There is a wide range of Small Business Licenses in Dubai that caters to specific investor requirements. Over the years new company incorporations are on a rise due to the demand from foreign investors for setting up a company in the region.
A small business license in Dubai is a permit from the licensing authority for the registered company to run its small businesses or startups in the country. Dubai is constantly introducing entrepreneur-friendly policies like Long Term Residence Visa, reducing certain business setup fees, etc., to promote new company incorporation in the country.
Why Choose Dubai to Set Up a Small Business?
Dubai is the right place for starting a small company due to the entrepreneur-friendly policies like Long Term Residence Visas, reducing certain business setup fees, etc., to promote new company incorporation in the country.
Furthermore, Dubai aims to drive its economy to greater heights by inviting more investors to the local market of UAE. Also, in return Dubai offers world-class infrastructure for establishing companies in the country.
In Dubai, the Small Business License can be obtained from Free Zones or the mainland. There are Free Zones in other Emirates such as Sharjah that offer low-cost license packages.
The Small Company License in Sharjah starts at AED 5,500 for zero visa quota. Also, the investor gets a virtual office license with up to 5 business activities as part of the package.
Steps to get a Small Business License in Dubai?
There are three business jurisdictions to choose for obtaining a Small Business License in Dubai. The Free Zones and Mainland of Dubai are the most common choices for setting up a business.
Depending on the investor’s business requirement they can choose. For foreign investors, the Free Zone is most preferred due to the complete ownership, favorable taxation policy, and more.
The offshore jurisdiction is ideal only for international consultancies, marketing offices, etc., that operate globally and remotely. They cannot conduct any business with the UAE or get the employees a residence visa from the UAE.
The steps to obtain a Small Business License in Dubai is almost similar across the business jurisdictions. However, depending on the nature of business activity and document requirements; the steps vary slightly.
The business owner can apply for the small business license by filling out the application online with their passport copy and photograph. They can seek assistance of expert Business Consultants for easy processing of the trade license.
After the initial approval and immigration nationality checks, the business owner is eligble to take the Small Business License from the Free Zone or the Mainland. They can also upgrade to an office package based on the requirement.
Small Business License – Free Zone vs. Mainland
The rationale behind choosing the right business jurisdiction mainly depends on whether you are targeting only international markets or are you also considering UAE and the rest of GCC markets for your business.
There are a host of benefits in UAE like growing domestic demand from the ex-pat population, applying for government contracts, Low taxation, a wide range of business licenses, business activities, etc.
So based on the business activities, the investor can choose between the Mainland and Free Zone to conduct business in UAE and also focus of international operations. The visa quota, office space, activity availability, etc., are factors that determine whether to go with a Free Zone or Mainland.
To know more read: Company Formation in Free Zone & Company Registration in the Mainland of Dubai
Small Business License Types in Dubai
To start a company in Dubai having a business license is an essential requirement. The licensing authority with issue the specific license based on the selected business activity. In Dubai, there are various business license types such as Commercial/Trading, Professional/Services, Industrial/Manufacturing, and Freelance Permit.
Dubai has evolved as a favorite business destination for entrepreneurs from around the world. The city offers an infrastructure that is ideal for any business to easily scale up and achieve profitability.
1. Commercial License in Dubai
Commercial License in Dubai is for companies involved in buying and selling goods. It is one of the most sought-after small business licenses in Dubai. Obtaining a Commercial License in Dubai will permit the companies to conduct trade inside of UAE and globally without any hassle.
For small business companies obtaining a commercial license in Dubai is favourable to conduct their trade legally. There are multiple activities available under the small business license in the trading category.
Business owners can start trading in food stuff, trading in chemicals, electronics, garments, and more. Also, for trading multiple items in the local UAE market, you can apply for a general trading license from the authorities in Dubai.
2. Professional License in Dubai
Professional License in Dubai will help in legalizing an individual’s professional service delivery. It will help them to deliver their services in Dubai and rest of the world. Numerous business activities fall under the Services License category in Dubai.
The Services License or Professional License in Dubai will help the entrepreneur establish a new company in the Free Zones or Mainland. It is one of the most common small business licenses in Dubai.
Activities such as Consulting, audit, and legal services are covered under the Professional License in Dubai. Also, IT service providers, professionals, artisans, craftsmen, etc., could also apply for the Professional License in UAE.
Furthermore, if the owner is more than one person, the business entity can be registered as a Civil Works Company in the Mainland of Dubai. Small businesses and startups can easily start their business operations at reduced cost by obtaining a professional license in Dubai.
3. Industrial License in Dubai
Businesses involved in industrial and manufacturing activities in Dubai must take an Industrial License. The company must have a physical office in the UAE to issue an Industrial License.
There are a Few Free Zones such as the Dubai Airport Free Zone, Dubai South, Jebel Ali Free Zone, etc., that offer industrial licenses in Dubai.
Industrial/ Manufacturing License is an essential business license in Dubai for operating a large or small industrial unit. Various activities are under the Industrial License category in Dubai.
Type of specific Industrial License types available
- Garments Manufacturing License
- Meat products Manufacturing
- Dairy Products Manufacturing
- Animal & Birds Feed Manufacturing
- Carpet Manufacturing
- And many more
4. Freelance Permit
Freelancing has already gained popularity in the UAE. Many Free Zones in Dubai and the rest of the UAE are offering Freelance Permits for individuals. Freelance Permit is categories under the Small Business License in Dubai.
These permits are focused on specialized individuals in the media, technology, art, and entertainment sectors to offer their services on a consultancy basis, apart from their full-time jobs.
Currently, the Dubai Media City, Dubai Knowledge Park, Dubai Internet City, Ras Al Khaimah Free Zone Authority, etc., offer Freelance Permits to individuals.
Freelancer Licenses are available for the following creative and media professionals.
- Actor
- Animator
- Audio/Sound Engineer
- Cameraman
- Content provider
- Copywriter
- Media Specialist
- And many more
Small Business License in UAE – An Ideal Choice for Startups
There is immense potential in Dubai for small business owners due to the growing requirement and demand for various support services in the region. Large multinational companies, restaurant chains, retail units, etc.
These large companies depend on small companies for several support services such as distribution, transport, logistics, and more. So, a small business license is an ideal choice for startups to scale-up easily.
The Free Trade Zones in Dubai are launching special promotional packages with attractive benefits for small businesses in UAE to obtain a trade license at a lower cost. Small business License in UAE is gaining traction as new entrepreneurs and freelancers are always looking at ways to keep their operational cost low.
To cost-effectively conduct business and trade operations for new entrepreneurs, obtaining a small business license In UAE is the ideal way. The investor gets access to a wide range of business activities and access to the best business infrastructure, all at a lower cost.
To know further about Small Business licenses in Dubai and Company Formation in the Dubai, talk to our experts right away!
