A trade license serves as a mandatory, issued permit authorizing an individual or legal entity to undertake commercial activities within a particular jurisdiction for a specified period.
Requirements for Obtaining a Trade License:
- Compliance with the licensing authority’s regulations regarding business activity scope and location
- Supplying documents including trade name registration details, lease agreement, and labor localizations quotas
- Paying prescribed application fees which vary by emirate within the UAE
- Fulfilling additional stipulations for certain industrial sectors or foreign-owned enterprises
Example:
A new food ingredient importer had to renew its Abu Dhabi trade license and demonstrate 100% Emirati employment after 5 years of operations to maintain compliance.
Takeaways:
While trade licenses facilitate commerce, periodic reviews ensure continued adherence to rules protecting investors, workers, and consumers. Harmonization of requirements across regions simplifies regional operations despite decentralized issuance.
