A trade license is a crucial document that legally allows your business to operate in Dubai, whether you are a freelancer 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: 

Here are some other types of trade licenses in Dubai:

1. Tourism License: It’s for businesses engaging in tourism-related activities, such as restaurants, travel agencies, hotel rentals, tourist camps, etc.  

2. Agriculture License: Businesses undertaking crop cultivation, agricultural consultancy, or pesticide training, among others, can opt for an agricultural license.  

3. General Trading License: This type of business license allows companies to trade across various goods and commodities without the hassle of obtaining separate licenses for each activity.   

4. Craftsmanship License: Skilled workers like plumbers, carpenters, and electricians can apply for this business license in Dubai.  

5. E-commerce License: Companies selling goods or services via electronic platforms or digital networks can opt for this license.

How to Get a Trade License in Dubai?

Follow these simple steps to get a new trade license in Dubai.  

1. Select your business activity from the approved list issued by the DET or your chosen free zone. 

2. Decide between mainland or free zone business. If you need zero personal and corporate tax, significant VAT and customs duty exemptions, a broad spectrum of permitted business activities, and a quicker business setup, choose free zones in Dubai, such as Dubai South Business Hub Free Zone.

3. Choose the appropriate legal structure based on your business activity. You can choose between an LLC, a sole proprietorship, or a free zone company. When you set up a business with Dubai South Business Hub Free Zone, you will receive a DWC-LLC certificate of incorporation. 

4. Choose a unique trade name based on your business activity.  

5. Get initial approval. This confirms that the government has no objection to your business activity. 

6. Prepare the MOA or LSA agreement. LLCs require a Memorandum of Association; professionals may need a Local Service Agent agreement. 

7. Secure office space or opt for virtual business or Flexi-Desk. Remember that Mainland setups require a valid Ejari. Meanwhile, free zones offer shared or virtual office options. 

8. Upload all required documents (passport copies, MOA, Ejari, approvals) and pay the license issuance fee. 

9. Receive your license. With your license, you can process investor/employee visas and open a corporate bank account. 

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 Dubai South Business Hub Free Zone for obtaining your trade license in Dubai has several advantages: 

1. Cost Efficiency: Free zones often provide bundled packages that combine license, flexi-desk, and visa allocation, making them more affordable for startups. 

2. 100% Foreign Ownership: Unlike some mainland setups, you can own your company fully without needing a local sponsor. 

3. Strategic Location: Dubai South Business Hub Free Zone is well-connected to airports and logistics hubs and offers excellent infrastructure for trade. 

4. Flexible Office Options: You can choose a virtual or physical office based on your needs, reducing overheads. 

5. Simplified Renewal: Free zone authorities typically have streamlined renewal processes, and costs are transparent. 

Conclusion

In 2025, 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. 

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 grow@dubaisouthbh.com to set up your business in Dubai. 

FAQ

What is a Dubai trade license?

The Dubai trade license is an official and legal permit by the Dubai Department of Economy and Tourism (or relevant free-zone authority) that enables you to lawfully conduct business operations in the UAE.

How long does it take to get a trade license in Dubai?

The license will be issued on the mainland after a few days, provided all documents (name reservation, initial approval, MOA, etc.) are submitted. This, however, depends on the correctness of your paperwork and the speed of approvals. Free zones may have timelines that are similar or even faster.

How much does a Dubai trade license cost?

It depends on the business setup you choose. For instance, the trade license cost for mainland companies is comparatively higher than for free zone businesses. Mainland trade licenses cost between AED 20,000 and AED 35,000+. Meanwhile, a free zone trade license costs between AED 15,000 and AED 25,000.

Can I apply for a Dubai trade license online?

Yes. The Dubai Department of Economy and Tourism provides online portals to apply for trade name reservation, initial approval, and license issuance. Renewal can also be done online through either DET or respective free-zone authority portals.

What business activities are allowed under a Dubai trade license?

Depending on the license type: 

• Commercial License: trading, import-export, retail, wholesale 

• Professional License: consulting, creative services, legal, freelancing 

• Industrial License: manufacturing, assembly, production 

Do I need office space to apply for a Dubai trade license?

Yes, in many cases. For mainland licenses, you typically need a valid tenancy contract (registered as Ejari) to apply or renew. In free zones, you can often choose more flexible office solutions, such as virtual offices or flexi-desks.

What is an Ejari?

Ejari is an Arabic word which means "my rent." It is a mandatory system introduced by the Real Estate Regulatory Agency (RERA) in 2010 to regulate Dubai's rental market. Ejari plays a crucial role in Dubai's rental market by ensuring that all private rental contracts comply with government-set legal standards.

How do I renew my trade license?

Here’s how to renew your trade license:  

• Submit the existing trade license, a valid Ejari, and the passports of the partners  

• Pay the trade license renewal cost via DET or the free zone’s portal   

• Receive a renewed trade license in a few days

Is a Dubai South Business Hub Free Zone license valid across the UAE?

A free zone license allows you to operate within that free zone’s jurisdiction, export internationally, and conduct certain business activities throughout the UAE, but there are limitations for doing business directly in the mainland without additional approvals or local presence.