Trade License & Drugstore License

The UAE is a rapidly growing hub for healthcare investment, attracting pharmaceutical companies, medical suppliers, and retail pharmacies from around the world. With a high standard of medical services, supportive regulations, and a robust economy, it’s no surprise that many entrepreneurs and businesses are looking to enter the UAE’s healthcare sector.

If you’re planning to open a pharmacy, a medical store, or distribute pharmaceutical products, one of your first and most important steps is to obtain the necessary Trade License and Drugstore License. These two approvals are crucial for legally operating and selling medical or pharmaceutical products in the UAE.

In this guide, we’ll walk you through the full process of obtaining a Trade License and Drugstore License in the UAE — from legal setup and regulatory requirements to the specific role of the Ministry of Health and Prevention (MOHAP).

Why the UAE Healthcare Market?

Before we dive into licensing, it’s important to understand why the UAE is such a promising destination for healthcare business:

• Rising Demand for Healthcare Services
  With a growing population and an increase in lifestyle-related diseases, demand for quality healthcare is increasing.

• Government Support
  Initiatives like the Dubai Health Strategy 2021 and UAE Vision 2031 are fostering a healthcare-friendly ecosystem.

• Ease of Doing Business
  Streamlined government services and attractive free zones make company formation smooth and efficient.

• High Purchasing Power
  Residents and tourists in the UAE often seek high-end pharmaceuticals and medical products.

These factors make entering the healthcare market not just possible, but highly profitable — if done correctly.

What is a Trade License in the UAE?

A Trade License is the official document that allows a company to legally operate in the UAE. It is issued by the Department of Economic Development (DED) or the relevant free zone authority.

For a pharmacy, drugstore, or medical trading business, the type of trade license you need is either:

• Mainland Trade License (via DED) – for operating in UAE’s mainland

• Free Zone License – if you plan to operate in a designated free zone like Dubai Healthcare City or SHAMS

Your license activity must align with:

• Pharmaceutical trading

• Medical equipment trading

• Retail pharmacy operation

• Wholesale or distribution of drugs

What is a Drugstore License?

A Drugstore License is a specific healthcare license issued by the Ministry of Health and Prevention (MOHAP). It’s required for anyone intending to open a pharmacy or sell pharmaceutical products within the UAE.

It certifies that your facility, staff, storage conditions, and operating procedures meet strict healthcare and safety standards.

Important: A Trade License allows you to form the company; a Drugstore License allows you to legally sell medicine or health products.

Step-by-Step: How to Get a Trade License in the UAE

1. Choose Business Activity

Select the appropriate business activity — for example, “Pharmaceutical Trading” or “Retail Sale of Medical Equipment” — from the DED or Free Zone activity list.

2. Choose Jurisdiction

Decide if you want to open in:

• Mainland – direct trade in UAE markets

• Free Zone – more benefits for international investors, but limited to free zone operations

3. Name Approval

Choose and register your trade name with the relevant authority. It must follow naming rules (no offensive terms, legal names only, etc.).

4. Apply for Initial Approval

Submit your documents for initial approval, which includes:

• Passport copy of owners

• Business plan

• NOC (if applicable)

• Legal structure (LLC, Sole Proprietorship, etc.)

5. Office/Shop Lease

Secure a physical location — whether it’s a pharmacy space, warehouse, or office. You’ll need a tenancy contract or Ejari (for Dubai mainland).

6. Finalize and Pay Fees

Submit your final documents and pay the license issuance fee. You’ll receive your Trade License within a few days if all goes smoothly.

Step-by-Step: How to Get a Drugstore License in the UAE

Once your business is legally formed, you’ll need to apply for a Drugstore or Pharmacy License through MOHAP.

1. Facility Requirements

You must have:

• A physical facility that meets pharmacy design guidelines

• Storage with temperature control

• Shelving and security as per MOHAP specifications

2. Hire a Licensed Pharmacist

You must employ a licensed pharmacist-in-charge with a UAE-recognized degree and MOHAP license. This pharmacist must be available full-time during operating hours.

3. Prepare Documents

You’ll need:

• Trade license copy

• Pharmacy layout plan

• Pharmacist’s credentials and license

• Lease/Ejari certificate

• Civil defense certificate (for fire safety)

4. Apply Online via MOHAP Portal

Register through MOHAP’s e-system and upload all required documentation. MOHAP will review your submission and may request clarifications.

5. Facility Inspection

MOHAP inspectors will visit the location to ensure all standards (space, hygiene, labeling, records, temperature control) are met.

6. Final Approval

If all conditions are satisfied, MOHAP issues the Drugstore License, allowing you to begin operations.

Regulatory Compliance

To maintain your license and stay compliant, you must:

• Renew both licenses annually

• Maintain up-to-date pharmacist licensing

• Record and report any controlled drug sales

• Submit inventory audits if required

• Comply with advertising regulations (no unauthorized health claims)

Additional Licenses or Approvals (If Applicable)

Depending on your activity, you may also need:

• Import License (for bringing products into the UAE)

• Medical Device Registration (for selling equipment)

• Health Authority Approvals (like from DHA or HAAD for Dubai and Abu Dhabi)

How Long Does It Take?

• Trade License: 3 to 7 working days (depending on the setup)

• Drugstore License: 4 to 8 weeks (including inspections and pharmacist approvals)

Cost of Licensing

Costs can vary based on location, business type, and approvals. On average:

• Trade License – AED 7,000 to AED 15,000+

• Drugstore License – AED 10,000 to AED 25,000+ (excluding setup costs)

• Additional fees: MOHAP inspection fees, pharmacist licensing, and consultant services

Can Foreigners Own a Pharmacy in the UAE?

Yes, under the new UAE commercial company law, foreigners can own up to 100% of the business in many sectors — including pharmacies — in certain emirates and under certain conditions. However, having a local sponsor or service agent is still common for regulatory convenience.

Challenges and Considerations

Setting up a healthcare business, especially a pharmacy or drugstore, involves navigating:

• Strict regulatory approvals

• Pharmacist recruitment

• Facility compliance

• Ongoing audits and renewals

Having professional guidance ensures fewer delays, fewer legal risks, and smoother operations.

Establishing a pharmacy or medical trading business in the UAE offers significant opportunities — but it must be approached with careful planning and regulatory compliance. From selecting the right location and license type to hiring qualified pharmacists and getting MOHAP approvals, every step requires precision.

Working with a local healthcare business consultant can dramatically reduce the time, cost, and complexity involved.

Need Help? Talk to the Experts at Montgo Health

Montgo Health is your trusted partner for seamless healthcare business setup in the UAE. Whether you need help getting a Trade License, Drugstore License, pharmacist licensing, or MOHAP approvals, Montgo Health offers full-service regulatory support.

With in-depth experience in pharmacy setup, medical licensing, and UAE healthcare law, Montgo Health ensures you launch your business quickly, legally, and with full compliance. Start your journey today — with the right partner by your side.

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Frequently Ask Questions

Q. What is a trade license in UAE?

A. A trade license in the UAE allows a business to operate legally in the country. It is issued by the Department of Economic Development (DED) or relevant free zone authorities, depending on your business location. The license specifies the legal activities the business can perform.

Q. How many types of UAE licenses are there?

A. There are three main types of licenses in the UAE: commercial (for trading activities), industrial (for manufacturing), and professional (for service-oriented businesses). Additionally, licenses can be issued in mainland, free zone, or offshore jurisdictions based on business needs.

Q. How much are trade license fees in the UAE?

A. Trade license fees in the UAE typically range from AED 7,000 to AED 15,000+, depending on factors like business activity, location (mainland or free zone), and company size. Additional costs may apply for visas, offices, and permits.

Q. How can I get a shop license in UAE?

A. To get a shop license in the UAE, you need to register with the Department of Economic Development (DED) or relevant free zone authority, submit required documents (e.g., tenancy contract, passport copies), and pay the applicable fees. A physical location is also required.

Q. Can a foreigner open a shop in Dubai?

A. Yes, a foreigner can open a shop in Dubai, either on the mainland with a local partner or in a free zone with 100% ownership. However, specific requirements may vary based on the location and type of business.

Q. What is LLC in UAE?

A. An LLC (Limited Liability Company) in the UAE is a popular business structure that allows foreign ownership of up to 49% (with a local sponsor holding 51%). It is commonly used for mainland businesses and provides limited liability protection to the company’s shareholders.