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Dual Business License in UAE

Major Business Licenses from Free Zones and Mainland

UAE is a popular trade and economic hub of the Middle East with global investors intending to set up their base in the region due to the vast business opportunities the country offers. Dual Business License in UAE is a popular type of business license few of the Free Trade Zones offer its investors. Dual Business License is of great benefit for investors as they can operate in two business jurisdictions using the same trade license.

Obtain a Dual Business License for a company or investor to conduct any form of trade operation in UAE’s mainland and Free Zones together. Hence, the investor can use the same office space and trade license to do business across UAE’s business jurisdictions.

For a company or person to conduct any trade operations in UAE, there needs to be a valid business license. It can be obtained from the Free Zones or the respective Department of Economic Development of the specific Emirate. Some Freezones offer dual business license to the investors for availing the benefit of a Free Zone and mainland company.

There are a few popular business licenses in UAE that foreign investor prefers to obtain to start a company in UAE.

Dual Business License in UAE

Trading License

By obtaining a Trading License in UAE, investor can trade in the specialized business activities chosen while registering the company. Usually it allows upto 3 to 5 business activities. Also, they can add additional activities by paying a fee.

Trading License in UAE opens up a huge opportunity for investors to expand their market reach in the region and also focus on exporting to other countries.

There is no capital requirement for obtaining a trading license in UAE. However, depending on the shareholding pattern and operational requirement an amount can be attributed towards the capital of the company.

Also, there is no mandatory requirement for office space. Again it depends on the business requirement. If the company wants to stock goods in UAE and then sell, it would require a warehouse and a small office area to coordinate the trade operations.

General Trading license

General Trading License allows trading in multiple items under the single business license type. However, trading License focuses on specific business activities.

There is a mandatory requirement of having an office space for general trading companies in the mainland of UAE. Also, Free Zones such as the Dubai Silicon Oasis-IFZA require to pay additional AED 10,000 to secure the General Trading License as a deposit by the investor.

With a General Trading License organizations can extensively involve in the trade operations by making UAE their headquarters. The strategic location, ease of seaport-airport-road access to many countries, evolving business ecosystem make UAE the perfect choice for obtaining a General Trading License and establishing a company.

Professional Business License

For professionals such as doctors, lawyers, marketers, accountants, architects, engineers, etc., to establish a company obtaining a professional business license based on their qualification is the right choice for success.
Expat-Investors and entrepreneurs can start as a single shareholder company and later add shareholders depending on the requirement. The Professional License category is the most in-demand among working professionals aiming to start a business in their expertise and area of qualification.

To obtain Professional Business License from the mainland of Dubai for certain business activities such as construction, real estate, engineering, etc., the investor must attend training and pass an examination conducted by the Dubai Economy.

Similarly, healthcare-related business activities must be approved by the Ministry of Health and meet the criteria of the Dubai Health Authority.

Professional Business License is a popular business license category in the Free Zone. Unlike Mainland there is no examination to be cleared for issuing the business license, however certain business activities require pre-approvals and consent from the respective ministries of UAE.

Hence, there is a huge choice of low-cost Professional Business License packages available across the Free Zones of UAE for the investors to choose to establish their professional company.

Service License

Services License is similar to the professional business category. It is an ideal business license for opening a wide range of service business categories such as consultancy, IT services, Project Management, and more.

There is a growing opportunity for service companies in UAE due to the demand from organizations based in UAE and neighboring emerging Asia and African markets.

To obtain Service Business License the best advisable option is Free Zones of UAE. They offer world-class infrastructure facilities and easy company formation procedures. Free Zones also have low-cost company formation packages with Office spaces (10 Sq.m, 25 Sq.m, 50 Sq.m) and license without office.

Also, there are various Flexi-Desk and Co-Working Office Spaces available for the investors to choose from for keeping the company setup cost all-time low.

Commercial License

Commercial License is applied by the investors for opening a retail shop, renting commercial buildings, renting parking lots, supermarkets, malls, and more. Also, Commercial License enables the investor to trade in few items by opening a store. Also, there is a high scope in the export market and also for importing goods into UAE.

Commercial License in UAE has a huge scope as there is a growing business opportunity in the real estate, retail, and export market. Opening a retail chain in any of the residential areas of UAE (especially the newly developed ones) is expected to give high returns to the investor over the coming years.

Our team of expert Business Consultants at AURION will assist you in choosing the right business activities and the steps in obtaining a Commercial License for your company in UAE.

Industrial License

Industrial License in UAE is a strategic area where large investment is required and a sector that will provide the investors with high returns. Using the Industrial License in UAE the entrepreneur can set up their industry establishment or factory and start manufacturing the desired item.

UAE has great potential as an export-friendly destination too, Hence, securing an Industrial License in UAE is highly beneficial for the entrepreneur. The Industry License category includes a wide range of business activities.

To obtain an industrial license from the mainland of Dubai, there is a minimum paid-up capital requirement of AED 250,000 and the company must employ at least 10 employees. Also, it is mandatory to have a physical workplace or a workplace with a warehouse or manufacturing unit.

Depending on the nature of business activity there will be a requirement to obtain certain permits from the authorities in the Dubai Mainland such as the Dubai Municipality, Ministry of Economy, etc.

Also, there are few Free Zones in UAE that offer comprehensive business package solutions with office space, land/building for manufacturing units, warehouse, etc.

Ecommerce License

Ecommerce License in UAE is one of the most sought-after business license categories in recent years. It allows the entrepreneur to conduct trade and services via any online channel to customers around the world. The company can be registered either in the 45+ Free Zones of UAE or in the mainland of UAE.

Both the Free Zones and the Mainland of UAE offer exclusive company formation packages with warehouse facilities to the investors aiming at obtaining an e-commerce License in UAE.

To further offer a simplified solution to entrepreneurs the Dubai Economy has launched an e-Trader License. It allows UAE nationals and Expats to conduct trading in goods and services. However, an expats can only offer services and no trading. Issuance of e-Trader License is for an individual investor and not for a company. Also, investors cannot hire employees or open a shop under the E-Trader License.

Dual Business License in UAE

Dual Business License is the most in-demand business license category in UAE. Investors and entrepreneurs are welcoming dual-license business type that will make the investor eligible to experience the benefits of a Free Zone as well as mainland company simultaneously.

So, with Dual Business License in UAE the investor can register their company as a Free Zone company in the specific Free Zone such as the DMCC or Sharjah Media City. Also, the investor can register the company in the respective Department of Economic Development of the Emirate the Free Zone is located.

Thereby, enabling the company to operate the business on a larger scope across the Free Zone and Mainland of UAE

Registering a Company and Obtaining a Dual Business License in Dubai

The Free Zones in Dubai such as the Dubai Airport Free Zone (DAFZA) and Dubai International Financial Center (DIFC) offer Dual Business License to meet the growing demand among entrepreneurs. The Dual Business License in Dubai is highly beneficial for global investors aiming to focus on the local UAE market. As well as the overseas market by setting up a company in Dubai-based Free Trade Zones.

DAFZA and DIFC have individually signed an Agreement with the Department of Economic Development (DED Dubai). It enables Dual Business License for the entrepreneurs registering their companies in the respective Free Zones. The Memorandum of Understanding (MoU) between the Free Zones and Dubai Economy (DED) will enable companies to apply for a Dubai Mainland Business License as well.

A dual Business License in Dubai is subject to approval from the DED depending on the nature of the business activity. At times, there is a requirement for special approvals from the respective government authorities. 

AURION will coordinate with the respective Free Zones and the Dubai Economy to obtain the Dual Business License in Dubai for your company.

To know more about UAE Free Zone and Mainland Company Incorporation, talk to our team right away!

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