Every business in the UAE must obtain a trade license, and the foundation of this license is the selection of specific business activities. These activities are categorized by the respective Department of Economic Development (for mainland) or Free Zone Authority. The activities you choose dictate the type of license (Commercial, Professional, or Industrial), the permissible legal structure, and any external approvals required from other government bodies. A careful selection is vital, as operating outside your licensed scope of activities can lead to significant penalties and hinder your operations.
Licenses are broadly divided into three main categories. A Commercial License is for companies engaged in trading goods, including import, export, and distribution. A Professional License is for individuals or companies offering specialized, service-based professions, such as consultancy, accounting, or craftsmanship. An Industrial License is necessary for businesses involved in manufacturing, production, and assembly. It is important to note that certain activities may require additional approvals from specific ministries or regulators, such as the Dubai Municipality or the Dubai Health Authority, adding another layer of compliance to consider during setup.
When choosing activities, entrepreneurs should think about their short and long-term business goals. It is wise to select a range of activities that not only covers your current operations but also allows for future growth. Consulting with a company formation expert can be invaluable at this stage. Specialists can help navigate the comprehensive list of over 2,000 available activities, identify the most suitable ones for your business model, and ensure your trade license is perfectly aligned with your strategic objectives from the start.