A trade license is a permission issued by a government to run any business or trade for which it was issued. It aims to prevent a company from adopting any unethical business practices. Operating a business without a trade license may result in a fine or even in the closure of a business. A trade license gives you the right to carry on your business in a particular region. We can say that a trade license is for companies what a driving license is for drivers.
Types of Trade Licenses in the UAE
- Professional licenses, which must be held by businesses involved in providing services
- Commercial licenses, which must be held by businesses specialized in selling or purchasing goods
- Industrial licenses, which must be held by businesses that want to undertake any manufacturing activities
The Benefits of Trade Licenses for Businesses
- A licensed business will win clients and investors’ trust much more than an unregistered business.
- Trade licenses protect business owners against certain types of liability.
- Trade licenses guarantee that a business is following strict rules and safety measures.