Professional trade license
The UAE government requires businesses and entrepreneurs to obtain a professional business trade licence from the Department of Economic Development (DED) before they can be authorised to provide their professional services to clients from the Dubai mainland.
The purpose of professional licensing is to establish that the person or business is qualified to provide services in a certain profession. Issuance of these licences generally requires the applicant to show certain skills or training.
All professionals, specialists, craftsmen and artisans need to acquire a professional trade licence to set up a mainland company in Dubai.
When dealing with mainland company formation in Dubai, there are several company structures that can be formed with a professional licence:
However, in setting up a Civil Company or a Sole Establishment, a UAE national must be appointed as a local service agent (LSA) to complete the legal formalities.
Commercial trade licence
Mainland companies dealing with buying and selling of goods and commodities, or any kind of trade activities, require a commercial trade licence to operate in the UAE. This business licence can be used to form a limited liability company (LLC) or set up a sole establishment, and it can be used for both specialised trading and general trading activities in the UAE.
There are different types of commercial trade licences in the UAE. If you are navigating the process of company formation, you must apply for the correct type of commercial trade licence that will permit you to carry out trading activities specific to your business.
Broadcast and communications companies, rental transportation services, retail companies, construction companies, healthcare businesses, real estate businesses, and other general trading entities also need to apply for a commercial trade licence in Dubai.
Industrial trade licence
Businesses that want to conduct industrial or manufacturing-based activities in the UAE must acquire an industrial trade licence, which will allow them to engage in activities related to converting natural materials or incorporating natural resources into their end products.
This business licence is issued by the DED but additional approvals might be required from the Ministry of Finance, Ministry of Economy, the Ministry of Energy and Infrastructure and other authorities, depending on the industrial activity involved.
Requirements to obtain a UAE trade licence
When applying for a mainland licence in Dubai you must do so through the Dubai Economic Department.
Before opening any business with the Dubai Economic Department, one must meet the following legal requirements to obtain a trade licence in the UAE:
Determine the business category – whether it is professional, commercial, or industrial;
Determine the type of business activity;
Determine the legal structure of the business entity; and
Determine the trade name of your business.
The local department of economic development registers your trade name
The Ministry of Economy registers your trademark (if applicable).
Depending on the legal form of a business, it is also a requirement to complete and sign a Memorandum of association (MoA) or a local service agent agreement (LSA). The memorandum of association is required for the following business legal forms:
Limited partnership
Public joint stock company (PJSC)
Limited liability company (LLC)
Private joint stock company (PrJSC
