Trade Licence in Dubai: Types, Benefits & How to Get One

Dubai has firmly established itself as a global hub for commerce, innovation and entrepreneurship. Obtaining the right trade licence is the first essential step for anyone looking to start or expand a business in this dynamic city.

What is a trade licence in Dubai?

A trade licence is a legal authorisation issued by the Department of Economic Development (DED). This licence allows individuals or companies to conduct specific business activities within the emirate. It ensures the business complies with all local laws and is officially recognised by the relevant authorities.

Whether launching a new business or expanding an existing one, obtaining the correct trade licence is a foundational step in Dubai’s regulated and investor-friendly environment.

Types of trade licences in Dubai

While the three core categories issued by DED are Commercial, Industrial and Professional, Dubai offers additional types of licences through its many free zones and specialised authorities. Here is a comprehensive list:

1. Commercial licence: This licence is required for businesses involved in trading activities, including importing, exporting, wholesale, retail and general trading.
2. Industrial licence: Issued to businesses engaged in manufacturing, processing or assembling goods and products within Dubai. Requires physical office space and often environmental clearance.
3. Professional licence: For individuals or firms offering services based on intellectual or artistic talent, such as consultancy, legal advisory, IT services, design or medical services.
4. Tourism licence: This licence is necessary for travel agencies, tour operators and businesses in the tourism and hospitality sector.
5. E-commerce licence: Designed for businesses operating through online platforms. The Dubai e-trader licence is a popular option for entrepreneurs selling via social media or e-commerce websites.
6. Freelancer licence: Issued by various Dubai free zones, this licence is ideal for individuals providing freelance services in media, education, technology or creative sectors.

Benefits of obtaining a trade licence in Dubai

Holding a valid trade licence brings numerous benefits:

• Legal operation: It ensures your business is operating lawfully within Dubai.
• Business credibility: Builds trust with customers, suppliers and financial institutions.
• Visa sponsorship: Enables you to sponsor residence visas for employees and family members.
• Access to facilities: Helps with opening corporate bank accounts, leasing office space and accessing government services.
• Market reach: Positions you within Dubai’s thriving local and global business network.

Step-by-step process to get a trade licence in Dubai

Step 1: Define your business activity

Choose the appropriate type of licence and legal structure based on your planned activity. Activities must match DED’s list of permitted options.

Step 2: Select a business name

Ensure the trade name complies with local regulations. It must not violate moral codes, include religious references or duplicate an existing business name.

Step 3: Prepare required documents

Commonly required documents include:

• Passport copies of shareholders or owners
• UAE residence visa and Emirates ID (if applicable)
• Initial approval from DED or free zone authority
• Memorandum of Association (MoA)

Step 4: Submit your application

Applications can be filed through DED service centres or their official portal. Some activities may require approvals from additional authorities (e.g., DHA or KHDA).

Step 5: Pay fees and receive your licence

Once fees are paid and approvals granted, your trade licence will be issued.

Step 6: Proceed with post-licensing steps

You may now open a corporate bank account, apply for VAT registration (if eligible) and begin the visa process for employees or partners.

Costs and timeline for obtaining a trade licence

Costs depend on multiple factors, including:

• Business activity and legal form
• Jurisdiction (mainland or free zone)
• Office space requirements
• Number of business partners and employees

Additional expenses might include translation, notarisation, business set-up services and visa processing. Licences are typically issued within a few working days if all documents are in order. However, specialised approvals can extend this timeframe.

Choosing between mainland, free zone and offshore licences

Mainland licence

Allows full business activity within the UAE. Ideal for local trade and government contracts. May require UAE national partnership for certain activities.

Free zone licence

Offers benefits like 100% foreign ownership, tax benefits and streamlined procedures.

Offshore licence

Used for international operations without a physical presence in Dubai. Suitable for holding companies, asset protection or operating outside the UAE.

Each jurisdiction has its own rules and advantages. Choosing the right one depends on your business model and long-term goals.

Common challenges and tips for smooth licensing

Despite Dubai’s business-friendly environment, entrepreneurs may face the following issues:

• Always cross-check with DED’s list to avoid rejections or delays.
• Your proposed name must be compliant and unique.
• Ensure all paperwork is complete, correctly attested and up to date.
• Some activities are limited to certain zones. Verify that your intended business premises meet legal requirements.

Tip: consulting a business set-up company can significantly reduce errors and speed up the process.

A trade licence is the gateway to launching a successful business in Dubai’s competitive and well-regulated economy. With a wide range of licence types catering to various industries and activities, entrepreneurs can find a path that suits their ambitions.

At GoBusiness, we guide entrepreneurs through each step of launching a business in Dubai — from name reservation and activity selection to licence issuance and visa processing. We ensure your set-up aligns with your long-term objectives.

Ready to turn your idea into a business?

Visit gobusiness.ae to get started with your entrepreneurial journey.