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Choosing the right business licence is a critical step in launching your company on the Dubai mainland. At AB Nexis, we don’t just help you tick boxes — we advise you strategically. Whether your operations are commercial, industrial, or professional, we’ll guide you toward a licence structure that protects your interests and positions you for long-term success.
Every business operating on the UAE mainland must hold a valid licence—typically falling under one of three main categories: commercial, industrial, or professional. Choosing the right type sets the foundation for your operations and compliance. AB Nexis ensures you make the right choice from the start.
In Dubai’s dynamic business landscape, a trade licence isn’t just a formality—it’s the foundation of your company’s legal standing. Whether you’re launching a small venture or a larger operation, securing the right licence is essential before you can legally begin trading.
This requirement applies across both mainland and free zone jurisdictions. More than just a regulatory obligation, holding a valid trade licence shows your clients and partners that your business is legitimate, transparent, and compliant with UAE law.
Though setting up a mainland company involves several formalities, obtaining the correct trade licence is the most crucial part of the process. The nature of your business activity, the structure of your company, and your operational jurisdiction will determine which type of licence you need—and what steps you’ll need to take to secure it.
Here are the four primary categories of trade licences you’ll need to consider when forming a mainland company in Dubai:
Before launching any business activity on the Dubai mainland, companies must obtain the appropriate trade licence. The Department of Economic Development (DED) offers three primary categories, each suited to different business models.
A professional licence is required for individuals or businesses offering specialised services based on intellectual or artistic skill. This includes consultants, IT professionals, designers, craftsmen, and artisans.
To obtain this licence, applicants must typically demonstrate qualifications or relevant experience. Professional licences support several company structures:
Limited Liability Company (LLC): 51% held by a local sponsor.
Civil Company / Sole Establishment: 100% foreign ownership allowed, but a Local Service Agent (LSA) must be appointed.
This licence is essential for businesses involved in buying, selling, and trading goods or services within Dubai or internationally. It covers a wide range of sectors including:
General and specialised trading
Construction
Real estate
Retail
Rental and transportation services
Media and broadcasting
Commercial licences can be used to establish an LLC or a sole proprietorship, depending on the business model.
Companies engaged in manufacturing, processing, or other industrial activities must apply for this licence. It permits operations that involve transforming raw materials or assembling products.
While issued by the DED, industrial licences often require extra approvals from relevant federal bodies like:
Ministry of Finance
Ministry of Economy
Ministry of Energy and Infrastructure
These depend on the nature of your production or manufacturing activity.
A tourism licence is mandatory for businesses operating in the travel and tourism sector, including:
Travel agencies
Tour operators
Holiday planners
Hotel booking services
Issued by the Department of Economy and Tourism in coordination with Dubai Tourism (DTCM), this licence may also require approvals based on your specific tourism activity.
To apply for a mainland trade licence in Dubai, you must go through the Dubai Department of Economy and Tourism (DET)—formerly known as the Department of Economic Development (DED).
Before starting your business activity, you must meet the following legal requirements:
Identify your business category — professional, commercial, or industrial
Select your business activity
Decide on the legal structure of your company
Choose a trade name for your business
Your trade name must be registered with the Department of Economy and Tourism, and if needed, trademarks are registered with the Ministry of Economy.
Depending on your legal structure, you may also need to draft and sign a Memorandum of Association (MoA) or a Local Service Agent (LSA) agreement. The MoA is mandatory for legal forms such as:
Limited Partnership
Limited Liability Company (LLC)
Public Joint Stock Company (PJSC)
Private Joint Stock Company (PrJSC)
Navigating Dubai’s licensing framework can be complex, especially when determining the right licence for your business activity. Working with a business setup specialist ensures full compliance and a smooth application process.
AB Nexis helps you choose the right Dubai mainland licence, structure your company effectively, and provide long-term support for growth. Contact our team today and start your business setup with confidence.
