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Who Needs a Trade License in Mainland?

By Ananya - 31 Jan 2022 Last Updated: 04 May 2022
Who Needs a Trade License in Mainland?

In Dubai, company formation is a fairly well-organized procedure, with business advisers assisting investors throughout the process. The process of forming a company in Dubai begins with the selection of the appropriate business activity, the preparation of necessary documents, the application for a business license, and the issuing of business licenses, among other things. Following the issuance of the business license, the processing of resident permits and the opening of a corporate bank account are required for the smooth operation of the firm in the UAE. Further in our document, we will study about trade licenses, why is it necessary and who needs a trade license in the mainland.

What is a Trade License?

To conduct business in the UAE's mainland and freezone jurisdictions, entrepreneurs and corporations must first get a trade license. A trade license assures your customers that you are a respectable company that follows all local rules and regulations. When beginning a new business in the UAE, you must obtain the appropriate trade license in order to ensure that your firm is properly set up for the long haul. The type of business you'll run, the structure of your organization, and the jurisdiction in which you'll do business all have an impact on the license you'll need and the conditions you'll have to meet.

As a businessman, it is vital that you analyze one of the most crucial facts that in Dubai, getting a trade or business license is not just a prerequisite, but also a legal requirement. This permission confirms the legitimacy of your organization and identifies the type of your business. Despite the fact that this license is costly, it comes with a number of advantages and incentives that often balance the cost incurred on obtaining it on the other hand.

Who Needs a Trade License in Mainland?

Foreign investors as well as local investors who want to start a business in Dubai – UAE must follow the terms of the Company Law, which lays out all of the steps that must be taken to get a company up and running. It's also important to pay attention to the trade license required to operate in the United Arab Emirates, as this reveals the company's operations. Obtaining a trade license is perhaps the most important step after forming a company in Dubai. The most frequent type of business permission in Dubai is a trade license, also known as a commercial license, which identifies most of the operations that can be carried out within the UAE. The trading license is issued by Dubai's Department of Economic Development.

This business license, also known as a general trading license in Dubai, can be used for the following purposes:

  • Import and export of goods, which is commonly requested by Dubai-based trading enterprises.
  • For a variety of commercial operations, including the sale of goods and services in Dubai for enterprises based in Dubai freezones.
  • A trade license can be obtained by professionals who provide services in a certain field.

Read more :-Cost of Small Business License in Dubai

Why is a Trade License necessary?

Every company in the Emirate operates within a legal framework that governs its operations. The start-up of a firm involves several formal procedures, such as choosing a business, producing relevant documentation, acquiring various permits, and so forth. Because business formation in Dubai is a well-organized process, each phase has its own significance. A firm must also have a trade license in order to function legally. A business license allows a company to operate lawfully while also assuring customers, suppliers, and vendors that it is legitimate and respects all rules and regulations.

First and foremost, we must know the UAE organization's licensing. A license is required for all businesses in Dubai, whether they are located in the Free Trade Zone or in the major localities. The corporation would have a distinct identity as a result of the trade business license. A business license is a document that certifies a company's legal status. Businesses are given trade licenses so that they can be held accountable for their operations in the area.

It also organizes, categorizes, and keeps track of the firm's legal cases. A trade license is required if you want to legally trade as a company. With the usage of trade permits, the company would be run in compliance with the UAE's Commercial Firms Act. Obtaining a commercial license in Dubai allows you to conduct business legally and in accordance with regulatory authorities' requirements, as well as provide you with a number of advantages.

What are the Different Types of Trade Licenses that can be applied for in the Mainland?

The Department of Economic Development (DED) in Dubai is responsible for providing company permits. The DED has assigned any corporation to one of many licenses, which gives them prominence based on their commercial operations. Commercial operations in the United Arab Emirates are classified into five groups. The most popular types of business licenses available in the UAE are shown below.


Dhanguard assists its clients in company formation services to both residents as well as the expats. Setting up a company in Mainland is often counted as a complex task since it requires a plethora of documents and a significantly longer process to go through. Connect with us if you are looking forward to setting up your company in any of the zones. Our team of experts will guide you throughout the process and assist you in it from that start to its end and will also aid in the paperwork as well. If you are looking for any business setup services, connect with us w will gladly assist you.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

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