A trade license is a document/certificate that gives the permission to the applicant (person seeking to open a business) to commence a particular trade or business in a particular area/location. However, the license does not allow the holder to do any other business other than for what it is issued. Furthermore, this license does not qualify any kind of property ownership to the holder of the license.
It has been made necessary by the government to carry out any particular business or trade in a particular area and to ensure that no one is carrying out any unethical business practices. This license creates accountability in the society that every business is following relevant rules, guidelines and obeying the safety measures. This license was made mandatory to make sure that the government can regulate various trade activities in the country. The core objective of issuing a this is to control the locations by restricting the people from executing certain types of businesses from their home location to maintain the business environment and locality environment.
The trade licence is issued by the Department of Economic Development (DED) in Dubai.