Choosing the correct business license in the UAE is a crucial step when setting up a company. The license type defines permitted activities, regulatory requirements, and operational obligations. Understanding the differences helps businesses enter the market efficiently and remain compliant.

Commercial license 

A commercial license is issued to companies engaged in trading activities. It covers import, export, wholesale, retail, and distribution of goods. Certain product categories may require additional approvals and certification.

Professional license 

A professional license applies to service-based companies. This includes consulting, legal, IT, marketing, education, and other professional services. Proof of qualifications and relevant expertise is typically required.

Industrial license 

An industrial license is required for manufacturing, processing, and assembly activities. Companies must meet safety standards, secure appropriate facilities, and comply with product certification requirements.

Tourism license 

A tourism license is intended for businesses operating in the tourism and hospitality sector. This includes travel agencies, tour operators, and event management companies. Activities are regulated by relevant government authorities.

Free zone licenses 

UAE free zones issue their own licenses tailored to specific industries. Common categories include trading, service, and industrial licenses. Requirements vary depending on the selected free zone.

Choosing the right license 

The appropriate license depends on business activity, target market, and company structure. Incorrect selection may lead to operational limitations and additional compliance costs. Professional guidance helps ensure accurate licensing and regulatory compliance.