Trade License is an official document provided by government entities to grant legality of specific business activities within designated areas and represents proof that a business is operating within the legal guidelines as established by the relevant law. A trade license acts as proof that an individual or company agrees with relevant laws and regulations. A trade license is essentially a legal document that authorizes the conduct of business, professions, or industries.
Note: Without a valid trade license, a business or individual can not legally operate.
For businesses, starting your company or business is essential due to the following reason. Without a license can cause heavy financial penalties or even business shutdown.
Trade licenses in the UAE are divided into 6 main categories, permitted by the economic departments or free zone authorities such as the Dubai Department of Economy and Tourism (DET). If you want to set up a business in the UAE and have an idea of a new business then you need a trade license according to your business. Without a trade license you can not run a business in the UAE.
| License Type | Used For | Examples |
|---|---|---|
| Commercial | Trading & goods activities | Retail, wholesale, general trading, e-commerce |
| Professional | Service-based businesses | Consultancy, IT, marketing, legal |
| Industrial | Manufacturing & production | Food production, garments, fabrication |
| Tourism | Travel & hospitality | Travel agencies, tour operators |
| Agricultural | Farming & livestock | Crop farming, poultry, fisheries |
| Craft / Artisan | Skilled manual work | Carpentry, repairs, handicrafts |
Know More: How to Add Activities in Trade License in UAE?
The license is best for businesses which included and want to start Buying, selling, importing, exporting physical goods. Commercial Trade License with the one license you will get various business activities authority.
In the Professional License you have authority to do Skill-based and knowledge-based services.
With the Industrial trade license you can do Production, processing, and manufacturing activities.
Tajer Abu Dhabi License
DED Trade License (Dubai)
SHAMS Free Zone
RAKEZ Free Zone
Meydan Free Zone
Additional Guide: Cheapest Trade License in UAE
The following documents are important and required for a trade license in the UAE. It depends on whether you’re setting up in the mainland business or free zone business in UAE.
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Joel Dsouza is a Chartered Accountant and compliance specialist with extensive experience advising over 1,000 startups and SMEs on company registration, tax structuring, and regulatory compliance. As a member of ICAI and Co-Founder of Safe Ledger, Joel combines his deep financial expertise with a global perspective to help entrepreneurs navigate complex business environments. Focused on the UAE market, he is dedicated to empowering international and local business owners with clear, practical guidance on company setup, tax optimization, and ongoing compliance making him a trusted advisor for businesses aiming to succeed in the dynamic UAE economy.
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