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Trading License Cost in Dubai, UAE – Complete Guide (2026)
Trading License Cost in Dubai is a crucial factor every entrepreneur must understand before starting a business in the UAE.
Dubai has become a global business hub due to its strategic location, modern infrastructure, tax advantages, and business-friendly regulations. Whether you plan to trade locally or internationally, obtaining the right trading license is mandatory.
In this guide, we explain what a trading license is, types of trading licenses, documents required, step-by-step process, and a detailed breakdown of trading license cost in Dubai, helping you plan your business with clarity and confidence. This detailed guide on Trading License Cost in Dubai helps entrepreneurs plan their business setup with clarity and confidence.
What is a Trading License in Dubai?
A trading license in Dubai is an official permit issued by the Department of Economic Development (DED) or a relevant Free Zone Authority. It allows businesses to legally conduct commercial activities such as buying, selling, importing, exporting, and distributing goods within the UAE and internationally. Understanding the Trading License Cost in Dubai is important for budgeting and selecting the right business jurisdiction.
A valid trading license ensures that business operations comply with UAE commercial laws and regulations. It is required for retail shops, wholesale businesses, general trading companies, and international trading operations.
With a trading license, businesses can operate either on the Dubai Mainland or within a Free Zone, depending on their operational needs.
Types of Trading Licenses in Dubai
The Trading License Cost in Dubai can differ based on the type of license selected and business activity.
Commercial License
A commercial license is issued to businesses involved in trading goods and commodities. It allows companies to import, export, distribute, and sell products locally and globally. This license is ideal for retailers, wholesalers, and trading companies.
Industrial License
Businesses engaged in manufacturing, processing, or assembling goods require an industrial license. This license allows the purchase of raw materials, production of goods, and export after manufacturing. An office or warehouse facility is usually mandatory.
Professional License
A professional license is issued for service-based and consultancy activities such as IT services, education, healthcare, and professional consulting. This license is commonly issued to individuals with expertise in specific fields.
Tourism License
Businesses operating in the tourism sector, including travel agencies and tour operators, must obtain a tourism license. This license ensures compliance with regulations set by Dubai’s tourism authorities.
Documents Required to Obtain a Trading License in Dubai
- Completed Application Form: This includes information about the business activity, trade name, and company structure.
- Passport Copies: Provide copies of passports for all shareholders, partners, and managers participating in the business.
- Proof of Residency: Depending on the visa status, one may need to provide a copy of resident visa or a No Objection Certificate (NOC) from the sponsor.
- Trade Name Reservation Certificate: Get this approval from the Department of Economic Development (DED) or the applicable free zone authority.
- Initial Approval Certificate: This document confirms that the authorities do not oppose anticipated business operations.
- Memorandum of Association (MOA):This certificate explains the structure and processes of a firm with many shareholders.
- Tenancy Contract and Ejari Certificate: Establishing a mainland firm requires a registered lease agreement and Ejari certificate.
- Business Plan: Some areas may require to provide a detailed business plan covering objectives, expected market and predictions about finances.
- Additional Approvals: Some company matters such as launching health or telecommunications services, must get approval from government regulators.
Proper documentation ensures a smoother and faster licensing process.
Steps to Obtain a Trading License in Dubai
The Trading License Cost in Dubai varies depending on jurisdiction, business activity, and operational requirements.
Step 1: Choose the Business Jurisdiction
The initial step in getting a trading license in Dubai is to find out if the company will operate on Mainland or in a Free Zone. The choice of jurisdiction will affect which authority to work with, what ownership options are open to access and the limits of business activities.
A mainland license allows one to do business anywhere in the UAE and worldwide, but a Free Zone license permits tax exemptions and complete control by foreign shareholders, yet one needs a local distributor to trade beyond the Free Zone.
Step 2: Select the Trade Name
Choose a name that complies with all applicable laws and regulations for your company. The name of the company should be unique, reflect its activities, and not offend anyone. Some name possibilities must be submitted to the Department of Economic Development (DED) or the Free Zone authority to make sure they are accepted. After approval, the name is set aside and no other business entity can use it.
Step 3: Determine Business Activities & Legal Structure
When applying for a trade license, it’s important to list the commercial activities your business will undertake, as these will be specified on the license. Some activities may require a local sponsor or partner to comply with regulations. While you can conduct multiple trading operations under a single permit, all activities must be pre-approved by the relevant authorities to ensure compliance.
Simultaneously, decide on how the company will be organized- either an Limited Liability Company (LLC), Sole Proprietorship or Civil Company, depending on your business needs and ownership goals. The business structure will play a role in a business’s liability, how the owner is taxed and how the company is run.
Step 4: Apply for Initial Approval
It is required to get initial approval from the DED or Free Zone authority before moving ahead with the business license. This means the government supports the planning for the business activities. This opens the door for drafting legal paperwork and looking for office space.
Step 5: Prepare Required Documents
In this step, all necessary documents must be ready for submission. Typically, a passport, visa and Emirates ID copies from the business owner(s), the initial approval certificate and a completed application form is required.
One should also write the Memorandum of Association (MOA) which covers the company’s organization and the roles of each partner. Since every Free Zone has its own regulations, certain paperwork may change in its requirements during free zone company setup.
Step 6: Obtain External Approvals (If Required)
Before doing some business activities in Dubai, there might be needed permission from other authorities or ministries. If a business trades anything from health products to food or electronics, one might be obliged to get extra permits from the right authorities. Be sure to see if you need any licenses or permissions before preparing the main application, so there are no issues afterwards.
Step 7: Secure a Business Location
In order to conduct business in the Mainland, it is required to obtain a physical office space. For the premises, it is needed to sign an Ejari lease agreement and register it with the authority in Dubai. It requires bringing the tenancy contract when applying for a license. In these zones, many startups and small businesses often find virtual office options to be flexible for their needs.
Step 8: Submit the Final Application
As soon as documents and approvals are done, send the complete application form with all required documents to the DED or the Free Zone authority. Make sure to get all your information approved by UAE authorities because any inconsistency could cause rejection.
Step 9: Make the Payment
After the final check of application, the licensing authority will send a payment voucher. This document explains what is to be paid for the trade license to get issued. Payment must be made right away through the given ways to finish the application process.
Step 10: Receive the Trading License
If payment is made successfully and verification of information is done, a trading license is given. The permit makes trading business in Dubai. Besides, other necessary certificates will be handed such as company registration and establishment cards, to help operate legally from the start.
Step 11: Renew the Trading License
Trade license renewal is a mandatory process and must be renewed annually to ensure legal business operations in Dubai. Failing to complete the renewal on time can result in fines or penalties, so renewing a trade license should be prioritized each year.
Cost Breakdown of Trading License in Dubai
Below is a clear and practical breakdown of Trading License Cost in Dubai for mainland and free zone companies. The cost of a trade license in Dubai depends on the type of business as well as where it is operated. Here is the detailed breakdown of trading license cost in Dubai:
Mainland Setup
- License Fee: AED 12,500* – AED 15,000*
- DED Activity Code Fee: AED 15,000*
- Trade Name Reservation: AED 600* – AED 2,000*
- Initial Approval Fee: AED 120* – AED 220*
- Memorandum of Association (MOA) Notarization: AED 500* – AED 1,000*
- Office Rent: AED 15,000* – AED 50,000* annually
- Market Fee:5% of annual office rent
- Visa Fees: AED 4,000* – AED 7,000* per visa
- Medical & Emirates ID:AED 1,000* – AED 2,000* per visa
- PRO Services: AED 5,000* – AED 10,000* annually
- Service Agent Fees (Local Sponsor):AED 5,000* – AED 15,000* annually
Total Estimated Cost (1st Year):Range from AED 50,920* – AED 107,520*
Free Zone Setup
- License Fee: AED 10,000* – AED 50,000*
- Trade Name Reservation: Included in package
- MOA Notarization: Included in package
- Office Rent: AED 10,000* – AED 50,000* annually
- Visa Fees: AED 3,000* – AED 5,000* per visa
- Medical & Emirates ID:AED 1,000* – AED 2,000* per visa
- PRO Services: AED 1,500* – AED 5,000* annually
- Additional Approvals/Permits: Included in package
Total Estimated Cost (1st Year):Range from AED 25,500* – AED 112,000*
Note: Based on the specific free zone chosen and the nature of your business activities, the actual cost of license in Dubai can vary.
Additional Considerations
- Customs Registration Fees:
- Import/Export/Transit: AED 15* – AED 100*
- Transfer: AED 80*
- Trademark Registration: AED 620*
- Document Clearing Costs: AED 150* per document
- Notarization of MOA: AED 350*
- Sponsorship Fees: AED 6,000*
The overall cost of trade license in Dubai varies depending on the nature of the business and the location chosen. To gain the best and most correct information, work with a business setup specialist like Al Hikma Al Ghaliba Legal Translation or any other relevant authorities.
Key Benefits of Holding a Trading License in Dubai
Understanding the Trading License Cost in Dubai helps businesses evaluate long-term operational and financial benefits.
Legal Authorization for Business Operations
Holding a trading license lets the company follow the rules set by Dubai to stay protected from legal risks ensuring law.
Unrestricted Access to Local Markets
A trading license gives authorization to cross-trade goods, which stimulates business growth both locally and through international trade.
Enhanced Credibility and Trustworthiness
A trade license allows a company to gain a better reputation among clients, suppliers and banks, making it easier to win additional trust and work together.
Attractive Tax Benefits
Dubai ensures that businesses take advantage of no personal income tax and preferable rules for company taxes to maximize their profitability.
Facilitation of Corporate Banking Services
Opening a business bank account in Dubai must have a trading license to make easier and secure financial activities.
Sponsorship Privileges
With a license, sponsoring employees and dependents becomes easier, so that visa and residency processes are quick when families relocate for work.
Strategic Geographic Advantage
The strategic location of Dubai makes it a leading trade center enabling business to benefit from excellent connections to important markets in Asia, Europe, Africa and the Middle East.
Business-Friendly Ecosystem
The excellent support from the government and the positive business environment help build the market. Legitimate companies gain from clear rules, helpful incentives from the government and straightforward systems that encourage quick start-up and on-going growth.
Conclusion
Understanding the trading license cost in Dubai is essential for planning a successful business setup. While costs vary based on jurisdiction and activity, proper planning helps avoid delays and unexpected expenses.
Dubai continues to attract entrepreneurs due to its stable economy, strategic location, and supportive business ecosystem, making it an ideal place to start and grow a trading business. By clearly understanding the Trading License Cost in Dubai, business owners can avoid unexpected expenses and start operations smoothly.
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FAQs
Which Factors Determine Trade License Fees In Dubai, UAE?
The cost depends on business activity, legal structure, jurisdiction (Mainland or Free Zone), office space, and visa requirements.
How do business setup options affect license cost?
Mainland, Free Zone, and Offshore setups have different fee structures, ownership rules, and operational costs.
Are there hidden costs in trading license setup?
Additional costs may include name reservation, government approvals, office rent, visa fees, and document clearing charges.
This blog is intended for informational purposes only. The content is provided “as is” and we make no representations or warranties of any kind regarding its accuracy, completeness, or suitability. Any reliance on the information is at your own risk. We are not liable for any losses or damages arising from the use of this blog.
* – Fees and Costs Mentioned are for Reference Only.