Trade License in UAE: A Complete Guide

Establishing a business in Dubai is not just rewarding but also fulfilling. A landscape that offers a platform where you can realize your potential and dive into unlimited business opportunities, that’s Dubai for you. Dubai has also been a pioneer in modern technology, state-of-the-art infrastructure, and pro-business initiatives. In the past few years, the city has quickly topped the list of the most desirable business locations worldwide. A trade license in Dubai is the key that opens the door to the city’s thriving business world.

A business license is essential when establishing a business in the UAE. Businesses are required to renew their trade licenses on a yearly basis. Holding trade license ensures compliance with the law and smooth business operations. We’ve compiled all the information you need about UAE trade licenses in this blog, whether you’re a beginner or looking to learn more.

What is trade license in UAE

A trade license UAE is an authorization granted by the UAE government that enables companies to operate legally within the nation. To start a business or work as a professional in Dubai, obtaining a trade license is the first essential permit you must secure. No matter the size of your business or the industry it belongs to, having a trade license in UAE is mandatory for all.

Remember, operating in the UAE without a legitimate trade license can bring trouble, including fines, penalties or even being blacklisted. On the other hand, having a suitable business license not only ensures compliance with UAE laws but also offers many other advantages.

Advantages of getting business license in Dubai

Here is a list of some of the benefits that Dubai trade license provides:

1. Legal compliance:

With a trade license in Dubai, companies can operate legally in the Emirates. Respecting and complying with UAE laws is essential for a smooth business setup. It also improves the credibility of the business.

2. Tax benefits:

Dubai offers a very favourable tax environment. There is absolutely no personal income tax and even corporate tax exemptions for certain businesses. This allows business owners to increase and retain their revenue.

3. Easy sponsorship:

Having a trade license in Dubai allows you to sponsor your dependents, such as family members and domestic staff. This ensures both your professional and personal life are well taken care of.

4. World-class infrastructure:

Dubai offers only state-of-the-art infrastructure and facilities. From premium office spaces to advanced logistics, ports, and airports, the city’s infrastructure supports smooth business operations.

5. Strategic location:

Dubai’s strategic geographical position makes it an excellent platform for accessing diverse international markets. Businesses can easily connect with markets in the Middle East, Asia, Europe, and Africa. Adding to this advantage is minimal trade restrictions.

6. Simple business setup:

The UAE government is highly business-friendly and welcoming to foreign investors and startups. They have made the business setup in Dubai and immigration processes very easy and smooth, especially with the introduction of e-channels and digital platforms.

7. Diverse opportunities:

There are over 2,000 business activities for which you can obtain a license. This means you have a vast range of choices to pursue what you like and what is most profitable.

8. Government support:

The UAE government’s support cannot be emphasized enough. With incentives, programs, and policies encouraging businesses to thrive, Dubai has become an integral part of the global economy. A stable political environment further ensures business success.

9. Access to financial services:

A trading license Dubai permits companies to conduct financial activities and open business bank accounts.

10. Access to government services:

A trade license provides access to a wide range of services and benefits offered by the UAE government.

Types of trade license UAE:

The government of the Emirates offers various types of trading license in Dubai for aspiring entrepreneurs. Here are the three main types of trade license in Dubai:

1. Commercial License:

A commercial license is designed for businesses engaged in the buying and selling of goods, services, and commodities. It is also suitable for those involved in internal trade, import, and export activities. Trading furniture, spare parts, oil and gas, gold and precious metals, automobiles, and many other products requires this type of license.

2. Industrial License:

An industrial license in Dubai is intended for those involved in industrial and manufacturing activities. For example, firms engaged in manufacturing food, garments, appliances, carpets, wood products, or processing metals and textiles require an industrial license.

3. Professional License:

This license is for individuals or firms with specialized expertise who provide services based on their qualifications and skills. Also referred to as a “services license,” it is aimed at attracting talented professionals to Dubai. Consultants, auditors, medical practitioners, and IT service providers are examples of those who need a professional license.

Trade license in Dubai jurisdictions

There are three jurisdictions, or economic zones, where you can establish your firm and obtain a trade license in Dubai. Here are the three main jurisdictions for trade licenses in Dubai:

Mainland License:

Companies formed in the mainland can trade anywhere in the UAE. A trade license on the mainland is issued by the Department of Economic Development (DED). Following recent legal changes, over 1,000 business activities on the mainland no longer require a local sponsor, allowing full ownership of the business.

Free Zone License:

Free zone companies operate within their chosen free zone and are issued licenses by the respective governing authority of that free zone. A free zone license allows 100% ownership of the business and access to world-class amenities and business communities within the free zone.

Offshore License:

Offshore companies are incorporated in Dubai but can conduct business only outside the UAE, not within the country. Such companies are typically established to benefit from Dubai’s strategic location, tax advantages, and excellent banking services. Offshore licenses are suitable for international trading purposes.

How to get trade license in Dubai

Now let’s understand how to get a trade license in Dubai. Here are the steps you need to follow to obtain your business license in Dubai:

1. Select the Jurisdiction:

First, you must decide where you want to establish your venture: mainland, free zone, or offshore. Each jurisdiction has its own advantages and regulatory processes.

2. Select Your Business Activities:

Next, choose the business operations for your firm. The activities you choose will determine the type of trade license in Dubai you need to apply for.

3. Select Your Business Name:

Select and register a name for your business. Respect UAE naming rules to avoid any problems, delays, or rejections.

4. Determine the Legal Structure:

The legal structure of your business dictates its operational flexibility, tax liability, and control mechanisms. Decide whether you want to form a sole establishment, LLC, partnership, branch of a foreign company, etc.

5. Get Initial Approval:

To get your new trade license in Dubai, you must first secure initial approval from the Department of Economic Development (DED) or the relevant free zone authority.

6. Get Additional Approvals:

Along with initial approval, some businesses need special permits from certain government departments like Ministries, the Department of Health Care, Dubai Municipality, etc.

7. Choose a Business Location:

Based on your license and the type of business, you may or may not need physical office space. For mainland businesses, physical office space is typically required. In free zones, you may have the option to operate virtually.

8. Gather Your Documents:

Collect and prepare all the documents required for the license application. Having them ready beforehand ensures your license application goes smoothly.

9. Submit the License Application:

Finally, submit your trade license application. Approach the DED for a mainland setup or the relevant zone authority for a free zone business setup in Dubai. Ensure the application is complete and all documents are attached.

10. Pay the License Fees:

As part of the license application process, you must clear all the required fees.

11.  License Approval and Issuance:

Once the authority reviews and approves your application, your Dubai trading license will be issued. Once you have the license in hand, you can start your business operations legally in the city.

Note: If you are a foreign entrepreneur in UAE, then you would also need to secure business visa for yourself.

Documents needed for trade license

To apply for a trade license in Dubai, you would need to submit some documents. Here’s the list:

• Completed application form
• Business plan
• Tenancy agreement
• Passport copy and visa copy of the investor and manager
• Three name options for the company
• Experience and degree certificates attested (in some cases)
• Initial approval certificate
• Additional approvals
• Attested Memorandum of Association (MOA)
• Signatures of the appointed director/manager and shareholders
• NOC from the local sponsor (in some cases)
• Additional documents as requested

For more documentation details, you can contact the legal team at Dubiz Business Setup.

UAE trade license: Cost

The trade license cost in the Dubai usually can range from AED 5,750* to AED 30,000*. The cost of trade license in UAE depends on several factors, such as the economic zone and jurisdiction. Please note that these numbers are just estimations and may vary as per individual needs and the nature of business activity.

Please speak with our professionals at Dubiz Business Setup for an exact price on trade license in the United Arab Emirates.

UAE Trade licenses: Renewal procedure

You can submit your renewal form online or in person, along with the necessary documents, to the Department of Economic Development (DED) or relevant freezone authority.

Here is a detailed guide on how to renew UAE trade licenses in 2025:

1. Submit an application to DED/relevant zone authority: To renew your trade license UAE, you must fill out the BR-1 form along with the necessary paperwork and submit it to the Department of Economic Development/relevant freezone authority.
2. Payment voucher: After the approval of your application, you will receive a payment voucher from the government authority. To complete the payment procedure, you must follow the instructions on the payment voucher. Once the payment has been successfully processed your trade license will be renewed and the registration process will be finished.
3. Mobile app: To save time, individuals can also renew their trade license via the Department of Economic Development’s mobile application.

If you wish to renew your trade license hassle-free, you can seek the help of our professionals at Dubiz.

Trade license renewal grace period

Dubai mainland offers a 30-day grace period for trade license renewal. Individuals who fail to renew their trade license in Dubai within this grace period must pay a certain fine. The repercussions of not renewing your trade license in the United Arab Emirates on time include the following:

• Fines: Fines are associated with not renewing your trade license on time. Businesses that fail to renew trade licenses on time are required to pay a certain amount of fine each month.
• Blacklisting: Any company that carries its operations without renewing its trading license will be blacklisted.
• Prohibition on business expansion: Any company wishing to grow and launch new ventures is prohibited from doing so without first renewing its trade license.

Advice for timely Dubai trade license renewal:

• To ensure that you do not miss the deadline for renewal, it is advised that you set a reminder in your calendar.
• It is an excellent strategy to speak with the local government’s office to determine the renewal deadline and the necessary procedure.
• It is advisable to keep all the necessary paperwork in hand, such as tax returns, insurance documentation, etc.
• To avoid potential problems, sending in your application early for renewal is better.

Choose Dubiz for seamless licensing

Starting a business in Dubai and obtaining a business license in Dubai opens up many exciting opportunities. However, the legal procedures involved may seem a bit complex. That’s where partnering with the right business setup consultants becomes essential.

At Dubiz Business Setup, we have a team of experts with years of experience and in-depth knowledge of the UAE’s legal landscape. Our professionals will support you at every stage of company formation in Dubai, from identifying commercial opportunities to ensuring your company complies with all legal requirements.

Feel free to contact us and make your dream of setting up a business in Dubai come true.

📞 Call: +971 56 369 5485  

💬 WhatsApp: +971563695485 

📧 Email: info@dubiz.co 

FAQs

1. Who is the trade license issuing authority in Dubai?

On mainland, Department of Economic Development (DED) issues the Dubai trade license. In freezones, you can get the license from the respective freezone authority.

2. What is the cheapest business license in UAE?

You can get many options for cheap trade license in UAE:

• SHAMS freezone: AED 5,750 onwards
• RAKEZ freezone: ARD 6,000 onwards
• DSOA freezone: AED 12,000 onwards

3. What are the documents required for UAE trade license renewal?

The following is a list of the required paperwork for UAE trade licenses:

• BR/1 form
• Photocopies of each partner’s passport
• Ejari registration
• Tenancy contract
• A previous trade license copy

4. Can I sell online without a trade license in Dubai?

No, for selling online or starting any type of e-commerce business in Dubai, you must hold a proper trade license.

5. How long is trade license valid in UAE?

A trade license is generally valid for one year from date of its issuance and needs to be renewed annually. Not renewing on time may lead to disruption of business operations and legal consequences.