Professional Trade License

To obtain a professional trade license in the UAE, follow these steps:

1. Choose Business Activity: Determine the specific business activity you wish to engage in. This is crucial as the trade license type depends on your chosen activity.

2. Select Company Structure: Decide on your company structure. You can opt for a sole proprietorship, partnership, or limited liability company (LLC), among others.

3. Choose a Trade Name: Select a unique trade name that complies with UAE regulations. The name should not violate any religious, cultural, or political sentiments.

4. Apply to Relevant Authority: Submit your trade license application to the Department of Economic Development (DED) in the emirate where you plan to operate your business.

5. Legal Documentation: Prepare the necessary documents, which may include passport copies, visa copies, NOC from sponsor (if applicable), and tenancy agreement for your business premises.

6. Approval and Payment: Await approval from the DED. Upon approval, pay the required fees and obtain the trade license.

7. Commercial Space: You’ll need a physical office space for a professional trade license. This could be a commercial office or a rented desk in a business center.

8. Local Sponsorship: If you’re not a UAE national, you’ll require a local sponsor (UAE national) for the trade license. They will typically hold 51% ownership in the business unless structured differently through legal agreements.

Having a professional trade license in the UAE offers several benefits:

1. Business Legitimacy: A trade license enhances your business’s credibility and legal status, building trust with customers and partners.

2. Access to Markets: You can access UAE and international markets, expanding your business’s reach and potential for growth.

3. Tax Incentives: Many UAE free zones offer tax incentives, allowing you to enjoy tax exemptions on corporate and personal income, import/export duties, and more.

4. 100% Repatriation: You can repatriate 100% of your profits and capital back to your home country.

5. Infrastructure: The UAE’s advanced infrastructure and strategic location facilitate efficient business operations.

For a professional trade license, having a physical office space is generally mandatory. However, certain free zones in the UAE allow businesses to opt for “flexi-desk” or “virtual office” arrangements, which provide a cost-effective way to meet the office space requirement.

A professional trade license and a commercial trade license differ primarily in the types of activities they cover:

1. Professional Trade License: This license is for individuals providing professional services such as consultancy, accounting, legal services, medical services, etc. It does not involve trading in physical goods.

2. Commercial Trade License: This license is required for businesses engaged in trading physical goods, such as import/export, wholesale, and retail.

In most cases, non-UAE nationals are required to have a local sponsor (UAE national) holding at least 51% ownership in the business. However, there are specific free zones in the UAE that allow 100% foreign ownership for certain professional activities. It’s important to research and select the appropriate jurisdiction that aligns with your ownership preferences.