How to choose a trading company in the UAE: a due-diligence checklist

Why you should vet a UAE trading partner

A UAE trading company holds a licence from an emirate’s economic department or from a free zone authority. Each authority keeps its own records. Before you sign a contract or send money, confirm three things: who the company is, what it is licensed to do, and how your money or goods are protected.

UAE tax rules now set a useful benchmark. Under FTA Decision No. 13 of 2026, in force since 1 October 2026, UAE VAT-registered businesses must verify a new supplier before they recover input VAT. They confirm its incorporation through official databases, its actual place of business, and that the goods fall within its licensed activities. Overseas partners can apply the same standard.

The due-diligence checklist

1. Get the legal details in writing. Ask for a copy of the trade licence. Record the legal name, licence number, issuing authority and expiry date. The same legal name should appear on the quotation, the invoice and the bank account.
2. Verify the licence with the issuing authority. Check the record at the source. The UAE government portal lists the official lookup tools on its Verify business licences page.
   • Dubai mainland: use the licence information search of the Dubai Department of Economy and Tourism (DET). Results show licence status, expiry date, legal type, activities and, where available, address. You can also use the Invest in Dubai business directory, which searches by business name or Dubai Unified Licence (DUL) number. Some searches ask you to sign in with UAE Pass.
   • Dubai free zones: every registered company in Dubai, on the mainland or in a free zone, has a DUL. Companies can display a DUL QR code that customers and suppliers scan to retrieve company information. Ask your partner for it.
   • Abu Dhabi: the TAHAQAQ service from the Abu Dhabi Department of Economic Development lets you check whether a business is licensed before you buy from it or contract with it.
   • Other emirates: the federal National Economic Register covers licensing authorities in every emirate. You can look up economic licences, business activities and trade names. The Ministry of Economy and Tourism also offers an online enquiry for a company’s file, open to foreign companies after login.
   • Other free zones: each free zone licenses companies under its own rules. Contact the authority named on the licence and ask it to confirm the licence is valid.
3. Match the licensed activities to your goods. The licence lists the activities the company may carry out. Check that they cover the products you plan to buy or sell. If they do not, ask for an explanation before you continue.
4. Check the legal form and where the company can sell. The licence record shows the legal type, such as a limited liability company (LLC) or a free zone entity. The form affects the trade route. A free zone company can trade within its zone and internationally. To sell into the UAE mainland, it must work through a licensed mainland distributor or set up a mainland branch or company. If your goods will stay in the UAE, confirm the chain works.
5. Confirm the address and the real place of business. The licence record usually shows a registered address. Ask for a live video call from the office or warehouse, or send a local agent to visit. Check that the premises fit the scale of the trade on offer.
6. Verify the VAT registration number (TRN). A UAE business must register for VAT once its taxable supplies and imports exceed AED 375,000 a year. The Federal Tax Authority (FTA) lets anyone check a TRN on its website. A TRN has 15 digits. A valid result shows the registered name, which should match the licence. If an established trader has no TRN, ask why.
7. Identify the owners and signatories. UAE companies must keep a record of their beneficial owners, including anyone who owns or controls 25% or more, and file it with their registrar. That record is confidential, so ask the company directly. Request the names of the owners and managers and proof that the person signing has authority to bind the company.
8. Screen sanctions lists and export controls. Screen the company, its owners and its managers against the UN Security Council Consolidated List and the UAE Local Terrorist List, which the Executive Office for Control and Non-Proliferation (EOCN) publishes. Screen against the sanctions lists of your own country as well. Some goods, including certain electronics, appear on the UAE Control List. Exporting, re-exporting or transiting those items requires an EOCN permit. Ask your partner how it handles this.
9. Expect anti-money laundering questions in both directions. Federal Decree-Law No. 10 of 2025 replaced the UAE’s 2018 AML law and raised the penalties. Dealers in precious metals and stones fall under Ministry of Economy and Tourism supervision and must register on the goAML reporting system. A serious partner will ask for your company documents too. A partner that asks for nothing is a warning sign.

Put every term in a written quotation

Ask for a quotation that states:

• Product description, model or part numbers, and specifications
• Quantity, unit price and currency
• The Incoterms rule, the named place and the version
• Payment terms and the bank account holder’s name
• Lead time, quotation validity, packing and marking
• Inspection arrangements and the documents the seller will provide

Incoterms 2020 has 11 rules. Seven work for any mode of transport: EXW, FCA, CPT, CIP, DAP, DPU and DDP. Four apply to sea and inland waterway transport only: FAS, FOB, CFR and CIF. Write the rule, the place and the version together, for example “FOB Jebel Ali, Incoterms 2020”. Incoterms allocate costs, risks and tasks between seller and buyer. They do not set the price, the payment method or the moment ownership passes. Put those terms in the sales contract.

Payment security: match the method to the risk

Cash in advance protects the seller and exposes the buyer. Open account terms, where goods ship before payment, do the reverse. For a new relationship, choose a method in between.

• Letter of credit (LC). A bank commits to pay the seller once the seller presents documents that meet the stated conditions. The buyer has no payment obligation until the documents show shipment as agreed. Most LCs follow the ICC rules known as UCP 600. A seller who doubts the issuing bank can ask a second bank to confirm the credit.
• Documentary collection. The banks exchange shipping documents for payment or for the buyer’s signed promise to pay. The banks do not check that the documents are accurate and do not guarantee payment. The ICC rules are URC 522. Use this method with established partners in stable markets.
• Staged payments. Agree a deposit, then link the balance to milestones such as a copy of the bill of lading or a passed inspection report. Keep the first deposit modest.

Protect the transfer itself. Pay only into an account held in the licensed company’s legal name. In October 2026, Abu Dhabi Police warned businesses about fake emails that impersonate partners and request new bank details. Police advised companies to verify any change through official channels, using contact details already on record.

Pre-shipment inspection and documents

Pre-shipment inspection uses an independent company to check details such as quantity, quality and price before goods leave. Name the inspection company and the standard in the contract. Make a passed inspection certificate a condition of the final payment, or list it as a required document in the LC.

Agree the shipping documents in advance. A typical set includes a commercial invoice, a packing list, a bill of lading or air waybill, and a certificate of origin. In Dubai, Dubai Chambers issues certificates of origin for exported and re-exported goods against a commercial invoice. Check that names, quantities and descriptions match across every document.

Red flags

Pause the deal if you see any of these:

• The licence cannot be found, has expired, or shows a different legal name.
• The licensed activities do not cover the goods.
• The TRN is missing, invalid, or registered to a different name.
• You are asked to pay a personal account, a third party, or an offshore account without a clear reason.
• Bank details change by email, especially close to a payment date.
• The price sits far below market rates with no explanation.
• Intermediaries appear whose role nobody can explain.
• The company has changed its address or key staff several times in a short period.
• The partner refuses a video call, a site visit, an inspection, or a letter of credit.
• The partner will not name its owners or show who can sign for it.

Several of these match the risk indicators in FTA Decision No. 13 of 2026.

Key figures

• Every registered company in Dubai, on the mainland or in a free zone, receives a Dubai Unified Licence with a QR code that partners can scan to retrieve company information.

  Dubai Media Office, 11 December 2023

• VAT registration is mandatory for UAE businesses whose taxable supplies and imports exceed AED 375,000 a year. The standard VAT rate is 5%.

  u.ae, updated 30 March 2026

• FTA Decision No. 13 of 2026, effective 1 October 2026, requires UAE VAT-registered businesses to verify a supplier’s incorporation, place of business and licensed activities before recovering input tax.

  PwC Middle East, 26 August 2026

• Free zone companies must sell into the UAE mainland through a licensed mainland distributor or a mainland branch or company.

  u.ae, updated 28 September 2026

• Incoterms 2020 contains 11 rules: seven for any mode of transport and four for sea and inland waterway only. The rules do not cover price, payment or transfer of ownership.

  ICC; International Trade Administration, updated 8 April 2026

• UAE companies must record beneficial owners holding 25% or more and file the record with their registrar. The record is confidential.

  Cabinet Decision No. 109 of 2023, 6 November 2023

Frequently asked questions

Sources

1. Verify business licences, The UAE Government Portal (u.ae), updated 6 April 2026
2. National Economic Register, The UAE Government Portal (u.ae), updated 17 April 2026
3. Dubai business directory, Invest in Dubai, no date shown
4. Dubai Department of Economy and Tourism launches Dubai Unified Licence, Dubai Media Office, 11 December 2023
5. Dubai Unified Licence: What it is and how it benefits your business, Gulf News, updated 24 January 2025
6. Dubai trade licence: Types, application process, verification explained, Khaleej Times, 15 March 2025
7. TAHAQAQ, Abu Dhabi Department of Economic Development, no date shown
8. Enquire About Commercial Companies Licence, Ministry of Economy and Tourism, updated 24 October 2026
9. Starting a business in a free zone, The UAE Government Portal (u.ae), updated 30 December 2024
10. Running a business in a free zone, The UAE Government Portal (u.ae), updated 28 September 2026
11. Register for VAT, The UAE Government Portal (u.ae), updated 30 March 2026
12. TRN verification in Dubai, Meydan Free Zone, 21 January 2026, updated 29 July 2026
13. Ask for tax registration number, not tax certificate, Khaleej Times, 27 January 2018
14. FTA Decision No. 13 of 2026 on Verification of Supplies before Input Tax Deduction, PwC Middle East, 26 August 2026
15. UAE introduces mandatory VAT supplier and supply verification checks, Khaleej Times, 20 August 2026
16. Cabinet Decision No. (109) of 2023 on Regulating the Beneficial Owner Procedures, UAE Cabinet (hosted by Dubai Development Authority), 6 November 2023
17. UN Security Council Consolidated List, United Nations Security Council, list updated 15 October 2026
18. Quick Guide: Targeted Financial Sanctions, Abu Dhabi Global Market, March 2025 (per document footer)
19. Executive Office for Control and Non-Proliferation, EOCN, no date shown
20. Overview of the UAE’s Export Control Regime, Morgan Lewis, updated 27 August 2025
21. UAE issues new AML law, DLA Piper, 20 October 2025
22. Ministry of Economy suspends operations of 50 DNFBP establishments for 3 months for failure to register in goAML system, Ministry of Economy, 21 August 2023
23. Incoterms 2020, International Chamber of Commerce, no date shown
24. Know Your Incoterms, International Trade Administration (US Department of Commerce), updated 8 April 2026
25. Methods of Payment, International Trade Administration (US Department of Commerce), updated 8 April 2026
26. Documentary Collections, International Trade Administration (US Department of Commerce), updated 18 September 2026
27. UCP 600: Uniform Rules for Documentary Credits, International Chamber of Commerce, no date shown
28. URC 522: Uniform Rules for Collections, International Chamber of Commerce, 29 June 2023
29. Preshipment inspection, World Trade Organization, no date shown
30. Issuing a Certificate of Origin, Dubai Chambers, updated 20 October 2026
31. Abu Dhabi Police warns businesses of email payment scam, Gulf News, 8 October 2026

This article is general information, not legal, tax or customs advice. Rules, fees and deadlines change, so confirm them with the relevant authority before you ship. Sources were checked on 26 October 2026.