Trade License in Dubai

Obtaining a trade license in Dubai is the essential first step for any entrepreneur or company looking to operate legally in the UAE. Whether you’re launching a startup, expanding an international business, or establishing a trading company, your trade license registration determines which business activities you can conduct and where you can operate. This comprehensive guide covers everything you need to know about Dubai trade licenses in 2026, including types, costs, requirements, and how to renew trade license Dubai annually.

Why a Trade License in Dubai is Essential for Your Business

Dubai has established itself as a global business hub, attracting entrepreneurs from over 200 countries. The city’s strategic location, world-class infrastructure, and business-friendly regulations make it an ideal destination for business setup in Dubai. However, operating without a valid trade license is illegal and can result in significant fines, business closure, and legal consequences.

A business trade license in Dubai serves as your official authorization to conduct specific commercial activities within the emirate. It defines the scope of your business operations and ensures compliance with UAE federal laws and Dubai regulations.

Types of Trade Licenses in Dubai

Dubai offers several categories of trade licenses, each designed for specific business activities. Understanding the differences is crucial for selecting the right license for your business model.

Commercial Trade License

A commercial trade license is the most common type, issued to companies engaged in trading activities. This includes buying, selling, importing, and exporting goods. If your business involves trading within the UAE, establishing a Dubai Mainland company as an LLC often provides the best market access.

Activities covered under a Commercial Trade License:

• Import and export of goods
• Electronics and technology trading
• General trading (multiple product categories)
• Car rental and vehicle trading services
• Raw materials and commodities trading
• Logistics and supply chain operations
• Brokerage and distribution services

Professional Trade License

A professional trade license is designed for service-based businesses, consultants, freelancers, and skilled professionals. Unlike commercial licenses, professional license holders retain 100% ownership of their business, though a local service agent may be required for mainland setups.

Activities covered under a Professional Trade License:

• Management and business consultancy
• IT services and software development
• Legal and accounting firms
• Marketing and advertising agencies
• Healthcare and medical services
• Educational institutes and training centers
• Engineering and architectural consultancy

Industrial Trade License

An industrial trade license is mandatory for manufacturing and production businesses. This license requires physical premises in either Dubai Mainland or a designated free zone with industrial facilities.

Activities covered under an Industrial Trade License:

• Manufacturing of furniture and fixtures
• Food and beverage production
• Metal fabrication and casing
• Packaging and labeling
• Pharmaceutical manufacturing
• Textile and garment production

Tourism Trade License

Businesses in the hospitality and tourism sector require a specialized tourism trade license. This covers travel agencies, tour operators, hotels, and related services, with oversight from the Dubai Department of Economy and Tourism (DET).

Mainland vs. Free Zone Trade Licenses

When applying for a trade license in Dubai, you must choose between a Mainland company setup or a Free Zone company. Each option offers distinct advantages depending on your business objectives.

Feature	Mainland License	Free Zone License
Foreign Ownership	100% (most activities)	100%
Trade with UAE Market	Unrestricted	Requires local distributor or mainland permit
Office Requirements	Physical office (Ejari required)	Flexi-desk to warehouse options
Government Contracts	Eligible	Limited eligibility
Corporate Tax (2026)	9% above AED 375,000 profits	0% for qualifying income (conditions apply)

2026 Update: Free zone companies can now obtain permits to conduct business in the mainland market, offering greater flexibility. Additionally, the re-domiciliation law allows companies to transfer between jurisdictions without losing their business history.

Government Approvals for Specific Business Activities

Certain business activities require additional approvals from regulatory authorities beyond the standard trade license registration. Your business activities determine which approvals you need:

Business Type	Approval Authority
Financial Institutions & Banks	Central Bank of UAE
Insurance Companies	Ministry of Economy
Medical & Healthcare Services	Ministry of Health / DHA
Food & Beverage Services	Dubai Municipality Food Department
Manufacturing & Industrial	Ministry of Industry and Advanced Technology
Educational Services	Knowledge and Human Development Authority (KHDA)
Legal Services	Ministry of Justice

The Department of Economy and Tourism (DET) serves as the primary authority for issuing mainland trade licenses in Dubai. For free zones, each zone has its own licensing authority, such as DMCC, JAFZA, or Dubai Silicon Oasis.

Documents Required for Trade License Registration

The documentation for trade license registration varies based on your chosen jurisdiction and business activities. Here are the standard requirements:

Standard Documents for All Trade Licenses:

• Completed license application form
• Passport copies of all shareholders (valid for minimum 6 months)
• Passport-sized photographs
• Proposed company name (3 options recommended)
• Business activity selection
• No Objection Certificate (NOC) from current employer (if applicable)

Additional Documents for Mainland Companies:

• Memorandum of Association (MOA)
• Tenancy contract (Ejari) for office premises
• Local sponsor/service agent agreement (if required)
• Initial approval certificate

Additional Documents for Free Zone Companies:

• Business plan (required by most free zones)
• Bank reference letter
• Proof of residential address
• CV/resume of shareholders

Trade License Registration Process in Dubai

The process for obtaining a trade license in Dubai has been significantly streamlined through digital platforms. In 2026, most applications can be completed entirely online through the digital-first licensing system.

Step 1: Determine Your Business Structure

Choose between mainland, free zone, or offshore company formation based on your business objectives, target market, and operational requirements. Consult with a business consultant to identify the optimal structure.

Step 2: Select Business Activities

Define your specific business activities from the approved list. Each activity corresponds to a specific license type and may have different requirements.

Step 3: Reserve Your Trade Name

Submit your proposed company name for approval. Names must comply with UAE naming conventions and cannot duplicate existing registered businesses.

Step 4: Obtain Initial Approval

Apply for initial approval from the relevant authority (DET for mainland, free zone authority for free zones). This confirms your business activities are permitted.

Step 5: Prepare Legal Documents

Draft the Memorandum of Association (MOA) and other required legal documents. These must be notarized and attested.

Step 6: Secure Business Premises

Obtain an office space that meets regulatory requirements. Options range from virtual offices to serviced offices and dedicated premises.

Step 7: Submit Application and Pay Fees

Submit your complete application package and pay the required licensing fees. Processing typically takes 3-7 business days for standard applications.

Step 8: Receive Your Trade License

Once approved, your trade license is issued. You can then proceed with opening a corporate bank account and applying for visas.

Trade License Costs in Dubai (2026)

The cost of a trade license in Dubai varies significantly based on the license type, jurisdiction, and business activities. Here’s a general breakdown of cost factors:

Mainland Trade License Costs:

• Trade name reservation: AED 620 – 1,000
• Initial approval: AED 120 – 500
• License issuance fee: AED 10,000 – 50,000 (varies by activity)
• MOA drafting and notarization: AED 2,000 – 5,000
• Local sponsor/service agent fee: AED 5,000 – 25,000 annually (if applicable)
• Office space: AED 15,000 – 100,000+ annually

Free Zone Trade License Costs:

• License packages typically range from AED 12,000 – 75,000 annually
• Registration fees: AED 1,000 – 5,000
• Flexi-desk: AED 5,000 – 15,000 annually
• Dedicated office: AED 25,000 – 150,000+ annually

For detailed cost estimates tailored to your specific business, review our guide on trade license costs in Dubai or business setup costs.

How to Renew Trade License in Dubai

Trade licenses in Dubai must be renewed annually to maintain legal operating status. The renew trade license Dubai process should be initiated at least 30 days before expiry to avoid penalties.

Trade License Renewal Requirements:

• Valid tenancy contract (Ejari for mainland)
• Updated partner/shareholder documents
• Payment of renewal fees
• Compliance clearance (no outstanding violations)
• Updated Emirates ID for visa holders
• Audit report (required for some jurisdictions and company types)

2026 Compliance Requirements:

• Corporate Tax Registration: All businesses must have a Tax Registration Number (TRN), even if below the taxable threshold
• VAT Compliance: Businesses with annual turnover above AED 375,000 must be VAT-registered
• UBO Declaration: Ultimate Beneficial Owner information must be current and accurate
• Economic Substance: Relevant entities must demonstrate economic substance in the UAE

For detailed renewal procedures, see our guide on how to renew a trade license in Dubai.

2026 Regulatory Updates for Dubai Trade Licenses

Several important regulatory changes affect trade license holders in 2026:

Why Choose Setup Dubai Business for Your Trade License

Navigating the trade license process requires expertise in UAE regulations, documentation requirements, and government procedures. At Setup Dubai Business, we provide comprehensive support for company formation in Dubai and trade license services.

Our Services Include:

• Business structure consultation and planning
• Trade license application and processing
• Local sponsorship arrangements
• PRO services for government documentation
• Office premises and virtual office solutions
• Visa processing and immigration assistance
• Corporate bank account opening
• Annual license renewal and compliance support
• Accounting and VAT services

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Contact Setup Dubai Business today at +971 55 378 8000 for expert assistance with your trade license application, renewal, or any questions about starting a business in Dubai.