Starting a business in Dubai begins with a crucial step—obtaining a trade license. This foundational requirement involves defining your business activities, selecting the ideal legal structure—whether a Limited Liability Company (LLC), sole proprietorship, or branch office—and determining the most suitable jurisdiction for your needs. Entrepreneurs can choose between mainland, free zone, or offshore setups, each offering distinct advantages.
The licensing process includes reserving a unique trade name, securing preliminary approvals, preparing essential documents such as the Memorandum of Association (MOA), finalizing a physical office registration via Ejari, and settling the applicable fees to successfully acquire your Dubai trade license. With careful planning and adherence to regulations, your business can thrive in this dynamic commercial hub.
In this guide covers everything from license types to costs, requirements, and the application process.
What is a Trade License in Dubai, UAE?
A Dubai Trade License, also known as a business license, is an official document issued by the Department of Economic Development (DED) that authorises a company to engage in specific activities within the UAE. This license is crucial for any entity importing and exporting goods and undertaking various commercial activities.
General trading licenses in Dubai offers flexibility. They allow businesses to operate in multiple sectors under a single license, enabling companies to engage in various trade activities without requiring numerous permits.
What are the benefits of having a trade license in Dubai?
Many business owners want to establish branches or organisations in the UAE because of the nation’s numerous business advantages. Here are some key benefits of obtaining a trade license in Dubai.
1. Tax Benefits
The UAE introduced a 9% corporate tax from June 1, 2023, on business profits exceeding AED 375,000, while income below remains tax-free. Free zone businesses may still enjoy a 0% rate if they meet certain conditions. Personal income is not taxed, and the system remains business-friendly and globally aligned.
2. Increase both domestic and foreign trade
If you have a general commerce license, you have many opportunities to manufacture or import goods. You can send your goods to the Dubai market or to other markets to earn money.
A general trade license also allows business owners to re-export goods, enhancing their company’s ability to trade internationally in both products and services.
3. Enhance Your Credibility
While some companies exploit legal loopholes to maximize profits, customers consistently place greater trust in businesses that demonstrate compliance with regulations.
Moreover, holding a trade license strengthens your company’s market presence, fostering credibility and building long-term customer loyalty.
4. Several Trade Restraints
In Dubai, there are hardly any trade restrictions, which makes it a great place for business. You won’t have to worry about limitations as long as your products are registered under a general trading license.
5. Simple Setup
Issuance of a a Dubai trade license is significantly more quickly than other company licenses in the UAE. However, you ought to have no trouble getting your license as long as you have the necessary paperwork.
The processing period for Dubai trade permits is also expeditious. In just a few weeks, you may generally establish a business in any free zone or on the mainland of Dubai.
Also, after you obtain your license, it is not mandatory to submit your auditing report. By doing this, you avoid creating a ton of paperwork in the future.
6. Sponsorship Possibilities
One of the main advantages of obtaining a trade license in Dubai is the simplicity of sponsoring dependents. Therefore, you can bring your family or coworkers to Dubai.
If you have a trade license, you can assist individuals in obtaining visas. This makes starting a new life or business in Dubai simpler than ever.
How Many Types of Trade Licenses Are There in Dubai?
If you’re planning to start a business, understanding the different types of trade licenses in Dubai is crucial. A Dubai trade license allows companies and individuals to operate in the region legally. Here are the main categories:
1. Commercial License
The commercial license is also known as General trade license. This type of UAE trade license is for businesses involved in trading goods or commodities—import, export, or local trade. Examples include:
- General trading
- Electronics trading
- Auto spare parts trading
2. Industrial License
An industrial trade license in Dubai is for manufacturing or industrial activities companies. It’s mandatory for:
- Factories
- Manufacturing units
- Industrial goods production
3. Professional License
A Dubai trade license under this category is issued to individuals or companies offering services based on their expertise or skills. It includes:
- Consultants
- IT service providers
- Artists and designers
- Educational and training services
4. Tourism License
Dubai is a hub for tourism, and this UAE trade license is for businesses in the tourism and travel sector, such as:
- Travel agencies
- Tour operators
- Hospitality services
5. Freelance Permit
Though not a full trade license, this allows individuals to work legally as freelancers under their name in certain free zones. Ideal for:
- Content creators
- Photographers
- Designers
6. E-Commerce License
An e-commerce trade license in Dubai is designed for businesses that sell products or services online. With the rise of digital platforms, this license supports entrepreneurs in setting up virtual storefronts. It includes:
- Online retail stores
- Marketplace platforms
- Social media selling
- Subscription-based services
What is a Mainland, Free Zone, and Offshore License?
When starting a business in Dubai, the type of trade license you apply for will depend on whether your business operates on the mainland, in a free zone, or as an offshore entity. Each type of license has different requirements, regulations, and advantages.
1. Mainland License
A mainland license allows your business to operate within the local UAE market and outside the specific free zones. The license is issued by the Department of Economic Development (DED) and requires approval from various government authorities. Businesses in the mainland can:
- Operate across the UAE and internationally.
- Have physical offices anywhere in the UAE.
- Have local UAE national partners (if required, depending on the business type).
2. Free Zone License
The authorities of specific free zones grant a free zone license, each offering different incentives. These licenses are ideal for businesses that wish to take advantage of benefits like:
- Full foreign ownership.
- Tax exemptions.
- Simplified company registration processes.
- Easier access to international markets.
However, free zone companies can typically operate only within the free zone or internationally. To conduct business in the UAE mainland market, they must partner with a mainland entity.
3. Offshore License
An offshore license is for businesses that want to incorporate in the UAE but operate outside the country. Businesses typically use offshore companies in Dubai for asset protection, tax planning, and other international business purposes. These businesses:
- Do not conduct any physical business activities within the UAE.
- Cannot operate in the UAE mainland or free zones.
- Are often used for holding assets, intellectual property, and international trade.
While offshore businesses can benefit from tax advantages, they cannot operate in the UAE market.
Each license type has distinct advantages and is best suited for different types of businesses. Consider your business needs and operations before deciding which license type to apply for.
Documents Required for a Trade License in Dubai
You must provide specific papers as part of the application process for your Dubai trade license. To avoid delays, make sure all supporting material is neatly organised and submitted with your application.
- You must first complete an application for a trade license. However, every manager should sign the company contract.
- Drafting a Memorandum of Agreement, with an attorney’s assistance, is also necessary.
- The firm name approval should then be attached to your application. Once the DED approves your selected business name, they will provide this approval.
- Finally, copies of each managing partner’s passports.
How to Get a Dubai Trade License
Obtaining a trading license for Dubai is not too difficult. You must complete a few straightforward actions to get your Dubai trade license.
Step 1: Select a Company Name
The first step in obtaining your trade license involves selecting an appropriate trade name. You must comply with the UAE’s company naming regulations when choosing your business name. Furthermore, ensure the name is not currently in use by any other active entity.
Step 2: Choose Your License Type
Pick from three main options:
- Normal License: Requires a lease agreement and a Memorandum of Association (MoA), submitted manually or online.
- Instant License: It’s easy to set up for selecting activities with no external approvals. Includes:
- Dubai Chamber membership
- GDRFA establishment card
- MOHRE establishment card + approval to hire 3 employees
- MoA drafting and virtual office for the first year
Valid for:
- LLC
- LLC (Single Owner)
- Sole Establishment
- Civil Company
Step 3: Define Your Business Activities
After deciding on your company’s name and legal form, specify the commercial activities you intend to carry out. Each license enables a maximum of 10 activities, so mention all your activities on the permit.
Step 4: Complete and Submit the Application Form
Please fill out the form and submit it to the DED for their initial approval.
Step 5: Obtain Additional Approvals
You may need outside approval for some commercial actions. Before finishing the business formation procedure, be sure to conduct your research. If not, the authority will reject your trade license.
Step 6: Gather the Required Documents
Kindly prepare the necessary supporting documents along with your completed application and license. Please ensure all documents are properly signed before submission.
Step 7: Select A Location for Your Business
You have various choices regarding the type of trade license you apply for. You will require a business location to apply for a mainland trade license.
After deciding on a location for your business, you must obtain a tenancy agreement. The contract you will provide with the rest of your application paperwork must include Ejari’s attestation.
Step 8: Send in Your Application
Once you have all the necessary materials and a site picked out for your firm, submit your trade license application. Then, submit the DED with all the required paperwork to get your trade license.
Step 9: Payment of License Fees
Keep in mind that obtaining a trade license is not free. You must pay both the license and issuance fees to get your license.
How Much Does It Cost to Get a Trade License in Dubai?
The UAE trade license cost typically ranges between AED 15,000* to AED 50,000* or even higher, depending on several factors. The final price is influenced by variables such as whether you have a local sponsor, the number of business partners, your chosen business activity, and the location and structure of your company.
Before rushing to obtain your trade license and opening a shop in Dubai, it’s essential to understand all the associated charges. This helps you budget effectively and avoid unforeseen hurdles during the licensing process.
The type of goods you intend to sell, and the necessary permits also play a significant role in determining the cost of the trade license in Dubai. Here are some key elements that may impact the overall expense:
- Number of business associates
- Geographic location of the establishment
- Business structure (LLC, sole proprietorship, etc.)
- Nature of the commercial activity
It’s also crucial to note that mainland businesses and free zone companies in Dubai have different license requirements and fee structures. Additionally, don’t overlook the LLC trade license renewal cost in Dubai, which should be included when estimating your long-term business expenses.
Ultimately, the UAE trade license cost can only be accurately determined after evaluating all these contributing factors.
Read More: What is the cost of a trade license in Dubai?
How long will it take to have a trade license approved?
The waiting game begins after you’ve submitted your trade license application. Fortunately, the wait period for a Dubai trade license is not that long.
The normal turnaround time for a trade license is three days to four weeks. The precise turnaround time will depend on the required approvals and your business operations.
Your turnaround time should be quick as long as you have all the necessary paperwork. Double-check your application forms before submitting them to ensure your trade license is ready as soon as possible.
How to Renew a Trade License in the UAE
Renewing your trade license on time is essential to avoid penalties and ensure your business operations continue smoothly in the UAE. Below are the steps which will help you to renew your trade license in the UAE:
Step 1: Ensure All Required Approvals Are Secured
Before proceeding with the renewal process, kindly ensure that all necessary approvals from the relevant government authorities have been obtained. This step is particularly important for businesses operating in regulated sectors, such as healthcare, education, or legal services.
Example: A clinic needs approval from the Dubai Health Authority (DHA); the Dubai Legal Affairs Department must approve a legal consultancy.
Step 2: Renew Your Tenancy Contract (Ejari)
Your office or shop lease must be valid for at least 1 month at the time of license renewal. Kindly verify that your Ejari certificate is current and registered with the Real Estate Regulatory Agency (RERA).
Step 3: Apply for Renewal via DED or Free Zone Authority
Depending on your business location:
- Mainland: Apply through the Department of Economic Development (DED) in your Emirate.
- Free Zones: Apply through your specific Free Zone authority (e.g., DMCC, DAFZA, etc.).
You can do this online or through a service center.
Step 4. Pay the Renewal Fees
Once the application is submitted and reviewed, you’ll receive a payment voucher. You can pay the renewal fees either online or at an approved service center.
Step 5: Receive the Renewed Trade License
Once payment is confirmed, your renewed trade license will be processed. You can choose to download an instant digital copy or request a printed version for your records.
Step 6: Update Records
Once you receive the renewed license:
- Inform your bank
- Update your records with relevant government departments (like the Ministry of Labour, Immigration, etc.)
- Share the new license copy with clients or vendors, if needed
Trade License Renewal Documents Required
For license renewal, firms must provide proof and written approval. In Dubai, the following paperwork is needed to renew a trading license:
- Completed renewal application.
- EJARI attested.
- Letters of authorisation and permission.
- A lease agreement.
- Photograph of each business partner.
- The fee payment code for renewals.
- The business owner must submit these documents to the DED to obtain approval.
Tenancy Agreement
You should review your lease agreement before applying to renew your trade license. It must be valid for at least three months from the date you submit a renewal application.
Obtain a Trade License for Dubai Right Now!
The key to taking advantage of the numerous commercial benefits of the UAE is obtaining a trade license in Dubai. It’s a means for your business to increase sales and make smart investments in a strengthening economy.
However, are you ready to launch your Dubai business? Contact us, and we’ll assist you with every step of the procedure. Shuraa provides top-notch business setup in UAE. Book a free consultation with us or call us at +97144081900. You can also contact us on WhatsApp by dropping us a message at +971507775554. For email assistance, mail your query to [email protected].
Frequently Asked Questions
Q1. How to add activities in Trade License?
To add activities to your trade license in Dubai, you must apply through the Department of Economic Development (DED). Submit the required documents, including your current license, and specify the new business activities. Approval depends on the nature of the activities and the relevant regulatory bodies. Once approved, your Dubai trade license will be updated accordingly.
Q2. How to verify a trade license in Dubai?
You can verify a Dubai trade license online via the DED or the UAE’s National Economic Register. Enter the license number or business name to check its validity, status, and registered activities. This ensures that the UAE trade license is genuine and active.
Q3. How do you apply for a trade license in Dubai?
To apply for a trade license in Dubai, choose your business activity, legal structure, and trade name. Submit your application to the DED or relevant free zone authority, along with necessary documents such as passport copies and tenancy contracts. Once approved, you’ll receive your official UAE trade license.
Q4. What is the Cheapest Trade License in the UAE?
The cheapest trade license in the UAE is often available through Dubai’s free zones, such as IFZA or Sharjah Media City. These zones offer cost-effective packages for startups, especially e-commerce or consultancy businesses. Pricing varies, but some packages start as low as AED 5,750 annually, including business setup and trade license renewal in Dubai.
Q5. Can I Sell Online Without a License in the UAE?
No, you cannot legally sell online without a UAE trade license. Whether selling on Instagram, a website, or e-commerce platforms, you must obtain a trade license in Dubai or other emirates. Operating without a permit can lead to fines and account suspension.
Q6. Do You Need a License to Trade in the UAE?
Yes, you need a trade license to operate any business or trade in the UAE legally. The license is issued by the relevant Department of Economic Development (DED) or free zone authority, depending on your business location.
Q7. Can a Foreigner Start a Business in the UAE?
Yes, a foreigner can start a business in the UAE. The country allows 100% foreign ownership in most sectors, especially in free zones and on the mainland for approved business activities. However, the process involves obtaining the right licenses, visas, and approvals from relevant authorities.
Q8. How to Check a Trade License Online In UAE?
To check a trade license online in the UAE:
1. Visit the Department of Economic Development (DED) website of the relevant emirate (e.g., Dubai DED, Abu Dhabi DED).
2. Use the “License Search” or “Business Inquiry” tool.
3. Enter the trade name or license number.
4. View license details like status and expiry.
You can also use the National Economic Register for a UAE-wide search.
Q9. How Much Does a Trade License Cost in the UAE
The cost of obtaining a trade license in Dubai varies based on your business activities, company structure, and chosen jurisdiction. On average, prices typically range between AED 15,000 and AED 50,000.
*Disclaimer: The information in this post is for general guidance only and may change due to updates in government policies or regulations.
