Clear answers to common questions about UAE trade licenses, mainland and free zone company setup, business activities, external approvals and document requirements.
A General Trading License allows the trading of different goods and products listed under the activity classification guidebook, except activities that require external approvals from specialised authorities.
A Mainland License allows a company to operate across the UAE and internationally. Mainland companies are licensed by the Department of Economic Development of the relevant Emirate and usually offer wider trading flexibility.
Free Zones are designated business areas in the UAE that offer benefits such as 100% foreign ownership and business-friendly setup options. Free Zone companies may need additional arrangements to trade directly in the mainland market.
Free Zone companies are regulated by their respective Free Zone authorities and do not automatically fall under mainland DED licensing. To trade directly in the mainland, they may need a local distributor, branch arrangement, or mainland license.
If both commercial and professional activities are practiced, a Commercial License is generally required.
External approvals are permissions from relevant authorities that regulate specific business activities, such as health, safety, environmental, educational or specialised commercial sectors.
The Board of Directors’ resolution should be executed in the Gulf country of origin, attested by the UAE Embassy, translated into Arabic and endorsed by the relevant authorities.
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