The UAE is a thriving business hub, offering various licensing options for entrepreneurs and businesses looking to establish a presence in the country. One such option is the Professional Trade License, which is ideal for individuals and companies that provide specialized services. Whether you are a consultant, freelancer, or service-based business, understanding what a professional trade license is and who needs one is essential for operating legally in the UAE. In this blog, we’ll break down the concept of a professional trade license and its key features.
What is a Professional Trade License?
A professional trade license is a specific type of business license issued by the Department of Economic Development (DED) in each emirate. This license is granted to individuals or businesses that provide specialized services that rely on the skills, expertise, and intellectual capabilities of the owner or employees, rather than goods or manufacturing activities. It covers service-oriented businesses rather than commercial or industrial activities.
Key Features of a Professional Trade License
100% Foreign Ownership
One of the main advantages of a professional trade license is that it allows 100% foreign ownership of the business. A local service agent (LSA) is required, though the LSA does not own any shares in the business and only assists with administrative tasks such as obtaining permits.
Focus on Service-Based Businesses
A professional trade license is exclusively issued to businesses or individuals that provide services rather than selling goods or engaging in manufacturing activities.
Legal Structure Options
Under a professional trade license, you can choose between setting up as a sole proprietorship, civil company, or single-owner LLC (Limited Liability Company).
Visa Eligibility
Holding a professional trade license allows you to sponsor visas for employees, including administrative staff and support personnel.
Tax Benefits
Professional trade license holders enjoy many of the same tax benefits as other businesses in the UAE, including no corporate tax and no income tax.
Wrapping Up
A professional trade license is the perfect solution for service-based businesses, freelancers, and consultants looking to establish a legal presence in the UAE. With benefits like 100% foreign ownership, access to the local market, and cost-effective setup options, a professional trade license allows entrepreneurs to build a successful service business in one of the world’s most dynamic economies. Whether you’re a seasoned consultant or a new freelancer, a professional trade license provides the flexibility and legal framework to grow and thrive in the UAE.
