3 accessible types of license in Dubai are commercial license, professional license, and industrial license. There are many resources that there are 4 types of business license in Dubai, however the 4th one named tourism license, falls under the commercial license. Make sure you spot the difference in a lot of different articles that claim there are 4 trading licenses. Before starting any kind of business in Dubai, there you need to pass through various steps. And licensing your business is one of the most important steps in the process of business steup in Dubai.
Dubai is witnessed as one of the best business destinations all over the globe. Dubai is an adequate place to startup and scales up your business. Dubai has a friendly environment for entrepreneurs and provides them with various facilities. Due to this kind of domain, everyone from all over the world wants to start a business in Dubai.
![Types of license in dubai](https://masarameen.ae/wp-content/uploads/2022/08/Screenshot_20220809-160730_1.jpg)
When you think about starting a business in Dubai, you have to pass through a specific procedure that comprises some essential steps to be followed for initiating a business. Some of the main steps of this process are knowing about the government facilities, terms and conditions, market research, and customers’ correspondence with your business.
![](https://masarameen.ae/wp-content/uploads/2022/08/Screenshot_20220807-213608_3.jpg)
After having all these steps done, the most important step of the process to start a business in Dubai is obtaining a license. You must know about the types of licenses that are mandatory to start a business in Dubai. License varies from business to business as well as by your choice of activities.
![](https://masarameen.ae/wp-content/uploads/2022/08/Screenshot_20220807-213600_1.jpg)
Before taking a step forward towards your business initiation, it is better to have a look at your choice of activities and services, then select a type of license that suits your services and activities.
![](https://masarameen.ae/wp-content/uploads/2022/08/Screenshot_20220807-214030_2.jpg)
For this reason, Masar Al Ameen, one of the top business setup companies in the UAE, is providing you with the awareness of various types of licenses that are issued by the Department of Economic Development as well as their details.
Types of License in Dubai
There are three major types of licenses we find in Dubai for trading by the Department of Economic Development Dubai.
- Commercial License
- Professional License
- Industrial License
Commercial License
A commercial license is one of broadly used types of license in Dubai mainly on the mainland. The commercial license is issued to the companies which are involved in the commercial activities, sales, and trading. The activities that come under the commercial license are general trading, trade of goods, import-export, etc.
![](https://masarameen.ae/wp-content/uploads/2022/08/Screenshot_20220807-214330_1.jpg)
Moreover, this type of license has also comprised the activities such as the food and beverage industry, software trading trade of auto accessories, electronic trading, and leather products.
Businesses related to real estate, construction, and retail are also required to obtain a commercial license.
![](https://masarameen.ae/wp-content/uploads/2022/08/Screenshot_20220809-160953_1.jpg)
Professional License
A professional license is required for those individuals or corporations that are based on talent and intellectual ability. As a professional license holder, you can provide various services according to your qualifications and expertise to the customers and clients.
![](https://masarameen.ae/wp-content/uploads/2022/08/Screenshot_20220809-161237_1.jpg)
The activities or services that come under professional license are artisanship, carpentry, consultancy services, medical services, printing and publishing, beauty salons, computer graphic design service, repair services, security services, document clearing, inventive engineering, information technology services, etc.
![](https://masarameen.ae/wp-content/uploads/2022/08/Screenshot_20220807-214912_1.jpg)
A professional license allows foreign investors to own and enjoy the complete benefits of the business. Same as a commercial license, it is necessary to have a look at the services and activities that you are going to provide to the clients.
Industrial License
The kind of business that is based on the production and manufacturing of products from natural materials to man-made raw materials is known as industrial business. If you want to run an industrial business in Dubai, it is a prerequisite to attain one of the types of license in dubai that is an industrial license to initiate an industry.
![](https://masarameen.ae/wp-content/uploads/2022/08/Screenshot_20220807-215415_1.jpg)
Equipment manufacturing, food products industries, manufacturing of paper products, fiberglass products manufacturing, bread manufacturing, cement manufacturing, textile manufacturing, the casting of metals, and engine manufacturing are some kinds of industrial businesses.
![](https://masarameen.ae/wp-content/uploads/2022/08/Screenshot_20220809-161951_1.jpg)
For industrial business, it is necessary for the companies who are attaining an industrial license must have a warehouse in the country. The warehouse is used to store the products and raw materials for running an industry.
Commercial License vs Business License
![](https://masarameen.ae/wp-content/uploads/2022/08/Screenshot_20220807-223129_1.jpg)
- A commercial license is an important type from the types of license in Dubai that is issued to a company that goes through trading activities.
- A professional license one of a types of license in Dubai that is service-oriented – required by an individual or a company that is providing the services based on its expertise and educational background.
Ownership
![](https://masarameen.ae/wp-content/uploads/2022/08/Screenshot_20220809-162135_2.jpg)
- A commercial license holder might have 100% of ownership but there are still few cases, where the holder will only own 49% of the total shares, the remaining 51% will be owned by the UAE national or local agent.
- Whereas a professional license holder will enjoy 100% ownership.
Cost of Attainment
![](https://masarameen.ae/wp-content/uploads/2022/08/Screenshot_20220807-223604_1.jpg)
- A cost of starting from 17000 Dhs is required to attain a license for commercial purposes.
- A professional license cost starts at approximately 11000 Dhs.
Liability
![](https://masarameen.ae/wp-content/uploads/2022/08/Screenshot_20220807-223918_1.jpg)
- A commercial and professional types of license in Dubai provides the owner with limited liability in debts and liabilities and allows their holders to establish and hold a business as sole owner.
Types of activities
![](https://masarameen.ae/wp-content/uploads/2022/08/Screenshot_20220807-224605_1.jpg)
- A license of the commercial company involves the activities regarding trade – general trading, commercial trading, construction company, real estate business, food and beverage industry, software trading trade of auto accessories, electronic trading, and leather products.
- A license for a professional company comprising the activities of artisanship, carpentry, consultancy services, medical services, printing and publishing, beauty salons, computer graphic design service, repair services, security services, document clearing, inventive engineering, information technology services, etc.
Advantages of commercial license
- A company with a license of commercial activities can carry out ten activities at a time.
- Local government support for business.
- Visas of residence can be taken for employees and others.
- Easy banking system.
- Easy and simple renewable process of license.
Advantages of Professional License
- The annual fee for the license is fixed.
- Dealing with clients or customers is transparent.
- Residential visas for employees can be attained.
If you want to set up a business in Dubai or you want to enquire about any information about types of licenses and their processing system, then contact one of the best business setups in Dubai, the masarameen.ae.