Dubai is one of the most business-friendly cities in the world, attracting entrepreneurs from every corner of the globe. With a booming economy, strategic location, and no personal income tax, it’s the perfect place to start or expand your business.
But before you can legally operate, you’ll need a trade license in Dubai.
In this blog post, we’ll walk you through how to get a trade license in Dubai, the different types available, costs involved, and key steps to start your business the right way. Whether you’re an expat, freelancer, or corporate investor, this guide has everything you need.
What is a Trade License in Dubai?
A trade license is an official document issued by the Department of Economy and Tourism (DET) (formerly DED – Department of Economic Development) or a Free Zone Authority, depending on where you choose to register. It legally allows you to conduct specific business activities in Dubai.
Types of Trade Licenses in Dubai
Before applying, you need to know the type of license your business needs. There are four main types of trade licenses in Dubai:
- Commercial License – For businesses involved in trading goods (e.g., general trading, import/export).
- Professional License – For service-based activities (e.g., consultancy, freelancing, marketing).
- Industrial License – For companies involved in manufacturing or industrial production.
- Tourism License – For travel agencies, tour operators, and hospitality businesses.
Free Zone vs Mainland: Where Should You Register?
When applying for a trade license in Dubai, you’ll need to choose between:
1. Mainland License (via Dubai DET)
- Operate anywhere in Dubai and across the UAE.
- Work with government and private clients.
- Ability to open branches across the Emirates.
- Requires local service agent (for some activities).
2. Free Zone License
- Operate within a specific free zone area.
- 100% foreign ownership.
- Ideal for startups, e-commerce, and freelancers.
- Limited to operating within the free zone or abroad (unless you use a distributor).
Popular free zones include Dubai Multi Commodities Centre (DMCC), Dubai Internet City (DIC), Dubai South, and IFZA (International Free Zone Authority).
Step-by-Step: How to Get a Trade License in Dubai
Here’s a simple breakdown of the process to get a trade license in Dubai in 2025:
Step 1: Choose Your Business Activity
You must first define the activity your business will perform. The Dubai DET has over 2,000+ licensed business activities to choose from, ranging from trading and consulting to real estate and IT services.
Visit the DET activity list or your chosen free zone’s website to find the exact activity that fits your business.
Step 2: Select the Legal Structure
Decide how your company will be legally structured. Common options include:
- Sole Proprietorship
- Limited Liability Company (LLC)
- Civil Company
- Branch Office
This decision depends on your business type, number of owners, and location (mainland or free zone).
Step 3: Choose a Company Name
Pick a unique and compliant trade name for your business. The name must:
- Not violate Islamic or cultural norms
- Not include offensive or religious terms
- Avoid referencing government or political entities
- Be available and not previously registered
Step 4: Apply for Initial Approval
- Submit your initial approval request to the Dubai DET (for mainland) or the relevant free zone authority. This approval means the government has no objection to your business starting operations.
- You’ll usually need:
- Passport copies of all shareholders
- Visa copies (if applicable)
- Initial business plan or activity description
Step 5: Choose a Business Location
All businesses must have a physical address. For mainland companies, this could be a retail shop, office, or coworking space. Free zone companies often provide flexi-desk or virtual office solutions.
Make sure the lease agreement (Ejari for mainland) is in place before final license issuance.
Step 6: Submit Final Documents and Pay Fees
Once you’ve secured your name, initial approval, and office space, submit the full application with supporting documents:
- MoA (Memorandum of Association)
- Lease agreement (Ejari or Flexi-desk)
- Shareholder details
- Passport-size photos
- Trade name certificate
- Initial approval letter
Pay the licensing and registration fees as specified. These vary based on activity, location, and license type.
Step 7: Receive Your Trade License
Once all documents are approved and fees are paid, you’ll receive your Dubai trade license. You can now legally start doing business!
Note: Keep your license up to date by renewing it annually to avoid penalties.
Benefits of Getting a Trade License in Dubai
- 100% repatriation of profits
- No personal income tax
- Access to international markets
- Residency visa eligibility for you and your family
- Business-friendly legal framework
Whether you’re a freelancer, startup founder, or multinational investor, getting a trade license is the first key step to thriving in the UAE’s dynamic economy.
Common Mistakes to Avoid
- Choosing the wrong license type or activity
- Not researching free zone vs mainland options
- Delays due to missing documentation
- Not renewing your license on time
- Using an unapproved business name
To simplify the process, consider working with a business setup consultant in Dubai to handle paperwork and compliance.
Conclusion
Understanding how to get a trade license in Dubai is the foundation of building a successful business in the UAE. With the right preparation, documentation, and location choice, you can launch your venture confidently and legally.
