License Categories Overview
The UAE classifies business activities under distinct license categories, each governing the scope of permissible commercial operations. The correct license type determines legal standing, visa allocations, and compliance obligations.
| License Type | Primary Use | Typical Activities | Issuing Authority |
|---|---|---|---|
| Commercial | Trading goods | Import, export, retail, wholesale, general trading | DED / Free Zone |
| Professional | Service provision | Consulting, legal, accounting, design, IT services | DED / Free Zone |
| Industrial | Manufacturing | Production, assembly, processing, packaging | DED / Ministry of Industry |
| Tourism | Hospitality | Travel agencies, tour operators, hotel management | DTCM / DED |
| Freelance | Individual services | Media, education, technology, consulting | Select Free Zones |
Commercial License Details
The commercial license is the most common license type in the UAE. It permits buying, selling, and distributing goods within and outside the country.
| Parameter | Mainland | Free Zone |
|---|---|---|
| Ownership | 100% foreign (most activities) | 100% foreign |
| Capital Requirement | Varies by activity | Varies by zone |
| License Fee Range (AED) | 10,000-50,000 | 8,000-30,000 |
| Market Access | Full domestic + international | International + mainland via distributor |
| Visa Allocation | Based on office space | Based on package/office |
Professional License Details
Professional licenses cover all service-based activities where intellectual skills rather than goods form the basis of revenue. No physical inventory or warehousing is required.
Key eligible activities include management consulting, IT services, marketing, legal advisory, engineering consultancy, and educational services. Professional license holders may employ staff but cannot engage in direct trading of physical goods without a separate commercial license.
Industrial License Details
Industrial licenses are required for any manufacturing, processing, or assembly activity. The licensing process involves additional approvals from the Ministry of Industry and Advanced Technology, environmental compliance clearance, and facility inspections.
| Requirement | Details |
|---|---|
| Minimum Capital | AED 250,000 (mainland) |
| Factory Space | Mandatory physical facility |
| Environmental Clearance | Required before operations |
| Additional Approvals | Civil defence, municipality, sector regulator |
Freelance Permits
Several free zones issue freelance permits for individual professionals, offering a lower-cost entry point with single-person visa allocation. Available sectors typically include media and content, technology, education and training, and consulting services. Annual costs range from AED 7,500 to AED 20,000 depending on the zone and activity.
Multi-Activity Licensing
Businesses operating across multiple activity categories may add activities to a single license or maintain separate licenses. Adding activities to an existing license incurs per-activity fees of AED 1,000-3,000 on the mainland. Free zones typically charge AED 2,000-5,000 per additional activity.
Renewal and Compliance
All licenses require annual renewal. Mainland renewals are processed through the relevant DED with standard fees. Late renewal incurs penalties of approximately AED 200-400 per month. Continuous compliance with tenancy contracts, visa status, and activity-specific regulations is mandatory throughout the license period.