UAE Commercial Trade License: Your Gateway to Success

Commercial Trade License in the UAE

Commercial Trade License in the UAE provides the legal foundation for businesses to trade and grow in a thriving market. With a Commercial Trade License, businesses can entirely capitalize on the UAE’s strategic location and infrastructure, setting the stage for lasting growth and success in the region.
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Opportunities with a Professional License

Benefits of a Professional
License in Dubai

Expanded Market Access
A Commercial Trade License allows businesses to legally operate in the UAE’s vibrant market, enabling them to reach a broad customer base locally and regionally.
Credibility and Trust
Holding a license builds credibility with customers, suppliers, and financial institutions, reinforcing your business’s legitimacy and enhancing its reputation.
Tax and Ownership Advantages
UAE trade licenses offer tax benefits and, in many cases, full foreign ownership, providing a favorable environment for business growth and profitability.

Steps to Obtain a Commercial Trade License in the UAE

  1. Determine Business Activity and Legal Structure

    • TVG helps you select the right business activities and legal structure (e.g., LLC or Sole Proprietorship) to ensure compliance and alignment with your goals. We provide tailored guidance, helping you understand ownership regulations and licensing requirements.

  2. Reserve a Trade Name

    • TVG manages the trade name reservation process, ensuring your chosen name meets UAE regulations and cultural norms. Our team handles the submission with the Department of Economic Development (DED), so you can focus on your business vision.

  3. Obtain Initial Approval

    • Our experts submit the initial application to the DED, providing all required information on shareholders, business activities, and structure. With TVG, you can move forward confidently, knowing your application is in capable hands.

  4. Draft Memorandum of Association (MOA)

    • TVG assists in drafting a customized MOA, outlining ownership and operational guidelines, and ensures it’s notarized, so your company has a strong legal foundation from the start.

  5. Secure a Business Location

    • Our team helps you find and lease a suitable office space, providing support with the tenancy contract and Ejari registration, which are essential for license issuance.

  6. Obtain Additional Approvals

    • For businesses requiring additional permits (e.g., healthcare or financial services), TVG navigates the process with the relevant authorities, ensuring every approval is secured for a smooth operation launch.

  7. Submit Final Application and Pay Fees

    • TVG compiles all necessary documents and submits them to the DED, handling the final steps and payment of licensing fees, ensuring a quick and seamless experience.

  8. Receive the Commercial Trade License

    • With all requirements fulfilled, TVG ensures you receive your Commercial Trade License promptly, allowing you to begin operations confidently in the UAE.

    • By partnering with TVG, you streamline the entire licensing process, save time, and eliminate the stress of compliance. Our team is here to support you at each step, ensuring your business launch is efficient and fully compliant.

Cost of Obtaining a Commercial Trade License

  1. The cost of acquiring a Commercial Trade License in the UAE varies based on factors such as the chosen jurisdiction (mainland or free zone), the nature of the business activities, and additional services required. On average, the cost ranges from AED 15,000 to AED 50,000.

  2. This estimate includes fees for trade name registration, initial approval, drafting the Memorandum of Association (MOA), and the issuance of the license itself. Additional expenses may arise from renting office space, obtaining external approvals, and other administrative costs.

Renewal of a Commercial Trade License:

  1. In the UAE, Commercial Trade Licenses are typically valid for one year and must be renewed annually to maintain legal business operations. The renewal process involves:

    • Tenancy Contract: Ensuring that your office lease agreement is valid for at least one month beyond the license expiration date.

    • Documentation: Submitting a completed renewal application form, a copy of the current trade license, and any other required documents.

    • Payment of Fees: Paying the applicable renewal fees, which may vary depending on the business activity and jurisdiction.


Timely renewal is crucial to avoid penalties and disruptions to business operations. It's advisable to initiate the renewal process at least one month before the license's expiration date

Choosing the Right Jurisdiction: Mainland vs. Free Zone


Selecting the appropriate jurisdiction is a critical decision when setting up a business in the UAE. Both Mainland and Free Zone options offer unique benefits, so it's essential to understand how each aligns with your business goals.
  1. Mainland

    • Market Access: Mainland businesses can operate throughout the UAE and internationally, allowing direct trade within the local market.

    • Ownership Requirements: While most activities allow for 100% foreign ownership, certain strategic sectors still require a UAE national as a partner.

    • Flexibility: Mainland businesses have more flexibility regarding office locations, with options for offices, shops, and warehouses outside designated free zones.

    • Government Contracts: Only mainland companies are eligible to bid for UAE government contracts, providing a unique advantage for certain sectors.

  1. Free Zone

    • Full Foreign Ownership: Free zones allow 100% foreign ownership across most business activities, making it attractive for entrepreneurs and foreign investors.

    • Tax Benefits: Free zones often offer tax exemptions, including zero corporate and personal income tax, as well as no import/export duties within the free zone.

    • Simplified Setup: Free zone companies benefit from streamlined processes, including quicker licensing and fewer documentation requirements.

    • Restrictions on Trade: Free zone businesses are generally restricted to operating within the zone itself or internationally; direct trading in the UAE market often requires a distributor or mainland presence.


Making the Right Choice
If your business requires access to the UAE market, direct trade with local companies, or flexibility in location, the mainland may be the ideal choice. For those focused on international trade, cost savings, or specific industry benefits, a free zone setup offers tax advantages and ownership benefits that are highly attractive.
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