LICENSE IN THE UAE
What is License in the UAE?
A UAE business license (often called a trade license) is a mandatory, government-issued document authorizing legal, commercial, or professional activities. It authorizes companies to operate in specific jurisdictions (mainland or free zones), allows for bank account opening, and enables visa sponsorship. Key types include commercial, professional, and industrial.
Mandatory Authorization: It is illegal to conduct business without the appropriate license from the Department of Economic Development (DED) or a Free Zone Authority.
Types of Licenses:
- Commercial License: For trading/selling goods and services (e.g., retail, logistics).
- Professional License: For service providers, artisans, and professionals (e.g., consultancy, accounting).
- Industrial License: For manufacturing or processing goods.
- Other: Tourism, Agriculture, and Craft licenses are also available.
Validity and Activities: A license defines the specific activities a company is allowed to perform. More than one business activity can sometimes be included under one license.
Key Locations:
- Mainland (DED): Allows business throughout the UAE and internationally.
- Free Zone: Offers benefits like 100% foreign ownership, specifically in designated areas.
Requirements & Benefits
- Trade Name: A unique name must be registered.
- Corporate Bank Account: A license is required to open a corporate bank account in the UAE.
- Visas: Enables the company to apply for employee visas.
- Compliance: Ensures the company adheres to the regulatory standards of the specific emirate, such as Abu Dhabi, Dubai, or Sharjah.
