To do business in the UAE, entrepreneurs and companies are required to be licensed either in the country’s mainland or in free zone jurisdictions. When a company is licensed, it becomes legitimate in the eyes of clients and customers as it then complies with the UAE’s laws and regulations.
UAE mainland company setup involves registering the business in the Department of Economic Development of every emirate.
When starting a new business in the UAE, you need to acquire the right trade licence to ensure that your company is set up properly for the long-term. Determining the right business activity, its structure and jurisdiction ensures an appropriate setup of your business for the long term, licence type and requirements to fulfil.
Types of Mainland Licenses
1. Professional License
UAE regulations require entrepreneurs, such as craftsmen, artisans, and other professionals to acquire a license before they provide clients with their professional services.
The purpose of this license is to ensure that the applicant is qualified to carry out such professional service and then authorize the business to provide such services. Licensing requires the applicant to demonstrate certain credentials that prove their skills or training.
The company structures of the professional licence are the Limited Liability Company and the Sole Establishment; foreign investor(s) can have 100% ownership of the company. However, they must appoint a UAE national as a local service agent (LSA) to carry out the legal formalities.
2. Commercial Trade License
entrepreneur is required to obtain a commercial trade license. This license can be acquired for a limited liability company (LLC) or a sole establishment to undertake specialised trading or general trading activities.
Taxi services, school transport, investment in healthcare enterprise and development, building contracting, money and valuables transport services, buying and selling of real estate also need fall in the category of commercial trade licence.
3. Industrial License
Activities involving manufacturing, extraction, mining, quarrying, canning, packaging, freezing, etc in the UAE require an industrial licence. The licence is issued by the DED but additional approvals may be required from activity-related ministries or authorities before DED issues the license.
Requirements to Acquire a Mainland Licence
Get our experts’ help to start your business
As a business setup service provider in the UAE, Doculand can help you choose the right trade licence, ensuring that you are well-positioned for future growth. Doculand also provides comprehensive business support services to help your business thrive in the UAE market.
If you need help with licensing your business, contact our consultants today to assist you.
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