What type of business license do I need to start my company in Dubai?

Dubai offers three primary types of licenses: Commercial, Professional, and Industrial. Each license is tailored to specific business activities, and selecting the right one ensures compliance with local regulations while determining the operational scope of your company.

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• Commercial License: This license is designed for businesses that engage in buying, selling, trading, or import/export activities. If you plan to run a retail shop, open an e-commerce store, or trade goods internationally, the commercial license will be required. Many companies operating in Dubai’s freezones and wholesale markets use this license for trading across the UAE and internationally
• Professional License: The professional license is for service-based businesses such as consultants, freelancers, legal advisors, or educational institutions. It allows individuals and companies to offer specialized services. One of the key benefits of a professional license is that it often permits 100% foreign ownership, even outside of freezones, as long as an Emirati national acts as a local service agent.
• Industrial License: If your business will involve manufacturing, production, or processing of goods, you will need an industrial license. This license is generally used by factories or manufacturing plants that require specialized facilities and government approvals, particularly for industries like food production, metalworks, or pharmaceuticals

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It is crucial to choose the correct license, as operating outside the scope of your license can result in fines and penalties. Additionally, some activities may require additional approvals from relevant government bodies (e.g., food safety for restaurants). Consulting with a business advisor helps ensure you select the right license and meet all legal requirements efficiently.