Mainland
Every mainland activity falls into one of three categories. The right licence determines both what you may do and what company structure you can build.
A trade licence must be obtained before trading begins in the UAE; this applies to free zones and the mainland alike. To your customers and to banks, the licence is also proof of legitimacy.
Type 1
For those providing expertise and services: consultants, engineers, designers, artisans. The applicant is expected to evidence their qualification. This licence supports a 100% foreign-owned sole establishment or civil company; in that case only a local service agent is appointed.
Type 2
For buying and selling goods and commodities and for trading activity generally. It can be formed as a limited liability company or a sole establishment, and taken as general trading or specific to a product group. Retail, construction, real estate, healthcare and transport also sit in this category.
Type 3
For manufacturing and the processing of raw materials. Issued by the Department of Economic Development; depending on the activity, additional approvals may be required from the ministries of finance, economy or energy and infrastructure. It usually comes with a production space or warehouse requirement.
A memorandum of association is required for structures such as the limited liability company, the limited partnership and public and private joint stock companies.
Why the right licence matters
A licence type can be changed later, but not for free: a new fee, new documents and usually a new approval process. And if a bank sees an inconsistency between your licence and the activity you describe, it can suspend the account opening. Getting it right first is the cheapest route.
Describe your activity; we'll identify the right category and the documents required.
