Getting a trading license in Dubai is one of the first and most important steps to legally start a business in the UAE.
If you are starting a new company or growing an existing one, knowing how Dubai trade licenses work will save you time and effort.
In this guide, we will show you how to get a trade license in Dubai. We will cover the requirements, benefits, and costs.
By the end, you’ll have a clear roadmap to start your business journey in Dubai’s thriving market.
Let’s get started!
What Is a Dubai Trade License and Why Do You Need One?
A Dubai trade license (also known as a business license) is an official document issued by Dubai’s Department of Economy and Tourism (DET, formerly DED) that permits your company to conduct specific business activities in the Emirates.
In short, it’s a legal requirement – every business in Dubai must have a valid trade license to operate.
This license defines what kind of business you can do (for example, trading goods, providing services, manufacturing, etc.) and where you can do it (mainland or free zone).
Why is it necessary? Operating without a trade license in Dubai is illegal and can lead to fines or closure.
A trade license ensures your company is recognized by authorities and is complying with local regulations.
It also gives customers and partners confidence that you’re a legitimate business. Think of it as your business’s passport to operate in Dubai’s dynamic economy.
Types of Trade Licenses in Dubai
Dubai offers several types of trade licenses to cover different business activities and industries. Choosing the right license category is crucial because it must align with what your business will do.
The main types of trade licenses in Dubai include:
- Commercial License (Trading License): This is for companies that buy and sell goods. This includes general trading, retail, import/export, or e-commerce.
Most trading businesses will fall under this category. This is often what people mean by “trading license in Dubai,” allowing you to trade in a wide range of products.
- Professional License: For service-oriented businesses that provide professional services rather than goods.
For example, consulting, marketing, IT services, artisans, etc. This license is given to individuals or civil companies and may require proof of qualifications in some cases.
- Industrial License: For businesses that manufacture or produce goods. If you plan to set up a factory or any production facility, you’ll need an industrial license.
- Tourism License: Specialized license for travel agencies, tour operators, hotels and other businesses in the travel and tourism sector.
Each license type has specific permitted activities.
If your business covers multiple activities, you can often list them under one license (as long as they are related), or consider a General Trading License if you want to trade a wide variety of unrelated goods under one umbrella.
Mainland vs. Free Zone Trade License in Dubai
Another important aspect is the jurisdiction of your business license in Dubai.
A business license in Dubai mainland is issued by Dubai’s DET and allows you to do business anywhere in Dubai and across the UAE.
A free zone license in Dubai is given by one of Dubai’s free zone authorities, like JAFZA, DMCC, or IFZA. This license lets you operate in that zone and internationally.
However, there are some limits on doing direct business in mainland UAE with a free zone trade license in Dubai.
Benefits of Obtaining a Trade License in Dubai
Dubai is known as a global business hub, and acquiring a trade license here comes with significant benefits:
- Access to a Thriving Market: Dubai’s strategic location and business-friendly policies give you access to a huge local and international market.
A trade license lets you import, export, and sell products in one of the world’s busiest trading centers.
- 100% Foreign Ownership in Many Cases: Recent reforms allow many businesses with a Dubai mainland license to be fully owned by expatriates, eliminating the old requirement for a local Emirati sponsor for most activities.
- Tax Advantages: The UAE has zero personal income tax and a low corporate tax (9% only on profits above AED 375,000).
There is no sales tax (VAT is 5%) on most transactions, and no import/export duties for free zones, making it very tax-efficient for businesses.
- World-Class Infrastructure: With excellent ports, airports, roads, and logistics networks, Dubai makes it easy to run your business operations.
Shipping, warehousing, and distribution are highly efficient
- Ease of Doing Business: The UAE government has streamlined many processes.
Company registration in Dubai can be done quickly (sometimes in a matter of days) thanks to online portals and one-stop service centers.
Free zones in particular offer one-stop facilities to handle registration, licensing, visas, and more, simplifying the setup process.
- Credibility and Opportunities: A Dubai trade license boosts your credibility with clients and partners.
It shows you have met the regulatory requirements. It also opens doors to opportunities like participating in government tenders, accessing UAE banking facilities, and sponsoring residency visas for employees and family.
Requirements and Documents Needed to Get a Trading License in Dubai
When you are ready to apply for a trading license in Dubai, you need to prepare some documents and meet a few important requirements.
The exact documents may change a bit based on the license type and if you choose mainland or a free zone.
However, the common requirements include:
- Proposed Company Name: You’ll need to choose a unique trade name and get it approved by the authorities.
Dubai has specific naming rules (e.g. the name shouldn’t violate public morals, and avoid certain words).
- Business Activity and License Type: You need to clearly define your business activities. You can list several activities on one license, provided they are relatable and match the license category you are applying for.
- Passport and Visa Copies: Copies of passports for all shareholders (owners) of the company.
If any shareholder is a UAE resident, copies of their residence visa and Emirates ID are usually required, along with a No Objection Letter from their current sponsor (if applicable).
- Memorandum of Association (MOA): For mainland limited liability companies (LLCs), an MOA (and Local Service Agent agreement for professional licenses) must be drafted and outlining notarized, ownership stakes and roles.
- Proof of Registered Address: Every business setup in Dubai needs a physical address.
Every business in Dubai mainland must have a tenancy contract (Ejari) for an office or warehouse space. The tenancy contract must be valid for at least 3 months after the license is issued.
However, free zone companies also need a lease agreement within the free zone (which could be a flexi-desk or virtual office in some zones).
- Initial Approval Certificate: Before finalizing the business license application, you’ll need to obtain initial approval from DET or the free zone.
This is essentially a green light that you can proceed with the setup (it shows your business plan is approved in principle).
- Application Forms: Completed application form for the trade license (usually provided by DET or free zone authority).
- Additional Approvals for Specific Activities: Some activities (e.g. financial services, health care, real estate brokerage, education, etc.) require additional regulatory approvals from relevant ministries or authorities.
Working with a business setup consultant in Dubai can keep everything organized. Companies like Corporate Business Services (CBS) have experts who check your documents and manage submissions.
Step-by-Step Process to Obtain a Trade License in Dubai
Obtaining a trading license in Dubai involves a series of steps. The good news is that the process is well-defined, and with proper preparation it can be relatively quick.
Here’s a step-by-step breakdown:
- Determine Your Business Activity and Legal Structure
- Choose the Jurisdiction (Mainland or Free Zone)
- Reserve a Trade Name:
- Apply for Initial Approval:
- Prepare MOA and Other Agreements:
- Secure an Office or Workspace:
- Submit the Final Trade License Application to DET or the Free Zone Authority.
- Pay the Fees and Obtain the License
Congratulations – you’re officially licensed to do business in Dubai!
How long does this process take?
The timeline can vary. In many cases, if all documents are in order, you can get your trade license issued in as little as 1 to 4 weeks (sometimes even a few days for certain free zones or if using the Instant License option).
Pro Tip: If this sounds complex, remember you don’t have to do it alone. Corporate Business Services (CBS) offers end-to-end business setup services.
Our consultants can handle everything from preparing your application, liaising with government departments, to securing your trade license on your behalf.
This means you can focus on planning your business, while we take care of the paperwork.
Feel free to reach out to Us for a free consultation on getting your trade license in Dubai – we’re here to make the process hassle-free.
How Much Does a Trade License Cost in Dubai?
One of the most common questions from new business owners is about the cost of a trade license in Dubai.
The answer depends on various factors such as the type of license, the jurisdiction (mainland or free zone), the number of activities, and other services (like visas or office space) bundled with the license.
In general, Dubai trade license costs can range widely.
For a simple business license in a free zone, you might find packages starting around AED 10,000 to AED 15,000.
A standard commercial trade license in mainland Dubai (with one or two business activities) typically costs roughly AED 12,000 to AED 15,000 just for the license fee itself.
This base fee is paid to the government. On top of that, there are additional one-time fees and recurring fees, which might include:
- Name Reservation Fee
- Initial Approval Fee
- MOA drafting/notarization fee: If applicable.
- Market Fee: For mainland licenses, Dubai charges a market fee (often 2.5% of your annual rent) as part of the license cost.
- Administrative Service Fees: Various smaller fees for documents, government services, etc.
- Office Rent: While not a licensing fee per se, remember that you have to budget for the office or desk space rental as part of your business setup cost.
- Visa Fees: If you are getting visas for owners or employees at the same time, there will be additional immigration and medical fees per visa.
For a General Trading License (which allows trading in many unrelated goods), costs are usually higher than a normal trading license because it’s broader.
The total general trading license package on the mainland can be around AED 25,000 to AED 30,000 (including various fees) on average.
In a free zone, general trading might come as a premium package as well.
Important: These figures can fluctuate and there are often promotions. Some free zones offer discounts or installment payment plans.
Low-cost business licenses are available especially for new entrepreneurs – for instance, some free zones have starter licenses under AED 10k, but these might come with limitations (like no visa allocation, or specific activity only).
On the higher end, if you need a larger setup with multiple visas and a bigger office, the cost could exceed AED 50,000.
Always check with the relevant authority or a consultant for a customized quote based on your needs.
Worried about the costs? CBS can help you identify the most cost-effective way to get your trade license.
We analyze your business needs and suggest the optimal setup – whether it’s a free zone license or mainland – to minimize costs while meeting all requirements.
We’ll provide a transparent breakdown of all fees upfront, so you won’t encounter surprises.
