
- Business Bank Account: With a professional license, you can open business bank accounts in Dubai. This is important for handling professional money matters and building trust in your business.
- Work Visas: It lets businesses sponsor work visas for employees. This is crucial for bringing in skilled professionals from other countries.
- Showcase Expertise: Professional license acts as an official credential. It highlights the business owner’s qualifications and experience. This builds trust with potential clients and helps create a strong professional reputation.
- Streamlined Business Launch: Compared to commercial licenses, professional licenses often offer a faster, simpler setup process, enabling you to kick off your business activities more quickly.
- Freelance-Friendly: Professional licenses allow individuals to work legally as freelancers, making them perfect for consultants, solo entrepreneurs, and professionals working on a project basis.
- Complete Foreign Ownership: Like commercial licenses in free zones, the professional licenses allow fully foreign owned business, making the owners have full control over their businesses.
- Reduced Running Costs: Professional licenses are usually cheaper in terms of initial application and annual/ bi-annual renewals as compared with commercial licenses especially depending on the type of service that the company provides.
What Is an Industrial License in Dubai?
The industrial segment of the Dubai economy is on the rise and is becoming more appealing to
international investors. Companies that engage in production or manufacturing of goods,
processing or packaging require an industrial license to operate within the city. The Department
of Economic Development or DED grants this compulsory license for companies in industrial
commerce.
The industrial license requires that an industry meet specific government regulation such as
possessing a warehouse in Dubai as well as compliance to safety requirements within the region.
Possessing first-class infrastructure, including international airports, seaports, and road
infrastructure, Dubai can be regarded as a highly favorable country for industrial organizations.
Benefits of an Industrial License in Dubai
- Business-Friendly Rental Agreements: The government offers good lease terms forindustrial spaces, making it easier to set up operations.
- Lower Utility Costs: Industrial license holders enjoy reduced rates on key services like electricity and water.
- Government Support: The government provides valuable advice on industrial operations, helping businesses improve their processes.
- Affordable Loans: Companies focusing on innovative products can access loans with lower interest rates, supporting their growth.
- Financial Incentives: The government also offers financial support to industrial companies, helping them expand and succeed.
Key Differences Between Commercial, Professional, And Industrial Licenses
While the DED issues all three license types, they differ in application processes, purposes, and
fees. Each license type has different document requirements and registration timelines. The
needed approvals also vary. Each license serves a specific function.
Here’s a table summarizing the key differences between commercial, professional, andindustrial licenses in Dubai
| Criteria | Commercial License | Professional License | Industrial License |
|---|---|---|---|
| Process | Varies with documents and approvals for | Faster process for service-oriented businesses. | Requires approvals related to manufacturing and industrial activities. |
| Purpose | Suitable for trading, importing, exporting goods. | For service providers like consultants, freelancers, and professionals. | Ideal for businesses involved in manufacturing, production, and packaging. |
| Costs | Ranges from AED 12,000 to AED 50,000 depending on the business. | Costs up to AED 15,310. | Ranges from AED 12,000 to AED 50,000 based on business scale. |
Conclusion
Getting the right UAE trade license is key for legally running a business in Dubai. These
licenses offer many perks, like government recognition, access to new policies, and financial aid.
But the process can be tricky and needs a good grasp of local rules.
To make this process easier, it is always advisable to engage the services of reliable business set
up firm such as Emifast. In addition to providing you with insights to guide your business
success, we make it our responsibility to see to it that your business enterprise is established in
Dubai without hitches.