Topic Summary
1. Why a Trade Licence Matters
It is a crucial document for startups and global brands alike, without which you cannot legally trade in the emirate.
2. The Issuing Authority
Mainland licenses are issued by the Department of Economy and Tourism, formerly the DED, while free zone authorities issue licenses for free zone businesses.
3. Five Licence Types
Commercial suits trading, professional suits services, industrial suits manufacturing, sole establishment suits individual professionals, and general trading covers varied goods.
4. The Licensing Process
Steps include choosing your activity and legal structure, reserving a trade name, obtaining initial approval, preparing the MOA or LSA and uploading documents with the fee.
5. The Free Zone Route
Dubai South Business Hub issues a DWC-LLC certificate of incorporation, after which the license enables investor or employee visas and a corporate bank account.
A trade license is a crucial document that legally allows your business to operate in Dubai, whether you are a startup or a global brand expanding into the UAE. For mainland companies, trade licenses in Dubai are issued by the Department of Economy and Tourism (DET), formerly known as the Department of Economic Development (DED), and free zone authorities for free zone businesses. In this blog, we will take you through a step-by-step process of obtaining a trade license in Dubai. But before that, let's briefly discuss the types of trade licenses in Dubai.
Types of Trade Licenses in Dubai
Dubai offers different types of trade licenses, each designed for a specific business activity. Here are five common types of trade licenses in Dubai: For more detail, see our guide on getting a business licence in Dubai. For more detail, see our guide on how the Dubai Unified Licence works. For more detail, see our guide on renewing a trade licence in Dubai. For more detail, see our guide on getting a general trading licence in Dubai. For more detail, see our guide on types of business licences in Dubai. For more detail, see our guide on guide to Dubai business licence requirements. For more detail, see our guide on Dubai general trading licence guide. For more detail, see our guide on Dubai commercial licence requirements. For more detail, see our guide on business licence guide for Dubai. For more detail, see our guide on guide to business licence types in Dubai.
Type of Trade License | Business Activities Covered |
|---|---|
Commercial License | It is designed for businesses whose primary activity is trading, like buying and selling goods, importing or exporting, wholesale, or retail. |
Professional License | It is for service-based businesses, such as consulting, legal or creative services, artisans, and so on. |
Industrial License | It is for manufacturing, production, assembly, or other industrial operations. |
Sole Establishment License | This is a simpler structure for individual entrepreneurs or sole proprietors, especially common for professionals. While DET's website highlights commercial, professional, and industrial more prominently, in practice a "sole establishment" license is a form of business structure under these categories. |
This type of trade license is for self-employed individuals who offer their services to clients on a project or contract basis. In Dubai, professionals working in media, design, and technology can opt for this type of trade license. |
Here are some other types of trade licenses in Dubai:
How to Get a Trade License in Dubai?
Follow these simple steps to get a new trade license in Dubai.
How to Get an Initial Approval?
When setting up a business in Dubai, obtaining government approval means there are no objections to your proposed business activity and company structure. However, compliance will be done by a specific free zone or mainland authority. They (the free zone or mainland authority) will review your application and indicate whether supporting documentation is needed or whether everything is clear to move forward. Government departments are pulled in for tasks such as third-party approvals, labour items, etc.
In the case where a pre-license third-party approval is needed, you will only get the license once the relevant authority has issued your approvals. Meanwhile, where a post-license third-party approval is needed, the license will be issued to you, but you will need to show proof that this has been obtained within a specific time period.
Securing a business license is simple. You just need to submit the documents listed below to the concerned authority (DET in the case of a mainland business and the free zone authority in the case of a free zone business setup).
Completed the application form from the relevant authority (DET or free zone authority)
Passport copies of all shareholders and directors
Visa copies (if applicable to UAE residents or expatriates)
Reserve your business trade name
Brief business plan (optional for free zone businesses)
A no-objection certificate from a current employer (for mainland companies)
Approvals from relevant government ministries or regulatory authorities if applicable (especially in regulated sectors like healthcare, education, and manufacturing)
Proof of address and contact details of shareholders
Meanwhile, suppose you are setting up a company in a free zone in Dubai. In that case, you need a passport copy of shareholders and managers, contact details and residential addresses, and a business plan (optional).
Cost and Payments of the Dubai Trade License
Understanding the Dubai trade license cost is crucial for planning. The cost varies significantly depending on whether you are setting up on the mainland or in a free zone, as well as the type of license you choose and your business activity.
For Mainland licenses (through DET), the cost for a professional license typically ranges from AED 10,000 to 15,000, while a commercial license may range from AED 15,000 to 25,000 or more. An industrial license on the mainland can cost AED 20,000-35,000, depending on the scale and approvals needed. In short, getting a mainland trade license costs between AED 10,000 and AED 35,000 annually. However, the cost of setting up a business in the mainland may require additional capital to secure office space, hire talent, and acquire other resources to get your business up and running.
Meanwhile, in free zones, costs vary widely. A free zone trade license (depending on zone and activity) starts at AED 12,500 annually. Moreover, you will need to pay extra for a visa and office space (if required).
Trade License Renewal in Dubai
Renewing your trade license when it expires is mandatory, regardless of your license type or location (mainland or free zone). Normally, the trade license renewal cost in Dubai ranges from AED 15,000 to AED 25,000 annually for free zones, and for the mainland, the cost exceeds AED 20,000 annually, depending on your business activities and additional services rendered. Moreover, irrespective of your business jurisdiction, you may incur a penalty if you fail to renew your trade license before it expires. For instance, you could be charged a late renewal fine starting from AED 250 for a short delay and escalate depending on how late you are.
Benefits of Getting Your Dubai Trade License Through Dubai South Business Hub Free Zone
Choosing the free zone for obtaining your trade license in Dubai has several advantages:
Conclusion
In 2026, obtaining a trade license in Dubai will be straightforward and a wise decision for businesses looking to benefit from the UAE's rapidly growing business environment. The way to quickly and sustainably set up the business is by understanding the types of trade licenses available in Dubai, estimating costs, and choosing the right area (Mainland vs. Free zone). Also, consider that the renewal process is as significant as the initial setup; thus, including the costs and timelines for trade license renewal in the financial planning is a must. If you make the right preparations, your business can flourish not only legally but also safely in Dubai. For more detail, see our guide on franchise setup in Dubai.
With Dubai South Business Hub Free Zone, setting up your company in Dubai is easy, cost-effective, and quick. Whether you are launching your first venture or scaling an existing company, we help you set up your business in a day, given you have all documents and compliances in place (e.g., third-party approvals based on the license you are applying for). Contact us at 800-DSHUB (37482) or email us at setup@dubaisouthbh.com to set up your business in Dubai.
Citations
Dubai Economy and Tourism.. dubaidet.gov.ae. DET Dubai, 2024.
UAE Ministry of Economy and Tourism.. moet.gov.ae. MOET UAE, 2024.
Ministry of Human Resources and Emiratisation.. mohre.gov.ae. MOHRE UAE, 2024.
Federal Authority for Identity, Citizenship, Customs and Port Security.. icp.gov.ae. ICP UAE, 2024.
General Directorate of Residency and Foreigners Affairs Dubai.. gdrfad.gov.ae. GDRFA Dubai, 2024.
Frequently Asked Questions
