The business-friendly environment of Dubai has opened up lots of business opportunities for entrepreneurs worldwide. Thereby, more and more individuals and companies have started taking an interest in company setup in Dubai or business formation in Dubai. But before you start offering any business product or service, you must have a specific trade license UAE in hand; without which doing any business will be considered illegal. So, today you will find out all about different types of UAE trade license. But before I uncover any type, you must know:

What is a trade license?

It is a legal document that gives individuals or companies a permit to conduct commercial activities. This document is an essential requirement for setting up a business or company in Dubai. A trade license provides details of all the activities you can perform as a business/company in Dubai. This document defines a legal framework that your company or business must follow to stay compliant with regulations. Understand: How to get trade license without office?

Advantages of getting a trade license

Here are some benefits of getting a business license.

Once you get a business license, it makes your business legitimate. As a result, you can operate your business and transactions smoothly and without any legal interference or penalties.
Dubai is a business hub that offers a legitimate business a chance to expand their business operation and customer base immensely.
If your business is registered in Dubai, you can count on government assistance. For example, you can obtain grants or loans to grow your business.

Learn about How to get Sharjah trade license? A comprehensive guide.

Different types of trade license

Here are some common types of trade licenses Dubai.

1. Commercial license

The other names of this license are “Business license” and “General license”. If you want to conduct commercial trade activities in Dubai (such as import/export, commodity, etc) you need to apply for this license. These general licenses will permit you to continue your trade business in real estate, clothing, import/export and other industries. When it comes to starting up your trading company in Dubai, most foreigners prefer Dubai Free Zones.

Because the commercial license of this area allows you to obtain 100% sole ownership of your commercial trading business. This business opportunity is available to all foreigners regardless of their nationalities. On the flip side, if you acquire a commercial license in the mainland area, you can’t become the sole owner of your trading company. It’s because the license of this area requires you to share 51% share of your company with a local sponsor. Read the guide about: How to get food license in Dubai?

2. Professional license

Are you planning to offer some services based on your educational background in Dubai? In that case, you need to acquire a professional license in Dubai. Once you have a professional license, you can either run your service-based business in Dubai or work as an individual. Some examples of professions that require you to apply for professional licenses in Dubai are as follows:

Consulting
Law practice
IT services
Auditing
Accounting
Engineering
Doctors Training
Medical/healthcare services, etc

Once you become a professional license holder, you can apply for your employee visa, and there is a need to pay a fixed annual fee based on your service. Understand the Difference between Commercial license and Professional license in Dubai

3. Industrial license

You need an industrial license to establish a manufacturing or industrial business in Dubai. If your business involves manufacturing a new product from natural or raw materials, then you must obtain an industrial license. Once you have this license in hand, it permits you to use either imported or locally produced raw materials for product manufacturing. Here are examples of some industries that require an industrial trade license Dubai:

Food Industry
Stationery supplies manufacturing
Medical Equipment Manufacturing
Engine manufacturing
Textile Industry

Also Understand: E-trader license in Dubai

4. Tourism license

If you want to operate a business in the tourism sector then you need to get a tourism license. The Department of Tourism and Commerce Marketing DTCM and the Department of Economic Development (DED) issue this specific type of trade license in Dubai. Here are some examples of tourism industries that need tourism licenses:

Inbound/outbound tour operators
Travel agencies
Guesthouses
Resorts
Travel agents
Hotels

Once you acquire this license, then you are free to rent out some spaces, book trips or go for international or local tours.

5. Craftsmanship license

Every craftsman who wants to earn money in Dubai by offering his skills must have to obtain a craftsmanship license. You must need this license whether you want to work with a company or as an individual. Here are some craftsmen who must obtain craft licenses in Dubai:

Electrician
Carpenter
Plumber
Painter

If you offer services without getting a craftsmanship license in Dubai, then you will have to face certain punishments such as jail times, legal penalties, fines, and deportation.

6. Agriculture License

If you want to run an agricultural-based business in Dubai, you must have to get an agricultural license in Dubai. Here are some agricultural activities that require you to obtain a license.

Farming equipment production
Agricultural product trade
Farming
Agricultural consultation

What type of trade license do I need to get for my business?

Since there are different types of trade licenses in Dubai, it’s normal to get confused and start wondering. I have explained six types of Dubai company licenses. But the reality is that this business city opens up doors for a wide variety of businesses. Although I have provided examples of general businesses and industries that need licenses if you are unable to find your business in the list.

If you don’t know what type of trade license you should acquire then sweat not, Prospr is here to help. Book an appointment with our business setup expert here and get a detailed answer to this question. And guess what, we won’t just tell you what trade license you need to apply for. We will also offer you a helping hand in your business setup. Don’t wait anymore! Let Prospr help you obtain a business license in Dubai.

Category: Business Licence

Samad Ahmed

Samad is a tech enthusiast dedicated to delivering socially responsible, ethical, and transparent products in the MENA region. With over a decade of business experience, he continues to support the entrepreneurial community as the owner of Prospr, a company specializing in business setup services across the UAE, particularly in Dubai.