Trade License Dubai, UAE
A UAE trade license is an official authorization issued by the government or relevant regulatory authority that allows an individual or company to legally conduct business activities in the United Arab Emirates. It is a crucial document for starting and operating a business in the country, and it is required for all types of businesses, whether they are small startups or large corporations.
In the UAE, business setup process can vary depending on whether you are setting up in a free zone or on the mainland.
Our team is ready to assist you in obtaining your UAE trade license, guiding you through the process and handling all the necessary paperwork and requirements to ensure a smooth and efficient setup for your business.
Types of Dubai Trade Licenses
Commercial License
- Purpose: Issued for businesses involved in commercial activities like trading, import/export, retail, and other business services.
- Business Activities: This includes general trading, electronics, machinery, fashion, foodstuff, etc.
Industrial license
- Purpose: Issued for businesses involved in manufacturing, production, or industrial processes.
- Business Activities: This license covers activities like assembly, manufacturing of goods, or the processing of raw materials.
Professional license
- Purpose: Issued for service-based businesses and professional activities.
- Business Activities: This includes consulting, engineering, legal services, education, and IT services.
E-Commerce License
- Purpose: Issued for businesses operating online, particularly those that engage in buying and selling products or services through digital platforms.
- Business Activities: E-commerce websites, online services, dropshipping, digital marketing, etc.
Advantages of Getting a Trade License in Dubai
Dubai's strategic location as a hub between Europe, Asia, and Africa makes it an ideal base for international trade. Obtaining a trade license in Dubai opens up access to a global market, enabling you to import, export, and distribute goods and services across the world.
Dubai offers a streamlined and efficient process for obtaining trade licenses, with many free zones offering quick, hassle-free setup. The process is straightforward and supportive for new businesses, with minimal bureaucratic delays.
Dubai’s strategic location between Asia, Europe, and Africa provides businesses with easy access to key markets. It is a prime location for logistics, trading, and manufacturing businesses.
Dubai offers a range of free zones tailored to different industries, each with its own set of incentives, such as tax exemptions, reduced setup costs, and 100% repatriation of profits.
Dubai hosts numerous business hubs, conferences, and trade shows, providing many opportunities for networking, partnerships, and collaborations with industry leaders and investors.
A trade license allows you to apply for a residence visa and work permits for yourself and your employees. Many free zones also offer flexible visa packages, making it easier for businesses to bring in talent from abroad.
UAE Trade License Business Activities
- General Trading
- Import/Export
- E-commerce
- Consulting (Management, IT, Marketing, etc.)
- Construction and Contracting
- Real Estate
- Tourism and Travel Agencies
- Healthcare Services
- Education and Training
- Food and Beverage (Restaurants, Cafes, Catering)
Differences Between Mainland and Free Zone Trade License
| Mainland | Free Zone | |
| Description | A business with a mainland trade license can operate anywhere in Dubai and the UAE. It can also engage in government contracts but may require a local sponsor or partner types of businesses. | These zones offer specialized licenses for specific business activities and usually provide 100% foreign ownership, tax exemptions, and other benefits. However, businesses in free zones may face restrictions on doing business directly in the UAE market (outside of the free zone) without a local distributor. |
| Ownership Structure | For some commercial or trading companies (LLC), you might need a local sponsor who holds 51% ownership. This sponsor is usually not involved in the day-to-day operations. | Free zones generally allow 100% foreign ownership. This is one of the biggest advantages for international investors looking to have full control over their business. |
| Location and Operating Area | Businesses with a mainland license can operate anywhere in Dubai, the UAE, and even internationally. They are allowed to trade directly with the local market. | Businesses are restricted to operating within the boundaries of the free zone in which they are registered. You are not allowed to directly do business in the mainland market unless you work with a distributor or partner who is licensed to operate on the mainland. |
| Business Activities | You can engage in almost any type of business activity, including retail, trade, consulting, manufacturing, and even certain regulated activities (like healthcare, law, and education). Mainland businesses may require additional approvals from government bodies depending on the type of business (e.g., healthcare, food, legal services, etc.). | Some free zones are focused on specific industries or sectors, such as IT, media, logistics, healthcare, finance, and others. Your choice of free zone will determine the types of activities you can engage in. |
| Visa and Employment | Mainland businesses can sponsor employee visas, with the number of visas depending on the size of the office space and business activities. | Free zone companies can sponsor employee visas, with the number of visas typically based on the size of the office or leased space. |
Documents Required for Company Registration in Dubai
Setting up a company in a Dubai Free Zone involves several steps, and the documentation required may vary slightly depending on the specific Free Zone you choose.
Here is a list of the standard documents typically needed for company formation in Free Zone:
- Passport copies of shareholders;
- Corporate documents (for companies being formed by an existing corporate entity);
- Residence visa copies of shareholders (if applicable);
- No objection certificate (If you are a resident of the UAE and employed, your employer may need to issue a (NOC) allowing you to establish a company in the Free Zone);
- Proof of address (utility bill or bank statement);
- Additional documents for certain activities (if applicable);
Dubai Mainland companies are regulated by the Department of Economic Development (DED), and the documentation varies based on the type of business activity, ownership structure, and other factors.
Here is a list of the standard documents typically needed for company formation in Mainland:
- Passport copies of shareholders;
- Corporate documents (for companies being formed by an existing corporate entity);
- Residence visa copies of shareholders (if applicable);
- Initial approval from DED;
- Trade name approval from DED;
- Signed Memorandum of association and Local Service Agreement (if applicable);
- Valid Ejari (lease agreement);
- Initial approval for business activities (if applicable);
How to Get Trade License in Dubai
Below are the main steps to obtain a UAE Trade License:
- 01
Choosing your business activity is the first step in defining the type of business activity your company will engage in (e.g., retail, consulting, manufacturing).
- 02
Selecting a business structure, which will affect ownership, liabilities, and governance. Common types of legal structures in the UAE are Limited Liability Company (LLC), Sole Proprietorship and Branch Office.
- 03
Choosing a business location and arranging an Ejari or a lease contract as part of the trade license application.
- 04
Registering your trade name that aligns with the UAE’s naming regulations.
- 05
Submitting the documents to the Department of Economic Development (DED) or the relevant authority in the free zone.
- 06
Paying fees and obtaining the license after receiving approval and submitting the necessary documents. The amount depends on factors such as the type of business, office location, and legal structure.
Why Choose ITA Business Consultants
Our company has a deep understanding of the UAE’s cultural, economic, and legal environment. We are equipped to navigate the local laws, regulations, and market conditions, which can be challenging for foreign businesses to understand.
- Our experts assist with company formation, visa processing, trade licenses, and other legal formalities.
- Our consultants may identify cost-saving opportunities or help you avoid costly mistakes that could arise from lack of local expertise.
- After your company is set up, we offer ongoing services, including tax advice, accounting, legal services, and more. This helps you focus on growing your business without worrying about administrative tasks.
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With over 10 years of experience and 1500+ successful projects, ITA Business Consultants is your go-to partner for international tax planning. Our team of 200+ experts collaborates with 150+ international banks across 40 jurisdictions. Ready to elevate your business? Fill out the form and let’s connect!
*The listed price does not include the state fees.
FAQ for Dubai Company License
A Dubai Trade License is an official permit issued by the Department of Economic Development (DED) or other relevant licensing authorities in Dubai, which grants a company the legal right to operate within the emirate.
Dubai Mainland is ideal for businesses looking to operate freely across the UAE and participate in government projects, but it often requires a local sponsor and license cost might be higher.
Dubai Free Zones are great for businesses seeking 100% foreign ownership, tax incentives, and a simplified setup process, but they are limited to operating within the Free Zone or engaging in business through partners for local activities.
While a local sponsor holds 51% ownership in a Dubai Mainland company, they do not have the right to take full control of the business or manage its operations.
The local sponsor cannot “take control” of the company in the sense of managing operations or making decisions unless the ownership and control arrangements were not properly set up or agreed upon in the MOA or shareholder agreements.
The cost of a Dubai trade license can range from AED 10,000 to AED 50,000 or more annually, depending on various factors such as business type, location (mainland vs. free zone), and size of the company.
If you’re unsure about the specific costs for your business, our company can assist with business consultancy services to help you determine the exact cost of setting up your business in Dubai. We can guide you through the process, ensuring that you choose the right business structure and license type that aligns with your goals and budget.