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Trade License Agreement for United Arab Emirates

Trade License Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE federal and emirate-specific laws that establishes the terms and conditions for conducting business activities within the UAE. This document outlines the rights, obligations, and compliance requirements for operating a business, including specific activity permissions, premises requirements, and regulatory compliance standards. It incorporates provisions from UAE Commercial Law, local economic department regulations, and where applicable, free zone authorities' requirements. The agreement serves as the primary legal framework for business operations and must align with both federal and local emirate legislation.

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Trade License Agreement

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What is a Trade License Agreement?

The Trade License Agreement is a fundamental legal document required for any business operating in the United Arab Emirates. It serves as the primary authorization for conducting commercial activities and is mandated by UAE federal law and local emirate regulations. This document is essential when establishing a new business, modifying existing business activities, or renewing operational permits in the UAE. The agreement encompasses various aspects including permitted commercial activities, operational requirements, compliance standards, and regulatory obligations. It must adhere to the UAE Commercial Activities Law, specific emirate-level regulations, and in cases of free zone operations, the relevant free zone authority requirements. The document's scope includes business identification details, approved activities, premises specifications, and ongoing compliance obligations.

What sections should be included in a Trade License Agreement?

1. Parties: Identification of the licensing authority and the license applicant/holder, including full legal names and registration details

2. Background: Context of the license application and brief description of the intended business activities

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Grant of License: Specific details of the license being granted, including scope and permitted activities

5. Term and Renewal: Duration of the license, renewal terms, and procedures

6. License Fees: Details of initial and recurring fees, payment terms, and any additional charges

7. Obligations of License Holder: Key responsibilities and compliance requirements for the license holder

8. Regulatory Compliance: Specific regulatory requirements and standards that must be maintained

9. Premises Requirements: Specifications for business premises and location requirements

10. Inspection and Monitoring: Rights of authorities to inspect and monitor compliance

11. Amendment and Transfer: Procedures for modifying license terms or transferring the license

12. Termination: Grounds and procedures for license termination or cancellation

13. Governing Law and Jurisdiction: Confirmation of UAE law application and relevant jurisdiction

What sections are optional to include in a Trade License Agreement?

1. Free Zone Specific Provisions: Additional terms specific to free zone operations, required only for free zone licenses

2. Special Activity Requirements: Additional requirements for specialized business activities (e.g., healthcare, education)

3. Emirate-Specific Regulations: Specific requirements for particular emirates, needed when operating in multiple emirates

4. Environmental Compliance: Required for businesses with environmental impact considerations

5. Employment Requirements: Specific staffing and Emiratisation requirements for certain business categories

6. Import/Export Provisions: Required for businesses engaged in international trade activities

7. Intellectual Property Rights: Necessary for businesses dealing with patents, trademarks, or proprietary technology

What schedules should be included in a Trade License Agreement?

1. Schedule A - Licensed Activities: Detailed list of all permitted business activities under the license

2. Schedule B - Fee Schedule: Comprehensive breakdown of all applicable fees and charges

3. Schedule C - Premises Details: Specific details of approved business location and premises requirements

4. Schedule D - Compliance Checklist: Detailed checklist of ongoing compliance requirements

5. Appendix 1 - Required Documents: List of mandatory documents to be maintained for compliance

6. Appendix 2 - Authorized Signatories: Details of persons authorized to act on behalf of the license holder

7. Appendix 3 - Operating Hours: Approved business operating hours and any restrictions

8. Appendix 4 - Technical Requirements: Specific technical or operational requirements for the licensed activity

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions
































Clauses



































Relevant Industries

Retail

Manufacturing

Professional Services

Healthcare

Education

Technology

Construction

Hospitality

Trading

Real Estate

Financial Services

Transportation

Media

Tourism

Industrial

Relevant Teams

Legal

Compliance

Operations

Administrative

Corporate Affairs

Regulatory Affairs

Business Development

Risk Management

Corporate Governance

General Management

Relevant Roles

Legal Counsel

Compliance Officer

Business Development Manager

Corporate Secretary

Chief Executive Officer

Chief Operating Officer

Licensing Manager

Regulatory Affairs Director

Operations Manager

Commercial Director

Business License Coordinator

Corporate Governance Manager

Risk Management Officer

General Manager

Administrative Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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