Introduction
Starting a business in the UAE is an exciting opportunity, but choosing the right business license is crucial for compliance and smooth operations. The UAE offers several types of trade licenses, each tailored to different business activities. In this guide, we’ll walk you through the different types of licenses, their costs, and how to choose the best one for your business.
Why Do You Need a Business License in the UAE?
A business license is a mandatory requirement for all businesses operating in the UAE. It:
✅ Ensures legal compliance with UAE regulations
✅ Defines your business activities
✅ Enables you to open a corporate bank account
✅ Allows you to apply for visas and hire employees
✅ Helps you establish credibility with clients and partners
Without a valid trade license, businesses may face penalties, fines, or even shutdowns.
Types of Business Licenses in the UAE
The UAE government issues different types of licenses depending on the nature of the business. Here are the four main types:
1. Commercial License (For Trading & E-commerce Businesses)
A Commercial License is required for businesses involved in buying, selling, and trading goods, including retail stores, e-commerce businesses, import/export firms, and real estate companies.
✅ Suitable for trading, logistics, and general trading businesses
✅ Can be obtained in Mainland and Free Zones
✅ Required for e-commerce businesses
💰 Cost: AED 10,000 – AED 40,000 (varies by jurisdiction)
2. Professional License (For Service-Based Businesses)
A Professional License is issued to individuals and companies providing services such as consulting, IT solutions, legal services, accounting, and marketing.
✅ Ideal for freelancers, consultants, and service providers
✅ Allows 100% foreign ownership in Mainland UAE
✅ Requires Local Service Agent (LSA) for Mainland setup
💰 Cost: AED 8,000 – AED 20,000
3. Industrial License (For Manufacturing & Production Businesses)
Businesses involved in manufacturing, production, and industrial activities must obtain an Industrial License. This includes factories, food processing plants, and machinery production companies.
✅ Required for manufacturing, packaging, and industrial businesses
✅ Must have a warehouse or factory facility
✅ Requires approvals from local municipalities and environmental authorities
💰 Cost: AED 15,000 – AED 50,000
4. Freelance Permit (For Individuals & Solopreneurs)
A Freelance Permit is ideal for individuals looking to work independently without setting up a full company. This includes professionals in media, tech, consulting, and design.
✅ Allows self-employment in specific Free Zones
✅ No need for a physical office
✅ Ideal for freelancers, content creators, and remote workers
💰 Cost: AED 5,000 – AED 15,000
Mainland vs. Free Zone vs. Offshore Licenses: Which One to Choose?
| Feature | Mainland License | Free Zone License | Offshore License |
|---|---|---|---|
| Ownership | 100% Foreign Ownership (For Most Businesses) | 100% Foreign Ownership | 100% Foreign Ownership |
| Business Scope | Operate in UAE & Internationally | Limited to Free Zone & International | No operations in UAE |
| Visa Eligibility | Can Apply for Multiple Visas | Limited Visa Options | No Visa Eligibility |
| Tax Benefits | 9% Corporate Tax (If Profits > AED 375,000) | 0% Corporate Tax (For Most Free Zones) | 0% Corporate Tax |
| Ideal For | Retail, E-commerce, Local Services | Tech, Trading, Consulting | Holding Companies, International Business |
How to Apply for a UAE Business License?
Here’s a step-by-step guide to obtaining a UAE trade license:
Step 1: Choose Your Business Activity
- Select a business category (e.g., trading, consulting, or manufacturing).
- Ensure the activity is approved by DED (for Mainland) or Free Zone Authority (for Free Zones).
Step 2: Select Your Business Jurisdiction
- Mainland – Best for businesses targeting the UAE market.
- Free Zone – Ideal for international trade & tax benefits.
- Offshore – Suitable for global business operations with tax savings.
Step 3: Finalize Your Company Name
- Follow UAE’s naming rules (no offensive terms, religious references, or political words).
- Get name approval from relevant licensing authorities.
Step 4: Apply for Initial Approval & Submit Documents
- Prepare and submit:
✅ Passport copy of owner(s)
✅ Business plan (for some activities)
✅ No Objection Certificate (NOC) (if required)
✅ Office lease agreement (for Mainland companies)
Step 5: Pay License Fees & Get Your Trade License
- Pay the required government fees based on your business type.
- Once approved, receive your business license within 3–7 days.
Step 6: Open a Corporate Bank Account
- Choose a UAE bank like Emirates NBD, Mashreq, or ADIB.
- Provide your business license and documents for approval.
Step 7: Apply for Visas & PRO Services
- Business owners can apply for Investor Visas, Employment Visas, and Dependent Visas.
Cost of a UAE Business License
The cost of a UAE business license varies depending on the jurisdiction and business type:
| License Type | Estimated Cost (AED) |
|---|---|
| Mainland Trade License | AED 15,000 – AED 50,000 |
| Free Zone Business License | AED 8,000 – AED 35,000 |
| Offshore Business License | AED 5,000 – AED 15,000 |
| Freelance Permit | AED 5,000 – AED 15,000 |
Note: Costs may vary depending on business activities, office space, and visa requirements.
How NAM Accountants Can Help You Get Your Business License
At NAM Accountants, we specialize in:
✅ Business Setup & Licensing – Mainland, Free Zone & Offshore
✅ Company Registration Assistance – Documentation & Compliance
✅ Trade License Renewal & Amendments – Hassle-free processing
✅ PRO & Visa Services – Investor & Employee Visa Processing
✅ Corporate Tax & VAT Advisory – Ensuring Compliance with UAE Laws
📞 Get Expert Consultation Today!
