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Start a business in Dubai: 4 types of trade licenses

The emirate of Dubai is home to well-established local and international brands, as well as a growing startup and SME community. All of these ventures have started from the bottom. They went through the nitty-gritty process of establishing their businesses in Dubai and worked tirelessly to achieve and sustain business growth. How?

First, by knowing the government formalities, various requisites, business types, and trade licenses in UAE well. Next, by studying the country’s diverse market and how to make the best use of its products and services to create an impact, Lastly, by anticipating the future and the emerging markets, not only locally but globally,

As an entrepreneur, you must be ready to go through the different stages of business setup in Dubai mainland. It all starts with knowing the type of license you should apply for based on the activities or services you wish to provide.

Before jumping into a decision, the first important thing to consider is starting a business in Dubai, UAE, and the appropriate license you should apply for. Let’s take a look at the four types of trade licenses under the Dubai Department of Economic Development (DED):

Commercial License

A commercial trade license—the most widely used license on the Dubai mainland—is issued to companies involved in commercial activities and trade in the UAE. Your business activity, such as general trading, may involve importing, re-exporting, and trading allowed goods and commodities. Other examples of activities under this type of trade license are food and beverage trading, handbags and leather products trading, and auto accessories trading, among others. Creative Zone’s company formation experts can provide you with the most updated list of business activities under a commercial license to start your business in the UAE.

Professional License

If you are a skilled professional with a specific field of expertise, you can start a business in Dubai by obtaining a professional trade license from Dubai DED. A professional license is granted to companies that are service-oriented in nature and make profits out of the services they offer. Business activities that fall into this bracket are consultancies, management services, education and training providers, technical services, beauty salons, healthcare and medical services, printing and publishing, accounting and auditing, and so much more. There are instances when a business activity is considered both commercial and professional. So, to avoid confusion, it is best to seek the guidance of a business setup advisor.

Industrial License

Any business that engages in the production and manufacturing of new products by converting natural resources or man-made raw materials is considered an industrial activity. The final product can either be produced manually or mechanically. Thus, an industrial trade license from Dubai DED is required. Business activities such as cement product manufacturing, fibreglass product manufacturing, meat product manufacturing, bread manufacturing and food industries, textile manufacturing, and equipment and engine manufacturing are just some of the many examples. It is also important to note that all companies with this type of license must have a physical warehouse in the country. If you need thorough assistance in obtaining an industrial trade license, Creative Zone’s company formation specialists can help you in the process.

Tourism License

The tourism trade license issued by Dubai DED is pretty straightforward.  All businesses related to tourism activities need to apply for a tourism trade license, such as vacation home rentals, hotel apartment rentals, outbound and inbound tour operators, travel agencies, and marine tour operations, among others, to start a business in Dubai. The number of tourists in Dubai alone has dramatically increased over the past decade, making travel and tourism one of the fastest-growing sectors in the UAE today.

DED is the governing body for business registration and licensing (BRL) in Dubai. It was reported early this year that a total of 20,467 new licenses were issued in 2018, which represents 4.6 percent growth from the previous year’s figures. While it’s the best time to set up your business in Dubai today, starting on the right track ensures success.

That is why you need CREATIVE ZONE’s business setup advisor to help you navigate your way through the various government formalities before you can legally conduct your business in Dubai. Creative Zone’s high reputation in the business setup industry has resulted in thousands of companies being incorporated over the past years. With Creative Zone, your business is off to a great start.

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