One of the main licenses for a company in Dubai is the Commercial License. It is required if goods and products are to be bought and sold. Companies can conduct business domestically and internationally with this license, but must be based in Dubai or the United Arab Emirates. The scope varies depending on the type of company. If it is a Mainland company, the license is valid throughout the UAE. If it is a Freezone company, it is only valid in the Special Economic Zone.

Real estate agents and companies in the logistics industry, for example, work with this license. But also companies dealing with motorcycles or cars need the trading license.

It is important that business activities are carried out only with a legal license. Without a license, there is a risk of sanctions and even high fines. We are happy to help you choose the right license for your business in Dubai.

Business activities that require a commercial license include:

• Logistics
• Import and export
• Tourism and travel
• Intermediary activities
• Product-oriented sales (electronics, construction, stores, stores, etc.)
• Real estate
• Rental business

Companies with a trading license enjoy several advantages. They can trade in any region of the UAE and deal in more than one product. It is possible to do business abroad or even hire foreign employees. However, the trading license is always limited to a specific product category.

General Trading License

The commercial trading license is tailored to only one product category within an industry. The General Trading License in Dubai offers business people a high degree of flexibility. Important here is primarily the possibility to constantly expand the business area. With this license it is possible to trade with several products from different industries. The General Trading License covers all goods inside and outside the UAE. Goods that require special permits are excluded. These include weapons and medical products.

With the general trading license on the mainland, one can actively participate in local trade on the UAE market.

There is no limit to the number of visas for employees. This means that as many staff as necessary can be hired. Entrepreneurs benefit from the low VAT of 5 percent. Opening a bank account including fast processing of transactions with multiple currencies is easy.

When purchasing a general trading license for the Meydan Free Zone, there are further advantages and benefits. Entrepreneurs can enjoy 0 percent VAT and 0 percent income tax.

Industrial License

If you want to set up a company in Dubai in the industrial manufacturing sector, you need an industrial license. As a holder of such a license, one is allowed to manufacture semi-finished or fully finished products. Activities that fall under the Industrial License are production, collection and packaging.

Businesses that require an Industrial License are characterized by the following:

• all business activities require the production, manufacture or generation of physical products;
• business activities require the import or export of materials or goods, etc., used in a manufacturing process;
• Packaging and producing a series of new products from existing raw materials; or
• Combining two or more existing products into a single product.

The prerequisite for an industrial license is the possession of at least one physical warehouse. It must be located in Dubai or the UAE. The license is issued by the Department of Economic Development (DED). However, various permits from Dubai Municipality or other authorities may still be important.

These must be obtained in advance by the founder.

These are among others:

• Permits from the Chamber of Commerce and Industry;
• the Industrial Registry and;
• the Ministry of Health.

E-Commerce License

Today, stationary trade is no longer the only hub for the international movement of goods. More and more is shifting to the e-commerce market. The government in Dubai has also responded to this. Since 2017, the Department of Economic Development (DED) has issued a special license for Internet retailers.

Sole proprietorships and individuals can use it to sell services and products via websites. Advertising and sales via social media are also possible.

No physical office space is required for this. The e-commerce license can only be registered to a single holder. To apply for a license, a DED merchant account must be opened.

Freelance Permit

In recent years, freelancing has gained a lot of popularity. It is an alternative to traditional types of employment. Freelancing represents a special form of self-employment. Freelancing is also on the rise as a form of business in the UAE, including Dubai. Just a few years ago, freelancing was not recognized in Dubai. Now, however, this form of entrepreneurship is permitted. If you want to work as a freelancer in Dubai, you need a visa for Dubai and a work permit. Freelance Permits are available in a variety of free zones in the UAE and Dubai.

Among them are for example:

• Abu Dhabi;
• Dubai Media City;
• Dubai Studio City;
• Dubai Production City;
• Dubai Knowledge Park;
• Dubai Design District;
• Fujairah Creative City.

The costs and conditions for a freelance visa vary. As a rule, a freelance permit is valid for three years. In Dubai, very many activities and business fields fall under freelancing. This is similar to Germany.

Software development and database management fall under it.

Musicians, journalists and photographers count among them. Stylists and coaches also need a freelance permit to carry out their activities.

Establish educational institutions with the Education License

If the standard of living among the population rises, so does the demand for education. The high demand for skilled labor boosts the demand for services in the field of education. Thus, opening private educational institutions has become an option when starting a business in Dubai and the UAE. These include preschools, secondary schools, colleges and more. Anyone opening such a business is subject to government regulation. He also needs special Education Licenses. There are different types of Education Licenses. They are all issued by the Ministry of Education. The Ministry of Community Development and the Knowledge and Human Development Authority are also involved.

These include:

• licenses for business activities in primary and secondary schools;
• special education licenses for training centers;
• licenses for higher education institutions;
• kindergartens and child development centers.

The education sector is very sensitive. Therefore, licenses alone are not enough to operate educational institutions. Additional approvals and procedures are part of the agenda.

These include:

• the confirmation of an academic plan;
• inspections of the premises;
• proof of the qualifications of the educational staff.

Tourism Ticense

Besides trade and production, mainly the tourism industry is strong in Dubai. Dubai is an attractive destination for people from all walks of life. Millions of people enjoy the breathtaking beaches here every year. The special flair of Dubai fascinates the vacationers. Therefore, it is extremely lucrative to start a company in the tourism industry in Dubai. A Tourism License is required to operate hotels, restaurants and travel agencies. The same applies to car rental companies. The company must also be registered with the DED and the Department of Tourism.

There are again different types of Tourism License in Dubai.

Among other things, there are special licenses for:

• dealing with tourists within a city (Inbound Tour Operator License);
• licenses such as the Export Tour Operator License for organizing excursions;
• the Travel Agent License for offering tours, flights, cars and hotels to customers.

There is a Tour Guide License for tour guides in Dubai. This requires extensive knowledge to be able to guide tourists around the city. To obtain this license, one must successfully complete the Top Guide program. The license is only valid for one year and must be renewed annually. It is important to have this license, otherwise there may be severe penalties.

Professional License

If you want to start a service-oriented business, you need a Professional License. This is a professional license. This license is often translated as a trade license. With a professional license, individuals can start a professional business. The business is based on special services or professional skills. So, with this license, the group of professionals with special skills is addressed. These can be, among others, services from the arts and crafts or artistic field.

A professional license has some advantages in terms of ownership. As a sole proprietor, one owns 100 percent of the business. Thus, one is automatically entitled to sole proprietorship. There is no need to bring in an investor under the 49/51 rule. A prerequisite for a Professional License is proof of appropriate qualifications. Furthermore, in some cases a training authorization is required.