A trade licence in the UAE is a legal document issued by government authorities that authorizes businesses to operate within the country.
To obtain one, you must: (1) choose your business activity, (2) select a legal structure, (3) reserve a trade name, (4) secure initial approvals, (5) submit required documents, and (6) pay the applicable fees.
Whether you need to verify business licences, apply for commercial companies licences, or renew economic licences, each step must align with UAE regulations as of 2025.
Our law firm simplifies this process, offering expert legal support to ensure your setup is fast, compliant, and stress-free.
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Steps to Get a Trade Licence in the UAE
To remain compliant, businesses must verify business licences regularly, apply for the correct commercial company licences, and ensure their economic licences are up to date.
The steps to get a trade licence in the UAE are:
- Choose Business Activity and Licence Type
Identify your primary and secondary business activities, as the UAE has over 2,000 approved activities linked to specific licenses. Your chosen activity will determine the type of license required and the relevant authorities that need your approval, so accurate selection is crucial. - Select Legal Structure
Your legal structure affects ownership, liability, documentation, and taxation. Common options include a Limited Liability Company (LLC), a Sole Proprietorship, a Civil Company, or a Branch of a foreign/local company. This choice will determine if you need a local service agent or if 100% foreign ownership is allowed. - Reserve a Trade Name
Propose a unique business name that follows UAE naming guidelines. It should reflect your business activity, avoid conflicts with existing names, and steer clear of religious, offensive, or political terms. If necessary, include the appropriate legal structure abbreviation, such as “LLC” or “FZ LLC.” - Obtain Initial Approval
Initial approval is a no-objection certificate from the Department of Economic Development (DED) or a free zone authority, indicating government acceptance of your business setup. If your business operates in regulated sectors such as education or healthcare, external ministry approval may be required initially. - Prepare and Submit Documents
To submit the necessary documents, provide copies of your passport, Emirates IDs (for residents), lease agreements, initial approvals, a trade name reservation, and a Memorandum of Association (MOA). Some documents may require translation into Arabic and notarization. Corporate shareholders may also need to submit board resolutions. - Pay Fees and Receive a Licence
After document verification, pay the necessary government and registration fees, which vary by emirate and license type. Once payment is confirmed, you will receive your official trade license, Chamber of Commerce certificate, and establishment card, which are required for immigration processing. - Use Instant Licence
Dubai offers an Instant Licence for selected activities that require no prior approvals. It can be issued online within minutes through the “Invest in Dubai” portal, allowing entrepreneurs to start operating immediately. There is a one-year grace period to submit a lease and finalize documentation.
Learn more about:
e-commerce License UAE
An eCommerce license in Dubai is a mandatory legal requirement for conducting online business through websites, apps, or social media platforms.
Regulated under Federal Decree-Law No. 14 of 2023, this licence ensures that digital traders meet specific conditions, including cybersecurity compliance, secure infrastructure, and regulatory approvals.
Businesses must only sell approved goods or services and issue detailed digital invoices to consumers.
In Dubai, you can obtain an eTrader licence through the Department of Economic Development (DED), allowing UAE and GCC nationals to legally sell online.
For a more robust setup, Dubai CommerCity offers a full eCommerce ecosystem with tax incentives and 100% foreign ownership.
General Trading License in UAE
What is the most common type of trade licence in the UAE?
A commercial licence (general trading license) is one of the most widely used trade licences in the UAE.
It is suitable for businesses involved in any type of trading activity, including import, export, and the buying or selling of goods or commodities.
This includes general trading companies, retail shops, wholesalers, logistics firms, and contracting companies.
A commercial licence allows businesses to operate in local markets, participate in tenders, and trade internationally.
It also supports multi-activity operations, making it flexible for entrepreneurs who plan to grow or diversify. Issuance requires DED or free zone approval, a physical office lease, and a trade name.
Dubai Mainland License
The DED in the relevant emirate issues a mainland trade licence in the UAE, which allows companies to do business anywhere in the country.
This includes working with government bodies, taking on private sector contracts, and retailing to consumers.
As of 2021, the UAE permits 100% foreign ownership for most activities in the mainland, eliminating the former requirement for a local partner in many cases.
This change has opened new opportunities for foreign investors. Mainland businesses must have a physical office space and must register with the Chamber of Commerce.
They are also subject to VAT and corporate tax as per UAE laws.
Free Zone Trade License in UAE
Free zone trade licences in the UAE are issued by dedicated authorities within special economic zones.
These zones are designed to attract foreign investors by offering benefits such as 100% foreign ownership, 0% corporate tax (for qualifying income), and simplified business setup procedures.
Free zone businesses can only operate within the free zone or export abroad unless they use a local distributor to access the mainland.
This model suits international companies, tech startups, and logistics firms.
Free zones also offer flexible office solutions and streamlined digital services, although rules and capital requirements vary between zones.
Legal Services Related to Trading License in UAE
Our legal consultants in Dubai provide comprehensive legal support to businesses seeking to obtain a trade license in the UAE.
Our licensed attorneys assist in every step of the process as follows:
- Legal Structuring and Ownership Guidance
We help you choose the best legal structure for your business, considering ownership, activity type, and risk management. Whether it’s an LLC, professional firm, or branch, we ensure compliance with UAE Commercial Companies Law and foreign ownership regulations. We also offer legal document drafting and review services. - Drafting and Reviewing Legal Documents
Our legal team prepares and reviews key documents like the Memorandum of Association and Service Agent Agreements. We also provide Arabic translations and notarization, ensuring compliance with UAE authority standards. - Handling Regulatory Approvals
Some business activities require prior approval from authorities like the Ministry of Health, Central Bank, or Tourism Department. We handle all communications and submissions to ensure your license application is not delayed by missing or incorrect approvals. - Trade Licence Dispute Resolution
If your trade license is suspended, canceled, or challenged, we provide expert legal representation to resolve the issue. We also help with activity violations, penalties, non-compliance notices, and regulatory disputes in the UAE. - Legal Compliance for Foreign Investors
We help foreign investors navigate UAE licensing regulations, securing 100% ownership where permitted and identifying restricted sectors to avoid local sponsor issues. Our services ensure all documentation and business structures comply with current UAE laws.
Find more services from top Commercial Lawyers in Dubai UAE.
FAQs about UAE Trade Licences
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A law graduate and expert legal writer specializing in UAE law, he has built a reputation for clarifying complex legal concepts through his publications. His work simplifies the understanding of legal risks in the Emirates, enabling both citizens and residents to navigate their legal challenges with confidence.
