UAE business licences are issued across three main categories: Commercial (trading activities), Professional (service activities), and Industrial (manufacturing and production). The correct licence category determines which activities you can legally conduct.
Commercial Licence
A Commercial Licence authorises buying and selling goods — physically or online. Sub-categories include: General Trading (allows trading in a wide range of goods), Specific Trading (restricted to named commodities), and E-Commerce (for online retail). Issued by: DED (mainland) or free zone authority. Common activities: import-export, retail, wholesale, distribution.
Professional Licence
A Professional Licence authorises the delivery of skills-based services. The licence holder (or at least one shareholder) typically must have relevant professional qualifications. Activities covered: consulting, IT services, legal services, accounting, engineering, healthcare, education, and marketing. Free zone professional licences do not require proof of qualification for most activities.
Industrial Licence
An Industrial Licence authorises manufacturing, processing, or assembling products. Industrial licences require: a physical facility (factory, workshop) with appropriate safety approvals, compliance with UAE environmental regulations, and sector-specific permits (e.g., food safety approval for food manufacturers). Industrial licences are mainly issued in industrial free zones (KEZAD, Dubai Industrial City, Sharjah Industrial Area) or mainland industrial areas.
Special Licences
Some activities require additional permits beyond the trade licence: Financial Services (DFSA or SCA authorisation), Healthcare (DHA/HAAD approval), Food Manufacturing (Dubai Municipality/ADAFSA approval), Real Estate Broking (RERA registration), and Educational Services (KHDA/ADEK approval).