Dubai has grown into one of the most attractive global business hubs, thanks to its strategic location, investor-friendly policies, and advanced infrastructure. Whether you're launching a small startup or expanding your global presence, obtaining a trade license is the first and most crucial step toward operating legally in the Emirate.
In this blog, we’ll cover everything you need to know about trade licenses in Dubai — types, requirements, costs, and the process to apply.
What is a Trade License?
A trade license is a legal document that allows individuals or companies to conduct specific business activities within Dubai. It is issued by the Department of Economy and Tourism (DET) — formerly known as the Department of Economic Development (DED) — for businesses operating on the mainland, and by the respective Free Zone Authorities for businesses set up in free zones.
Types of Trade Licenses in Dubai
Dubai offers several types of trade licenses depending on your business activity:
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Commercial License – For businesses involved in trading activities (e.g., import/export, retail, general trading).
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Industrial License – For companies engaged in manufacturing or industrial activities.
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Professional License – For service-based businesses, professionals, and consultants.
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Tourism License – For businesses operating in the travel and tourism sector.
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Freelance Permit – For independent professionals in certain sectors like media, education, and IT (mainly offered in free zones).
Steps to Obtain a Trade License in Dubai
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Choose Your Business Activity
Define your core business activities. This will determine the type of license you need. -
Select a Legal Structure
Choose between sole proprietorship, LLC, branch office, etc., depending on your ownership preferences. -
Decide the Jurisdiction
You can set up in the mainland, a free zone, or offshore depending on your business goals. -
Reserve a Trade Name
The name must be unique, relevant to your business, and comply with naming guidelines. -
Apply for Initial Approval
This shows the authorities have no objection to your business activities. -
Prepare Required Documents
Includes copyright copies, business plan (for some activities), NOC (if applicable), tenancy contract (Ejari), etc. -
Submit Application and Pay Fees
Once all documents are submitted, and approvals are in place, you can pay the licensing fees. -
Receive Your License
After approval, your license will be issued, and you can officially begin operations.
Trade License Costs in Dubai
The cost of a trade license varies depending on:
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Type of business activity
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Jurisdiction (mainland or free zone)
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Number of partners/shareholders
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Office space size
On average, trade license costs can range from AED 10,000 to AED 30,000+, but many free zones offer packages with competitive pricing and added benefits like visa quotas, office space, and bank account support.
Trade License Renewal
Trade licenses must be renewed annually. Renewal involves:
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Ensuring your Ejari (tenancy contract) is valid
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Submitting required documents
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Paying the renewal fees
Operating with an expired license can lead to penalties or business suspension, so timely renewal is crucial.
Final Thoughts
Getting a trade license is a foundational step in launching your venture in the UAE. Whether you're targeting the mainland or a specific free zone, understanding the right type of license and navigating the application process efficiently can save you time, money, and legal complications.
If you're planning a business setup in Dubai, having the right guidance can make all the difference. Expert consultants like Fairway Biz can help streamline the licensing process, ensure compliance, and provide end-to-end support tailored to your business needs.