Add a Trade License purchase in Naqood

Trade licenses are required for all UAE businesses and are usually orginally paid by the shareholder, covering a 12-month period that should be recorded as a prepaid expense.

1) Go to Purchases

Go to Expenses → Purchases → Add Purchase

2) Upload receipt or invoice

Upload your receipt or invoice and press Extract.

If this is your first purchase from this supplier, add the supplier so you can track future expenses from the same supplier.

If you are on the free tier, you must manually fill in: Amount, Description of the purchase & Select the relevant expense account

3) Select purchase type

Choose one of the following:

• Cash – if you have already paid

• Credit – if you have not yet paid and still need to pay

4) How was this paid?

Select how the purchase was paid:

• Bank – paid from your company bank account

• Cash – paid from your company petty cash balance

• Other – paid from the owner’s personal account

  → Select 6850 – Debt to Owner

5) Does this purchase cover multiple periods?

Select Yes and choose the duration.

Examples:

• 12 months – 1-year trade license

• 24 months – 2-year trade license

• 36 months – 3-year trade license

Naqood will automatically:

• Create a prepaid expense

• Post your trade license expense monthly

6) Select account

Either select one of the suggested accounts or choose:

3620 – Trade License incl. fees

7) Press Create

Your trade license purchase is now registered 🎉

Tips

• If your invoice includes both Trade License and PRO services, we recommend splitting the cost by ADD LINE:

  Trade license → 3620 Trade License

  PRO / consultant fee → 3690 Consultants

• If this is not your first year of business and your company is VAT registered, make sure:

  • Company details are filled in

  • “VAT registered” is selected

  • VAT registration date is entered

This ensures VAT is applied correctly.

👉 There is no VAT on trade license fees, but PRO service fees may include VAT.

You can now view your monthly trade license cost in:

• Dashboard

• Profit & Loss report