SORP Group

Before starting trading in the UAE, you need to determine the specific type of trade you plan to conduct—wholesale, retail, e-commerce, or import/export. This determines the type of license and the jurisdiction in which it is most advantageous to register your business (trading business setup).
The process itself begins with choosing a company structure. There are two main options: registering in a free zone or on the mainland. In free zones, companies can be 100% foreign-owned; they are easier to set up, have lower taxes, and allow for international trade. However, trading directly in the UAE's domestic market through a free zone is limited; it requires a local distributor or partner. If you plan to work with local customers and government agencies, it is better to open a company on the mainland.
The next step is defining your business activity and obtaining a trading license. The license is issued by the Department of Economic Development (DED) for mainland companies or by the free zone administration.
After selecting your business activity, you must register a trade name (company name), prepare incorporation documents, and rent an office or warehouse—this is a mandatory requirement for obtaining a license.