What Is the Cost of a Trade License in Dubai?

August 08, 2020

Starting a business in Dubai requires careful budget planning, and understanding trade license costs is your first step. The total investment depends on your business type, location choice, and specific requirements. Let me walk you through everything you need to know about trade license costs in 2025.

Understanding Dubai Trade License Costs

In 2025, obtaining a trade license in Dubai typically costs between AED 10,000 and AED 50,000, depending on several key factors. Your final price depends on whether you set up in Dubai Mainland, choose one of the UAE’s 40+ free zones, or form an offshore company. Each option offers distinct advantages and comes with different pricing structures.

The location you choose significantly impacts your costs. Mainland licenses, issued by the Department of Economy and Tourism (DET), generally range from AED 10,000 to AED 25,000 for the license itself. Free zone packages can start as low as AED 5,750 in cost-effective zones like International Free Zone Authority (IFZA), while premium zones may charge up to AED 50,000 for comprehensive packages including office space and visas.

Three Main Types of Trade Licenses

Dubai issues three primary license types based on your business activities:

Commercial Licenses suit businesses involved in buying, selling, importing, or exporting goods. These are essential for retail, wholesale, and general trading operations. The average cost for a commercial license is approximately AED 24,500 in mainland Dubai, while free zone options start from AED 12,500.

Professional Licenses are designed for service-based businesses and consultancies. You’ll need relevant qualifications and professional experience to qualify. Mainland professional licenses start at AED 9,950, while free zone costs range between AED 12,500 and AED 50,000 depending on the authority and package you select.

Industrial Licenses apply to manufacturing and production businesses. These typically cost more due to facility requirements and specialized infrastructure needs, averaging around AED 25,000 or higher.

What Makes Up the Total Cost?

Beyond the base license fee, several additional costs factor into your total investment:

Activity Fees: Each business activity you register may incur separate charges. Some activities require government approvals from specific ministries, adding extra fees to your application.

Trade Name Registration: You’ll pay a fee to reserve and approve your company name. Arabic names are processed free of charge, but using an English or foreign language name involves an additional fee (approximately AED 620 for trade name reservation through DET).

Dubai Chamber Membership: Many businesses must join the Dubai Chamber of Commerce, adding AED 300 to AED 1,070 to your costs depending on your license type.

Office Space Requirements: Whether you need a physical office, virtual office, or flexi-desk arrangement affects your budget significantly. Mainland businesses require a registered office with an Ejari (tenancy contract), while free zones offer flexible workspace options from virtual offices to full private suites.

Visa Costs: If you plan to sponsor employees or family members, factor in visa fees, which vary based on the number of visas your license allows.

Free Zone vs. Mainland: Which Costs Less?

Free zones often provide more predictable, package-based pricing. For example, IFZA offers setups starting at AED 5,750, while SPC Free Zone advertises packages from AED 6,500 including license and lease agreement. These packages typically bundle your license, workspace solution, and initial support services.

Mainland licenses offer unrestricted access to the UAE market, allowing you to trade anywhere in the country without limitations. While individual fees may vary, total mainland setup costs typically range from AED 15,000 to AED 30,000 when including all mandatory components.

Special Offers and Cost-Saving Options

Dubai actively encourages entrepreneurship through various incentives. Many free zones run promotional offers, especially for startups. Dubai Multi Commodities Centre (DMCC), for instance, has offered substantial discounts for residents of specific districts or flexible payment plans.

Several free zones now offer:

• Reduced setup fees for new entrepreneurs
• Monthly installment payment options
• Discounted packages including flexi-desk arrangements
• Special rates for technology startups and small businesses

The DET E-Trader License represents an exceptionally affordable option for UAE and GCC nationals running online businesses from home. At approximately AED 1,070 annually (plus AED 300 for chamber membership), it’s ideal for e-commerce ventures, though it doesn’t permit employee visa sponsorship.

The Instant License from DET allows quick setup for straightforward activities not requiring external approvals, with practical costs ranging from AED 5,000 to AED 18,000 depending on your specific requirements.

Annual Renewal Costs

Remember that trade licenses require annual renewal. Renewal fees typically range from AED 6,000 to AED 15,000 depending on your jurisdiction, business type, and visa quota. Missing your renewal deadline triggers late fees starting around AED 250, with penalties escalating over time. Operating without a valid license can result in substantial fines and legal complications.

Additional Considerations

Some business activities require external approvals from government departments before your license is issued. These specialized permits come with their own fees and processing requirements. Professional services like consulting often need proof of qualifications and relevant experience.

The size of your operation also matters. Sole proprietorships and small startups often pay lower fees than larger companies with multiple shareholders and employees.

Making Your Decision

Dubai’s business environment offers tremendous opportunities with transparent processes and competitive costs. Whether you’re a solo entrepreneur testing a concept or launching a substantial operation, there’s a license structure that fits your budget and ambitions.

The key is matching your business needs with the right jurisdiction and license type. Consider these factors: your target market (UAE mainland vs. international), your budget constraints, visa requirements for yourself and employees, and the specific activities you plan to conduct.

Many entrepreneurs find working with business setup consultants valuable for navigating options and identifying the most cost-effective path. These experts help you avoid unnecessary expenses while ensuring full compliance with UAE regulations.

Dubai continues investing in its business infrastructure with ambitious growth targets, including the D33 economic agenda aimed at doubling Dubai’s economy by 2033. This commitment to economic development translates into ongoing improvements, competitive pricing, and attractive incentives for new businesses.

Your journey to business ownership in Dubai starts with understanding these costs and choosing the setup that aligns with your vision and budget. With proper planning and the right information, obtaining your Dubai trade license is a straightforward, achievable goal.