Trade licences are issued by the relevant authority — the Department of Economic Development (DED) for mainland businesses, or the relevant free zone authority for free zone entities. The type of licence — commercial, professional, or industrial — affects what activities you can legally conduct, which directly impacts your VAT treatment (commercial activities are almost always taxable) and corporate tax obligations. Renewing a licence late triggers fines and can affect visa eligibility. Always ensure your business activities match what is listed on your licence — undisclosed activities are a compliance risk.
See also: Mainland Company, Free Zone, Compliance
