Understanding Business Activities in UAE
Business activities in UAE can be referred as any operation whether commercial, industrial or professional carried out by an entity with the intent of generating output. It includes trading, manufacturing, services and other economic activities that require license from the regulatory authority. So a business set up consultant in UAE can help you out in the setting up of a business, licensing, and legal compliance and in proper strategic planning. For the smooth operation and growth of a business they provide expert guidance on Free Zone, Mainland or for the offshore businesses.
The aim of this blog is to provide comprehensive guide for operating business in UAE to ensure clarity and compliance.
Types of Business Activities in UAE
Business activities in UAE have been categorized as Commercial, Professional and Industrial activities. However Department of Economic Development (DED) has broadly categorized these activities including the specific activities or licensing.
- Commercial Activities
Commercial business activities in UAE refers to any business operation involving Buying, selling, trading and distribution of goods and services for profit. Such activities require commercial license issued by the Department of Economic Development for free zone authorities. Key sectors of the commercial activities include:
General Trading: It includes import and export of various goods, wholesale and retail distribution of products and operating trading companies across the multiple industries.
Retail and E-Commerce: It includes physical store and shopping centers, online stores and consumer electronics, household goods and the fashion industry.
Real Estate and Property Management: Buying, selling and leasing of residential and commercial properties come under this category. The property management and brokerage services can also be the part of this.
Hospitality and Tourism: It includes hotels, resorts, travel agencies, event management, entertainment services and the vacation rentals.
Logistics and Transportation: Freight forwarding, warehousing services, courier, delivery services, supply chain and distribution management are included in this.
Food and Beverage Trading: Restaurants, catering services, wholesale and retail services of packaged foods and beverages with the distribution of food products are included in this.
For all such commercial activities commercial license is mandatory whether you are operating a business in the Mainland or within the free zones. For any of the assistance it is recommended to be in contact business setup services and consultants in UAE.
- Professional Activities
Professional activities in UAE involve specialized services based on skills, expertise or intellectual abilities in spite of trading goods. It requires a professional license for the administrative purposes in the Mainland, UAE. The First Check Consultants is the mainland business setup consultants in Dubai who can help and assist you in setting up the professional business in UAE. Various key sectors of professional activities are,
Consultancy Services: It includes services like management consulting in UAE, financial consultancy or legal consultancy services.
IT Services: Services like software development, digital marketing, cyber security services, etc. are included in this.
Healthcare Services: Medical clinics, rehabilitation services, wellness centers and medical consultancy services are include here.
Education and Training: It includes coaching centes, language training institutes, online learning platforms, etc.
Engineering and Technical Services: Engineering services like civil, mechanical and electrical, architecture and construction project management consultancy, etc. Are included in this.
Beauty Care Services: It includes salon and spa business, fitness training and personal coaching, etc.
- Industrial Activities
For getting the industrial licensing for the industrial activities approval is required from the regulatory bodies like Ministry of Industry and Advanced Technology. The key sectors included in industrial activities are,
Manufacturing and Production: Includes food and beverage processing, textile industry, plastic manufacturing industry.
Automotive Industry: It includes heavy machinery, automobile and spare parts manufacturing, marine and ship building industries.
Environmental Industries: It includes solar and wind energy, waste management industry and treatment plants.
Electronics Industries: Activities like home appliances manufacturing, electrical equipment manufacturing comes under this category.
The UAE supports industrial growth through the free zones, tax benefits and government incentives for the advanced manufacturing and sustainability projects.
Compliance Requirements for Establishing Business Activities in UAE
- Take the appropriate business license from the Department of Economic Development.
- Register the name of business with the relevant authority.
- Select the business structure as the Mainland, Free Zone Company or Offshore Entity.
- If required take the government approvals from DHA, MoIAT or other regulatory bodies.
- Secure a office space and register the tenancy contract for mainland business.
- Comply with the UIAE Corporate Tax and VAT if they exceed the revenue threshold.
- File ESR to prove substantial business operation in the UAE.
- Register with MOHRE and GDRFA for hiring employees.
- Business must comply with AML and disclose UBO details to prevent financial crimes.
Wrap-up
The First Check Consultants offers business setup services and consultants in UAE which helps the entrepreneurs in company formation, licensing and regulatory compliance with the market insights to grow your business and success in UAE’s competitive environment.
