Trade License vs Freelance License - IBG Consulting Dubai

Trade License vs Freelance License

May 18, 2020by admin

Starting up a business in Dubai is a dream of many. With its cosmopolitan industries and booming economy, it provides entrepreneurial opportunities for all. Moreover, there are plenty of options when it comes to company formation in Dubai.

Two popular options when it comes to company formation in Dubai are trade license and freelance license. While both are relatively easy to obtain, they have distinctive features and benefits, depending on the type of business that you would like to start up.

So, if you are interested in starting your business in UAE but are unsure which permit is better to obtain, keep reading. Here we break down the differences so that you can clearly understand which permit is right for you.


Trade License in Dubai

A trade license is a certification issued by the Department of Economic Development (DED) in the UAE which legally permits a company to practice its business activity from the mainland. Free zones also offer trade licenses that you can operate from.

A trade license is the most common form of company formation in Dubai. There are three major types of trade permits, which are:

  • Professional Trade License
  • Commercial Trade License
  • Industrial Trade License

There are several benefits of obtaining a trade license in Dubai. For starters, it gives you credibility and authority to work with other large companies and even government contracts. Moreover, it is an easy way to grow your business and hire more employees.


In short, trade license is ideal in these cases:

  • You would like to start and grow your own company
  • You are interested in working from the mainland or certain free zones
  • You are interested in sponsoring a dependent in future
  • You would like to hire employees
  • The type of business you are starting up is commercial, industrial, or professional
  • You would like to work with other businesses and corporate clients

In these cases, you should obtain a trade license in Dubai. To easily obtain this permit and start setting up your business, you should seek help from an expert business set-up company. This will ensure you easily and smoothly fulfill all the requirements to obtain your trade permit in a hassle-free manner.


Freelance License in Dubai

The second option is a freelance license. This is a good option for individuals who prefer self-employment and who are not planning on hiring more employees. These permits are not as common as trade licenses and unavailable for working in the mainland. However, freelance permits are available in certain free zones in Dubai, such as:

  • Dubai Media City
  • Dubai Studio City
  • Dubai Production City
  • Dubai Knowledge Park
  • Fujairah Creative City

Freelance permits are ideal if you are interested in joining the media, production, or design industry as a sole practitioner. Moreover, many people start out with a freelance permit, and eventually switch to a trade permit when they are ready to expand their business and hire more employees.

In short, freelance license is ideal in these cases:

  • You would like to be self-employed
  • You will not be hiring any other employees
  • You are interested in setting up a freelance business related to media, production, design, or education
  • You would like to keep costs of setting up your business low
  • You would like to enjoy the flexibility and ease that comes with freelancing
  • The nature of your work does not require a large company growth

In these cases, a freelance permit in UAE will the right choice for you. Once again, seeking consultation from an expert business set up company will make the permit application process easy and stress-free.

IBG Consulting is an expert business set up company in Dubai. We can help you choose between a trade permit or freelance permit, according to your unique requirements and desires. Moreover, we can help you obtain your license and help with your company formation in Dubai. Contact us for a smooth business set up experience in UAE!

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