The UAE has established itself as a top destination for global entrepreneurs, offering a robust business environment supported by modern infrastructure and flexible business licensing options. Among these options, the professional and commercial licences stand out as essential for setting up service-oriented or trading businesses in the UAE’s thriving economy. In this article, we will explore what each licence type entails, along with the processes of obtaining these.
In the UAE, business licences are categorised to align with different business activities, making it easier for entrepreneurs to legally establish their enterprises in specific industries. The two primary licence types—the professional and commercial licences—are designed to accommodate both service-oriented and trade-based businesses. This structure provides business owners with the flexibility to select the licence that best supports their operations. RAKEZ (Ras Al Khaimah Economic Zone) is a preferred destination for obtaining both types of licences. RAKEZ offers a range of business set-up options, competitive fees, and a straightforward application process that makes it easier for entrepreneurs to launch and grow their ventures in the UAE.
A professional licence is tailored for service-based businesses, enabling individuals and entities to legally provide their expertise and professional services in the UAE. This licence covers various professions, such as consulting, legal advisory, marketing, IT services and design. Professionals working under this licence can offer specialised skills to clients within and outside the UAE. For example, a freelance consultant or an architectural firm would benefit from a professional licence, which allows them to operate independently or with a small team. This licence is especially suitable for businesses that focus on selling expertise rather than products, as it supports service delivery across a wide array of industries.
In contrast, a commercial licence enables businesses to engage in the buying and selling of goods. This licence is ideal for companies involved in trading, retail and e-commerce, as well as import-export operations. A commercial licence allows companies to establish physical or online trading entities, providing them with the legal framework to conduct transactions, manage inventory and engage in wholesale or retail activities. Businesses dealing in consumer goods, electronics or clothing would benefit from a commercial licence, as it supports operations involving inventory management, product sales and distribution. This licence is popular among entrepreneurs who are interested in tapping into the UAE’s extensive trade networks and reaching diverse local and international markets.
RAKEZ has simplified the business licensing process, ensuring a streamlined approach for entrepreneurs seeking either a professional or commercial licence. Here is a step-by-step guide to obtaining your licence in RAKEZ:
The first step is identifying your primary business activities. For example, service-oriented activities like consultancy fall under a professional licence, whereas trading or e-commerce requires a commercial licence. RAKEZ offers guidance to help you select the appropriate licence type based on your business model and activities.
RAKEZ has a straightforward documentation process, where you will need to submit essentials such as a copy of your passport, a business plan and any supporting documents based on your business type. Having these documents ready ensures an efficient application process.
Entrepreneurs can use RAKEZ’s Portal 360, an online platform that simplifies submission and fee payments. This platform allows you to apply remotely and track your application’s progress in real-time. Payment options and fee structures vary depending on the licence type, with both commercial and professional licences priced competitively to support business growth.
Once your application is approved, you will receive your business licence, allowing you to commence operations legally. This quick and efficient process is designed to help businesses launch without unnecessary delays, ensuring they can take advantage of RAKEZ’s strategic location, advanced facilities and business-friendly ecosystem.
Selecting the right licence type is crucial to aligning your business goals with UAE regulatory requirements. Whether you are establishing a consultancy or launching a retail business, choosing between a professional and commercial licence depends on the nature of your services or products. RAKEZ stands out as a leading free zone for acquiring either licence, with supportive infrastructure, comprehensive business packages and a commitment to fostering a successful environment for entrepreneurs. For personalised guidance on licensing options and to begin your journey in the UAE, contact RAKEZ to consult with business experts who will assist in selecting and applying for the right licence to help your business flourish.
1. What are the main differences between a professional and a commercial licence in the UAE? A professional licence allows individuals and companies to offer specialised services, such as consulting, legal or IT support, while a commercial licence is geared towards businesses focused on trading goods, retail and e-commerce. The type of licence you need depends on whether your business is service-oriented or product-focused. 2. Which businesses are eligible for a professional licence in RAKEZ? Professional licences in RAKEZ cover a variety of service-based industries. Eligible businesses include consultancies, IT services, marketing agencies and design firms. This licence is ideal for professionals and service providers focused on selling expertise rather than physical products. 3. What documents are required to apply for a business licence in RAKEZ? To apply for a business licence in RAKEZ, you will need a valid passport copy, a business plan and other activity-specific documents depending on your industry. RAKEZ’s Portal 360 streamlines the documentation and submission process, helping businesses get started quickly. 4. How long does it take to receive a professional or commercial licence in RAKEZ? With RAKEZ’s efficient application process, licences can be issued within a few business days after submission of all required documents and payments. This streamlined approach allows businesses to begin operations with minimal delay. 5. Can I operate both trading and service activities under a single licence in RAKEZ? Yes, RAKEZ offers flexible licensing options that allow businesses to combine multiple activities under a single licence if they meet specific criteria. This flexibility supports entrepreneurs looking to expand into different areas without needing multiple licences.
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