By Sakanihomes
Types of business licenses in Dubai: What you need to know (2025 Guide)
Planning to start a business in Dubai? One of the first steps is securing the right license — but which one? Dubai offers several types of business licenses, and choosing the wrong one could limit your operations, delay approvals, or prevent you from renting the right commercial space.
This 2025 guide breaks down each license type, how they work, who they’re for, and how they connect to property requirements across Dubai.
Why business licenses matter in Dubai
In the UAE, a license isn’t optional — it’s a legal requirement for everything from freelance work to trading to manufacturing. Your license determines:
What activities you're legally allowed to perform
Whether you can lease a shop, office, or warehouse
How many employees you can sponsor
What kind of visas you can apply for
Which government authority you deal with (DET or free zone)
Whether you need additional external approvals
The main types of business licenses in Dubai
1. Commercial license (for trading, e-commerce, retail)
Used for:
Retail stores (furniture, fashion, electronics, etc.)
E-commerce websites and dropshipping
Import/export companies
Real estate brokerages
General trading and wholesale operations
Typical property type: Shops, offices, storage units
Who issues it? DET (mainland) or free zones like DMCC, IFZA, Meydan
2. Professional license (for services, consulting, freelancers)
Used for:
Business or management consultancy
IT services and software development
Marketing, design, and content creation
Medical clinics or solo practitioners
Training institutes and coaches
Typical property type: Offices, clinics, coworking desks
Who issues it? DET (mainland) or free zones like DSO, Dubai Media City, Shams
Note: Professional licenses may allow 100% foreign ownership and require fewer approvals, but some activities (like legal or medical services) may need external authority clearance (e.g. DHA, KHDA).
3. Industrial license (for manufacturing and production)
Used for:
Factories and assembly lines
Packaging or bottling companies
Garment, furniture, electronics, or cosmetics production
Recycling facilities or repair workshops
Typical property type: Warehouses, industrial units, production sites
Who issues it? DET (mainland) or industrial zones like JAFZA, Dubai Industrial City
Approvals required: Civil Defense, Dubai Municipality, and often environmental clearances
4. Tourism license (for travel and hospitality)
Used for:
Travel agencies and tour operators
Holiday home rental platforms
Desert safaris, yacht rentals, city tours
Hotel and resort management
Typical property type: Office, shopfront (with display), or licensed unit
Who issues it? DET’s Tourism & Commerce Marketing division
Some tourism activities require guides with certification or tourism-specific insurance.
5. Freelance permit (for individuals, part-time operators)
Used for:
Writers, graphic designers, photographers
Digital marketers, coders, consultants
Solo service providers who don’t need a full office setup
Typical property type: Usually none required; flexi-desk or home-based
Who issues it? Select free zones like Dubai Media City, DSO, or RAKEZ
Note: Freelance permits may not allow you to lease retail or warehouse space or hire staff.
Bonus: What if your business does more than one thing?
Many companies today mix trading and services — like a business that sells devices and offers tech support.
You can:
Combine compatible activities on one license (e.g. IT trading + IT consultancy)
Apply for multiple licenses under one company (especially in free zones)
Add activities later via license amendments
Just make sure the authority you're working with allows it — not all combinations are permitted.
Choosing the right license: 3 key questions
Ask yourself:
What is my core activity? Trading, service, manufacturing, tourism, or freelancing?
Where will I operate from? Do I need a shop, office, warehouse, or just a desk?
Do I plan to hire or scale? Some licenses don’t support staff or growth
When in doubt, talk to a licensing consultant or use Sakani’s filters to match properties with allowed license types.
Mainland vs Free Zone: Licensing structure matters
Each license type can be issued under:
Mainland authority (DET) – if you want full UAE market access
Free zone authority – if you’re operating globally or within a specific zone
This affects:
Where you can rent space
How you get visas
What clients you can work with
What regulatory body you report to
Sakani lets you filter listings by license compatibility — so you don’t waste time looking at properties that don’t match your license.
Final thoughts
Choosing the right license is more than paperwork — it affects your ability to rent space, serve customers, and grow long-term. Whether you're trading, freelancing, consulting, or manufacturing, Dubai has a license structure that fits your model.
Sakani helps you filter commercial units based on license zones, activity types, and visa eligibility — so you build with clarity from day one.