SECTORAL PERMITS
Dubai Business License & Sectoral Permits
To operate legally in Dubai, a company must obtain a business license and sector-specific permits related to its activity. These permits are issued mainly by the Dubai Department of Economy and Tourism (DET) and other authorized bodies, and they vary depending on the sector, trade type and business structure.
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What Is a Sectoral Permit (External Approval) in Dubai?
A trade license is the core document that defines which activities your company may carry out in Dubai. Mainland licenses are issued by the Dubai Department of Economy and Tourism (DET), while free zone licenses are issued by the relevant free zone authority. For regulated activities such as healthcare, education, food, real estate, finance, media or security, however, the license alone is not enough: you also need an external approval from the sector regulator, often referred to as a ministry or government approval.
Below you will find the most common license types in Dubai, the competent authority for each activity, the application steps and indicative 2026 costs. If you are not sure which approvals apply to your activity, contact our team for a free initial assessment.
Types of Business License in Dubai
DET issues four main license types for mainland companies, depending on the business activity. The license type you choose also determines which external approvals you will need.
- Commercial License: For trading, import-export, retail and wholesale activities.
- Professional License: For consultancy, education, healthcare and other expertise-based services.
- Industrial License: For manufacturing, production and assembly facilities.
- Tourism License: For hotels, travel agencies, tour operators and other tourism activities.
Competent authority: Mainland license applications are handled by the Dubai Department of Economy and Tourism (DET), formed in 2021 through the merger of the Department of Economic Development (DED) and the Department of Tourism and Commerce Marketing (DTCM).
Sectoral Permits and Competent Authorities by Activity
The following activities require approval from the relevant authority before or alongside the issuance of a trade license:
- Healthcare, clinics and pharmacies: Dubai Health Authority (DHA); DHCR within Dubai Healthcare City.
- Schools and training centres: Knowledge and Human Development Authority (KHDA).
- Food, restaurants and cafés: Dubai Municipality food safety approval.
- Construction, contracting and engineering: Dubai Municipality; Dubai Development Authority (DDA) or Trakhees in certain areas.
- Real estate brokerage: RERA, part of the Dubai Land Department (DLD).
- Banking, insurance and investment services: Central Bank of the UAE (CBUAE) and the Securities and Commodities Authority (SCA); the Dubai Financial Services Authority (DFSA) within DIFC.
- Virtual assets and crypto: Virtual Assets Regulatory Authority (VARA); DFSA within DIFC.
- Media, publishing and advertising: UAE Media Council.
- Security services, CCTV, gold and jewellery trading: Security Industry Regulatory Agency (SIRA).
- Car rental, transport and courier services: Roads and Transport Authority (RTA).
- Hotels, travel agencies and tour services: DET tourism division.
- Recruitment and employment agencies: Ministry of Human Resources and Emiratisation (MOHRE).
- Legal services: Government of Dubai Legal Affairs Department.
For the tax side of regulated financial activities, see our Dubai Tax Consultancy page.
Sectoral Permit Application Process in Dubai
- Choose your activities: Select the right activity codes from the DET activity list; this determines which external approvals apply.
- Trade name and initial approval: Reserve the company name and obtain initial approval from DET.
- External approval: If the activity is regulated, apply to the relevant authority such as DHA, KHDA, RERA or SIRA and complete any inspection or competency assessment.
- Premises and tenancy contract: Lease suitable office or business premises and register the tenancy contract with Ejari.
- License issuance: Pay the fees and receive the trade license, then move on to work permits, visas and tax registrations.
Documents Required for the Application
- Passport copies of shareholders and managers
- Description of activities and, where required, a business plan
- Trade name reservation and initial approval certificate
- Ejari-registered tenancy contract
- Sector-specific documents: professional qualifications, experience certificates, licensed staff details, facility layouts, etc.
Costs and Timelines of Sectoral Permits in Dubai (2026)
Costs depend on the license type, the number of activities, the approving authority and premises requirements. Indicative ranges as of 2026:
- Commercial and professional licenses: Approx. AED 2,000 – 50,000 per year.
- Healthcare facility (clinic) permits: Approx. AED 5,000 – 150,000.
- Tourism licenses: Approx. AED 3,000 – 100,000.
- Financial activity permits: AED 10,000 or more per year.
For activities that do not need external approval, a license can usually be issued within a few working days to two weeks. Where external approval is required, the process can take from several weeks to a few months, depending on the authority's review and inspection schedule.
Note: Figures are indicative as of July 2026 and for general guidance only; official fees may change. Please check the relevant authority's official website for current fees.
Why Correct Permit Planning Matters
Choosing the wrong activity or missing an external approval can lead to license rejection, fines and delays in opening a corporate bank account. Planning permits together with company formation saves both time and cost. Learn more on our Dubai company formation page, or contact our team for guidance on the permits that apply to your sector.
Official Sources
FREQUENTLY ASKED QUESTIONS
Dubai Business License & Sectoral Permits frequently asked questions.
Regulated activities require approval from the relevant authority in addition to a trade license. Common examples include:
- Healthcare services and pharmacies (DHA)
- Schools and training centres (KHDA)
- Food and restaurant businesses (Dubai Municipality)
- Real estate brokerage (RERA)
- Finance, insurance and virtual asset activities (CBUAE, SCA, VARA or DFSA)
- Security services, gold and jewellery trading (SIRA)
- Transport and car rental (RTA)
- Media, publishing and advertising (UAE Media Council)
Even if your activity is not listed here, you should check the DET activity list for any external approval requirement before applying.
The process generally consists of the following steps:
- Defining the activity and company structure (mainland or free zone)
- Reserving a trade name and obtaining initial approval
- Applying for sectoral external approval, if required
- Leasing premises and registering with Ejari
- Paying the fees and receiving the license
Applications typically require shareholders' passport copies, an activity description, a tenancy contract and sector-specific documents.
Building permits for construction and renovation projects are issued by Dubai Municipality, the Dubai Development Authority (DDA) or Trakhees, depending on where the project is located. Applications usually require:
- Approved architectural and engineering drawings
- Details of the licensed consultant and contractor
- An environmental impact assessment for large projects
- Insurance documents valid for the duration of the project
Construction cannot start without a permit. Companies working in construction also need a trade license covering contracting activities.
Yes. Free zone licenses are issued by the relevant free zone authority, but regulated activities (such as healthcare, education, finance or virtual assets) still require approval from the sector regulator. Free zones offer foreign investors the following advantages:
- 100% foreign ownership
- Fast, digital company formation
- Customs benefits within the zone
- Potential 0% corporate tax for qualifying companies
Since 2021, 100% foreign ownership has also been possible for most activities on the mainland.
To employ foreign staff in Dubai, the following steps are generally required:
- Obtaining a work permit from the Ministry of Human Resources and Emiratisation (MOHRE), or through the free zone authority for free zone companies
- Completing the residence visa and Emirates ID process
- Providing mandatory health insurance for the employee
- Registering the employment contract in the official system
The number of employees you can sponsor depends on the visa quota, which is linked to your license type and office size.
Private schools, training centres and course providers in Dubai need approval from the Knowledge and Human Development Authority (KHDA), while the trade license is issued by DET on the mainland or by the free zone authority. KHDA reviews criteria such as:
- Curriculum and training programmes
- Qualifications and certifications of instructors
- Suitability and safety standards of the premises
Because education is a closely regulated sector, the scope of activities should be clarified before applying.
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