Request to Issue a Trade Licence: Step-by-Step UAE Guide

What Is a Trade Licence and Why You Need It

A trade licence is an official permission issued by UAE authorities that allows you to legally conduct commercial activities within a specific jurisdiction. Whether you plan to sell goods, provide professional services, or establish an industrial operation, this licence validates your business’s existence and ensures you comply with local regulations. Without a valid trade licence, operating a company in Dubai, Abu Dhabi, or any free zone can lead to fines, suspension of activities, or legal complications.

Securing a trade licence involves selecting the right licence category—commercial, professional, or industrial—based on your business activity. The authorities evaluate your application to confirm that your proposed activities align with approved business categories. Once issued, the licence must be renewed annually and may require amendments if you add new activities or change locations.

Obtaining a trade licence is the first critical step for entrepreneurs, investors, and established companies alike. It grants you the freedom to open bank accounts, sponsor visas for employees, and enter into contracts with confidence. Beyond legal compliance, a trade licence enhances credibility with partners, clients, and government entities. It also unlocks access to government e-services, such as the Invest in Dubai portal, which streamlines application submissions and status tracking.

Types of Trade Licences

Businesses in the UAE can choose from several types of trade licences, each designed to cover specific activities and legal frameworks. The main categories are commercial licence, professional licence, and industrial licence. Knowing these types helps you select the right licence to fit the nature of your business and legal requirements.

1. Commercial Licence

This licence is for businesses engaged in trading activities such as buying, selling, importing, or exporting goods. If you plan to open a retail store, wholesaling operation, or general trading company, a commercial licence is essential. It allows you to trade in various product categories based on your approved business activities.

2. Professional Licence

A professional licence suits individuals or companies offering professional or service-oriented activities. These include consultants, service providers, craftsmen, educational services, and specialists like lawyers, accountants, and medical professionals. Unlike commercial licences, professional licences do not typically allow stock trading but cover advisory and service sectors.

3. Industrial Licence

For companies involved in manufacturing, producing, or industrial services, an industrial licence is required. This licence supports activities ranging from food processing to machinery production. To obtain this, your business must comply with additional safety and environmental regulations. It also allows you to operate factories or industrial plants.

Besides these, there are also specific licences like freelance permits, e-commerce licences, and tourism licences, depending on your sector. Additionally, licences vary between the mainland and free zones, with free zones offering distinct licences that can have different ownership and operational rules.

Choosing the correct licence is crucial because it affects your legal obligations, allowed business activities, business location, and the authority governing your operations. This decision should be made precisely to avoid delays and additional costs during the application process.

Eligibility and Jurisdiction Comparison Table

When requesting to issue a trade licence in the UAE, understanding eligibility criteria and the jurisdictional differences between mainland, free zone, and offshore zones is vital. Each jurisdiction has its own rules for business ownership, types of allowed activities, office space requirements, and licensing processes.

Feature	Mainland	Free Zone	Offshore
Ownership	Requires a local sponsor or partner owning 51% (except for certain activities)	100% foreign ownership allowed	100% foreign ownership allowed
Business Activities Allowed	Wide range including industrial, commercial, and professional	Restricted to activities allowed by the free zone authority	Limited to non-UAE local business activities
Office Space Requirement	Mandatory physical office space in UAE	Flexible — options for flexi-desk or virtual office	No physical office required in UAE
Trade Licence Types	Commercial, Professional, Industrial	Free Zone Business Licence types (e.g., Trading, Service, Industrial)	Offshore company registration licence
Visa Quota	Based on office size and licence type	Based on licence and office package	Limited or no UAE residence visas
Applicable Laws	UAE Federal Commercial Companies Law	Free zone authority rules and regulations	Offshore company regulations
Costs	Varies; includes local sponsor fees, licence fees, and office rent Prices may vary, please consult with the provider	Licence and package fees based on free zone	Usually lower fees but restricted activities Prices may vary, please consult with the provider
Process Duration	Typically 2-4 weeks, depending on activity and approvals	Usually faster, 1-3 weeks	Fastest option, some within a few days
Best for	Businesses targeting UAE local market	Export-oriented, international trade, and specialized sectors	Holding companies, asset protection, non-local market

Choosing the right jurisdiction is key because it impacts your legal compliance, cost structure, and operational flexibility. Many businesses start in free zones due to ease of setup and full ownership but later expand to the mainland for direct access to UAE markets.

Step-by-Step Application Process

Requesting to issue a trade licence in the UAE involves a series of clear steps, each vital to ensure your business is legally registered and compliant with local regulations. Following this process carefully can prevent unnecessary delays or rejections.

Step 1: Define Your Business Activity

The first step is to select the main activity your business will conduct. Activities can range from trading goods, offering professional services, manufacturing products, or digital commerce. The selected activities influence the type of licence you need, required approvals, and eligibility conditions.

Step 2: Choose Jurisdiction and Legal Structure

Decide whether to register your business on the mainland, in a free zone, or offshore. Next, select the appropriate legal structure such as LLC, sole proprietorship, branch office, or partnership. This affects ownership, liability, and the application process.

Step 3: Reserve a Trade Name

Pick a unique trade name that complies with UAE naming conventions. The name should not violate public morals or include restricted words. Reserving your trade name with the relevant authority is essential before applying for the licence.

Step 4: Submit Initial Approval Application

Before submitting the full licence application, you must get initial approval from the Department of Economic Development (DED) or respective free zone authority. This confirms that the business activity is permissible and you meet residency or ownership requirements.

Step 5: Prepare and Submit Required Documents

Gather necessary documents such as passport copies, proof of residence, shareholding details, tenancy contract, and business plan if needed. Submit these along with your application form online or physically at the relevant authority.

Step 6: Sign Local Sponsor or Partner Agreements (if applicable)

For mainland companies requiring a UAE national sponsor or partner, formalize the partnership agreements. For free zones with 100% foreign ownership, this step is not necessary.

Document Checklist

When submitting a request to issue a trade licence, having the correct documents ready is essential to avoid delays or rejection. The required documents can vary slightly based on your business type, jurisdiction (mainland, free zone, offshore), and licence category, but here is a comprehensive checklist covering the most common requirements:

1. Identification Documents

• Clear passport copies of all shareholders, partners, and managers.
  
• UAE Emirates ID copies for UAE residents and visa holders.
  
• Valid resident visa copies if applicable (for foreign investors residing in UAE).
  

2. Trade Name and Initial Approvals

• Approved trade name reservation certificate issued by the Department of Economic Development (DED) or the relevant free zone authority.
  
• Initial approval certificate or pre-approval proving your business activity is accepted.
  

3. Business Legal Documents

• Fully completed trade licence application form.
  
• Memorandum of Association (MOA) and Articles of Association (AOA) for companies (LLC, partnerships).
  
• Shareholder resolution or board resolution authorizing submission (if applicable).
  
• Power of Attorney for authorized representatives submitting applications on behalf of owners.
  

4. Premises and Tenancy Proof

• Valid tenancy contract (also called Ejari in Dubai) for the physical office or warehouse showing the rental address.
  
• Unit title deed or free zone office desk lease agreement (for free zone licences).
  

5. Additional Documents and Approvals Depending on Business Activity

• No Objection Certificate (NOC) from current employer or sponsor, if applicable.
  
• Business plan may be required for free zone companies or specialized licences.
  
• Approvals from relevant government or regulatory bodies for restricted activities (e.g., health, education, tourism, industrial permits).
  

6. Other Supporting Documents

• Passport-sized photos of shareholders or directors (white background).
  
• Bank reference letters or proof of financial capability for some business types or jurisdictions.
  

Ensure all documents are clear, valid, and up to date before submission. Document requirements may differ by emirate or free zone, so check with the provider or relevant authority for specific guidelines.

Having a complete and well-organized document package speeds processing and helps avoid additional requests which cause delays.

Cost Component	Mainland (AED)	Free Zone (AED)	Offshore (AED)
Trade Licence Fee	10,000 – 30,000 Prices may vary, please consult with the provider	15,000 – 50,000 Prices may vary, please consult with the provider	7,000 – 15,000 Prices may vary, please consult with the provider
Initial Approval Fee	1,000 – 3,000 Prices may vary, please consult with the provider	Included/Separate depending on free zone	Included or separate
Name Reservation	500 – 1,000 Prices may vary, please consult with the provider	Included or 500 – 1,000	Included or 500 – 1,000
Office Rent (Ejari Contract)	15,000 – 70,000 annually Prices may vary, please consult with the provider	Flexi-desk: 10,000 – 20,000	Not applicable
Additional Approvals	Variable, 2,000 – 10,000 Prices may vary, please consult with the provider	Variable per activity	Usually none
Municipality / Local Fees	3,000 – 5,000 Prices may vary, please consult with the provider	Included or nominal	N/A
Visa Quota Fees	Based on number of visas; 3,000+ each Prices may vary, please consult with the provider	Varies per free zone package	Limited or none
Renewal Fees	Same as initial licence fee Prices may vary, please consult with the provider	Same as initial licence fee	Same as initial licence fee

Important Notes:

• Costs fluctuate based on business size, activities, location, and government changes.
  
• Free zones often bundle certain services into packages, impacting pricing differently.
  
• Some free zones may waive office rent for a limited period or include virtual office options for start-ups.
  
• Mainland licenses require mandatory physical office space with a valid Ejari.
  
• Renewal fees are generally equal to the original licence cost and must be paid annually.
  

Carefully plan your budget considering these components to avoid surprises during application and operation.

Next Section: Renewal and Amendment Procedures.WRITE Renewal and Amendment Procedures# Renewal and Amendment Procedures

Maintaining an active trade licence requires timely renewals and occasional amendments to reflect changes in business activities, ownership, or location. Understanding renewal and amendment procedures is essential to ensure legal compliance and uninterrupted business operations in the UAE.

Trade Licence Renewal

Trade licences in the UAE are typically valid for one year. Renewal must be completed before the expiry date to avoid fines, suspension, or cancellation. The renewal process includes the following steps:

• Submit Renewal Application: Apply online through the relevant authority’s portal (DED for mainland, free zone authority for free zones).
  
• Update Documents: Provide updated tenancy contracts, visas, or any changed documents as required.
  
• Pay Renewal Fee: Pay the applicable renewal fees, which generally mirror the original licence cost. Prices may vary, please consult with the provider.
  
• Complete Approvals: Obtain necessary regulatory approvals if your business activity requires special permits.
  

Late renewals result in fines and increased fees. It is advisable to renew at least one month before expiry to manage processing time smoothly.

Trade Licence Amendments

Amendments become necessary when:

• Adding or removing a business activity,
  
• Changing the company name or ownership structure,
  
• Relocating business premises,
  
• Expanding or downsizing staff visas, or
  
• Updating legal or administrative details.
  

The amendment process requires submitting a formal application with supporting documents explaining the changes. Fees for amendments vary based on the type and extent of the request. Each amendment must be approved by the licensing authority.

Key Tips for Renewals and Amendments

• Keep track of licence expiry dates using digital reminders or business management tools.
  
• Ensure all documents are valid and updated before renewal submissions.
  
• Coordinate with local sponsors or partners to fulfill renewal obligations if applicable.
  
• Consult your service provider or licensing authority for new government procedures or fee changes.
  

Timely renewals and proper amendments help safeguard your licence’s validity and reduce operational risks.

Next Section: Common Pitfalls and How to Avoid Them.WRITE Common Pitfalls and How to Avoid Them# Common Pitfalls and How to Avoid Them

When requesting to issue a trade licence in the UAE, many businesses encounter common pitfalls that can delay approval or cause complications. Awareness of these frequent challenges helps entrepreneurs take proactive steps to avoid them and ensure a smooth licensing process.

1. Incomplete or Incorrect Documentation

Submitting incomplete or inaccurate documents is a leading cause of application rejection or delay. Missing passports, unclear tenancy contracts, or unsigned forms frequently slow approvals.

• Avoidance Tip: Prepare a detailed document checklist and double-check every page for clarity, signatures, and accuracy before submission.
  

2. Choosing the Wrong Licence Type or Business Activity

Selecting a licence type that doesn’t match your intended business activity can result in rejection or future amendments. Some activities require special permits or fall under restricted categories.

• Avoidance Tip: Consult licensing experts or official business activity lists on DED or free zone websites to ensure alignment before applying.
  

3. Ignoring Jurisdictional Differences

Applying in the wrong jurisdiction may restrict your business scope or expose you to unexpected local laws, sponsorship requirements, or visa limits.

• Avoidance Tip: Understand mainland versus free zone rules and choose the jurisdiction that best matches your business goals and ownership needs.
  

4. Delayed Licence Renewal

Failure to renew your trade licence on time leads to fines, licence suspension, or complete cancellation, causing interruption in operations and loss of reputation.

• Avoidance Tip: Use calendar reminders or professional service firms to handle timely renewals and minimize risk.
  

5. Non-compliance with Office Space Requirements

Many licences, especially mainland ones, require a valid physical office or warehouse with an Ejari-registered lease. Non-compliance can invalidate your licence.

• Avoidance Tip: Secure a proper tenancy contract and ensure it is attested and valid before starting the application.
  

6. Overlooking Additional Approvals

Certain business activities require further permits from government authorities (e.g., health, transport, tourism). Forgetting these slows licence issuance.

• Avoidance Tip: Research activity-specific clearance needs early and gather related approvals along with your main application.
  

7. Cost Underestimation

Not budgeting for all costs, such as initial fees, office rent, visa quota, and amendment charges can cause cash flow difficulties.

• Avoidance Tip: Prepare a complete cost analysis including all service, licence, and operational fees with contingency for changes. Always confirm latest prices as ** prices as 

Step 7: Pay Trade Licence Fees

Once approved, you will need to pay the trade licence fees, which vary depending on licence type and jurisdiction. Prices may vary, please consult with the provider. Payments can often be made online or at service centres.

Step 8: Receive Your Trade Licence

After successful payment and compliance checks, you will receive your trade licence. This document is proof that you are legally permitted to operate your business in the selected jurisdiction.

Step 9: Register for Additional Approvals and Services

Depending on your business activity, you may need further permits from specialized authorities (e.g., municipality, health, tourism). Register your company for other services such as VAT, visa sponsorship, or customs clearance as needed.

Following this detailed process will ensure your trade licence is issued without complications and your business starts on a solid legal foundation.

Common Pitfalls and How to Avoid Them

When applying to request a trade licence in the UAE, many businesses face avoidable obstacles that slow down or block their application. Recognizing these common pitfalls and knowing how to steer clear of them ensures your licence process proceeds smoothly and efficiently.

1. Incomplete or Incorrect Documentation

• Missing or unclear documents, like expired passport copies or unsigned forms, often delay approval.
  
• Ensure every document is complete, clear, and properly signed before submission to avoid rejections.
  

2. Choosing the Wrong Business Activity

• Selecting business activities that don’t align with your actual operations can cause future restrictions or application refusal.
  
• Consult official lists and experts to pick the correct activities that match your intended operations.
  

3. Ignoring Jurisdictional Differences

• Mainland, free zone, and offshore areas have different rules on ownership, operations, and costs.
  
• Understanding these differences prevents costly restructuring or limitations later on.
  

4. Skipping Initial Approvals

• Some applicants move forward without securing mandatory initial approvals, risking application rejection.
  
• Always obtain pre-approvals from the relevant authorities before submitting full applications.
  

5. Underestimating Costs

• Focusing only on the licence fee while overlooking visa, office rent, and other fees leads to budgeting problems.
  
• Prepare a comprehensive budget including all fees and prices may vary, please consult with the provider.
  

6. Ignoring Office Space Requirements

• Mainland licences require a valid physical office with Ejari registration; overlooking this leads to delays.
  
• Verify office space compliance early and secure appropriate tenancy contracts.
  

7. Delaying Licence Renewal

• Late renewals incur fines and business interruptions.
  
• Use reminders or professional services to ensure prompt renewals before expiry.
  

8. Not Following Local Trade Name Rules

• Using prohibited terms or names conflicting with existing brands causes application rejection.
  
• Reserve trade names early and follow official naming guidelines carefully.
  

9. Not Seeking Expert Advice

• Navigating UAE business setup laws alone can cause mistakes and delays.
  
• Engaging consultants with local experience saves time and ensures compliance.
  

Avoiding these pitfalls through careful planning, thorough documentation, and seeking professional support increases the chance of a smooth trade licence issuance and saves valuable time and money.

Case Study: Successful Online Request via Invest in Dubai Portal

Many entrepreneurs successfully obtain their trade licence by using the Invest in Dubai portal, which simplifies application, approval, and payment steps into one digital platform. This case study highlights the typical process and key tips from a recent online trade licence request.

Background

A tech startup founder wanted to establish a company in Dubai Mainland offering digital marketing services. The goal was to use the official portal to get a trade licence quickly, with minimal paperwork and direct government interaction.

Process Steps

• The entrepreneur visited the Invest in Dubai portal and created an account using UAE PASS for secure login.
  
• On the portal dashboard, they selected “Start a Business,” then reserved their unique trade name following the official naming rules.
  
• They chose the business activity (marketing consultancy) and selected the legal structure as a Limited Liability Company (LLC).
  
• Next, initial approval was requested, and required documents such as passport copies, Emirates ID, and tenancy contract were uploaded digitally.
  
• The partner and shareholder details were entered, including beneficiary ownership and resolution documents.
  
• The system generated the initial approval certificate within a few hours, which allowed completion of the full trade licence application.
  
• They paid the licence fees online. Prices may vary, please consult with the provider.
  
• Upon payment confirmation, the final trade licence was issued in PDF format and emailed instantly.
  

Key Benefits Experienced

• The entire process took less than 48 hours from registration to licence receipt, compared to traditional multi-week approvals.
  
• The portal’s step-by-step guidance ensured compliance with all requirements and avoided common mistakes.
  
• Digital uploads and electronic signatures reduced the need for physical paperwork and personal visits.
  
• The entrepreneur accessed additional post-licence services like visa applications, bank account setup support, and regulatory approvals via the same portal.
  

Lessons and Tips

• Always use the UAE PASS authentication for seamless login and document verification.
  
• Double-check business activity codes to match your intended operations perfectly.
  
• Upload high-quality scans of documents to prevent technical rejections.
  
• Plan ahead for initial approvals from external regulatory bodies if your activity is specialized.
  
• Monitor the portal dashboard regularly for status updates and requests for additional info.
  

Using the Invest in Dubai portal represents one of the fastest, most transparent ways to request and obtain your trade licence, backed by official government support and digital convenience.

Tech Tips: Using DED/DET e-Services Efficiently

The Department of Economic Development (DED) in Dubai and the Department of Economy and Tourism (DET) in Abu Dhabi offer powerful online portals to streamline trade licence applications and management. Mastering these e-services can save time and reduce common errors in your business setup process.

Use Secure Login with UAE PASS

Always access DED/DET portals using UAE PASS, the official UAE digital identity system. It enables secure, fast authentication for licence applications, document submissions, and payments. Without UAE PASS, your access will be limited or slower.

Prepare Digital Documents in Advance

Before starting applications, scan all necessary documents clearly and format them as per portal requirements (usually PDF or JPG). Organizing files ensures a smooth upload process and reduces technical glitches and application delays.

Utilize the Step-by-Step Wizards

Both DED and DET websites feature user-friendly guided workflows for new trade licence requests, renewals, and amendments. Follow the on-screen instructions carefully to avoid missing mandatory fields or steps. The wizards also provide helpful tips along the way.

Track Application Status and Notifications

Check your application dashboard regularly for status updates, approval notifications, or additional document requests. Early responsiveness to queries prevents unnecessary hold-ups.

Use Online Payment Gateways

Pay fees via the portal’s integrated payment methods to instantly confirm transactions. Avoid cash payments or third-party channels that delay licence issuance. Always save payment receipts digitally.

Take Advantage of eServices Support

DED and DET provide live chat support, FAQs, and downloadable guides. When uncertain, use these resources or contact their helplines to resolve questions quickly rather than guessing.

Leverage Additional eServices

Beyond trade licence issuance, use the portals for related services like visa applications, licensing amendments, and business renewals. Centralizing these tasks online streamlines your operations.

Efficient use of DED and DET e-services minimizes paperwork, cuts down processing times, and enhances compliance. Technology adoption is now an essential skill for swift business licensing in the UAE.

FAQ Section

• What is a trade licence, and why is it required in the UAE?
  A trade licence is an official government permit that allows you to legally operate a business in the UAE. It authorizes your company to conduct specific business activities within the country. Operating without a valid trade licence can result in heavy fines or closure.
  
• What are the main types of trade licences available in the UAE?
  The three main types are commercial licences for trading goods, professional licences for service businesses, and industrial licences for manufacturing activities. There are also specialised licences like e-commerce and freelance permits.
  
• Can foreigners own 100% of a UAE trade licence?
  Yes, foreigners can own 100% in many free zones. In the mainland, there are cases where full ownership is allowed depending on the activity, but usually a local sponsor owning 51% is required. It is important to check the latest regulations per jurisdiction.
  
• How long does it take to get a trade licence issued?
  The process varies but typically takes 1 to 4 weeks depending on the licence type, jurisdiction, and how quickly documents are submitted. Free zone licences often process faster than mainland licences.
  
• What documents are generally required for a trade licence application?
  Common documents include passport and visa copies of owners, tenancy contract or lease agreement, trade name reservation certificate, and completed application forms. Some business activities require additional approvals or permits.
  
• What costs are involved in obtaining a trade licence?
  Costs include government licence fees, office rent (Ejari), visa quota fees, and additional approvals. Prices may vary, please consult with the provider. Budgeting carefully is essential to avoid surprises.
  
• How often must I renew my trade licence?
  Trade licences must be renewed annually before expiry to avoid fines or suspension. Renewal requires updated documents and payment of annual fees similar to the initial licence cost.
  
• Can I conduct online sales with a standard trade licence?
  If you plan to sell products or services online, you must have an e-commerce trade licence or a licence that explicitly allows online trading activities.
  
• What happens if I don’t renew my trade licence on time?
  You will face fines, potential suspension of business activities, and complications in later renewal or license cancellation processes. Timely renewal is crucial.
  
• Can I amend my trade licence after issuance?
  Yes. You can amend business activities, ownership, or location by submitting an amendment application. Fees apply based on the changes requested.
  
• Do I need a physical office space for the trade licence?
  Mainland licences require a physical office with a valid Ejari tenancy contract. Free zones often provide flexible office solutions including virtual offices or co-working spaces depending on their packages.
  
• Is it possible to apply for a trade licence online?
  Yes, many emirates offer complete online application services via portals like the Invest in Dubai portal or DED websites, allowing for faster and paperless processing.
  
• Are there penalties for operating a business without a trade licence?
  Yes, businesses operating without a valid trade licence face fines, closure orders, and legal consequences from the authorities.
  
• What is the difference between a trade licence and a business licence?
  A trade licence is a type of business licence specifically allowing trade activities like buying and selling goods. A business licence is a broader term that covers various commercial, professional, or industrial activities.
  
• Can I sponsor employee visas with my trade licence?
  Yes, once your trade licence is active and you have office space, you can sponsor visas for employees depending on your licence’s visa quota.
  

Conclusion

Securing a trade licence is the foundational step for launching and operating a business in the UAE. By understanding the different licence types—commercial, professional, and industrial—you can choose the option that aligns with your activities, ownership goals, and target market. Carefully comparing mainland, free zone, and offshore jurisdictions helps you optimize costs, legal structure, and visa quotas.

Following the detailed step-by-step process—from defining your business activity and reserving a trade name to submitting documents, paying fees, and receiving your licence—minimizes delays and errors. Leveraging e-services like the Invest in Dubai portal and DED/DET online platforms streamlines approvals, payments, and renewals, saving valuable time and reducing paperwork.

A clear document checklist ensures you submit complete and accurate information, while awareness of common pitfalls—such as choosing the wrong licence type, underestimating costs, or missing renewal deadlines—prevents costly setbacks. The provided case study and tech tips illustrate how digital tools and best practices can expedite licence issuance.

With this comprehensive guide, you are well-equipped to request, obtain, and maintain your trade licence efficiently. Proper planning, thorough preparation, and proactive management of renewals and amendments will keep your business compliant and positioned for growth in the dynamic UAE market.