Dubai Trade License in 2026

Scenarios for Registering a Trade License in Dubai

Here are the four primary scenarios for registering a Dubai Trade License, based on your intended business activity.

Scenario A: The Service Provider (Consultancy & Professional Services)

You offer expert advice, skills, or specialized services—such as a marketing agency, legal consultancy, or IT support.

• License type: Professional license.
• Best jurisdiction: Free Zone — if your work is digital or international (e.g., a graphic designer serving global clients). Mainland — if your services require physical interaction with local clients (e.g., a salon or dental clinic) or if you wish to bid for government contracts.

Important note: If you are a freelancer, you can apply for a Freelance Permit, which allows you to conduct business in your own name without registering a legal entity.

Scenario B: The Trader (Retail, Wholesale & E-commerce)

You intend to buy, sell, import, export, or distribute physical goods—from electronics to foodstuff.

• License type: Commercial license.
• Best jurisdiction: Mainland will be the choice for retail shops, showrooms, or grocery stores. The Free Zone is best suited for international trade and re-export. Note that a Free Zone company cannot sell goods directly to mainland UAE consumers. You must work through a locally appointed distributor or a third-party logistics (3PL) provider.
• If you are selling online, an E-commerce License is required.

Scenario C: The Maker (Manufacturing & Industry)

You plan to transform raw materials into finished products, process goods, or engage in heavy industry.

• License type: Industrial license.
• Best jurisdiction: An industrial license requires real operational premises, so the best jurisdiction is the one where you can legally secure an approved warehouse or factory. This is not a “virtual setup” category: flexi-desks and virtual offices are not permitted.
• This scenario often requires external approvals (NOCs) from bodies such as the Dubai Municipality, Ministry of Industry and Advanced Technology, or the Ministry of Health, depending on the product being manufactured.

Scenario D: The Investor (Holding Assets & Wealth Management)

You do not intend to conduct active business operations (trading or services) in the UAE. Instead, you wish to hold shares in other companies, protect intellectual property (IP), or manage real estate assets.

• License type: Offshore license.
• Best jurisdiction: Registered in a jurisdiction like JAFZA or RAK ICC, this entity cannot trade within the UAE or issue employee visas. It is strictly for asset protection, confidentiality, and holding global assets. Trading is allowed out of the UAE.

Matching your activity to the license

Important tip: Do not attempt to combine incompatible activities (e.g., manufacturing and legal consulting) under a single license unless specific Free Zone rules allow it. Mixing different activity groups often requires separate licenses or specific regulatory approvals.

Special Licenses for Startups and Freelancers

Dubai has introduced specific licensing categories designed to lower entry barriers for solo entrepreneurs, home-based businesses, and rapid-launch startups.

Instant License

The Instant License is designed for businesses that need to start operations immediately. Issued by the Department of Economy and Tourism (DET), this license can typically be obtained in 1 working day.

• You do not need a physical office or retail space for the first year. However, upon renewal for the second year, you must provide a valid tenancy contract (Ejari) to keep the license active.
• You can typically apply for an owner visa and a maximum of three employee visas. If your team grows beyond this, you must rent office space to increase your quota (calculated at roughly 9 sq. m per employee).
• It is available for a wide range of commercial and professional activities but excludes activities that require external approvals from other government bodies (e.g., healthcare or education).

DED Trader (E-Trader) License

The E-Trader license legalises business activities conducted over social media networks (like Instagram) and personal websites. This license is strictly for solo practitioners and home-based businesses; it does not allow you to open a physical shop or sponsor employees.

• UAE and GCC Nationals can conduct both commercial trading (selling physical goods) and professional services.
• Expats (UAE Residents) can only apply for professional services licenses (e.g., consultancy, design, tutoring) — they cannot sell physical goods under an E-Trader license.

Freelance Permit

A freelance permit allows qualified individuals to offer specialized services in their own name without establishing a full company structure. This is ideal for professionals in media, technology, education, and design sectors.

• Best jurisdiction: While mainland freelancing technically exists, free zone freelance permits are the most popular choice.
• Freelancers can sponsor their own residency visas and those of their dependents, provided they meet the income and regulatory criteria of the specific free zone authority.

Dubai Trade License Cost (2026 Fees)

Budgeting for a business setup in Dubai requires distinguishing between the base license fee and the total cost of operation. While marketing materials often highlight low entry prices, the final Dubai trade license cost will depend heavily on your chosen jurisdiction, visa requirements, and facility needs.

Below are the minimum license-only fees for 2026:

Hidden & Additional Costs

The "headline price" of a trade license rarely includes the operational essentials. To avoid surprises, factor the following 2026 administrative fees into your budget:

Dubai Trade License Cost Calculator

Step-by-Step Application Process

Obtaining a Dubai Trade License follows a structured workflow, though specific requirements vary between the mainland Department of Economy and Tourism (DET) and the various Free Zone authorities. In practice, while timelines for straightforward cases range from 3 to 10 business days, the process is strictly sequential: you cannot secure a visa or open a bank account until the license is officially issued.

Here is a detailed step-by-step guide on how to get a trade license in Dubai:

Step 1: Select business activity and reserve a trade name

Your first task is to define exactly what your business will do. This is not merely a descriptive exercise; it determines your legal structure, cost, and required approvals.

You must submit at least three name options. The name must not contain offensive language, religious references, or imply government affiliation.

Step 2: Get initial approval

This is the government’s "green light" to proceed with the legal setup.

• For Mainland: You apply to the DET for Initial Approval, which confirms that the authority has no objection to you starting a business in this specific activity.
• For Free Zones: You submit your application form, passport copies, and business plan (if required) to the specific Free Zone Authority.

Step 3: Secure an office or flexi-desk

In the UAE, a business license is legally tied to a physical address. You cannot obtain a final license without proof of a lease.

• Mainland (Ejari): You must rent a physical office or retail space and register the tenancy contract with the Real Estate Regulatory Agency (RERA) to obtain an Ejari certificate. This certificate is mandatory for license issuance.
• Free Zone (Flexi-desk): Most free zones offer a "Flexi-desk" or "Smart Desk" option—a shared workspace included in your setup package. This satisfies the physical address requirement and makes the company eligible for visa allocations.

Important note: Your visa quota is directly linked to your office size. On the mainland, the general rule is 9 sq. m per employee. In free zones, a standard flexi-desk package usually allows for 1–3 visas; if you need more, you must upgrade to a larger physical office.

Step 4: Draft and sign the Memorandum of Association (MOA)

The Memorandum of Association (MOA) outlines the company’s ownership structure and operating procedures.

If you are forming a Limited Liability Company (LLC) on the mainland or a Free Zone Company (FZCO), all partners must sign the MOA.

If you are a sole professional on the mainland, you may instead sign a Local Service Agent (LSA) agreement if a local agent is required.

Step 5: Pay license fees and receive the final trade license

Once all documents are submitted and approvals granted, the authority will issue a payment voucher.

Fees include the license issuance fee, registration fees, and (for mainland) a "Market Fee" calculated as 5% of your annual rent.

Upon payment, your Dubai Trade License is issued digitally. You will receive:

1. The Trade License Certificate.
2. The MOA (if applicable).
3. The Tenancy Contract/Lease Agreement.
4. Certificate of Incorporation
5. Shares Certificate (if applicable)

Timelines and What Can Delay Your Approval?

In straightforward cases, a Dubai trade license is typically issued within 3 to 10 business days. However, timelines can stretch significantly if your application triggers specific compliance checks or requires external clearances.

1. External approvals for regulated activities

Regulated activities such as healthcare, education, food safety, and financial services require a No Objection Certificate (NOC) from a third-party government body before the license can be finalized. For example, a medical clinic requires approval from the Dubai Health Authority (DHA), while a training centre requires clearance from the Knowledge and Human Development Authority (KHDA).

Obtaining approvals from external regulators can extend your license processing time, so factor this in.

General trading or standard consultancy activities usually do not require these external approvals.

2. Lease and Ejari delays (Mainland Only)

For mainland companies, the trade license is legally tied to a physical location. You cannot receive your final license until your tenancy contract is registered with Ejari.

The time it takes to find an office, sign the lease, and get the Ejari certificate is often the longest part of the process. If your landlord delays the Ejari registration, your license issuance pauses.

3. Missing steps and/or documents required

If any required condition isn’t satisfied (document, requirement, or prerequisite step), issuance pauses until it’s fixed. To undergo the licensing process smoothly, correctly, and on time, it is recommended to seek support from professional business consultants in Dubai.