UAE is known to be a wonderland for entrepreneurs and investors. Every year, nation witnesses a huge inflow of expats who wish and dream of starting their own business here. In fact, UAE is one of the most sought-after destinations for those looking to expand their ventures abroad. The nations advanced facilities, strategic location, diverse business activity options and ease of setup, makes business setup in UAE very attractive. Also, by getting a trade license in UAE, you enjoy the liberal tax environment of UAE.
Let us talk about the business license of UAE, how to get it, what are the types you can choose from and more.
Meaning of trade license in UAE
A trade license in UAE is a special permit issued by the UAE government to entities who wish to conduct business operations in the nation. Without obtaining the right trade license, you cannot run a business legally.
Each and every business in UAE, be it small or large, a mainland or a freezone business setup, needs to have trade license registered.
Benefits of holding a UAE trade license
Here are the advantages of getting a trade license in the UAE:
Enjoy a tax-friendly environment
Become part of a booming economy
Choose from a wide range of business activities
Strategic geographic location
Easy access to global markets
Extensive government support
Access to government services
Categories of trade license in UAE
In UAE, over 2000 business activities are permitted which can be carried out by entrepreneurs. To cover a wide range of operations, UAE offers the following broad types of trade license:
Commercial license:
Companies and business looking to buy and sell goods such as computers, automobiles, clothes, furniture, and other items must get the commercial license. This also includes those businesses involved in imports and exports.
Professional license:
Also known as service license, professional license is designed for those who plan to offer services based on some expertise, qualifications, and experience. Doctors, accounting firms, marketing agencies, etc typically need professional license in UAE.
Industrial license:
Manufacturing and industrial activities like production, assembling and processing of items can be conducted through an industrial license in UAE. Garment manufacturers, food manufacturers, dairy, and food processing firms, are some examples of businesses that need such license.
Tourism license:
For conducting tourism related business activities in UAE, a tourism license would be needed. Examples include tour operators, travel agents, accommodation service providers etc.
E-commerce license:
Starting and running an online business in UAE would call for getting an e-commerce license. In an online business, you can sell products and services with help of social media platforms, online platforms, and marketplaces and so on.
Agricultural license:
Businesses involved in agricultural and crop related activities need to secure agricultural license.
Freelance license:
If someone is looking to work as independent professional without being tied to any particular employer or job, they can get a freelance license in UAE.
Step by step guide for obtaining trade license in UAE
The process to obtain the business license in UAE has been broken down and explained step wise so that you get a clear understanding of it:
1. Choose economic zone:
In UAE, you can get trade license in mainland as well as freezones. Each of these jurisdictions has its own features and advantages. If you are looking for a business setup where you can access the entire UAE market freely, mainland is a better choice.
On the other hand, freezones are known to be entrepreneur friendly as they offer 100% ownership to business, affordable and simple business setup process.
2. Determine your business activities:
There are so many business activities that can be carried out in UAE. These activities belong to sectors such as healthcare, finance, fashion, retail, electronics, IT, science, education and many more. You must choose the one you like, is in demand and allowed by DED.
3. Decide the legal structure:
You can establish different type of legal entities in UAE. For example, you may establish a partnership firm, a limited liability company, a sole establishment, a civil company, or a branch of foreign company. The legal structure determines the ownership, control, and liability structure of your business.
4. Register a business name:
Next, for your business in UAE, you must get a proper and lawful name registered. Be mindful to follow the UAE’s naming rules otherwise the name may get rejected if it offends any rule.
5. Secure initial approval:
In this step, you would be getting the primary permission from the UAE government for your business. This step is very crucial as you can proceed further with licensing only if you get an NOC from the DED of respective Emirate (for mainland) or respective authority (of freezone).
6. Choose office space:
For your business, you may need office space, warehouse, or other spaces. You must get that sorted. You can choose from private offices, flexi desks, shared office spaces, or even virtual address (in case of license like e-commerce).
The office space requirements depend on nature and size of your business, type of license you need, etc. In case you rent out the space, the rental agreement must be obtained.
7. Additional approvals, if needed:
For some types of business activities, additional permission form government departments may be needed. For example, if you want to practice as a nutritionist or healthcare worker in UAE, you must get the permit from Heath Authority of the respective Emirate.
8. Gather documents and make application for license:
Finally, when you have all the approvals in hand, you can move forward with the license application. When applying for trade license in UAE, certain documents must be submitted along with the application form and fees. The application is made with the DED of respective Emirate (for mainland) or respective authority (of freezone).
To facilitate the licensing process, the UAE government has introduced the e-channel system. This online portal simplifies many government related processes such as visa processing, emirates ID processing and business license application.
9. License approval and issuance:
The authority will review your application, and once approved, your trade license will be successfully issued, and you can start operating legally in Emirates.
Documents required for UAE trade license application
Here is the general list of documents you would need to submit for getting trade license UAE:
Completed application from
Passport copy
Trade name certificate
Business plan
Visa copy, if applicable
Initial approval certificate
Additional approvals
Tenancy agreement
NOC from local sponsor, if needed
Articles of company
Additional document as asked by authorities
Being careful with documentation is very important as any negligence can lead to delays or even cancellations, that is why we recommend partnering up with expert business setup consultants like Dubiz Business Setup.
Cost of trade license in UAE
UAE business license cost starts from around AED 5,750* for freezone (Ajman Freezone). On mainland, the cost of trade license can start from anywhere around 17,900* (professional license).
The cost of the trade license actually depends on several factors like its type, jurisdiction and so on. You can check out reasonably priced packages that Dubiz Business Setup offers.
Summing up!
Getting a trade license in the UAE is a very promising prospect for those looking to start their business journey. The UAE offers the perfect launchpad for business success, and the government leaves no stone unturned to support and encourage foreign investors.
If you are also looking to obtain your trade license in the UAE, we advise you to contact Dubiz Business Setup. They are professional business setup experts and have helped countless businesses get started for success in Dubai and across the UAE. They assist with licenses, visas, Golden Visas, bank accounts, tax, accounting, business centers and more.
In short, you get end-to-end UAE company formation services under one roof with them.
Book your free consultation with them today to get started!
