License Type	Estimated Cost (AED)
Mainland License	12,000 – 20,000
Free Zone License	10,000 – 18,000
E-commerce License	5,500 – 12,000

How to Get a Trade License in Dubai: Step-by-Step Guide

Dubai, the commercial heart of the UAE, is a global hub for entrepreneurs and investors. With its strategic location, investor-friendly policies, and thriving economy, Dubai offers endless opportunities for business growth. However, before launching your dream venture, you need one crucial document — a trade license in Dubai.

This guide explains everything you need to know about obtaining a trade license — from the types available to the step-by-step process and key requirements.

What is a Trade License in Dubai?

A trade license is an official permit issued by Dubai’s Department of Economic Development (DED) or a relevant Free Zone authority. It legally authorizes a business to operate in specific activities within Dubai. Essentially, your trade license defines what your business can do and where it can operate — on the Mainland, in a Free Zone, or Offshore.

Types of Trade Licenses in Dubai

Before applying, it’s essential to choose the license that best fits your business model:

Commercial License – For companies engaged in trading, importing, or exporting goods.
Example: Retail shops, logistics firms, general trading companies.
Professional License – For service-oriented professionals providing specialized expertise.
Example: Consultants, designers, IT specialists, and freelancers.
Industrial License – For companies involved in manufacturing or production.
Example: Factories, food processing plants, or assembly units.
Tourism License – For travel, tour, and hospitality businesses.
Example: Travel agencies, tour operators, hotels.

Why You Need a Trade License

Obtaining a trade license in Dubai isn’t just a legal formality — it’s the foundation of your business identity. Here’s why it’s essential:

✅ Legal authorization to operate in the UAE
✅ Access to corporate banking services
✅ Eligibility to apply for investor and employee visas
✅ Enhanced market credibility
✅ Tax advantages in specific zones

Step-by-Step Process to Get a Trade License in Dubai

Follow these steps to ensure a smooth and compliant licensing process:

Step 1: Choose Your Business Activity

Select your business activity from over 2,000 options approved by the DED. Your license will be issued based on this selection.

Step 2: Decide on the Business Jurisdiction

Choose between:

Mainland: Trade across the UAE and internationally.
Free Zone: 100% foreign ownership and tax benefits.
Offshore: Ideal for holding or international operations without local premises.

Step 3: Reserve Your Trade Name

Pick a unique and compliant name (no religious or offensive terms). Reserve it through the DED or Free Zone portal.

Step 4: Select a Legal Structure

Your legal form determines ownership and liability. Common options include:

Limited Liability Company (LLC)
Sole Proprietorship
Branch Office
Civil Company

Step 5: Obtain Initial Approval

Get the DED’s “no objection” approval for your business activity.

Step 6: Draft the Memorandum of Association (MOA)

Prepare and notarize your MOA defining shareholder roles and company structure.

Step 7: Choose a Business Location

Every Dubai business must have a valid address — whether a virtual office, flexi-desk, or traditional workspace. You’ll need an Ejari (tenancy contract) for final approval.

Step 8: Submit Required Documents

You’ll need:

Completed application form
Passport copies of shareholders
MOA & tenancy contract
Initial approval & trade name certificates

Step 9: Pay the License Fees

Once approved, pay the license issuance fees (usually AED 10,000–15,000) depending on activity and jurisdiction.

Step 10: Receive Your Trade License

Your trade license will be issued within 1–7 working days, enabling you to open a corporate bank account and begin operations.

How Long Does It Take?

Typically, it takes 5–10 working days to get your trade license in Dubai, provided all documents are complete.

Cost of a Trade License in Dubai

Renewing Your Trade License

You must renew your trade license annually to avoid penalties or suspension.
Steps for renewal:

Submit renewal application
Provide valid Ejari contract
Pay renewal fees

Common Mistakes to Avoid

🚫 Choosing the wrong jurisdiction
🚫 Missing renewal deadlines
🚫 Using a non-compliant trade name
🚫 Incorrectly drafted MOA

Tip: Partnering with experts like SmartPoint Business Setup ensures your process is fast, compliant, and hassle-free.

Conclusion

Securing a trade license in Dubai is your gateway to success in one of the world’s most dynamic economies. With the right guidance and preparation, the process can be smooth and efficient. Dubai’s supportive business environment, world-class infrastructure, and low taxes make it the ideal place for entrepreneurs and investors to thrive.

SmartPoint makes trade licensing easy — schedule your consultation today!
📞 Call +971 54 369 1077 or visit 🌐 www.smartpointbiz.com

FAQs

1. How long does it take to get a trade license in Dubai?
Usually between 5–10 working days, depending on document verification.

2. Can foreigners get a trade license in Dubai?
Yes, foreigners can own 100% of their business in most Free Zones and several Mainland activities.

3. How much does a trade license cost?
Typically ranges from AED 10,000 to AED 20,000 based on jurisdiction and activity.

4. What documents are required?
Passport copies, MOA, Ejari (tenancy contract), trade name certificate, and initial approval form.

5. Do I need a local sponsor?
Not always. Many business activities now allow 100% foreign ownership.

6. Can I renew my trade license online?
Yes, renewal can be done easily through the DED e-services portal.

7. Can I operate online?
Yes, but you’ll need an E-commerce License for digital operations.

8. Who can help with trade license setup?
SmartPoint Business Setup offers end-to-end solutions for trade licensing, documentation, and company formation in Dubai.