Introduction: Why a Trade License Is Your First Step to Doing Business in Dubai
Dubai’s rise as a global business hub is no accident its pro-business laws, tax incentives, and streamlined licensing structure make it the ultimate destination for entrepreneurs. Whether you’re a freelancer, investor, or launching a new company, securing a trade license in Dubai is your first and most important step.
This detailed guide covers everything you need to know in 2025 from choosing the right license to applying with confidence, backed by Al Fady Business Setup’s expert team.
What Is a Trade License in Dubai?
A trade license is a legal document that allows a company or individual to legally operate a business in the UAE. Issued by the Department of Economic Development (DED) or respective Free Zones, this license outlines:
- The type of business activity
- The company name
- Ownership details
- Duration and renewal period
Without a valid license, operating any business in Dubai is considered illegal.
Types of Trade Licenses in Dubai (2025)
Depending on your business model, there are several types of licenses to consider:
| License Type | Best For | Issued By |
|---|---|---|
| Commercial License | General trading, retail, or import/export businesses | DED or Free Zone Authorities |
| Professional License | Consultancy, legal, IT, digital services, freelancing | DED |
| Industrial License | Manufacturing, packaging, production | DED or Industry Zones |
| Tourism License | Travel agencies, tour operators, hotel management | Dubai Tourism Authority |
| Freelance Permit | Independent professionals (media, tech, design) | Free Zones like Dubai Media City, Dubai Internet City |
➡️ Explore our full business setup services to learn what license suits your activity.
Mainland vs Free Zone vs Offshore Licenses
Mainland License
- Allows you to do business anywhere in the UAE
- Ideal for retail, local services, or B2C trade
- Requires local address and approvals
- Issued by DED
Free Zone License
- Offers 100% foreign ownership
- Cost-effective setup
- Limited to Free Zone trade or international markets
- Faster process, ideal for consultants and freelancers
Offshore License
- No physical presence required
- No visa eligibility
- Good for holding companies or international trading
Need help choosing? Al Fady offers free consultations to guide you toward the best fit.
Step-by-Step: How to Get a Trade License in Dubai (2025)
Step 1: Choose Your Business Activity
The UAE government provides over 2,000 activities to select from. You must pick one that reflects your service or product.
Step 2: Choose the Right Jurisdiction
Mainland, Free Zone, or Offshore? Your choice depends on your target market, ownership, and capital.
Step 3: Reserve Your Trade Name
Choose a name that’s:
- Not offensive or religious
- Reflects your business type
- Unique and available
Al Fady handles trade name reservation and legal review.
Step 4: Get Initial Approvals
Depending on the activity, approvals may be needed from:
- Dubai Municipality
- Dubai Chamber of Commerce
- DED or Free Zone Authority
- External regulators like RTA, DHA, KHDA (if applicable)
Step 5: Draft & Submit MOA or LSA Agreement
The Memorandum of Association (MOA) is required for LLCs. In case of a sole proprietor, an LSA (Local Service Agent) agreement may be needed.
We draft and notarize this on your behalf.
Step 6: Submit License Application
Compile and submit:
- Passport copies of owners
- Residency visas (if any)
- NOC from sponsor (if UAE resident)
- Initial approval letter
- Trade name certificate
- MOA/LSA
Step 7: Get the License & Start Trading
Once approved, your trade license is issued within 3–7 working days. You can now:
- Open a UAE bank account
- Sign leases
- Apply for visas
- Start doing business legally
Cost of Trade License in Dubai (2025)
The price varies based on:
- Business activity
- Free Zone or mainland jurisdiction
- Office location or virtual desk
- Number of visas required
Average trade license costs:
- Free Zone license: AED 12,000 – AED 25,000
- Mainland license: AED 15,000 – AED 35,000
At Al Fady, we provide transparent quotes—no hidden fees, no surprise delays.
Renewing a Trade License in Dubai
Trade licenses are valid for one year and must be renewed annually. Delays can result in fines or legal penalties.
To renew:
- Update tenancy contract (must be EJARI registered)
- Renew external approvals if needed
- Submit documents online or through a consultant like Al Fady
- Pay renewal fee
We offer Ejari renewal services and handle trade license renewal for mainland and Free Zone clients.
Why Choose Al Fady for Trade License & Business Setup?
✅ 10+ Years of UAE Market Experience
✅ 100% Transparency on Pricing & Process
✅ Fast PRO & Visa Processing
✅ Complete Business Setup Packages
✅ After-License Support: Banking, VAT, branding & more
We don’t just get your license—we help you build a strong, compliant business from day one.
➡️ Start your Dubai business with Al Fady
FAQs
❓How long does it take to get a trade license in Dubai?
Typically 3–7 business days, depending on activity and approvals.
❓Do I need a local partner for a trade license?
Not always. Free Zones allow 100% foreign ownership. Some mainland licenses now also offer 100% expat ownership.
❓Can I operate my business outside the Free Zone with a Free Zone license?
No, unless through a distributor or mainland branch. A mainland license allows full UAE operations.
❓What happens if I don’t renew my trade license?
You may face penalties, fines, and even business blacklisting. Always renew before expiry.
Final Words
Securing a trade license in Dubai is the official gateway to building a legally recognized and profitable business in the UAE. Whether you’re selling online, offering consulting services, or planning a retail shop—this license makes it all happen.
With Al Fady Business Setup by your side, you get:
- Expert advice
- Fast, accurate processing
- Ongoing support
Let’s make your business dream in Dubai a reality—reach out now for your free consultation.