Dubai Trade License Guide: Cost, Types & Steps

What is a Dubai trade license?

A Dubai trade license is an official permit that allows companies and freelancers to legally operate a business in Dubai. Any form of commercial, professional, or industrial activity in the emirate requires a valid license, which defines your company’s business activity, legal structure, and registered trade name. Without it, your commercial activities are not legally recognized and may face penalties - for example, a bank can close your account if you use it for business transactions.

Having a trade license in Dubai is essential for:

• Opening a corporate bank account
• Signing contracts and renting office space
• Applying for visas and staff sponsorship
• Operating under UAE commercial law

Freelancers, startups, SMEs, and international investors all need to get a license to legally launch a business in Dubai. The license also gives your company credibility in the eyes of partners, clients, and banks, both in the UAE and globally.

Classification and types of trade licenses

In the UAE, trade licenses are classified based on several key factors which, figuratively speaking, correspond to 3 basic questions:

1. Where do I do my business?
2. How do I do my business?
3. What is my business?

Jurisdiction. This category answers the “Where” question. There are 3 basic business jurisdictions in Dubai: mainland, free zones, and offshore. Each one has its own license-issuing authority, field of operations, benefits, and restrictions.

Entrepreneurship methods. This classification answers the “How” question and implies your particular types of operations and the broad field of business activities you engage in. It includes:

• Commercial (trade) license
• Professional (service) license
• Industrial (manufacturing) license
• E-commerce license
• Freelance permit

Business activities. This is the answer to “What” and defines the specific industry sectors your business is dedicated to. The license types in this category are basically business activity groups, which are further broken into separate specific business types.

License types by jurisdiction

Choosing between a free zone, mainland, or offshore license is one of the most important steps in getting a trade license in Dubai. Each option offers different benefits depending on your business goals, target markets, and operational needs.

Free zone license

A free zone license allows for a simplified setup and lower company setup costs. These licenses are issued by specific free zone authorities and are ideal for startups, e-commerce, tech, import and export of goods, and consulting businesses. However, free zone companies cannot trade directly with the UAE mainland without a local agent. Some business activities may also require external approvals.

Mainland license

Issued by the Department of Economic Development (DED), a mainland license lets you operate anywhere in the UAE and deal directly with local clients. It’s best for activities such as retail, restaurants, construction, and companies targeting government contracts. Mainland businesses must lease physical office space and register it with Ejari.

Offshore license

An offshore license is suited for companies managing global assets, IPs, or investments. Offshore entities can’t operate within the UAE market or sponsor visas, but benefit from low setup costs and international credibility. They’re commonly used for holding companies or cross-border trading.

License types by entrepreneurship methods

There are several types of licenses depending on your entrepreneurship methods — whether you're offering services, trading goods, or manufacturing products. You must choose your license based on your actual business activity, and it must list all operations you plan to carry out.

Commercial license. This is issued for businesses involved in trading activities, allowing them to buy, sell, and distribute goods.

Professional license. This type of license is for service-oriented businesses, such as consultancy firms, law firms, and medical practices.

Industrial license. Businesses engaged in manufacturing or industrial activities require this license. It allows companies to produce goods.

E-commerce license. Introduced in recent years, this license is for businesses engaged in online retail and e-commerce activities.

Freelance permit. This is designed for individual professionals who wish to conduct business activities on a freelance basis.

License types by business activities

This classification is designed to accommodate different business activities. They are divided into multiple groups, each representing a particular industry sector. Here are some of the basic business activity groups:

• IT
• Tourism
• Foodstuff
• Consultancy
• Car dealership
• Real estate
• Technical services
• Media
• And many others

You can choose one or multiple activities for your business, but in the latter case, they typically need to be from the same business activity group. However, some free zones, such as IFZA, Meydan, or UAQ FTZ, allow combining business activities from different categories.

It is also worth noting that there are specialized free zones that offer unique business activities and provisions for them. For example, DIFC and ADGM are focused on finance, while Health Care City provides a wide range of licenses in the field of healthcare.

How do I get a trade license?

Getting a trade license in Dubai is a structured but flexible process designed to accommodate both local and foreign entrepreneurs. While the specific steps may vary slightly depending on whether you’re applying for a free zone, mainland, or offshore license, the core procedure is similar.

Step-by-step process of getting a trade license in Dubai

Step 1. Choose your business activity

Start by selecting the business activities you wish to include on your license. Dubai authorities offer over 2,000 approved options. Make sure to select only those relevant to your planned operations — each activity must be declared.

Step 2. Decide on your license type by entrepreneurship methods

Based on the chosen business activities, pick the license type with regard to your preferred entrepreneurship methods: commercial, industrial, professional, e-commerce, or freelance.

Step 3. Choose a business location

Depending on the license type, you will need to either lease an office (mainland) or choose a workspace plan (free zone). For offshore companies, physical office space is usually not required.

Step 4. Apply for initial approval

This government clearance indicates that the authority has no objection to your business activity and legal form. In mainland setups, this comes from the Department of Economic Development (DED); in free zones, it’s issued by the zone’s authority.

Step 5. Prepare your documents

Gather all required forms and documents. Some activities may require external approvals from regulators such as the Dubai Health Authority, Central Bank, or Knowledge and Human Development Authority.

Step 6. Submit your trade license application

Once your documents are in order, submit your full application form either online, through a PRO agent, or in person at the licensing authority. Fees will vary based on the business type and jurisdiction.

Step 7. Pay the fees and collect your license

After review and approval, you’ll receive your Dubai trade license. You can then proceed with opening a bank account, applying for visas, and launching operations.

Required documents

The documentation for obtaining a trade license in Dubai may vary slightly by jurisdiction, but generally includes the following:

Note: сertain business activities — such as medical, legal, or banking services — will require approvals from respective UAE ministries or industry regulators.

Working with a trusted business setup consultant can significantly reduce delays and ensure compliance with all requirements.

Dubai trade license costs

There is no flat rate for a Dubai trade license, but knowing the key cost components will help you prepare a realistic budget. The final amount you’ll pay depends on several factors: the type of license, jurisdiction (mainland vs. free zone), number of shareholders, business activities, visa quota, and office space requirements.

Typical cost breakdown

Below is a general guide to Dubai trade license costs:

Keep in mind that some free zones offer discounted business trade license packages for new startups, which include the license, shared workspace, and a limited number of visas, all under one fixed fee.

Hidden or additional costs to consider

• Additional business activities beyond the primary one
• External approvals from ministries for regulated sectors
• Bank account setup fees (often separate)
• Document attestation or translation
• Annual license renewal

Cost-saving tips

• Opt for single-activity licenses if you’re starting small
• Choose a free zone offering bundled startup packages
• Consider flexi-desk options instead of full office rental
• Use a setup consultant to ensure you avoid costly mistakes during the process

In conclusion, while the cost of obtaining a trade license in Dubai varies, it remains relatively affordable compared to many major global cities. The business-friendly environment, tax efficiency, and fast setup process make it an attractive destination despite the initial licensing fees.