The United Arab Emirates (UAE) is one of the most business-friendly destinations in the world, attracting entrepreneurs and investors from across the globe. To establish a business in the UAE, obtaining the right business license is crucial. The licensing requirements and available types vary depending on whether the company is set up in the Mainland, Free Zone, or Offshore jurisdiction.
This guide explores the different business licenses available for foreign investors and how Premia TNC UAE can assist in the setup process.
1. Business Jurisdictions in the UAE
Foreign investors can establish their businesses under three primary jurisdictions in the UAE:
A. Mainland Companies
- Registered under the UAE Department of Economic Development (DED).
- Allows businesses to operate anywhere within the UAE and internationally.
- Requires a local service agent or a UAE national partner (for certain business types).
B. Free Zone Companies
- Located in special economic zones offering tax exemptions and full foreign ownership.
- Restricted to conducting business within the Free Zone or internationally.
- Ideal for startups, trading businesses, and service providers.
C. Offshore Companies
- Registered in jurisdictions like Jebel Ali Free Zone (JAFZA), Ras Al Khaimah (RAK), and Ajman Offshore.
- Cannot conduct business within the UAE but is permitted to operate globally.
- Mostly used for asset protection, holding companies, and tax optimization.
2. Types of Business Licenses in the UAE
The necessary license varies based on the specific business activity. Below are the licenses available for foreign investors in each jurisdiction:
A. Mainland Business Licenses
Businesses in the UAE Mainland can apply for the following licenses:
1. Commercial License
- For businesses engaged in buying, selling, importing, or exporting goods.
- Suitable for trading companies, retail businesses, general trading, and e-commerce businesses.
- Allows operations within the UAE and internationally.
2. Professional License
- For individuals or firms offering specialized professional services.
- Includes consultants, IT services, marketing agencies, legal advisors, and freelancers.
- 100% foreign ownership is allowed, but a UAE local service agent is required for administrative purposes.
3. Industrial License
- Mandatory for companies involved in manufacturing, production, or industrial operations.
- Necessary for setting up factories, production units, and assembly lines.
- Requires a physical warehouse or industrial facility within the UAE Mainland.
4. Tourism License
- Required for businesses in the travel and tourism industry.
- Includes travel agencies, tour operators, and hotel businesses.
- Mandatory for entities operating in the hospitality and travel sector.
B. Free Zone Business Licenses
1. Trading License
- Allows companies to engage in import/export and trading activities.
- Suitable for businesses selling physical goods internationally.
- Restricted from trading within the UAE Mainland unless partnered with a local distributor.
2. Service License
- Suitable for consultants, freelancers, and IT service providers.
- Offers full foreign ownership and tax exemptions.
- Common in Free Zones such as Dubai Internet City, Dubai Media City, and Abu Dhabi Global Market (ADGM).
3. Industrial License
- Required for businesses engaged in manufacturing and production.
- Companies can set up factories and benefit from duty exemptions.
- Popular in Jebel Ali Free Zone (JAFZA), Sharjah Airport International Free Zone (SAIF Zone), and Ras Al Khaimah Economic Zone (RAKEZ).
4. Freelance Permit
- Allows professionals in media, design, education, and consulting to work as independent contractors.
- Available in Dubai Media City, Fujairah Creative City, and Ras Al Khaimah Free Zone.
- Ideal for freelancers, digital nomads, and creative professionals.
5. E-commerce License
- Designed for businesses selling products and services online.
- Suitable for dropshipping, online retail stores, and digital marketplaces.
- Popular in Dubai CommerCity, Ajman Free Zone, and Sharjah Free Zone.
C. Offshore Business Licenses
Foreign investors looking to register an Offshore company in the UAE can apply for:
1. Holding License
- Used for owning shares in other companies, investments, and real estate assets.
- No need for a physical office in the UAE.
- Common in Jebel Ali Offshore (JAFZA), Ras Al Khaimah Offshore (RAK ICC), and Ajman Offshore.
2. Consultancy License
- Suitable for management and financial consultancy firms.
- Offshore companies cannot conduct direct business in the UAE but can operate globally.
3. International Trading License
- Enables companies to conduct global import/export operations.
- No corporate tax, making it ideal for multinational businesses.
3. How Premia TNC UAE Can Help
Setting up a business in the UAE involves legal procedures, paperwork, and approvals from various authorities. Premia TNC UAE provides end-to-end support to simplify the process for foreign investors:
✅ Business Consultation – Advising on the right jurisdiction and business license.
✅Company Registration – Handling documentation, approvals, and license applications.
✅ Local Service Agent – Assisting with Mainland setups requiring a UAE national partner.
✅ Visa Processing – Managing investor and employee visa applications.
✅ Ongoing Compliance – Ensuring businesses remain compliant with UAE laws.
With extensive expertise in business formation, licensing, and corporate services, Premia TNC UAE ensures a seamless setup process, allowing you to focus on business growth.
