Trade License in UAE : Benefits, Types and Process Guide

What is trade license in UAE?

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Do you want to know the answer of what is trade license in UAE? So don’t worry the solution of your problem exist here.

A trade license in UAE is the key to conducting business activities legally within the country. Think of it as an official permission slip that is needed to operate in the UAE.

This trade license is important, regardless of the type of business one plans to engage in, and obtaining it involves an organized process that confirms compliance with UAE laws and regulations.

This blog helps to understand the importance of the license, explaining that having a trade license is not a one-time affair but requires annual renewal to stay legal which also helps in the development of trust with customers and enables businesses to operate within the country’s legal framework.

What is a Trade License in the UAE?

Trade License is a legal requirement to do any kind of commercial activity in the UAE. When you have a trade license, it means your business is following the law, meeting rules, and helping the economy grow.

It also makes sure your business follows health, safety, and quality standards, which makes customers trust you more. Basically, trade licenses are like the foundation of the business world. They help the economy grow, attract investments from other countries, and make it a good place for new and existing businesses.

Benefits of a Trade License in Dubai, UAE

benefits of trade license in UAE

Following are a few benefits of having a trade license.

1. Boosting Business Trade

The trade licenses come with advantages for making and selling goods. You can sell your stuff in UAE or send it to other countries, making more money. You can also easily trade things internationally.

2. Building Trust

Having a trade license in UAE makes your business look good. People trust businesses that follow the rules. So, having a license makes your business more trustworthy and visible to customers.

3. Saving on Taxes

In UAE, Dubai is a great place for business because there are very few rules that limit what you can trade. With a trade license, your products can move around without any restrictions, and this can help you save on taxes.

4. Fewer Rules

Getting a trade license in UAE is faster compared to other types of licenses. It is quick to start a business, and you don’t need to do lots of paperwork after you get your license, which saves you time and effort.

5. Easy Setup

Getting a trade license is faster and simpler than other types of licenses in the UAE. You can start a business in UAE in just a few weeks with the right documents. Plus, you will not have to deal with complicated paperwork later on.

6. Sponsor you family

With a trade license, it is easy to bring your family or employees to UAE. You can also help others with their visa applications, making it easier to start a new business.

What Are the Types of Trade Licenses in Dubai, UAE?

Types of Trade License in UAE

In UAE, there are different types of licenses you can choose from when starting a business:

1. UAE Commercial License

For companies that trade goods and provide services like car rental or real estate.

2. Industrial License

If your business involves making things, this is the one you need.

3. Professional License

If you have a specific profession like consulting, IT, or healthcare, this is for you.

4. Tourism License

If you are in the tourism industry, this license covers businesses like hotels and tour operators.

5. Agriculture License

If you are into farming, greenhouses, or agricultural consulting, you will need this license.

6. Freelance License

This is for freelancers, and not every free zone offers it.

How to Get a Trade License in UAE?

How to Get a Trade License in UAE


Following are a few steps that can help to get your trade license

1. Choose a Business Name

Start by picking a suitable name for your business. Make sure it follows the UAE naming rules and is not already used by another company.

2. Decide Your Business Structure

Select how your business will be legally organized, which determines how it operates and who is responsible.

3. Define Your Business Activities

List the specific activities your business will do. Remember that each license allows a maximum of ten activities.

4. Collect Necessary Documents

Gather all the documents needed for your application and RFZ will make it signed from the authorities.

5. Choose a Business Location

Depending on your license type, you might need a physical business location.

6. Submit Your Application

After every above step, the submission of application comes. RFZ will make sure your application is submitted safe and sound.

7. Pay License Fees

Keep in mind that getting a trade license involves fees. You will need to pay issuance and license fees to receive your license.

How to Add Activities in UAE Trade License?

How to add activities in trade license?

In order to add activity in your trade license, you need to follow the below steps

Step 1: Get Initial Approval

To start, you need to get permission for the changes to your trade license. Make sure you have all the necessary documents ready.

Step 2: Apply for Changes

Next, fill out an application to modify your license. You will need a specific form called BR1, and it should be signed by your Managing Director and make sure to list all your business partners’ names.

Step 3: No Objection Certificate (NOC)

After that, you will have to write a No Objection Certificate (NOC) to add the new business activity you want.

Step 4: Update the Agreement

Now, at this point, RFZ will help you update your company’s agreement.

Step 5: Sign at the Notary

All the partners in your business must sign the Court Agreement at the Notary. If one partner is outside the country, they can send a Power of Attorney (POA) to let other partners represent them in court.

Step 6: Submit Documents

Next, the submission of the verified agreement addendum and the required documents will come.

Step 7: Get Your New License

Finally, if everything goes smoothly, pay the license fees and RFZ will help you receive your updated trade license with the new business activity included.

How to renew a Trade License in Dubai, UAE?

In the UAE, renewing your business license is crucial for success. This license, often called a commercial license, is a must for all companies in the area, and it needs to be renewed every year. If you don’t renew it on time, you could face legal trouble and financial penalties. Renewing your trade license in the UAE is not complicated. Let us break down the steps to help you renew it:

Step 1: Check Your Rental Agreement

Before you start renewing your trade license, make sure your rental agreement is valid. You can also check online if it is registered or not.

Step 2: Gather Your Documents

Collect all the papers you need for renewal. Having them ready will make the process smoother. If your business needs approvals from authorities, make sure you have given them all the necessary paperwork.

Step 3: Apply for Renewal

You can contact RFZ, as we can apply for the renewal of the license.

Step 4: Pay the Renewal Fee

Depending on the type of business you are doing, the renewal fees will be charged. More or less it can be between AED 8,000 to AED 15,000 for a standard license renewal.

Why You Should Always Keep Your Trade License Updated

It is really important to keep your trade license up-to-date for several key reasons:

1. Following the Law

The main reason to renew your trade license is to make sure your business is following the rules set by the government. If you don’t renew it on time, you could get into trouble and have to pay fines, which can be anywhere from AED 5,000 to AED 50,000, according to UAE commercial law. You might also have to pay a monthly fine for being late.

2. Good Business Reputation

Having a valid trade license helps your business look trustworthy, and it makes customers more confident in your services. If your license expires, people might wonder if your business is authentic.

3. Smooth Banking

To do any kind of banking activities in Dubai, like opening, managing, or closing accounts, you usually need to show your updated license.

4. Visa Needs

If your trade license is not up-to-date, you might have trouble getting or keeping employee visas, and even your own visa.

5. Keeping Up with Rules

It is important to know the latest local rules to make sure your business runs smoothly and meets any new requirements.

6. Avoiding Surprise Costs

If your trade license is not renewed, the Dubai Department of Economic Development (DED) might cancel it without warning. This could lead to expensive cancellation fees that you have to pay before you can apply for a new trade license in Dubai.


To wrap it up, getting a trade license in UAE is a must if you want to do business legally. There are different licenses for different kinds of businesses, and you have to keep this license up-to-date every year. When your business has a valid license, it shows people that you are serious and trustworthy.

The process to get or renew a license is pretty easy and comes with big benefits. It means you can trade without a lot of restrictions, build a good name for your business, save on taxes, and not waste time on too much paperwork. Also, it helps when you want to sponsor your family or workers to come to the UAE. Overall, having this license is good for your business and helps it grow well in the UAE.

Get your Trade License in UAE with RFZ

If you are looking to obtain a trade license for your business, RFZ is the company that can assist you in registering your company.

At RFZ, we offer personalized help to people who want to start businesses in the UAE. We can assist with everything from creating a company to managing finances and making sure you follow the rules. Our experienced team. We will give you trustworthy advice at every step of your business journey in the UAE. Top of Form

Are you ready to make your business dreams a reality? Partner with RFZ, and let us do it together.

For a free consultation, contact us at +971 4 589 0815. You can also send us a WhatsApp message at +971 4 589 0815 or email your questions to

We are here to assist you!


Following are the FAQ’s:

Which trade license is best in UAE?

The Commercial License, which can also be called a general trading or business license, is the most common type of license you can get in Dubai Free Zones. This license is for businesses that do trading and commercial activities in Dubai and the UAE.

How much is general trading license in UAE?

General Trading License Cost in Dubai

The price to get a trading license in Dubai changes because of different reasons. This license can also be used to legally manage businesses in the UAE and by other officials. It can be used for keeping and storing goods too.

What is difference between trade license and professional license?

Trade licenses are for shops and companies that buy and sell things. Professional licenses are for people who have a skill, like painters or people who make things by hand.

Read More: What is commercial license in Dubai? 
Read More: Low cost business setup in dubai 

Umber Awan
Umber Awan

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