General information about UAE licenses
Obtaining a UAE business license is an extremely crucial and necessary process. This showcases a company’s legitimacy, making it absolutely vital. The license is issued as a separate document to a company after its registration along with its founding documents. Typically, the license also specifies the activity codes of the company, which precisely describe what the company plans to engage in. Thus, it’s important to clearly articulate the intended business activity to ensure the license aligns accurately.
Types of licenses in the UAE
The UAE business license can correspond to specific types of activities. Based on what a company plans to do, the required license is determined. The list and names of licenses depend on the territory where the company will be registered, whether it’s a free zone or mainland. However, the most popular licenses in the UAE include:
- Trade License.
A trade license can be general or specialized, catering to specific goods’ buying and selling purposes.
- Service License.
Also known as a service-providing license. The exact name of the license depends on the nature of the services the company intends to offer: legal, consulting, medical, or others.
- Manufacturing License.
Suitable for companies engaged in manufacturing or industrial activities, such as establishing a factory in the UAE for producing goods.
Procedure for obtaining a UAE business license
Requirements for obtaining a license in the UAE are determined by each Emirate separately. Hence, it’s essential decide where exactly the future company will be registered. The conditions for obtaining a license in the UAE are set by both the UAE Government and the governments and economic development departments of each Emirate and free zone individually. However, in general terms, the steps for obtaining and renewing a UAE business license can be outlined as follows:
- Detailed description of the future company’s activities.
Providing an accurate description of the company’s intended activities is important for determining the appropriate license.
- Company registration and license acquisition.
The average time to obtain a company license is 5 days. However, it largely depends on the nature of the business and the issuing authority.
- Renewal of the license upon expiration.
Licenses in the UAE are not indefinite, so each license needs timely renewal.