UAE Trade License Guide – All You Need to Know

Author: Ayushi Doegar
Published: April 23, 2024

Home to one of the fastest-growing and most diverse economies in the world, the UAE has a long tradition of welcoming business and trade. Consistently ranked as one of the world's best places to do business, it's fast becoming a popular destination for forward-thinking entrepreneurs to set up new and exciting companies. Like most countries, it is a legal requirement for businesses to have a license in the UAE. For most business owners, this will mean acquiring a trade license, which defines specific areas of your business operations and can encompass a wide range of industries.

Overview

This comprehensive guide covers the following topics related to UAE trade licenses:

Steps to Get Your UAE Trade License

If you're ready to set up your business in the UAE but you're concerned about how to go about it, the process can be broken down into three simple steps:

Step 1: Application Submission

As part of the application process, you'll need to:

Timeline: Once your application is approved, you can receive your license in as little as two hours, depending on the free zone.

Step 2: E-Channel Services Authorisation

The UAE has introduced an e-channel service to help speed up business set-up in the region. This portal:

Step 3: Status Change

Once you have your entry permit, you will need to:

  1. Activate your status change (depending on your country of citizenship, you can either activate this in the country or by exiting and re-entering the emirates)
  2. Undergo medical tests
  3. Acquire your Emirates ID

Emirates ID Benefits: This card allows you to open bank accounts, rent properties, and take out phone contracts.

Cost of a UAE Trade License

Base Pricing

Cost Component Starting Price
UAE Trade License AED 6,875

Additional Costs to Consider

Note: Prices vary depending on the type of business activity and trade license you require. For example, if you require an industrial trade license, you are required to pay for warehouse facilities or storage units.

For a free quote tailored to your specific requirements, contact the SPC Free Zone team.

Types of Trade Licenses in the UAE

In order to conduct business in the UAE, you need to ensure that you are applying for the correct trade license. There are currently three common types of trade licenses in the UAE:

1. Commercial Trading License

Also known as: General trading license

Description: The most common type of trade license in the UAE.

Covers:

Key Benefit: Entrepreneurs can trade in any number of unrelated goods under one license.

2. Professional License

Designed for: Skilled entrepreneurs who wish to practice a profession in a specific field of expertise.

Applicable Industries:

Key Benefit: This license makes it possible for professionals to be totally transparent about specific services and industries.

3. Industrial License

Designed for: Entrepreneurs involved in the production and manufacturing of new products.

Applicable Industries:

Requirements: This type of license requires businesses to operate from a physical office space or warehouse within the UAE free zone of their choice.

Choosing Your Business Activity

You will need to choose from more than 1,500 business activities in your license application to acquire the correct license. If you're unsure about where to begin, you can reach out to SPC Free Zone advisors who have helped other entrepreneurs navigate this process thousands of times before.

Why Do Business in the UAE?

For many aspiring entrepreneurs, doing business in the UAE is a no-brainer. As well as enjoying a strong banking system, first-rate transport and digital infrastructure, luxurious lifestyle, and diverse economy, the UAE offers specific benefits to business owners:

Key Benefits for Entrepreneurs

Speedy Business Setup

Setting up a company in the UAE is faster and simpler than most destinations across the globe.

Strategic Location and Time Zone

The UAE enjoys a convenient location in the heart of the Middle East, with easy access to emerging markets in:

Access to Talent

Favourable Tax Regime

Entrepreneurs based in the UAE and its free zones can maximise their profits with one of the world's most competitive tax regimes, including:

Well-Established Startup and Entrepreneurial Scene

Business-Friendly Ecosystem

The UAE government offers:

Why Choose SPC Free Zone?

Location and Accessibility

Location: Heart of the UAE, Sharjah
Distance from Dubai International Airport: 15 minutes

Services Offered

Business Setup Features

Feature Details
Business Activities More than 1,500 to choose from
Visa Allocation 20 visas under one license
License Options Dual-license option (mainland and free zone on the same license)
Share Capital Zero paid-up share capital
Taxation Low corporate and personal income tax
Ownership 100% foreign ownership

Benefits Summary

Frequently Asked Questions

What are the steps to get a UAE trade license?

There are three main steps:

  1. Application submission - Choose your business activity and company name, receive license in as little as two hours
  2. E-channel services authorisation - Obtain entry permit valid for up to 60 days
  3. Status change - Activate status change, undergo medical tests, and acquire Emirates ID

How much does a UAE trade license cost?

The cost of a trade license in the UAE starts at AED 6,875. Additional costs include multi-year licenses, visa quotas, and storage spaces. Prices vary depending on the type of business activity and trade license required.

What are the types of trade licenses in the UAE?

There are three common types:

  1. Commercial trading license - For importing, exporting, and commodities trading
  2. Professional license - For skilled professionals in consultancy, law, accounting, engineering, or company formation
  3. Industrial license - For production and manufacturing businesses requiring physical office space or warehouse

How many business activities can I choose from?

You can choose from more than 1,500 business activities in your license application.

How many visas can I get under one license at SPC Free Zone?

You can apply for 20 visas under one license at SPC Free Zone.

What is the Emirates ID used for?

The Emirates ID allows you to open bank accounts, rent properties, and take out phone contracts.

Contact Information

Interested in acquiring a trade license and launching a lucrative business in the UAE? Get in touch with SPC Free Zone now.


Related Topics: #UAEtradeLicense #SPCFreeZone #BusinessSetupInTheUAE