In the United Arab Emirates (UAE), many entrepreneurs come with new ideas and find ways to develop their businesses. To successfully run a business here, you must first understand the legal regulations and follow the right steps. One of the most important parts of this process is to obtain the right license.

Business activities in the UAE are mainly governed by the law of commercial companies. The Department of Economic Development (DED) is the main authority that issues licenses for businesses working on the mainland. The two main types of licenses you can apply for are a commercial business license and a professional license.

These licenses determine what kind of work your company can do and where you can work, whether in a free zone or on the mainland. Commercial trade licenses generally cover activities such as business goods, imports and exports. Professional licenses are more suitable for individuals and companies that provide services, counseling or efficient expertise.

Knowing the difference between these licenses helps business owners to choose the right license for their goals. The application process includes choosing your activity, registering your business name, submission of documents and paying the required fee through DED or relevant free zone authority.

What Is a Commercial License?

A commercial license in Dubai applies to business owners who are involved in the trade of goods. It covers the purchase and sale of physical products, as well as import and export trade. Activities under this license include general business activities such as sales, purchases, construction projects, construction, and real estate transactions.

Companies with a commercial license can do more than just trade in goods. For example, services such as investment, advertising, cleaning and safety monitoring also come under this license, even if they do not directly relate to trade. One of the main benefits of a commercial license is that it allows you to include multiple activities under a license until they correspond to the line of your business.

What Is a Professional License?

A professional license in Dubai is for service providers and businesses that rely on knowledge or expertise. This license is designed for individuals or companies that provide consultancy, education, healthcare, IT solutions, and creative services such as salons or crafts.

With a professional license, a business obtains legal recognition based on the skills, training, or experience of its owners or employees. It makes a good choice for freelancers and independent professionals who directly treat customers and provide their services. When you compare a professional license to a commercial license, it is clear that a professional license focuses on services, while a commercial license focuses on the business of goods.

Benefits of a Commercial License

A commercial license is issued to businesses that focus on any type of trade activity. As mentioned earlier, think of this as general trade in sectors such as retail, construction, and real estate. This license also covers specialized traders.

The benefits of having a commercial license in Dubai include:

• Multiple options are available for company registration and business setup.

• Up to ten different activities can be carried out under a single commercial license.

• Easy process to open a corporate bank account and use other banking services.

• Easy and straightforward process to renew your trade license.

• Residency visas are available for employees and company management.

• Assistance from local government officials for your business.

Benefits of a Professional License

A professional license is issued to skilled individuals who provide services in specific fields and have the necessary educational qualifications.

The benefits of having a professional license in Dubai include:

• Professional license holders pay a fixed annual fee.

• Residency visas are available for your employees.

• Clear and transparent dealings with clients.

Required Documents

Business License

• Completed Application Form

• Clear explanation of the type of business and planned activities

• No-Objection Certificate from the sponsor

• Letter of Intent to Operate the Business

• Copies of passports of all shareholders legally associated with the business

• Recent passport-sized photograph of the business manager or director

• Financial statement or reference certificates for at least the last two years

• Notarized copy of Registry Identification Form

Professional License

• Completed Application Form

• Copy of “Naturalization Book of Local Partners” – Jinsia

• Copies of passports (covering owners and all partners)

• If the shareholder is on a visit visa, provide the UID number

• If the foreigner has a work visa, a “No-Objection Certificate” from the international partners or sponsors is required

• Detailed explanation of the business's shared capital

• Ezari Registration, Rental Agreement and Business Name Registration Certificate

• Proof of initial approval from the competent authority based on the type and operation of the business

Comparison Between Commercial And Professional Licenses

FAQs: People Also Ask

Q1. Can I start an online business in Dubai with a commercial license?

Yes, you can. A commercial license allows you to sell goods online, trade products, or run an e-commerce store. With the rise of digital businesses in Dubai, many entrepreneurs are using a commercial license to run online shops, social media stores, or marketplaces.

Q2. Which license is better for freelancers in Dubai - commercial or professional?

If you work alone and provide services such as IT, consulting, design, or marketing, a professional license is better. It gives you full ownership and recognition for your skills. A commercial license is more suitable if you want to sell products rather than services.

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