How to get a trade license in Dubai: Your complete guide to starting a business in the UAE

If you want to establish a business in Dubai, you will have to acquire a trade license in Dubai. It is not only a legal prerequisite, but it is your entry gate to the operations of freedom in one of the business centers that are growing most rapidly in the world. A trade license makes your business credible, compliant with the laws of the UAE, and provides the company with access to great opportunities within the region.

This blog will make you know everything about the business license in Dubai, its types, costs, advantages, and steps to apply.

What Is a Trade License in Dubai?

The trade license in Dubai is a formal document that the Department of Economic Development (DED) provides you to establish a legal business in the UAE. It is obligatory to have a valid business license in Dubai, whether you intend to open a shop, provide consulting services, or open an import/export firm.

Trade licenses are commonly granted in three types:

●    Commercial License: To trade and purchase/sell goods.

●    Professional License: In the case of service-based or consulting businesses.

●    Industrial License: This is used by manufacturing or production-based firms.

Every license gives your business an opportunity to adhere to the local regulations of Dubai and promotes trust between you and your clients and investors.

Read More: Dubai Golden Visa Benefits, Eligibility Requirements, and Application Process

Types of Trade License in Dubai

The selection of trade license type depends on the location and mode of operation of the intended business in UAE.

1.    Mainland Trade License

This will enable you to conduct business in any location within the UAE and deal directly with the locals.

Best: Businesses with customers who are local or those with maximum flexibility.

2.    Free Zone License

A Free Zone license in Dubai is a business license for companies that are established in special regions with tax incentives and 100 percent ownership by foreigners.

Best use: Internet trade and e-businesses.

3.    Offshore License

This is a type of company that is registered in Dubai but not functioning in the UAE.

Best to use: Asset management, holding companies, and international trading.

Main Types of Trade Licenses in Dubai

Dubai has a number of categories depending on what your business is:

●    Professional License: In the case of a professional, such as a consultant, designer, or  doctor.

●    Commercial License: Commercial license of business organizations involved in trade and sales.

●    Industrial License: This is used in factory-based businesses or manufacturing.

●    General Trading License: It applies to those companies dealing with various goods.

●    E-Commerce License: This is applicable to the companies which sell goods or services via the internet.

There is a business type to which each license is applicable; hence, having the right license ensures smoother operations.

Benefits of Having a Trade License in Dubai

Getting a trade license Dubai offers numerous benefits that make the UAE one of the best places to start a business:

●    Tax Benefits: No income tax for individuals, and a number of corporate tax exemptions.

●  Global Market Access: It is readily available to import, export and re-export goods over the regional boundaries.

●    Strategic Location: The geographical location of Dubai in the midst of Asia, Europe and Africa is beneficial to trade.

●    Great Credibility: Licensed businesses gain customer and partner confidence.

●    Visa Sponsorship: You will be able to sponsor employee and family visas.

●   Fast to establish: The procedure of a trade license UAE is quick and uncomplicated, particularly when this is done professionally.

●    Strong Government Support: The UAE has a favorable business climate and clear rules.

Steps to Get a Trade License in Dubai

A trade license in Dubai is an important process to begin the business legally. Here is the step-by-step procedure that will help you in the process:

1.    Choose a Business Name

Select a special and significant name that does not violate the regulations of name registration in the UAE.

Do not use abusive language or allusion to religion and politics. Upon successful selection, register your trade name through the Department of Economic Development (DED).

2.    Select a Business Activity

Determine the nature of work that your company will do, i.e., trading, consulting, manufacturing, or services.

Dubai permits various business activities on a single license (provided to the same category).

3.    Select the most suitable Business Structure

Choose the legal form of business that includes:

●    Limited Liability Company (LLC).

●    Sole Proprietorship

●    Branch of a Foreign Company

 The structure you choose has an impact on ownership regulations, expenses, and the scope of operation.

4.    Get DED Preliminary Approval

Get preliminary registration of the Department of Economic Development (DED).

This is a testament to the fact that the UAE government does not object to your business activity.

5.     Prepare the Required Documents

The following are the documents to be gathered and prepared:

●    Copies of the passports of shareholders.

●    Tenancy (Ejari) contract

●    Reservation certificate of trade name..

●    Initial approval form

6.    Selection of Business Location

Any trade license must have a registered address.

●    Mainland Companies: The company has to be located in a physical office with an Ejari contract.

●    Free Zone Companies: May choose virtual or flexi-desk offices, based on the authority.

7.    Submit the Application and Pay Fees

Send all the paperwork to the DED (in mainland) or Free Zone Authority (in free zone businesses).

Remit the necessary trade license charges depending on your business and establishment.

After the approval, you will be granted your Dubai trade license, which will enable you to officially begin your business, open a business bank account, and seek an employee visa.

Cost of Getting a Trade License in Dubai

In Dubai, the trade license cost is determined by factors such as the type of business, the place and the activity. Its mean is AED 15,000 to 50,000.

Here’s a quick breakdown:

●    DED Trader License: AED 1070 + AED 300 (Dubai Chamber fee).

●    Foreign Trade Fees: AED 2,000

●    Corporate PRO Services: AED 6,000

●    Total Estimated Cost: AED 21,000 -25,000.

Papers needed to apply for a Dubai Trade License.

Read More: Best Business Setup Consultants in Dubai for 2025

Documents Required for a Dubai Trade License

Please have ready the following documents:

●    Copies of passports of all the owners/shareholders.

●    UAE visa copy (where necessary)

●    Emirates Identification (UAE residents)

●    Business plan (for Free Zones)

●    Lease agreement or Ejari

●    Preliminary acceptance certificate.

●    Trade name reservation certificate

To get your trade licence in Dubai faster, having full documents will help you.

How Long Does It Take to Get a Trade License in Dubai?

In the majority of situations, obtaining a business license in Dubai will require 2-8 weeks. Certain Free Zones go to the extent of granting licenses in 13 days with Instant License products, and Dubai remains one of the quickest to establish a company in the whole world.

Start Your Business in Dubai with Catnyx Consultants

Getting a trade license in Dubai may seem complex, but with the right guidance, it’s quick and easy.  Catnyx Consultants focuses on assisting entrepreneurs to establish their businesses in the UAE, doing all the paperwork and approvals.

Get your trading license in Dubai and have your dream business with the professional help of Contact Catnyx Consultants today.