How to Get a Trade License in Dubai: A Complete Guide (2025)

Dubai has emerged as one of the top destinations for global entrepreneurs and investors. Its business-friendly policies, strong infrastructure, and tax-free zones make it an ideal place to start and grow a business. 

However, before you begin operations, you must legally register your company by obtaining a trade license. This guide will explain everything you need to know about getting a trade license Dubai—from types of licenses to the step-by-step process, cost, and key tips.

What Is a Trade License in Dubai?

A trade license is a legal document that authorizes individuals or companies to operate a business in Dubai. It defines the nature of your business activities and ensures compliance with local laws and regulations. 

The license is issued by either the Department of Economic Development (DED) for mainland companies or by one of Dubai’s many Free Zone Authorities. Without this license, you are not permitted to conduct any form of business within the UAE.

Types of Trade Licenses in Dubai

Dubai offers several types of trade licenses, depending on the nature of the business you plan to operate. A Commercial License is needed for businesses involved in trading goods or services, such as import/export, retail shops, or logistics. 

A Professional License is ideal for service providers like consultants, beauty salons, IT specialists, and freelancers. If your business involves manufacturing or industrial activity, you'll require an Industrial License. 

Additionally, there’s a Tourism License for those working in the travel and hospitality sector. Choosing the right type of license is essential because it determines what activities you're legally allowed to perform.

Mainland vs Free Zone Trade License

There are two main jurisdictions where you can register your business in Dubai—Mainland and Free Zone. A Mainland license is issued by the Department of Economic Development (DED) and allows you to operate anywhere in Dubai or the UAE. 

This is ideal for businesses targeting the local market or those planning to work with government contracts. In contrast, a Free Zone license is issued by one of Dubai’s many Free Zone authorities and offers benefits like 100% foreign ownership, simplified setup, and tax exemptions.

However, Free Zone businesses can only operate within the zone or internationally unless they appoint a local distributor. Your choice depends on your business goals, customer base, and budget.

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

The first step in obtaining a trade license is to decide on your business activity. You’ll need to choose from an approved list provided by the DED or relevant Free Zone authority. 

Next, choose a legal structure—like a sole proprietorship, Limited Liability Company (LLC), or Free Zone Company—depending on your business size, number of owners, and goals. 

Then, choose a suitable trade name that follows UAE naming conventions and submit it for approval. 

After this, apply for initial approval, which is a preliminary green light to proceed. You’ll then need to arrange for a business location by renting office space or opting for a Flexi-desk (in Free Zones). 

Once all the documents are ready—including passport copies, tenancy contract, and MOA—you can submit your application and pay the necessary fees. If everything is in order, your trade license will be issued, and you can officially start your business.

How Much Does a Trade License Cost in Dubai?

The cost of obtaining a trade license in Dubai can vary significantly based on your chosen jurisdiction (mainland or Free Zone), the business activity, number of visas required, and office space. 

On average, a mainland license can range from AED 12,000 to AED 25,000, especially for service-based licenses. If you’re forming an LLC, costs can be higher due to additional approvals and documentation. 

Free Zone licenses are generally more affordable, starting from as low as AED 5,750 for basic packages that include a Flexi-desk and limited visa quotas. 

It’s essential to compare Free Zones and packages carefully, as many offer promotional rates, especially for startups and solo entrepreneurs.

Renewal of Trade License

Trade licenses in Dubai are valid for one year and must be renewed annually. For mainland businesses, the renewal process involves submitting your tenancy contract (Ejari), passport copies, and renewal fees through the DED portal. 

For Free Zone companies, the renewal process is typically easier and can be done through the respective Free Zone’s online platform. Renewal fees are often similar to the initial license fee, so it’s important to budget for this recurring expense. Failing to renew your license on time may result in penalties or legal issues.

Can You Get a Visa with a Trade License?

Yes, one of the major advantages of having a trade license in Dubai is that it allows you to sponsor residency visas. You can apply for an investor or partner visa for yourself, as well as visas for employees, family members, or domestic workers. 

The number of visas you can apply for usually depends on the size of your office space and the license type. Free Zones often include a limited number of visa quotas with their packages, while mainland companies can expand their visa quota based on space and approvals.

Important Tips for Success

Before applying for your trade license, it’s a good idea to consult with a business setup expert or PRO service to avoid costly mistakes. Make sure your chosen trade name is unique and aligns with your business activity. 

Always renew your license before it expires to avoid fines or business disruption. If you're starting a small or online-based business, look into affordable Free Zone packages or the DED's Instant License option. 

Also, keep in mind that each Free Zone has its own rules, benefits, and limitations, so take time to compare options and read the fine print.

Final Thoughts

Getting a trade license in Dubai is a straightforward but crucial step in launching your business. 

Whether you’re starting a consultancy, salon, or e-commerce business, having the correct license ensures you’re operating legally and gives you access to business banking, visas, and more. 

With Dubai’s rapidly growing economy and its open-door policy for foreign investors, now is a great time to start your entrepreneurial journey. 

Just be sure to follow the proper procedures and seek guidance when needed for a smooth and successful setup.