Trade license and trade name in UAE
Initial approval and reserving your desired trade name and getting your trade license is the first and the most importat step towards compay formation in UAE.
It is important to set things right from the very beginning and avoid the pitfalls.
Listed below are the 4 main types of business license, the application process, and the crucial considerations in registering a trade name for your business.
What is a UAE trade license?
The business license is a document that designates what activities a company can carry out in the UAE. Each trade license is issued by the Department of Economic Development. General trading licenses are valid for several activities in Dubai.
Which authorities issue the UAE trade license?
UAE trade license for mainland companies is issued by the department of economic development in each UAE emirate.
Free zone based companies will obtain their trade license from the respective free zone authority.
What are the types of business license in the UAE?
A trade license is a must when it comes to conducting businesses in the UAE. The UAE economic department issues the licenses and the procedures of license issuance varies from one emirate to another. The three major types of licenses in the UAE are commercial, industrial and professional. But the government also issues various other licenses as well that are specific to certain activities.
1. Commercial license
Commercial license are granted to companies that are involved in any sort of commercial trade activity, related to goods, commodities and services. One need to decide upon the activities they plan to conduct before applying for a commercial license.
Some of the activities that come under commercial activity are logistics, car rental and real estate brokerage. The tertiary activities along with the main activity should be limited to 10 per license.
2. Industrial License
Any business that is involved in industrial or manufacturing activity in the UAE requires a idustrial license for its establishment. With the industrial license, businessmen can assemble and process goods using raw materials that are local or imported. One need to obtain an industrial license for the manufacturing of; food, textile, metal, paper, etc.
3. Professional license
Professional licenses give permission to individuals and companies to engage in a profession they are talented in, based on their educational qualification. Some of the activities that come under this license are artisan ship, carpentry, consultancy services, printing and publishing, medical services, beauty salons, computer graphic design service, etc. With a professional license, foreign investors can attain 100% ownership of their business.
4. Tourism License
Businesses that provide tourism activities such as hotel renting, tourist camps, cruise boat rental, restaurants, guest houses, travel agencies etc must acquire a trade license.
What are the steps to getting a trade license in Dubai or UAE?
Mainland trade license in UAE
- Decide on the correct business activity with Trinity World Consultants
- Check whether you need a local sponsor or local agent for your specific business activity
- Reserve and register a trading name
- Get initial approvals from DED
- Get other approvals if necessary (from Dubai Municipality, Dubai Health Authority, etc.)
- Get an office/retail lease agreement
- Submit final documents
- Receive your UAE mainland trade license
UAE Free zone trade license
- Decide on the correct business activity with Trinity World consultants
- Get initial approvals from the free zone authority
- Reserve and register a trading name
- Get other approvals if necessary (from Dubai Municipality and …)
- Get an office lease agreement (Most free zones will offer a virtual office along with the license, depending on activity, banks are increasingly requesting a physical office.)
- Submit final documents
- Receive your UAE free zone trade license
What are the required documents for getting a trade license in UAE?
- Shareholder’s details including passport copies
- Copy of last entry stamp to UAE
- Application form
- Trade name approval certificate
- Office tenancy agreement
- Educational degrees for management positions
How to choose a trade name in UAE?
Your business trade name should follow these protocols:
- The trade name shouldn’t contain any names or logos related to religion (such as Allah), governing authorities, and other external bodies.
- The trade name should be compatible with the public order and morals of the UAE.
- The trade name must include the business structure acronym (e.g. FZE, FZ LLC, etc.).
- The trade name must be unique and not previously registered.
- The trade name shouldn’t contain any special characters.
- If the owner wants to include his name in the trade name, it must contain both first and last names.
- The trade name can not include the phrases: “Universal”, “Middle East” or “International”
Your business trade name will be transliterated to Arabic as well. (but NOT translated)