UAE trade / trading license

Think of a UAE trade license as your business passport. It is the government’s permission slip that lets your company conduct defined economic activities in the UAE. Without it, you cannot open a bank account, sign a lease, hire staff, or even run basic transactions. In Dubai and other emirates, the issuing authority on the mainland is the Department/Department of Economy and Tourism (DET/DED). In free zones, the free zone authority issues the license.

Here is the part most people mix up: “trade license” is the umbrella term for the right to do business; “commercial license” is a category under that umbrella for buying, selling, import, export, distribution, and commercial brokerage. So the difference between a trade license and a commercial license is scope: all businesses need a trade license, but trading activities sit in the commercial category. Other categories include professional (services), industrial (production and manufacturing), tourism, agricultural, and crafts. A general trading license is a special commercial type that allows combined activities across many products under one license.

Mainland vs free zone vs special zones

On the mainland, your license lets you operate anywhere in the UAE and enter government tenders. You register with the emirate’s Department of Economy and get your office lease registered (Ejari in Dubai). Free zones let you own 100% of the company, enjoy streamlined setup, and often lower fees. You can trade internationally and sell in the UAE through a local distributor or an onshore branch. There are 45+ zones—Dubai Internet City for tech, Dubai Media City for media, DMCC for commodities like gold and electronics, Dubai South for logistics, RAKEZ and UAQ Free Trade Zone for cost-efficient setups, and Dubai World Trade Centre (DWTCA) for a central “world centre” address.

Special rules apply in “designated zones” for VAT. Goods moved between designated zones may have different VAT treatment than normal mainland-to-mainland supplies. This is where many founders ask “is it the same VAT?” Short answer: not always—check the Federal Tax Authority (FTA) rules before you price your products.

Your activities define your category. If you provide services—say, technical services, software development, advertising, or tourism services—expect a professional or tourism license. If you buy and sell—commercial license. If you make things—industrial license. The “general trading” category sits inside commercial and lets you put a wide list of products under one license. It is popular because it is flexible, great for import/export, and good for multi-product e-commerce. It is not a free-for-all: items like alcohol, tobacco, pharmaceuticals, medical devices, weapons, or crypto services need specific approvals or a different license entirely.

A license can include more than one activity, and you can sometimes combine related activities—like auto spare parts, electronics accessories, and general foodstuff—under general trading in a free zone. On the mainland, DET is stricter about combinations. If your economic activity needs approvals, the issuing authority asks you to bring them before your license is issued.

Special cases you keep asking me about

• Alcohol: not covered by a general trading license. It requires special approvals and permits (including security-related permissions) before you can import or sell. Restaurants need a tourism/commercial license plus relevant alcohol permits if they will serve it.
• Gold and precious metals: typically routed through DMCC or the mainland with strict KYC/AML verification and, in some cases, security checks. Expect extra compliance steps and bank scrutiny.
• Foodstuff and frozen fish: importers need municipality registration, product approvals, and health certificates. Frozen fish, frozenfish, or other chilled items trigger cold-chain declarations. Labeling rules are strict—Arabic labels matter.
• Cosmetics and personal care: product registration with Dubai Municipality (Montaji) or equivalent in other emirates before sale. Expect testing and certificate attestation.
• Electronics: low-voltage and telecom equipment can require ECAS/ECMARK approvals (via ESMA/TII). CCTV and security systems may require SIRA approvals in Dubai.
• Auto spare parts: common, allowed under commercial/general trading; ensure authenticity and safety declarations.
• Construction materials and tools: straightforward trading. Yes, you can even sell a simple garden hoe, EV charging hardware, or industrial color pigments—as long as you pick the right activity and meet any applicable standards.

Start with your activity. The activity controls your legal form (LLC, branch, sole establishment), the category (commercial, professional, industrial, tourism), and which government approvals you need. Then choose your jurisdiction: mainland or free zone. Mainland gives you direct access to the UAE market. Free zones offer fast setup, 100% ownership, and often lower cost. If you want to sell on Amazon.ae or Noon, either structure works, but the practical steps differ.

Pick a trade name that follows the naming rules (no offensive words, no religious references, no government names, no third-party trademarks). Reserve it, then apply for initial approval. If you are a foreign shareholder, immigration clearance may be required before or alongside initial approval. Draft and sign the Memorandum of Association for an LLC. Secure your office or virtual office (some zones allow a flexi-desk or a virtual office option). Upload documents on the portal of your issuing authority and pay fees. In Dubai, there is also an “Instant” license for certain activities, which can be issued in minutes with Dubai Chamber membership embedded, and often with a virtual site for the first year.

A sample setup path and cost breakdown (low-cost and standard)

Low-cost free zone, general trading (e.g., UAQ FTZ or RAKEZ):

• Government fees: from AED 7,500–12,500 depending on visa quota and activity set
• Office: flexi-desk/virtual office from AED 3,000–7,000
• Establishment card and e-channel (if applicable): AED 1,500–2,500
• Optional visas: AED 3,500–5,000 per visa (government fees only)
• Bank account: no fee to open, but minimum balances vary

Mainland Dubai, commercial license:

• DET license fees and activity fees: typically AED 10,000–18,000
• Trade name, initial approval, and innovation/knowledge fees: AED 1,000–2,500
• Office lease (Ejari): from AED 15,000–30,000 for a small space
• MOA notarization/typing: AED 1,000–2,000
• Dubai Chamber membership: AED 1,200–3,000 depending on activity

These are sample numbers only—actual cost depends on category, number of activities, visa quotas, and whether external approvals apply. Ask your issuing authority about installment plans; many zones now let you pay government fees in installments.

Documents, attestation, verification and uploads

Expect to upload passport copies for all shareholders, a clean color image of each passport page, proof of address, and a clear activity list. Corporate shareholders need a chain of documents: certificate of incorporation, certificate of incumbency, MOA/AoA, and a board/stakeholder resolution to set up the UAE entity. If the parent is foreign, these corporate documents need notarization and consular/legalization, plus UAE Ministry of Foreign Affairs (MOFAIC) attestation.

When you start importing, your customs broker will ask for commercial invoices, a packing list with HS codes, and a certificate of origin attested by the Chamber of Commerce in the exporting country. Food imports need health and (for meat) halal certificates. Most authorities have a portal or app where you can track status inquiry, verify a license, renew, update information, or download a copy of your renewed license. In Dubai, you can search the license registry by trade name or number. If you ever see an odd reference like application 515205 for “GUSAN LLC,” that is just a sample I use when teaching clients how to verify a license by govt portal—do your own search for your real file.

If you trade goods, register with Customs and obtain an importer code for the emirate where your goods land. Free zone companies register with the zone’s customs gate and can import into the zone duty-free until goods are released into the mainland, at which point customs duty and VAT may apply. Mainland companies import directly with their code.

Register for VAT with the Federal Tax Authority when you hit the mandatory threshold or voluntarily if it suits your model. Free zone entities are usually subject to the same VAT framework as mainland companies, except for special “designated zones” where movements of goods may be outside VAT under specific conditions. If you are selling B2C onshore, charge VAT. If you export, you may zero-rate. Keep your tax invoices, and do not forget that even a general trading company needs proper bookkeeping.

E-commerce: can I sell on Amazon.ae, Noon, or my own site without a license?

No. Marketplace onboarding teams will ask for your trade license, VAT certificate (if registered), bank IBAN, and often a UBO/KYC check. A payment gateway for your own website will also request your company license and sometimes your office lease. If you sell “for sale” items like food, cosmetics, or electronics, the platforms may ask for product certifications (Montaji for cosmetics, health certificates for foodstuff, ECAS for certain electronics). An e-trader (category “e”) license is available in Dubai for home-based entrepreneurs, but it is limited and not a substitute for importing at scale.

Pro tip: if you are an expat or expatwomen founder getting into online trading, a freezone setup with a virtual office plus a bank that supports e-commerce merchants is often the fastest route. Dubai Internet City or Dubai Media City suits app developer and media/advertising startups, while DMCC or RAKEZ suits product traders. Noon seller and Amazon seller teams both accept free zone licenses—just follow their category policies.

Licenses are typically valid for one year. Handle renewal early to avoid late fees. If your license expired, you can usually renew within a grace window by paying renewal fees plus penalties. You will need a valid lease and, if applicable, updated external approvals. The portal will let you renew online, upload documents, and download your renewed license. Keep your Chamber membership and establishment card in sync; mismatches cause “remarks” on your file.

You can request a freeze (government “freeze” or “freezing” service) if you want to pause operations without canceling, subject to conditions. It is useful when you have an old license with no economic activity and want to stop paying full renewals for a season. If your strategy changes, file a change of information: add or remove activities, change the trade name, shift to a new office, or update managers. If you are done, cancel properly—clear visas, close tax accounts with the FTA, publish liquidation notices if required, and get a final cancellation certificate. Do not leave a zombie company; banks and the government remember.

Compliance and the red lines: forex, cryptocurrency, network marketing

Do not try to run forex brokerage, cryptocurrency exchange, or bitcoin custody under a general trading or commercial license. These are regulated by the Securities and Commodities Authority or, in Dubai, by VARA. You will need a specific license and security/technology audits. Selling mining rigs or crypto “packages” is not the same as operating a regulated service. The authorities have seen every trick.

Likewise, be careful with multi-level marketing and schemes that look like Qnet clones. If your “business model” is recruitment fees and a vague product, expect trouble. Keep advertising honest—outdoor ads need approvals, and online ads must follow content standards. If you trade security equipment, expect SIRA compliance. If you trade medical products, deal with MOHAP and emirate health authorities. Compliance first, clever marketing second.