What Are the Different Types of Trade Licenses in the UAE?

The United Arab Emirates (UAE) is a hub of economic activity, attracting businesses from around the world to open a company in Dubai. However, before a company can legally operate in the UAE, it must obtain a trade license. In this article, we'll take a closer look at the different types of trade licenses available in the UAE for a low cost business set up in Dubai and the requirements for obtaining them.

Types of Trade Licenses in the UAE: Which One Do You Need?

The following are the different types of trade licenses in the UAE:

1. Commercial License: As the name suggests, those businesses need a commercial license in UAE who are engaged in commercial activities, such as trading, import/export, and general trading. To obtain this business license in Dubai, companies must provide a detailed business plan, proof of financial stability, and a memorandum of association or articles of association.
2. Industrial License: This license is required for businesses engaged in industrial activities, such as manufacturing, production, and assembly. Companies must provide detailed plans outlining their manufacturing processes and the equipment and machinery they will use.
3. Professional License: A professional license in Dubai is required for businesses engaged in professional or service-related activities, such as consulting, marketing, and IT services. Companies must provide evidence of their professional qualifications and experience.
4. Freelance License: This license is designed for individuals who wish to work as a freelancer in the UAE. To obtain a freelance license, individuals must provide evidence of their professional qualifications and experience, as well as a business plan outlining their services and rates.
5. Tourism License: Those businesses need a tourism license who are engaged in tourism-related activities, such as travel agencies, tour operators, and hotels. Companies must provide detailed plans outlining their tourism activities, as well as evidence of their financial stability and professional qualifications to obtain a tourism license.
6. Branch License: This license is required for foreign companies wishing to establish a branch in the UAE. Companies must provide a copy of their parent company's memorandum and articles of association, as well as evidence of their financial stability and professional qualifications.
7. E-commerce License: This license is required for businesses that sell products or services online.
8. Commercial Representative Office License: This license is required for foreign companies wishing to establish a representative office in the UAE. Companies must provide a copy of their parent company's memorandum and articles of association, as well as evidence of their financial stability and professional qualifications.
9. Media License: A media license is required for businesses engaged in media-related activities such as publishing, printing, and broadcasting.

And that's it. These are the different types of trade licenses in the UAE.

It's worth noting that some business activities may require multiple licenses, depending on the nature of the business. For example, a company engaged in both manufacturing and trading activities would require both an industrial license and a commercial license.

Get Your Priorities Straight By Consulting Business Experts

To obtain a trade license in the UAE, companies must first determine the type of license they require and then follow the application process outlined by the relevant government authority. The specific requirements and procedures may vary depending on the type of license and the location of the company.

Obtaining a trade license is a crucial step for any business looking to operate legally in the UAE. With several types of licenses available, companies can choose the one that best suits their specific needs and requirements. Contact A&A Associate today to get guidance and consultation on how to obtain a trade license to start a business in Dubai.