Dubai Trade License

What is a Dubai trade license?

A Dubai trade license is an official permit that allows individuals or companies to legally operate a business in Dubai. Issued by the Department of Economic Development (DED) for mainland companies or by free zone authorities, it defines your business activity, legal structure, and registered trade name.
Any form of commercial, professional, or industrial activity in the emirate requires a valid license. Without it, your operations are not legally recognized and may face penalties.
There are several types of licenses depending on what you do — 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.
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.

Different types of trade licenses

There are several types of business licenses in Dubai, each designed to accommodate different business activities and legal structures. Here are some common types:

• Commercial (trade) 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.
• Tourism license. This is for businesses operating in the tourism and travel sector, including travel agencies and tour operators.
• Freelance permit. This is designed for individual professionals who wish to conduct business activities on a freelance basis.
• E-commerce license. Introduced in recent years, this license is for businesses engaged in online retail and e-commerce activities.
• Branch office license. This allows foreign companies to open a branch office in Dubai to conduct business activities related to the parent company.

As you can see, some license types are for operations in certain industry sectors, while others reflect particular entrepreneurship methods and legal entities. For example, if you want to get engaged in the business of logistics or operations in the agriculture field, you’ll need a Logistics or Agriculture license, while a Representative office license is for companies looking to establish a representative office in Dubai to promote their business interests without engaging in direct profit-making activities.

Free zone, mainland, or offshore license

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 100% foreign ownership, no corporate tax, and simplified setup. These licenses are issued by specific free zone authorities and are ideal for startups, e-commerce, tech, 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 DED, a mainland license lets you operate anywhere in the UAE and deal directly with local clients. It’s best for retail, restaurants, construction, and companies targeting government contracts. Most sectors now allow 100% foreign ownership. Mainland businesses must lease physical office space and register it with Ejari.

Offshore license

An offshore license is suited for companies managing global assets, IP, 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.

Advantages of having a Dubai trade license

A valid Dubai trade license gives your business the legal right to operate in Dubai and opens access to the UAE’s vibrant economy. Here are the main benefits:

• Legal protection. With a trade license in Dubai, your business is officially recognized and operates under UAE commercial law.
• 100% foreign ownership. In both free zones and most mainland sectors, foreigners can fully own their business without a local partner.
• Visa eligibility. A license allows you to sponsor visas for yourself, your team, and dependents.
• Banking access. Most banks in Dubai require a valid license in Dubai to open a business account.
• Credibility. A business trade license enhances your company’s reputation with clients, partners, and authorities.
• Tax efficiency. The UAE offers 0% personal tax and low corporate tax, making it cost-effective to operate.
• Easy renewals. The Dubai trade license renewal process is fast, often handled online, and requires minimal paperwork.

Overall, obtaining a trade license in Dubai is not just a legal requirement — it’s a strategic move that gives you access to markets, finance, and long-term residency benefits.

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. The UAE government has streamlined much of the bureaucracy to encourage business formation, making it faster and easier than in many other jurisdictions.

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

Here’s a detailed walkthrough of how to get 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, grouped under commercial, professional, or industrial categories. Make sure to select only those relevant to your planned operations — each activity must be declared.

Step 2. Decide on your legal structure

Your company’s legal structure determines ownership, profit distribution, and legal responsibility. The most common forms include:

• Sole establishment (for individuals)
• Limited liability company (LLC)
• Civil company (for professionals)
• Branch of a foreign company

Free zones also offer their own entity types, such as FZ-LLC or FZE.

Step 3. Select a business name

Choose and reserve your trade name in accordance with UAE naming rules. It must not violate public morals, include religious terms, or duplicate another registered business. You can check availability and reserve the name online or through a setup service provider.

Step 4. 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 5. 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 from the zone’s authority.

Step 6. 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 7. 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 8. Pay 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. This is especially valuable for foreign investors who are obtaining a trade license in Dubai for the first time.

Dubai trade license costs

Understanding the trade license cost is crucial when planning your business setup in Dubai. The UAE offers a variety of licensing options that accommodate different business sizes and industries, but 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.
There is no flat rate for a Dubai trade license, but knowing the key cost components will help you prepare a realistic budget.

Factors that affect trade license costs

1.  Jurisdiction

• Mainland licenses tend to have higher upfront fees but offer more flexibility and local market access.
• Free zone licenses are often more affordable, with package deals for startups and SMEs.
• Offshore licenses are low-cost but limited in scope.

2.  Type of license

• A commercial trade license might involve higher government fees if it includes multiple trading activities
• A professional trade license is generally less expensive, especially for freelancers.
• Industrial licenses require more documentation and often require external approvals, which can add to the cost.

3.  Number of activities

• Each additional business activity listed on your license may increase the base price.

4.  Visa quota

• The more employee visas you require, the higher the overall license and setup cost.

5.  Office space

• In the mainland, having a physical office is mandatory and registered through Ejari. The cost of office rental is separate but directly impacts visa eligibility and licensing.

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 (covered in the next section)

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.

How long will the process take?

One of the most common questions asked by entrepreneurs considering a trade license in Dubai is how long it takes to complete the process. The good news is that Dubai is known for its efficient and modern administrative systems, and the UAE government continues to streamline the licensing journey, especially for foreign investors and startups.
In most straightforward cases, you can get a trade license in Dubai within 3 to 10 business days. However, this timeline depends on several factors, including the type of license, your chosen jurisdiction, and whether your business activities require approvals from additional government entities.

Average timeline by license type:

Key factors that affect processing time

1.  Jurisdiction

Each free zone and mainland authority operates under its own administrative system. Some are more digitized than others, which can affect speed.

2.  Business activity

If your chosen business activity is considered sensitive (e.g., education, healthcare, or financial services), it may require external approvals from ministries or regulators, adding several days to the process.

3.  Document readiness

Delays often occur when applicants are missing key paperwork such as a valid passport copy, tenancy contract, or shareholder documentation.

4.  Legal structure

More complex entities — like LLCs with multiple shareholders — may take longer to review and verify than single-owner sole establishments.

5.  Office rental and Ejari

In the mainland, securing a physical business location and registering it through Ejari is mandatory. The time it takes to finalize the lease can affect your licensing schedule.

How to speed up the process

• Choose a free zone with online registration and simplified KYC requirements
• Apply for an instant trade license in Dubai if your business qualifies
• Work with an experienced business setup consultant who can manage paperwork and liaise with government departments
• Make sure all required application forms, attestations, and approvals are complete before submission

Dubai trade license renewal

Once you’ve secured your initial trade license in Dubai, it’s important to plan ahead for its annual renewal. The renewal process is mandatory and ensures that your business remains compliant with UAE regulations. Fortunately, the Dubai trade license renewal process is straightforward and increasingly digitized, especially if your business activities haven’t changed.

When to renew

A trade license in Dubai must be renewed annually, with the renewal due on or before the license expiry date listed in your documents. For most companies, this means setting a yearly reminder or assigning renewal responsibility to your PRO or business consultant.
Some free zones offer multi-year licenses (e.g., 2- or 3-year options), but even then, visa and lease-related requirements may still need annual verification.

What you need for renewal

The documents required for license renewal in Dubai are generally similar across jurisdictions, with slight variations depending on whether you operate in the mainland or a free zone.

Common renewal documents include:

• Current trade license copy
• Valid tenancy contract (Ejari) for mainland businesses
• Passport copies of shareholders/partners
• Updated Emirates ID (if applicable)
• Renewal fee payment receipt
• NOC (if any business activity requires continued approval)
• Any updated application form or declarations

For mainland companies, a valid Ejari contract is essential — your license cannot be renewed without it. If your lease expires or is unregistered, your business will face delays and possible penalties.

Costs of renewal

The cost of renewing your license is typically similar to the original issuance, though some free zones may offer loyalty discounts or package incentives.

Estimated renewal costs:

Additional costs may apply if you're modifying your license, adding business activities, or updating shareholder information.

How to renew your Dubai trade license

Here’s a quick summary of the renewal process:

1. Check your license expiry date
2. Prepare renewal documents
3. Ensure your office lease is valid
4. Submit your renewal application
5. Pay the renewal fee
6. Receive your renewed license

Renewal can be completed via:

• Online portals (e.g., DET website, free zone portals)
• Typing centers or service providers
• Business setup consultants

In most cases, you can renew your license within 1-3 business days, assuming all documents are valid and no changes are being made.

What happens if you miss the deadline?

Missing your renewal deadline can have serious consequences, including:

• Daily fines (usually around AED 200 per day)
• Suspension of your business trade license
• Freeze of visa services
• Blacklisting of your trade name
• Closure of your company’s bank account

To avoid this, always plan your Dubai trade license renewal at least 1 month before the expiry date and maintain all supporting documents and payments in good standing.

Summary

A Dubai trade license is the legal foundation for launching and growing your business in the UAE. Whether you choose a free zone, mainland, or offshore license, it defines your activities, structure, and access to markets. The process of getting a trade license in Dubai is streamlined, but requires careful planning—from choosing the right license type to preparing documents and budgeting for fees. Once issued, your license enables banking, visa sponsorship, and long-term business credibility in one of the world’s most investor-friendly environments.
By understanding the key steps — selecting your business activity, securing approvals, submitting your trade license application, and renewing annually — you can ensure full compliance and focus on growing your business in Dubai with confidence.