Question 1

Q-1. What’s the difference between a Trade License and a Business License in the UAE?

Accepted Answer

A business license is a general term for any legal permission to operate in the UAE. A trade license is often used interchangeably, but typically refers to licenses for commercial activities. Specifically, a Commercial License is a type of trade license used for buying, selling, and trading goods.

Question 2

Q-2. Can I sell online without a business license in the UAE?

Accepted Answer

No, you cannot. Running an online business in the UAE legally requires an e-commerce business license. This license ensures compliance with UAE laws, supports consumer protection, and helps avoid penalties or shutdowns. It applies to individuals selling through websites, social media platforms, or online marketplaces.

Question 3

Q-3. Can I apply for a business license online?

Accepted Answer

Yes, business licenses can be applied for entirely online. Both mainland authorities, like Dubai Economy and free zones, offer digital portals for remote applications. You can submit documents, pay fees, and receive approvals without physically visiting the UAE, making the process fast and accessible from anywhere.

Question 4

Q-4. How long does it take to get a business license in the UAE?

Accepted Answer

The timeline depends on the jurisdiction and type of license. It can take as little as one day for an Instant License in Dubai, while standard processes may take 3 to 10 business days. Delays may occur if external approvals or special permits are required.

Question 5

Q-5. How can I verify a business license in the UAE?

Accepted Answer

You can verify a company’s license via the Department of Economic Development (DED) or Dubai Economy and Tourism (DET) portals, depending on the emirate. Alternatively, the National Economic Register offers a centralized search using the trade name or license number for validation.

Question 6

Q-6. Can a free zone company do business on the UAE mainland?

Accepted Answer

Not directly. Free zone companies are limited to operating within their zone or international markets. To trade on the mainland, they must either work through a licensed distributor or establish a mainland branch with the necessary approvals and licensing.

Question 7

Q-7. Do expats need a local sponsor to get a business license in the UAE?

Accepted Answer

It depends on the business activity and jurisdiction. 100% foreign ownership is now allowed for many mainland activities. However, some sectors still require a 51% Emirati sponsor. For professional licenses, expats need a Local Service Agent (LSA) instead. All free zones allow full foreign ownership without local sponsorship.

Question 8

Q-8. What are the types of business licenses in the UAE?

Accepted Answer

The UAE offers several license types based on business activity: Commercial License (for trading), Professional License (for service-based or skilled professions), Industrial License (for manufacturing), Tourism License, and Freelance Permit. The type of license you need depends on your planned operations and where you register your business (mainland or free zone).

Question 9

Q-9. How much does it cost to get a business license in the UAE?

Accepted Answer

Costs vary widely based on license type, business activity, and location. For a free zone license, prices start around AED 5,500 to AED 15,000. Mainland licenses typically range from AED 10,000 to AED 25,000 or more, depending on office space, visa quotas, and government fees.

Question 10

Q-10. Can I sponsor employees with a UAE business license?

Accepted Answer

Yes, a valid business license allows you to sponsor employees, subject to your license activity and visa quota. After getting your license and company establishment card, you can apply for residency visas for staff, family members, or partners through the GDRFA and MOHRE systems.

Question 11

Q-11. Do I need a physical office to get a UAE business license?

Accepted Answer

In many cases, yes. Mainland companies are required to have a physical office space or flexi-desk rental to obtain a license. In free zones, many allow shared desks or virtual office options, especially for startups, freelancers, or service providers. The office type depends on your activity and visa needs.

Question 12

Q-12. Is it possible to upgrade or change my business license later?

Accepted Answer

Yes, you can amend or upgrade your business license in the UAE. This includes adding new activities, changing company structure, or shifting from a free zone to mainland (or vice versa). However, this process requires regulatory approvals, updated documentation, and in some cases, new trade names or sponsorship changes.

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