Types Of Business Licenses & How To Pick The Right One for Company Formation in UAE

Author: Hanoof Al Naama
Published: December 9, 2025
Organization: SPC Free Zone

Overview of Business Licenses in the UAE

As the business hub of the MENA region, the UAE is every aspiring entrepreneur's dream business location. Their business-friendly policies and ease of company formation are contributors that make the country a lucrative area filled with opportunities. The process of registering and starting your business is a simple one. Just by submitting a few documents and completing a couple of formalities, your dream business can begin operations within the country.

A trade license is one of the most important documents that every business owner needs to have, mainly because it serves as a legal permit that allows an entrepreneur to conduct a select number of business activities within the UAE. For business setups in the country, a license is tantamount to proof that your business is valid and legal, and the lack of a license can result in heavy penalties.

This article examines the various types of licenses and permits available in the UAE for new businesses to help you pick the right one for your business journey.

1. Trading License

What is a Trading License?

A trading license is a license that permits its holder to start a business within the trading field, allowing the company to export, import, or trade in a variety of products.

Scope of Trading License

This license primarily focuses on all aspects related to the general trading of goods, but with the advent and soaring popularity of online stores, the scope of the license has extended its reach to e-commerce operations.

Permitted Activities

2. Commercial License

What is a Commercial License?

This license is relevant for those ventures that deal with the purchase and sale of goods within the UAE. For those who wish to start an international business in the UAE, may do so with a commercial license.

Commercial License Characteristics

Commercial licenses have a multitude of subtypes that are specific to the exact sector your business deals with, including all matters relating to export and imports.

Types of Commercial Trade Licenses

Some of the commercial trade licenses you can acquire for your business include:

3. Service License

What is a Service License?

A service license is a license issued to businesses that wish to operate service-oriented, professional activities. These activities include business services, consulting, artisan crafts, and other services.

Eligibility for Service License

This type of license can also be issued to those individuals who have obtained the relevant qualifications and have the required expertise needed for a particular profession.

Popular Types of Service Licenses

A. Tourism License

Purpose: This license is issued to those individuals or businesses that provide services relating to the travel and tourism sector.

Market Context: This license has seen a boost in applications due to the recent tourism boom surging within the UAE due to Expo 2020.

Main Categories Under Tourism License:

Related Resource: How to Start a Tourism Company in the UAE? (Guide 2023)

B. Craftsmanship License

Purpose: A craftsmanship license is issued to individuals and companies that directly deal with services that require a great deal of physical strength or skills and abilities that require a level of expertise.

Jobs Under This Category:

License Requirements: This license allows companies in the field to be able to legally hire these craftsmen, though the craftsmen themselves are also required to have a license before they can be employed to work in this sector.

4. Publishing License

What is a Publishing License?

This type of license allows businesses to engage in publishing related activities that include both launching a new publication within the country and/or introducing an existing publication from abroad.

License Specification Requirement

The trade license you need to start this line of business must specify the activity 'publishing' in order to be able to be legally allowed to start operations under this activity.

Permitted Activities

5. Freelance Permit

What is a Freelance Permit?

Due to the pandemic, many of us have begun working remotely and expanding our virtual networks by freelancing our skill sets. A freelance permit is provided to those individuals who specialize in the field of media, technology, entertainment, and art so that they are legally allowed to provide their services in addition to any full-time jobs they may or may not have.

Eligible Fields for Freelance Permit

Key Feature

Freelance permit holders can provide their services in addition to any full-time jobs they may or may not have.

How to Find Your Perfect Fit

Understanding License Selection

Trade licenses define the scope of your venture's business activity. If you have a business idea in mind, look into the broad range of activities the business would be involved in and shortlist the license list accordingly.

SPC Free Zone License Offerings

At SPC Free Zone, the following license options are available:

Getting Expert Assistance

To understand more about which license is best suited for your business and how you can apply, contact expert consultants at 800 SPC FZ.

Frequently Asked Questions

What is a trading license in the UAE?

A trading license is a license that permits its holder to start a business within the trading field, allowing the company to export, import, or trade in a variety of products. This license primarily focuses on all aspects related to the general trading of goods, but with the advent and soaring popularity of online stores, the scope of the license has extended its reach to e-commerce operations.

What types of businesses need a commercial license in the UAE?

A commercial license is relevant for those ventures that deal with the purchase and sale of goods within the UAE. Commercial licenses have subtypes specific to exact sectors including gold and precious metals trading, used furniture trading, oil and gas trading, and publications and media materials trading.

What is a service license in the UAE?

A service license is issued to businesses that wish to operate service-oriented, professional activities. These activities include business services, consulting, artisan crafts, and other services. This type of license can also be issued to individuals who have obtained the relevant qualifications and have the required expertise needed for a particular profession.

What is a freelance permit in the UAE?

A freelance permit is provided to individuals who specialize in the field of media, technology, entertainment, and art so that they are legally allowed to provide their services in addition to any full-time jobs they may or may not have.

How many business activities can be combined in SPC Free Zone?

SPC Free Zone provides over 1,500 types of licensing activities to businesses and allows 5 activities to be combined across different sectors.

Summary: UAE Business License Types Comparison

License Type Primary Purpose Key Activities Target Businesses
Trading License Export, import, and trade in products General trading, e-commerce operations Trading companies, import/export businesses
Commercial License Purchase and sale of goods within UAE Sector-specific trading (gold, furniture, oil & gas, publications) Retail, wholesale, international businesses
Service License Service-oriented professional activities Business services, consulting, artisan crafts, tourism, craftsmanship Service providers, consultants, tourism operators, craftsmen
Publishing License Publishing activities Launching publications, introducing foreign publications Publishers, media companies
Freelance Permit Individual professional services Media, technology, entertainment, art services Freelancers in creative and tech fields

Contact Information

Organization: SPC Free Zone
Phone: 800 SPC FZ (800 772 39)
Website: https://www.spcfz.ae/

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