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What is the difference between Trading License and Freelance License in UAE?

UAE is one of the top-rated Trade and Commerce location in the world. Foreign investors prefer getting a company license in UAE due to the numerous business benefits offered by the country for conducting global trade. There are many business license categories in UAE such as Trading Licenses, Service License, Freelance License, and more.

The Trading License is the most common and preferred by investors to conduct trading of special goods and items such as foodstuff, chemicals, etc. Also, there is a demand for Freelance License in UAE among individuals to start a business.

For starting any company in UAE it is mandatory to obtain a Trading License from the Free Zone or the mainland. Investors can choose a wide range of business activities and avail the business infrastructure facilities of the Free Zone or Mainland Business jurisdiction.

What is a Company License in UAE?

A Company License in UAE is required for investors to conduct any form of business activity in the region. There are three major types of Company Licenses in UAE – The Trading License, Services License, Manufacturing/ Industrial License.

Company Licenses in UAE can be obtained either through the Free Trade Zones or the Mainland. There is a wide range of business activities available in the UAE across the two business jurisdiction.

Depending on the specific business activity the investor must obtain the Company License. The Cost of a Company License varies depending on Free Zone location, office space, and visa quota requirements.

What is a Trading License in UAE?

A trading License in UAE enables investors to legally conduct business in the region. There is a long list of permitted activities that investors can opt for doing business.

Trading License in UAE

A General Trading License will permit the investor to trade in multiple business categories under the same trade license. Also, It has enormous business advantages for investors and is one of the most sought-after business license categories in the UAE.

Trading License Costs vary across the business jurisdictions and depend on the nature of the business. Investors can get a trade license in Dubai for a cost of AED11,900 for a Zero Visa Quota company.

How to Obtain a Trading License in UAE?

A trading License in UAE is an essential requirement for business owners to start a company in UAE. There are certain procedures to obtain a trading license in UAE.

Investors can trade in specific items as well as various permitted items by obtaining the General Trading License from UAE’s two major business jurisdictions. Obtain the Trading License from the Free Zones or Mainland of UAE by paying the fee.

Depending on the nature of business activities, choose the right business jurisdiction. Expert Business Consultants like AURION will assist investors to arrive at the right business jurisdiction for their company to operate and grow profitably.

1. Trading License from Mainland of UAE

Obtain the Trading License from the UAE Mainland by submitting the documents to the Department of Economic Development for the respective Emirate. There is a well-structured process for obtaining the Trading License from the UAE mainland.

Steps in obtaining the Trading License in UAE Mainland

Following are the steps involved in obtaining the Trading License in UAE Mainland. Investors can easily set up their company by obtaining a trading license from the mainland of UAE.

  • Choose the right business activity and business license type for the company. Also, finalize the trade name and get approval from the DED.
  • Submit the application form and other documents like the passport copy, shareholder details, and make the required payment for obtaining the trade license.
  • Choose the office space required and prepare the tenancy contract. Aurion will assist you with choosing the right office space depending on your exact business requirements and budget constraints.
  • For special business activities like food trading, heavy equipment trading, etc., there are special approvals required from the municipality and respective authorities
  • Apply for the UAE Residence Visa and open a corporate bank account for the company.

2. Trading License from Free Zone

Obtaining a Trading License from Free Zone is an alternative for investors. For global investors and business owners aiming at international business and foreign operations, the Free Zone is an ideal place to build the business.

There are multiple options for the companies to open a Free Zone company and obtain a trading license in UAE. The 40 plus Free Trade Zones offer a host of business setup packages.

Trading License from Free Zones

The 100% foreign ownership remains the advantage for Free Zones. Also, the low-cost company formation packages make it an investor favorite choice.

Furthermore, the absence of corporate taxation in UAE and special VAT benefits for certain Free Zones, makes UAE Free Zones the perfect choice for businesses.

Investors can get a trade license and set up a 1 visa quota company in UAE’s top Free Zone for a cost of AED 17,900. Avail of special discount packages for company setup in UAE from AURION. Connect with us right away!

What is a Service License in UAE?

Service License in UAE allows investors to conduct any professional business services such as consultancy, legal advisory, software development, tax and accounting services, and more.

Individuals in the professional category can apply for a Services License in UAE from the business jurisdictions depending on the availability of their specific business activity.

For most of the Free Trade Zones in UAE, there is no requirement of having an office space for a services company. However, having a physical office space is ideal for a services company in UAE to take a bank account for the company and add credibility.

What is an Industrial License in UAE?

Large Manufacturers and companies that produce goods in UAE must apply for an industrial license. It will provide the legal provision to make an item in UAE.

Industrial License is one of the most popular business license categories. It is a highly capital-driven sector with large investments in manufacturing units, warehouses, and transport facilities.

Our expert team will advise investors to choose the right business jurisdiction for obtaining an industrial license in the fastest and easiest way.

Freelance License in UAE

Freelance License in UAE is one of the most popular business license categories especially with the new entrepreneurs and youngsters entering the business world. By obtaining a Freelance License in UAE the individual can practice their profession in UAE.

Freelance License in UAE is for the individual and is not a separate legal entity. The Freelancer can open a bank account in the name of the individual. Additionally, as against a company license the freelance license is not renewable every year. It has a two year validity.

The limitation to a Freelance License in UAE is the permit can be taken for only one shareholder. There is no provision to hire employees under the Freelance Permit or Freelance License in UAE. Also, large corporate companies may not be inclined for delivering contracts for freelance permit holders always due their contract policy guidelines.

However, it is a perfect choice for investors to start small and explore the market first before expanding the company. A Freelance License in UAE can be obtained from either the Mainland or Free Zones.

1. Freelance License from Mainland of Dubai

In Dubai, the Department of Economic Development, DED offers Freelance License mostly for service-type business activities. Freelancers can opt for a 2-year visa from the mainland by paying the required visa fee to obtain residency in UAE.

The Freelance Permit or the Freelance License in Dubai can be applied from the DED by paying the required fee and submitting the freelance profile, photograph, and passport copy. A freelance Permit in Dubai is issued to the individual and it is not for a company.

2. Freelance License from Free Zone in Dubai 

The Freelance License from Free Zones is the most sought-after as they offer attractive benefits and easy business setup packages. The Free Zones are the perfect choice for Freelance License due to their robust business ecosystem and facilities offered at affordable cost.

Freelance License in UAE

Furthermore, the Free Zones offer the perfect infrastructure and support services for Freelancers to easily scale up their business venture, collaborate with teams, and gain business profitability easily.

Freelance Permits from the Free Zones is available within hours of submitting the documents and making the fee payment. The investor can choose from a wide range of business activities that are available in the Free Zones.

In Sharjah, the Freelance License package with 1 Visa starts at AED 15,435 for media and eCommerce-related activities.

To know more read: Freelance License Permits in UAE

For any queries on obtaining a Trading License or Freelance Permit in UAE, connect with our expert team right away!

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