The United Arab Emirates (UAE) is a prime destination for entrepreneurs and investors, thanks to its strategic location, business-friendly regulations, and tax advantages. If you’re planning to launch a business in the UAE, obtaining a trade license is a legal prerequisite. This guide outlines the key requirements, types of trade licenses, and step-by-step process to apply for one.
Step 1: Choose Business Activity
Determine the type of business activity you wish to engage in. Each license can contain multiple activities from the same category.
Step 2: Choose a Jurisdiction
Decide whether to operate in a mainland, free zone, or offshore jurisdiction. This choice affects your ownership rights, taxation, and operational scope.
Step 3: Reserve Your Trade Name
Submit 3–5 name options to the relevant licensing authority. The name must comply with UAE naming conventions and cannot include offensive or religious terms.
Step 4: Get Initial Approval
This is a no-objection certificate from the DED or free zone authority, stating you can proceed with the license application.
Step 5: Prepare Legal Documents
These typically include:
- Memorandum of Association (MOA)
- Lease or tenancy contract (Ejari for mainland)
- Shareholder passport copies
- Board resolution (for branch offices)
Step 6: Choose Office Space
You must have a physical address—either a flexi-desk or full office, depending on your business size and type.
Step 7: Submit Final Application and Pay Fees
Submit your complete application, documents, and pay the applicable licensing fee. Fees vary widely depending on the jurisdiction and license type.
Step 8: Receive Your Trade License
Once approved, your trade license will be issued, and you can legally begin business operations.
Wrapping Up
Applying for a trade license in the UAE is a relatively straightforward process, especially when guided by a business consultant or legal expert. Whether you’re launching a trading company, starting a consulting firm, or opening a restaurant, a valid trade license is the foundation of legal business operations in the country. With the right planning and documentation, you can set up and scale your business successfully in the UAE.
