In the UAE, there are three major types of business licenses responsible for commercial activities and operations: commercial license, industrial license, and professional license. Each license has different requirements; rather, each license type is suited to different business operations.
Commercial License: The license targets all trading activities and, as such, defines the type of business operation that could be used by an entity. A company importing, exporting, selling, or distributing goods would normally need a commercial license. The license allows the holder to conduct trading activities within the UAE or export goods internationally. It is one of the most common license types for businesses operating in free zones as well as on the mainland.
Industrial License: This license is needed for any firm that is manufacturing any item or involved in an industrial activity, including production, assembly, packaging, or processing. For this kind of license, the business needs a physical warehouse or space for an industry and also needs to fulfill the requirement for equipment and labor. In fact, through this license, businesses are involved in industries such as textiles, chemicals, and metalwork, among others, whose merchandise could be distributed within the UAE or even exported.
Professional License: Professional licenses cover those businesses offering services rather than a physical good. Examples of such industries include consultancy, bookkeeping, legal, and medical professions. In general, a professional license requires qualifications or certification, as this type of license is intended for experienced professionals in their field of specialty.
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