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Business setup

Trade license in the UAE

A trade licence (often spelled “trade license” in the UAE) permits a company to carry out stated business activities. Here are the general licence types, the documents usually involved and how renewal works.

Licence types

Authorities group licences by the kind of activity. The categories below are common. Names and rules differ by authority.

  • Commercial

    For trading activities, such as buying and selling goods.

  • Professional

    For services provided by individuals or firms using professional or technical skills.

  • Industrial

    For manufacturing and other industrial activities.

Business activities

A licence lists the activities the company may carry out. Choose them carefully, because activities outside the licence may not be allowed. Some activities need approval from another body before a licence is issued.

Mainland licences are issued by the licensing authority of the emirate. Free zone licences come from the authority of the relevant zone.

Documents

The list varies by activity and authority. These items commonly come up.

  • Identity documents

    For owners, partners and the manager.

  • Company details

    Proposed trade name, activities and ownership structure.

  • Premises evidence

    Evidence of a business address where one is required.

  • Approvals

    Any approvals from other bodies needed for the activity.

Process

  1. Step 1: Select the activities and licence type

    Match your plans to the activities the authority offers.
  2. Step 2: Apply and obtain approvals

    Submit the application with required documents and any additional approvals.
  3. Step 3: Pay fees and receive the licence

    Government fees are set by the authority and are paid as part of the process.

Renewal

Licences typically need to be renewed on a regular cycle, commonly each year, and conditions can apply when you renew. Check the dates and requirements shown on your licence and with the authority.

We can discuss support with applications and renewals. We confirm the scope with you in advance.

Common mistakes to avoid

These points come up often when people apply for or renew a licence.

  • Choosing activities too narrowly

    If you later want to add a service, the licence may need to be changed first.

  • Carrying out an activity that is not on the licence

    Check the wording on your licence before you start new work.

  • Missing the renewal date

    Note the date shown on your licence and allow time to gather documents.

  • Not updating the licence after changes

    Changes such as a new partner or address may need to be recorded with the authority.

Frequently asked questions

Do I need a trade licence to operate a business?
Businesses that operate in the UAE typically need a licence or registration that matches their activity. Check the requirement for your activity with the relevant authority.
Can one licence cover several activities?
Often yes, within limits set by the authority. Some combinations are not allowed, so confirm before you apply.
What happens if I do not renew on time?
Authorities may apply penalties or restrict your business. The details are set by the authority, so check your licence and the current rules.
Can you apply for the licence for me?
We can discuss support with applications. Who does which step is agreed with you before work starts.
What does a trade licence cost?
Fees depend on the authority, the activity and the premises, and are set by the authority. We do not publish fixed fees. Ask us about your case.

Need a trade licence or renewal?

Tell us your activity and the authority that issued or will issue the licence.

Information on this page is general and may change. Requirements are set by the relevant UAE authorities. Contact us for advice on your situation.

This is general information and not legal or tax advice.

Nexoviz is an independent company and is not affiliated with, endorsed by, or acting on behalf of any government authority unless stated.