Trade License & Sponsorship in the UAE
Secure your business foundation in the UAE with the right trade license and reliable sponsorship options. Learn how to legally establish and expand your company across the Emirates.
Trade License in the UAE
In the UAE, obtaining a trade license is the first and most essential step for starting a business legally. Issued by the Department of Economic Development (DED) in each Emirate for mainland companies, or respective Freezone authorities, the trade license defines the nature of your permitted business activities. Whether you are entering commercial, professional, or industrial sectors, the right trade license gives you the legal authority to operate across the Emirates.
A trade license is more than just a legal document—it is the foundation of your business operations. With it, you gain access to local and international markets, eligibility for visas, and the ability to open corporate bank accounts. For investors and entrepreneurs, securing the right trade license ensures smooth compliance with UAE regulations while unlocking vast growth opportunities.
Key Benefits
- Legal business identity – Official approval to operate in the UAE.
- Market access – Ability to trade locally and expand internationally.
- Banking facility – Eligibility to open a corporate bank account.
- Visa processing – Enables residency visas for investors and employees.
- Flexibility – Options for Commercial, Professional, Industrial, and Tourism licenses.
- Trade License Issuance & Renewal.
Types of Trade Licenses
- • Commercial License – For trading, retail, and general businesses.
- • Professional License – For consultants, service providers, and skilled professionals.
- • Industrial License – For manufacturing, production, and industrial activities.
- • Tourism License – For travel agencies, tour operators, and hospitality businesses.
Steps to Obtain a Trade License
- • Choose your business activity from the approved list
- • Reserve and register a trade name
- • Get initial approval from DED/Freezone authority
- • Secure office space and tenancy contract (if mainland)
- • Draft and notarize your Memorandum of Association (if required)
- • Submit documents and pay fees
- • Receive your trade license
Sponsorship in the UAE
For foreign entrepreneurs looking to establish a Mainland company in the UAE, having a UAE national or a corporate entity as a sponsor is a legal requirement. Sponsorship ensures compliance with local laws while providing access to lucrative opportunities such as government contracts, tenders, and unrestricted market operations.
While the concept of sponsorship may seem challenging, the UAE has evolved its business ecosystem to make it investor-friendly. Today, sponsorship models are flexible—allowing foreign investors to retain operational and financial control of their businesses while meeting the legal requirement of UAE partnership.
Types of Sponsorship
- Individual Sponsorship – A UAE national acting as your local sponsor.
- Corporate Sponsorship – A UAE-owned company serving as your sponsor.
- Local Service Agent (LSA) – For professional licenses, no ownership stake required.
Benefits of Sponsorship
- • Compliance with UAE regulations
- • Full market access across all Emirates
- • Ability to bid for government contracts and tenders
- • Operational and financial control retained by foreign investors
- • Trusted local representation and credibility