How do I explain my business before selecting a licence activity?
Start with what customers will pay you for, who those customers are, how you’ll deliver the product or service, and where the work will happen. Put those details into two or three sentences, then ask the free zone authority to confirm which licence activity fits your plans.
Describe What You’ll Invoice For
Labels like “e-commerce,” “consultancy” and “technology” can be useful starting points, but they leave important details unanswered. An online store selling its own stock works differently from a marketplace that earns commission on other sellers’ orders. Both operate online, but they make money in different ways.
When writing a free zone business activity description in the UAE, start with what will appear on an invoice. Will a customer pay for a product, a project, a monthly subscription or a commission? If you expect to earn money in more than one way, list each revenue stream separately. That gives the authority something specific to review during business activity selection.
A Four-Question Worksheet for Your Business Description
| Question | What to write down | Detail that helps clarify the activity |
| What do you sell? | The product, service or subscription customers pay for. | Say whether you sell goods you own, advise clients, build custom software or sell access to a platform. |
| Who pays you? | Your paying customer: consumers, businesses, distributors or another group. | On a marketplace, for example, the buyer may pay for the goods while the seller pays your commission. |
| How do you deliver it? | Your website, app, marketplace, remote sessions, client visits, courier or fulfilment partner. | Explain whether your team delivers the work, a contractor does it or customers use a self-service platform. |
| Where do you operate? | Where your team works, where goods are stored or dispatched, and which markets you serve. | Keep the operating location separate from the customer’s location. Mention any planned on-site work. |
Use your answers to complete this template:
“We provide [product or service] to [customer type] through [delivery channel]. We operate from [location] and serve customers in [markets].”
Add a sentence if a detail could affect the review, such as importing inventory, installing equipment at client sites or selling a separate implementation service.
Three Hypothetical Business Descriptions
1. Online Retailer Selling Its Own Stock
We sell home organisers directly to UAE consumers through our own website. We buy and own the stock, store it with a UAE fulfilment partner and deliver orders by courier.
What to confirm: Ask whether the proposed activity covers the specific products and sales model. If you plan to import the goods yourself, include that detail and ask what else needs to be checked. If the website will instead list products for independent sellers and earn commission, describe that separately. The authority is now assessing a marketplace model as well as, or instead of, retail.
2. IT Consultancy Advising Small Businesses
We assess small businesses’ IT systems and recommend improvements. We deliver written reports and remote workshops from a shared workspace. Clients pay a project fee, and we do not resell software or install equipment.
What to confirm: Ask whether the proposed activity covers the advisory work and workshops as described. If the business will also configure systems or install equipment at clients’ premises, explain what that work involves and where it happens. Ask whether the same activity covers it or whether a separate activity or approval should be considered.
3. Subscription Software Business
We develop and operate an online scheduling platform for service businesses. Customers pay monthly for access through a web app. Our team manages the platform remotely from the UAE and serves customers in the UAE and overseas.
What to confirm: Ask whether the proposed activity covers operating the platform and charging for access. If you also plan to build custom software for customers or charge separately for integration, list those services so the authority can review them alongside the subscription model.
What to Confirm Before Applying
Send your completed description to the relevant free zone authority, or ask your setup provider to obtain written confirmation from it. Ask for:
- The official activity name and code. Record the exact wording so you can compare it with the application or quote.
- The scope. Ask which products, services and revenue streams from your description are covered.
- Any conditions or approvals. Flag details such as imported goods, third-party storage, on-site work or a service in a regulated sector.
- Any additional activities. If you have more than one revenue stream, ask whether the activities can sit on the same licence.
Keep the written response with your application records. If you later change how the business earns money or delivers its services, you’ll have a clear description to compare against the original confirmation.
Frequently Asked Questions
1. How long should my business activity description be?
Two or three sentences are a good starting point. Add details that affect how you earn revenue, deliver work or handle goods.
2. Can I write “e-commerce” as my entire description?
It’s better to say what you sell, who owns the stock, who pays you and how orders are fulfilled. Those details explain the business behind the sales channel.
3. What if I haven’t started trading?
Describe your intended operations and label them as planned. Use customer types, such as UAE retailers or overseas SMEs, if you have no confirmed customers yet.
4. Should I include services I might offer later?
List them separately as future plans. That lets you ask how to add them later without making the initial application sound broader than your launch plan.
5. Who confirms whether a UAE free zone licence activity fits?
A setup adviser can help you prepare the description and shortlist activity codes. The relevant free zone licensing authority confirms whether the activity fits and what conditions apply.
