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About Business Trade License
A Trade License is your key to legally operating in the UAE. Whether you’re trading goods, offering professional services, or running a manufacturing business, Ventaraa will help you choose the right license that unlocks growth and new opportunities for your company.
Types of Trade Licenses in Dubai
Based on the type of business, trading licenses in Dubai are different. The Department of Economic Development (DED) issues 6 main categories of licenses:
Craft License
This license is issued to individuals or businesses engaged in skilled manual work such as tailoring, carpentry, jewelry making, pottery, or similar artisanal activities. It allows the holder to produce, repair, or customize handcrafted products for commercial purposes.
Tourism License
This license is issued to businesses engaged in travel, tourism, and hospitality-related activities, such as tour operators, travel agencies, holiday planners, and hotel management services. It permits the holder to organize tours, book accommodations, and provide travel-related experiences within or outside the UAE.
Agricultural License
This license is issued to individuals or entities involved in cultivating crops, managing farms, or raising livestock. It covers activities such as crop production, greenhouse farming, fisheries, and animal husbandry, enabling the holder to operate and trade in agricultural products.
Professional License
This license is for people who offer skills or expertise as a service, such as accountants and legal consultants.
Commercial License
This license enables businesses in both wholesale and retail activities, including import and export, and commercial brokerage.
Industrial License
This license is issued to businesses involved in manufacturing, assembly, or processing goods, including their import and export.
Understanding Free Zone, Mainland License -
A Brief Overview
The location of your intended Business setup in Dubai will also determine the kind of dubai trade license you need. View the licenses listed below:
Mainland License
Dubai Mainland is governed directly by the Emirati government and is ideal for businesses that plan to operate directly within the UAE market, take government projects, or participate in local tenders. You have to pay customs duties on goods entering the Dubai Mainland.
Free Zone License
Governed by the specific regulatory authority of that Free Zone, it allows businesses to operate within designated UAE Free Zones with 100% foreign ownership. It offers benefits like tax exemptions and a simplified setup, ideal for international trade and startups.
Benefits of a Trade License in Dubai
Getting a Trade License in Dubai has many benefits that can greatly improve your company’s operations and growth potential to be necessary for legal compliance and operational readiness. Among the main advantages are:
✅ Tax Benefit
Businesses enjoy 0% taxes, especially in Free Zones, along with other benefits like exemptions from import/export duties, allowing higher profit retention.
✅ Sponsorship
Licensed businesses can sponsor employees and dependents, allowing them to acquire better resources.
✅ Seamless Local and International Trade
A trade license allows companies to import, export, manufacture, and distribute goods freely, without any legal limitations.
✅ Smooth Financial Transactions
UAE’s robust banking system facilitates financial transactions smoothly for licensed businesses.
✅ Enhanced Business Reputation
Holding a valid trade license establishes your company as trustworthy, strengthening credibility with clients and investors.
✅ Government Support
The Dubai government strongly supports licensed businesses with eased regulations and good incentives, allowing them to grow sustainably and confidently
Required Documents for a Trade License in Dubai
Documents required for a trade license in the UAE depend on various factors like jurisdiction and type of business. However, some of the commonly required documents are:
- Passport copies of all shareholders
- A completed application form
- A Memorandum of Association (MOA)
- Firm name approval document
How Can I Obtain a Dubai Trade License?
You can easily traverse the requirements and procedures to obtain a Trade License in Dubai using the comprehensive guidance below.
1. Decide on Your Company Name
The first thing you will need is a company name. Make sure to choose a company that is readily available, unique, and unclaimed by another company.
2. Choose a Legal Framework
Based on your liability choices, choose a legal framework available in the UAE, such as Sole Proprietorship, Limited Liability Company (LLC), Partnership, Branch of a Foreign Company, and Free Zone Company.
3. Specify your Line of Business
You must specify what business activities you will be carrying out under your business license.
4. Select Jurisdiction
Based on your future goals and current business needs, choose from the Free Zones or the Dubai Mainland for operations.
5. Select License Type
There are several license types based on different lines of work, such as a commercial license and a general trading license.
6. Fill out your Application
Gather all the required documents related to your business, including a tenancy contract or real estate lease document, if you are operating from the Dubai Mainland, fill out the license application, and send it to the concerned authority.
7. Pay the Fees
Pay the required license fees.
8. Submit Legal Documents
Make sure all the associated partners of your firm submit the memorandum of association, along with the other required legal documents.
9. Obtain your License
Once your documents and payment are verified, you will receive your trade license.
What Is the Cost of a Trade License Dubai?
The cost of a trade license in the UAE is not fixed and depends on various factors, such as jurisdiction and type of business.
How to Renew a UAE Trade License?
Business trade licenses are not for a lifetime and need to be renewed every year. Here’s a quick guide on how to renew a UAE Trade License.
Obtain the Required Approvals
Depending on the nature of your firm, obtaining the required authorizations and approvals is the first step toward renewing your UAE trading licenses.
Prepare the Document
Make sure your tenancy contract, Emirates ID, and other information are up to date.
Pay the Renewal Fee
Pay the required fees based on your business type. In some cases, you may be able to set auto-renewal.
Receive the License
Once your payment and application are processed, your trade license will be renewed.
Frequently Asked Questions
What are the fees for a general trading license in the UAE?
It depends on the location (Free Zone or mainland) and the type of business.
Do I need a license as a freelancer to work in the UAE?
Yes, you will need a freelancer work permit or a sole professional license to work in the UAE.
Can I get my commercial license in one day in the UAE?
While it is not possible to obtain a commercial license in a single day, some locations in the UAE do issue same-day licenses.
Can I get multiple trade licenses under the same entity in the UAE?
Yes, a single entity can hold multiple licenses for different business activities.
How long does it take to get a trade license in the UAE?
Depending on your business activity and jurisdiction (Mainland or Free Zone), it can take anywhere from 1 to 10 working days once all documents are submitted correctly.