The UAE business licence you choose determines what activities your company can legally conduct, how many visas you can apply for, and in some cases where you must establish your business. Getting the licence type wrong — or choosing activities that do not match your actual business — creates compliance risk and can require costly licence amendments or additional licences later. This guide explains every major UAE business licence type, how to match the right licence to your business model, and the specific requirements and costs involved.
The most common licence type, issued for all forms of trading activity: buying and selling goods (retail and wholesale), import and export, distribution, and general trading. A General Trading Licence covers a broad range of trading activities under one licence and is popular with UAE-based import/export businesses. Issued by: Dubai DED (mainland), relevant emirate authority, or free zone authority.
Issued for service businesses including management consulting, business advisory, accounting, legal services, IT services, marketing agencies, real estate agencies, and other professional service businesses. On the Dubai mainland, professional licences for regulated activities (engineering, law, medicine, etc.) require proof of the relevant professional qualification. Free zones offer professional licences with simpler documentation requirements — generally 100% foreign-owned without local service agent.
Required for production, manufacturing, assembly, and processing activities. Typically requires a physical factory or manufacturing facility (not a flexi-desk); issued by the relevant emirate's industrial authority (e.g., Dubai Industries Authority) in addition to the standard DED licence for mainland operations. Industrial licence holders benefit from UAE industrial development incentives in some cases.
Required for hotels, travel agencies, tour operators, online travel platforms, and tourism-related services. Issued by Dubai Tourism and Commerce Marketing (DTCM) for Dubai-based tourism businesses. Hotels additionally require a Hotel Classification Licence; restaurants within hotel premises are covered under the hotel licence while standalone restaurants require a separate food and beverage licence from Dubai Municipality.
Specifically for online retail and digital commerce businesses selling products or services online. Can be issued as a standalone e-commerce licence in some free zones (e.g., Dubai CommerCity, DAFZA) or as a commercial trading licence with e-commerce as the listed activity. The E-Commerce Licence is lower cost than a full trading licence in many free zones, making it popular for online-first businesses and dropshippers.
| Licence Type | Typical Cost (AED) | Visa Quota | Foreign Ownership (Mainland) |
|---|---|---|---|
| Commercial / Trading | AED 12,000–22,000 | 3–6 per 100sqft office | Up to 100% (2021 law) |
| Professional | AED 8,000–15,000 | 3–5 per 100sqft office | 100% (with LSA for some activities) |
| Industrial | AED 20,000–50,000+ | Based on facility size | Up to 100% |
| E-Commerce | AED 8,000–15,000 (FZ) | 1–3 (virtual office) | 100% (free zones) |
| Tourism | AED 10,000–25,000 | 3–6 | Up to 100% |
Several activities require sector-specific approvals in addition to the standard business licence:
A: A General Trading Licence covers import, export, and distribution of a broad range of goods under a single licence activity. It is a popular choice for businesses that want maximum flexibility in what they can trade without having to list every specific product category. However, some regulated goods (pharmaceuticals, food products, electronics, chemicals) may still require additional sector-specific approvals from relevant authorities even with a General Trading Licence. A General Trading Licence cost more than a specific trading licence, but provides significantly more operational flexibility.
A: Yes — UAE business licences can be amended to add, remove, or change activities. The process requires submitting an amendment application to the issuing authority (DED for mainland, free zone authority for FZ companies) and paying the applicable amendment fees (typically AED 300–1,500 for mainland amendments, varies for free zones). Some activity changes may trigger additional regulatory approvals or a full licence upgrade. The amendment is processed within 2–7 business days on the mainland; free zones vary. If you are changing to a fundamentally different activity category (e.g., from professional to commercial), a new licence application may be required.
A: Mainland UAE companies licenced in one emirate can generally conduct business across the UAE — a Dubai mainland licence allows you to operate in Abu Dhabi, Sharjah, Fujairah, and other emirates without separate licences. Free zone companies cannot directly operate in other UAE free zones or on the mainland without a separate mainland licence or commercial agent arrangement. If you need to operate across all emirates without restriction, a mainland licence is the appropriate structure. Some regulated activities (e.g., financial services) may require registration with the relevant authority in each emirate where you operate.
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