Why is a Trade License Important For Doing Business in Dubai?

Why is a Trade License Important For Doing Business in Dubai?

Trade License

A commercial license is a necessity in the UAE for companies. The UAE Economic Department grants licenses, and licensing processes vary amongst emirates. Commercial, industrial, and professional licenses are the three main categories in the UAE. Trade License However, the government also grants other additional permits that are unique to specific operations.

License is one of the first things on the contractor’s checklist for company formation in UAE, particularly acquiring a thorough grasp of the various types of commercial licenses offered. However, it must not be a complicated procedure and may be made easy by using a training professional to deal with your application. Many of the permits available in Dubai and the United Arab States are, in any event, very automatic.

When to Get the Trading License

The first step is generally to select your business activity when applying for a business license. As a general trade license, it is possible to specify numerous activities. You can combine trade, professional services, and services with Fujairah Creative City Free Zone licenses and choose more than one free of charge.

The next step is to choose a name for a corporation after specifying your business operations. It is a complex process worldwide, but in the UAE, there are several additional considerations to take. However, these are mainly common sense and easy to follow. The USA has rigorous designation rules for companies.

Why is a Trade License Important For Doing Business in Dubai?

The establishment of a Dubai business is a comfortable and easy process. In one week, the government has made the procedure so easy to set up. Foreign investors and business owners are also encouraged to establish their company with the aid of a company consultant since they are aware of the procedural laws and may register a company without having to worry.

Several processes are required in incorporating a corporation in Dubai. The choice of a business to finish the business license is one of the most critical procedures.

Different Types of Trading Licenses in Dubai, UAE

Various commercial licenses are accessible to multiple companies in the UAE. In addition, permits in specific business categories require the permission of various ministries and other agencies.

For any of the following licenses, companies may apply:

Commercial License

Companies engaged in commercial activity relating to goods and services will be given commercial licenses. Before applying for a business license, you must decide the activities you want to carry out.

Logistics, vehicle rental, and real estate brokerage are among the operations included in commercial activity. Therefore, the tertiary action should be limited to 10 per license together with the principal activity.

Professional license

Professional licenses allow people and organizations to operate in a career in which they are skilled based on their educational qualifications. Some of the operations which fall under this license are craft ships, carpentry services, consultation, printing and publishing, medical services, beauty salons, graphic design services, repair services, safety, and cleaning of documents. In addition, foreign investors may acquire 100% ownership of their firm with a professional license.

Industrial License

The establishment of industrial or manufacturing activities in the UAE requires industrial licenses. By using industrial consent, companies can assemble and manufacture items using local or imported raw materials.

Agriculture License

A license should be for the people participating in crop growing and reaping, pesticide trading and crop production, etc., installations of greenhouses, and farming consultants.

Dubai’s Agricultural License issues to persons who oversee crop production and vegetable and grain harvesting duties. The farming license is available to company owners involved in trade, pesticides, fertilizers, management of pests, etc. 

Those interested in farm operations of all kinds, including greenhouses, watering systems installation, and agricultural advisory services and boosters, should apply for this license in Dubai.

Freelance Permit

Freelancing is Dubai’s most popular commercial license. This sort of license is for the free zones. These licenses intend to give services on a consultation basis to specialists in media, technology, art, the entertainment industry, and their full-time occupations.

Craftsmanship license

Dubai Manufacturing License is for the persons and businesses who perform services requiring physical strength, talents, and competencies. The handicraft licenses of DED Dubai are for plumbers, carpenters, electricians, and blacksmiths. Companies that appoint and thus seek this license to function successfully under the UAE legislation should also establish tradespeople.

The Dubai Department of Financial Development shall issue the above-noted licenses in Dubai. The Department operates from several licensing services sites.


The SME Trade License can be issued to 100% UAE-owned companies and be legally applicable. The registered commercial license is valid for three years, and the owner is allowed to sponsor staff. Foreign property is not permitted. It is unlawful to operate without permission in the UAE; the outcome will be a heavy penalty and even an activity prohibition. 

Every year, all UAE companies must renew their trade licenses. The license should also comply with the government’s requirements. As a result, it can lead to faster growth and more revenues for companies.

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