A UAE trade licence authorises your business to operate commercially in the UAE. Whether you are registering on the mainland or in a free zone, here is a complete step-by-step guide to applying for a UAE trade licence.
Step 1: Choose Your Business Structure
Before applying, decide on: Mainland vs. Free Zone (affects market access and cost), Type of licence (professional, commercial, or industrial), and Emirate (Dubai, Abu Dhabi, Sharjah, RAK, etc.). Each combination leads to a different application path and issuing authority. Most common for new UAE businesses in 2025: free zone company licence (IFZA, Shams, DMCC, RAKEZ) for service/tech companies, or mainland DED licence for businesses that need full UAE market access.
Step 2: Choose Your Business Activities
UAE trade licences specify permitted business activities. You must select from the list of approved activities of your chosen authority. Mainland DED: each activity has an associated code. Most DED authorities allow multiple activities on one licence (with additional fees per activity). Free zones: each free zone has its own activity list. IFZA and DMCC have 1,000+ activities. Sector-specific free zones (DIC, DMC, DHCC): have narrow activity lists aligned with their specialisation. Selecting the right activities: choose broad activities that cover your anticipated business. It is easier to start broad and remove unused activities at renewal than to operate outside your licenced scope.
Step 3: Name Reservation
Choose a compliant company name and reserve it with the issuing authority. Name reservation is typically done online. Cost: AED 100-500. Valid for: 30-90 days. The name reservation confirms the name is available. You then proceed to full incorporation before the reservation expires.
Step 4: Submit Documents and Pay Fees
Submit to the issuing authority: passport copies of all shareholders, application form, name reservation confirmation, initial MOA (for LLC structures), and lease agreement or virtual address confirmation (for mainland). Pay the licence fee. Processing time: 1-14 days depending on the authority and structure type.
Step 5: Receive Licence and Complete Setup
After approval: receive trade licence (digital and/or physical), register for UAE VAT if over the threshold, apply for investor visa (if required), open a UAE business bank account. Renewal: due annually, before the expiry date (most authorities send renewal reminders 60 days prior).