How to Obtain a UAE Business License: Requirements and Procedures
Obtaining a business license is the foundational step in establishing your commercial presence in the United Arab Emirates. Whether you’re a first-time entrepreneur or an experienced business owner expanding to the UAE, understanding the license acquisition process is crucial for a smooth setup. At Maldbury & Co, we’ve guided countless clients through this process, and we’re sharing our expertise to help you navigate the UAE business licensing landscape with confidence.
Understanding UAE Business Licenses
A business license in the UAE is an official permit issued by relevant government authorities that allows you to conduct specific commercial activities legally. The type of license you need depends on your business activities, location (mainland or free zone), and business structure.
Types of Business Licenses in the UAE
- Commercial License
Suitable for: Retail shops, trading companies, supermarkets, electronics stores, car dealerships, etc.
Key requirements:
- Minimum capital requirements (varies by emirate and activity)
- Office space
- Business activity approval
- Professional License
Purpose: For professionals, artisans, and service providers offering skills and expertise.
Suitable for: Consultants, accountants, doctors, designers, marketing agencies, maintenance services, etc.
Key requirements:
- Professional qualifications for regulated activities
- Office space
- Activity-specific approvals from relevant authorities
3. Industrial License
Purpose: For manufacturing, processing, and assembly activities.
Suitable for: Factories, processing plants, industrial workshops, etc.
Key requirements:
- Industrial space or factory premises
- Environmental approvals
- Higher capital requirements
- Detailed production process documentation
- Tourism License
Purpose: For businesses in the tourism and hospitality sector.
Suitable for: Travel agencies, tour operators, hotels, restaurants, entertainment venues.
Key requirements:
- Department of Tourism approval
- Specific location requirements
Staff qualification requirements
5. E-Commerce License
Purpose: Specifically for online retail and digital commerce activities.
Suitable for: Online stores, digital marketplaces, delivery apps.
Key requirements:
- Digital platform specifications
- Consumer protection adherence
- Payment gateway requirements
Business License Application Process: Step-by-Step
- Define Your Business Activities
The first step is precisely defining the business activities you plan to conduct. The UAE employs a classification system with thousands of business activities, and your license will specifically permit only those activities listed on your application.
Pro Tip: Some activities may require pre-approvals from regulatory authorities. For example, food-related businesses need approvals from the municipality’s food safety department, while healthcare services require Ministry of Health approvals.
- Choose Your Business Structure
Determine the most appropriate legal structure for your business:
- Sole Establishment: For single-owner businesses (UAE/GCC nationals only)
- Civil Company: For professional services (100% foreign ownership possible)
- Limited Liability Company (LLC): Most common structure (100% foreign ownership permitted for most activities)
- Branch of Foreign Company: Extension of an existing foreign business
- Representative Office: Limited to promoting parent company (no revenue generation)
- Select Your Business Location
Decide between:
- Mainland: License issued by the Department of Economic Development (DED) of the respective emirate
- Free Zone: License issued by the respective free zone authority
Your choice impacts market access, ownership structure, and operational flexibility as detailed in our UAE Free Zone vs Mainland guide.
- Reserve Your Trade Name
Apply for trade name reservation with the relevant licensing authority (DED for mainland, Free Zone Authority for free zones). The name must comply with UAE naming conventions:
- Must not contain offensive language
- Must not reference religions or religious organizations
- Must reflect the legal structure (e.g., LLC, FZE, etc.)
- Must not be already registered by another company
Fees: AED 600-1,200 depending on the emirate or free zone
- Prepare Required Documentation
For Individual Shareholders:
- Passport copies (valid for at least 6 months)
- Emirates ID (for UAE residents)
- No objection certificate from current sponsor (for UAE residents)
- Bank reference letter (in some cases)
- Recent passport-sized photographs
For Corporate Shareholders:
- Certificate of incorporation
- Board resolution approving UAE establishment
- Memorandum and Articles of Association
- Power of Attorney for company representatives
- Attested certificate of good standing
All documents from foreign countries must be:
- Notarized in the country of origin
- Authenticated by the UAE embassy in that country
- Attested by the Ministry of Foreign Affairs in the UAE
- Secure Initial Approval
Submit your application with supporting documents to obtain initial approval. This step confirms that your proposed business activities are permissible and that you meet the basic requirements.
Timeline: 2-5 working days Fees: AED 100-500 depending on the authority
- Lease Office Space
Secure physical premises for your business. This is mandatory for license issuance, and your lease agreement must be:
- From an approved property
- Registered with the relevant authority (Ejari in Dubai, Tawtheeq in Abu Dhabi)
- Compatible with your business activities (commercial, industrial, etc.)
Pro Tip: Some free zones offer flexi-desk arrangements or virtual offices that satisfy the physical presence requirement at lower costs.
- Draft and Notarize Legal Documents
Prepare and notarize your company’s constitutional documents:
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Local service agent agreement (if applicable)
Fees: AED 2,000-4,000 for notarization
- Obtain External Approvals (if required)
Certain business activities require additional approvals from relevant regulatory bodies:
- Healthcare: Ministry of Health and Prevention, Dubai Health Authority, or Department of Health – Abu Dhabi
- Education: Ministry of Education, KHDA (Dubai), or ADEK (Abu Dhabi)
- Food and Beverage: Municipality Food Safety Department
- Tourism: Department of Tourism and Commerce Marketing
- Financial Services: Central Bank, SCA, or DFSA (in DIFC)
Timeline: Varies significantly by industry (7-60 days)
- Submit Final Application and Pay Fees
Once all requirements are met and approvals obtained, submit your final application for license issuance along with payment of license fees.
License Fees (Approximate):
- Commercial License: AED 10,000-15,000
- Professional License: AED 7,000-12,000
- Industrial License: AED 15,000-25,000
- Tourism License: AED 10,000-20,000
- E-Commerce License: AED 9,000-15,000
Additional fees may apply based on:
- Number of business activities
- Emirate-specific requirements
- Company structure
- Size of business
- Register with Additional Authorities
After obtaining your license, several additional registrations are required:
- Chamber of Commerce membership
- AED 1,000-2,500 annually, depending on company type and capital
- Ministry of Human Resources & Emiratisation (MOHRE) registration
- Establishment Labor Card: AED 2,000-3,000
- Federal Tax Authority (FTA) registration
- For VAT (mandatory if annual turnover exceeds AED 375,000)
- Free of charge, but requires compliance costs
- Customs registration
- For importing/exporting businesses
- AED 3,000-5,000
- Open a Corporate Bank Account
With your business license, you can approach banks to open a corporate account. Prepare for a detailed due diligence process, which has become more stringent in recent years.
Required documents typically include:
- Business license
- Certificate of incorporation
- Memorandum and Articles of Association
- Shareholders’ and directors’ ID documents
- Bank reference letters
- Business plan (for new businesses)
- Source of funds documentation
Timeline: 2-6 weeks depending on the bank and complexity of structure
License-Specific Requirements
Commercial License Requirements
- Import/Export Code: Required for trading companies
- Product Registration: For specific products like cosmetics, food items, medical devices
- Storage Facilities: Proper warehousing for certain goods
Professional License Requirements
- Educational Certificates: Must be attested for regulated professions
- Professional Experience Documentation: Evidence of expertise
- Local Professional Association Registration: For fields like law, accounting, or medicine
Industrial License Requirements
- Industrial Layout Approval: Facility design must be approved
- Environmental Impact Assessment: Mandatory for certain industries
- Civil Defense Approval: Safety standards compliance
Emirate-Specific Considerations
Dubai
- DED Instant License: Available for certain business activities, allowing license issuance within 5 minutes
- Virtual Commercial License: For non-resident foreign investors in select activities
- Dual Licensing: For free zone companies to operate in mainland Dubai
Abu Dhabi
- TAMM Unified Services: Integrated platform for business licensing
- Tajer Abu Dhabi License: For home-based businesses
- Industrial Licenses: Special incentives through the Abu Dhabi Industrial Strategy
Sharjah
- Eitimad Card: Required for service providers
- Sharjah Entrepreneurship Center (Sheraa): Support programs for startups
- Low-Cost Business Setup Options: Competitive rates for certain activities
Northern Emirates (Ajman, Fujairah, RAK, UAQ)
- Competitive Pricing: Generally lower license fees than Dubai/Abu Dhabi
- Specialized Free Zones: Industry-specific incentives
- Flexible Local Ownership Requirements: For certain business categories
Common Challenges and Solutions
Challenge 1: Activity Classification
Issue: Selecting the correct business activities can be confusing among thousands of options.
Solution: Consult with business setup specialists like Maldbury & Co to determine the most appropriate activities that cover your business scope while minimizing licensing costs.
Challenge 2: Documentation Requirements
Issue: Document collection and attestation can be time-consuming and complex.
Solution: Begin the attestation process early and use professional service providers to manage document legalization.
Challenge 3: Regulatory Approvals
Issue: Obtaining approvals from multiple authorities can lead to delays.
Solution: Engage with regulatory consultants who maintain relationships with approval authorities and understand the specific requirements for each industry.
Challenge 4: Bank Account Opening
Issue: Increasingly stringent banking requirements can delay operational commencement.
Solution: Work with business setup advisors who have established banking relationships and can properly prepare your application to meet compliance requirements.
Success Story: The Butterfly Tree Detergents Trading LLC
When the founders of The Butterfly Tree Detergents Trading LLC approached Maldbury & Co to establish their business in Dubai, they faced several challenges unique to their industry. As international entrepreneurs entering the UAE market for the first time, they needed to navigate Dubai’s specific requirements for trading environmentally-friendly cleaning products.
The founders had ambitious plans to import sustainable detergents and cleaning solutions from Europe but were concerned about product registration requirements, storage regulations, and securing the appropriate trading license in mainland Dubai.
Maldbury & Co implemented a comprehensive business setup strategy:
- Strategic Activity Selection: We helped them define their business activities precisely, focusing on “Trading in Detergents, Cleaning & Polishing Preparations” while ensuring compliance with Dubai Municipality requirements for chemical products.
- Expedited Documentation Process: By leveraging our expertise, we prepared and processed all required documentation, including product formulation reports and safety data sheets required by regulatory authorities.
- Efficient Approvals Management: We coordinated with Dubai Municipality’s Environmental Department to secure necessary pre-approvals for their eco-friendly product line, reducing the typical waiting period by 40%.
- Optimal Location Selection: We advised on securing appropriate commercial space in Al Quoz Industrial Area that met both storage requirements and budget constraints.
- Banking Solution: We facilitated their corporate account opening with a UAE bank that understood their business model and international transaction requirements.
The result: The Butterfly Tree Detergents Trading LLC received their Dubai DED commercial license in just 16 days, compared to the industry average of 25-30 days for similar businesses. Within two months of initial consultation, they had completed their first product import and begun distribution to hotels and cleaning companies across the UAE.
Today, The Butterfly Tree has expanded its product range and established itself as a leading provider of eco-friendly cleaning solutions in the UAE market, with distribution partnerships across multiple emirates.
Cost Considerations and Optimization
Fixed Costs
- Trade name reservation: AED 600-1,200
- Initial approval: AED 100-500
- License fees: AED 7,000-25,000 (depending on license type)
- Memorandum of Association notarization: AED 2,000-4,000
- Chamber of Commerce: AED 1,000-2,500
- MOHRE registration: AED 2,000-3,000
Variable Costs
- Office rental: AED 20,000-200,000 annually (depending on location and size)
- Visa allocation: AED 3,000-5,000 per visa
- Activity-specific approvals: Varies by industry
- Bank guarantee: Typically AED 3,000 per employee
Cost Optimization Strategies
- Choose the right jurisdiction: Northern Emirates often offer lower costs for similar licenses
- Consider flexi-desk options: Reduced office expenditure while meeting physical presence requirements
- Start with core activities: Add additional activities as your business grows
- Explore government incentives: Programs like Dubai SME offer fee reductions for qualifying businesses
- Utilize digital services: Many free zones offer digital licenses at reduced rates
License Renewal and Compliance
Your UAE business license must be renewed annually. The renewal process involves:
- Updating company information
- Renewing related licenses and permits
- Clearing any outstanding fines or violations
- Paying renewal fees (typically similar to initial license fees)
Important compliance considerations:
- Begin renewal process 1-2 months before expiration
- Maintain proper corporate records
- Ensure compliance with Economic Substance Regulations (if applicable)
- File VAT returns on time (if registered)
- Submit annual audited financial statements (if required)
How Maldbury & Co Can Help
At Maldbury & Co, we specialize in streamlining the business license acquisition process for entrepreneurs and companies entering the UAE market. Our services include:
- Strategic Consultation:
- Business activity selection and optimization
- Jurisdiction selection (mainland vs. free zone)
- License type determination
- Documentation Management:
- Document preparation and verification
- Attestation and legalization services
- Translation of foreign documents
- Regulatory Navigation:
- Pre-approval facilitation
- Coordination with regulatory authorities
- Compliance verification
- End-to-End Implementation:
- Trade name reservation
- Initial approval processing
- License application submission
- Post-license registrations
- Corporate Banking Support:
- Bank selection guidance
- Account opening preparation
- Documentation for compliance requirements
Ready to Start Your UAE Business?
Contact our licensing specialists at Maldbury & Co for a personalized consultation:
- Call: +971502468497
- Email: hello@maldbury.com
- Visit: www.maldbury.com
Our team will guide you through every step of the licensing process, ensuring a smooth and efficient setup for your UAE business venture.
Disclaimer: This guide provides general information on UAE business licensing as of April 2025. Licensing requirements and fees are subject to change. Always consult with Maldbury & Co professionals for the most current requirements tailored to your specific business needs.