Commercial, Service, Industrial, E-Commerce, and Freelancer Permits When starting a business in Dubai, one of the most important steps
Commercial, Service, Industrial, E-Commerce, and Freelancer Permits
When starting a business in Dubai, one of the most important steps is choosing the right licence. The type of licence determines what activities your company can legally carry out, whether you can trade locally, operate online, or provide professional services. Understanding each licence type helps you avoid delays, unnecessary costs, or compliance issues.
Commercial Licence
Who needs it:
Businesses that buy, sell, import, or export goods.
Example activities:
- Trading electronics, fashion, furniture, etc.
- Importing products from abroad and selling in the UAE
- Wholesale distribution
Key points:
- Suitable for free zone or mainland companies
- Requires a warehouse or office if you store physical products
- Allow inventory management and local or international sales
Service Licence (Professional Licence)
Who needs it:
Individuals or companies providing professional services.
Example activities:
- IT and software solutions
- Digital marketing or consultancy
- Accounting or business advisory
- Graphic design or media services
Key points:
- Common for freelancers and small teams
- Usually, lower setup cost compared to commercial licences
- Can be registered in free zones or mainland
Industrial Licence
Who needs it:
Businesses involved in manufacturing, production, or logistics.
Example activities:
- Light manufacturing, such as furniture or food packaging
- Warehousing and distribution
- Assembly operations or logistics services
Key points:
- Requires industrial or warehouse space
- Can be in a free zone or mainland, depending on the type of activity
- Offers infrastructure support like utilities, storage, and transportation access
E-Commerce Licence
Who needs it:
Businesses that operate online or sell products digitally.
Example activities:
- Online retail websites
- Dropshipping stores
- Digital products or software sales
- Marketplaces like Amazon or local e-commerce platforms
Key points:
- Flexible office solutions like a virtual office or a flexi desk
- Can combine with other licences for additional activities
- Supports UAE-based or international online customers
Freelancer Permit
Who needs it:
Individual professionals working independently or on contract.
Example activities:
- Freelance media production
- IT services or software development
- Marketing, SEO, or social media consultancy
- Graphic design or content creation
Key points:
- No office required for most permits
- Easy and cost-effective to start
- Suitable for digital nomads or single operators
How to Choose the Right Licence
- Define your business activity: Identify whether your business sells goods, offers services, manufactures, or operates online.
- Select the business setup: Free zone vs mainland vs offshore based on target market.
- Check licence eligibility: Each free zone has approved activity lists. Mainland may require a local partner for certain activities.
- Budget for costs: Commercial and industrial licences usually cost more due to office/warehouse requirements. Freelancers and e-commerce have lower initial costs.
- Plan for growth: Choose a licence that allows expansion or adding new activities without forming a new company.
Choosing the right business licence in Dubai is the foundation of a successful company. Understanding what each licence allows, the costs, and the requirements will help you make a practical decision and avoid surprises in the future.
FAQs About Dubai Business Licences
Q.1 Can I hold multiple licences at the same time?
Some free zones allow multiple activities under one licence, but you may need additional approvals for unrelated activities.
Q.2 How long does it take to get a licence?
Usually 1–3 weeks for free zone licences, 2–6 weeks for mainland licences, depending on approvals.
Q.3 Do I need a physical office for all licences?
Industrial and commercial licences usually require office or warehouse space. Service, e-commerce, and freelancer licences can use virtual offices or flexi desks in most free zones.
Q.4 Can I change my licence type later?
Yes, you can upgrade or switch licences depending on business growth, but it may involve additional fees and approvals.
Q.5 Are licences renewable?
All licences require annual renewal. Renewal fees depend on licence type, office setup, visas, and any additional services.
