The trade licence is not a general permission to conduct any profitable work. The company is expected to operate within its approved scope.
An incorrect activity can cause:
The best time to identify the correct activities is before paying for the company, premises or external approvals.
Before searching activity names, identify exactly how the company will make money.
Answer the following questions:
What will the company sell?
Will it sell products, services or both?
Will it charge professional fees?
Will it earn commission?
Will it receive subscription income?
Will it manufacture products?
Will it import or export goods?
Will it hold inventory?
Will it operate an online marketplace?
Will it act as an agent or intermediary?
Will it undertake construction work?
Will it provide installation or maintenance?
Will it manage customer funds or assets?
Will it provide regulated advice?
Will it operate a physical facility?
Who will be named in customer contracts?
What wording will appear on invoices?
Every material revenue stream should be matched with an authorised activity.
Prepare a short operating description before approaching the licensing authority.
A useful description should explain:
The company will purchase branded household products from overseas suppliers, import them into Dubai, store them with a third-party logistics provider and sell them through online marketplaces and its own website.
This description indicates that product trading, importation, e-commerce, customs and product compliance may all need attention.
Dubai offers different licence categories according to the nature of the activities. The exact classification should be verified through the competent authority.
Commercial activities generally involve buying, selling, importing, exporting or distributing goods.
Examples may include:
Professional activities generally involve services based on knowledge, skill, experience or expertise.
Examples may include:
Some professional activities require qualifications, experience, professional membership or external approval.
Industrial activities involve manufacturing, processing, assembly or production.
They may require:
A simple trading licence does not authorise manufacturing merely because the finished products will be sold by the company.
Contracting activities may cover defined construction, installation, maintenance or specialist works.
They can require:
A maintenance activity is not always equivalent to a construction or contracting activity.
E-commerce refers to conducting transactions through online channels, but the company may still need the underlying activity covering what is sold.
Depending on the model, the business may require:
The website or platform should identify the licensed entity and provide required consumer information. UAE Government guidance states that e-commerce businesses must provide consumers and authorities with information about the licensing entity and relevant terms. UAE consumer-protection guidance
A company's commercial branding may use broad language, but its licence requires recognised activities.
For example, "property services" could mean:
A specific trading activity authorises the company to trade within a defined product category.
General trading may allow a broader range of goods, subject to exclusions and regulated-product requirements.
Before choosing general trading, review:
General trading should not be selected merely because the entrepreneur has not yet decided what to sell. Banks and regulators still expect a clear business model.
A consultancy provides analysis, advice or recommendations. An operational service performs the underlying work.
Examples include:
If the company will both advise and implement, it may require more than one activity.
A company earning commission for bringing parties together may require a brokerage, agency or intermediary activity rather than ordinary consultancy.
Who signs the final customer contract?
Does the company represent another party?
Does it negotiate transactions?
Does it receive customer money?
Is commission linked to a regulated transaction?
Does it advertise another party's products?
Does it have authority to bind a supplier?