Every business in the UAE needs a trade licence before it can trade, sign contracts or open a corporate bank account. The licence type you choose decides what you're allowed to do, where you can operate and which documents you'll need. Getting it right at the start saves you from amending the licence later.
The three main licence types
Commercial licence. For buying, selling and trading goods: general trading, import and export, retail, ecommerce and distribution. If your business moves products, this is usually the one.
Professional licence. For services built on skills and expertise: consultancy, marketing, IT services, design, training and similar work.
Industrial licence. For manufacturing, processing and assembly. Industrial licences usually need extra approvals, a suitable facility and sometimes environmental or safety clearances.
Some emirates and free zones also issue other licence types, such as tourism, agricultural or freelance permits, for specific activities.
Activities matter more than the label
Each licence lists the exact activities you're allowed to carry out. A licence for “IT consultancy” doesn't let you sell laptops, and a “general trading” licence doesn't cover every product: some goods need extra approvals. Choose activities that match what you'll actually do in the next two to three years, not just your first month.
Mainland or free zone?
The same licence types exist on the mainland and in free zones, but the rules differ.
| Mainland | Free zone | |
|---|---|---|
| Issued by | The emirate's economic department (in Sharjah, the Sharjah Economic Development Department) | The free zone authority |
| Where you can trade | Anywhere in the UAE | Inside the free zone and internationally; mainland sales usually need a distributor or extra permit |
| Ownership | 100% foreign ownership for many activities | 100% foreign ownership |
| Office | Physical office usually required | Flexi-desk options in many zones |
How to choose
- List what you'll sell or provide, and to whom: UAE companies, consumers or overseas buyers.
- Decide where your customers are. If they're mostly on the UAE mainland or include government entities, a mainland licence is usually the better fit.
- Match activities to that plan, including likely future services.
- Check visa needs, because the licence and office type decide how many visas you can apply for.
- Compare total cost, including office, visas and yearly renewal, not just the licence fee.
After the licence
A licence is renewed every year. Once it's issued you'll also need visas, a corporate bank account and, depending on turnover, VAT and corporate tax registration.
Next step: we guide you through licence type, activities and setup end to end. See business setup in Sharjah or our full consultancy services.
General information, not legal advice. Licensing rules change; we check current requirements for every setup.