Dubai Trade License: Types, Costs and How to Get One in 2026

Quick answer: A Dubai trade license is the permit that lets a business operate in Dubai, issued by the Department of Economy and Tourism (DET) on the mainland or by a free zone authority. The main types are commercial, professional and industrial, plus tourism, agricultural and crafts. Cost depends on activity, office, visas and location, so compare full first-year quotes.

Whether you are a consultant leaving employment, a designer moving to Dubai or an e-commerce seller testing the Gulf market, almost every route to doing business legally starts with a trade licence. The good news is that the process is now largely online and foreign owners can hold most mainland companies outright. The harder part is choosing the right licence type and understanding what really drives the bill. This guide covers the Dubai trade license types, mainland versus free zone, what affects cost, a step-by-step application and how to invoice once you are licensed with our UAE invoice generator.

Note: This is general information as of 2026, not legal advice. Fees and requirements change, so confirm with DET or your chosen free zone before you commit.

What a Dubai trade license does

Your licence is the legal foundation of your business. It:

• States your trade name, legal form and approved activities.
• Lets you sign contracts, open a corporate bank account and issue invoices in the business name.
• Allows the business to apply for an establishment card and sponsor residence visas.
• Must be renewed, usually every year, to keep the business active.

If you only want to work alone for several clients without forming a company, a freelance permit may be cheaper. Our UAE freelance permit guide covers GoFreelance and similar options, so here we focus on full trade licences.

A trade licence also defines the boundaries of your business. Banks, clients and authorities compare what you do with the activities printed on the licence, so invoicing for work outside those activities can cause problems with bank compliance checks, client onboarding and renewals. Take time to choose activities that cover the services you will really sell in your first year, and remember you can usually add more later through an amendment.

Dubai trade license types

The UAE government portal notes that the Ministry of Economy lists six licence types: industrial, commercial, professional, tourism, agricultural and crafts. Invest in Dubai adds Dubai-specific products. The table summarises the ones small businesses meet most often.

Licence type	Typical activities	Good fit for
Commercial	Trading goods, import and export, general trading, retail	Shops, distributors, e-commerce with stock
Professional	Consulting, design, IT, marketing, training and other skill-based services	Consultants, agencies, solo service providers
Industrial	Manufacturing, processing, assembly	Factories and workshops
Tourism	Travel agencies, tour operators, hospitality services	Travel and tourism businesses
Agricultural and crafts	Farming-related and artisan activities	Niche producers
eTrader	Selling online through social media or websites	Home-based online sellers
Intelaq and instant licences	Home-based activities and fast-track approvals for eligible activities	Very small businesses testing an idea
Dual licence	A free zone company also licensed for mainland activity	Free zone firms selling onshore

Choosing between commercial and professional

If you sell your skills, a professional licence usually fits. If you buy and resell products, you need a commercial licence. Mixing activities is possible but can raise cost and approvals, so list only what you will actually do in the first year and add activities later.

Mainland vs free zone licence

You can get a trade licence from DET for the Dubai mainland, or from one of the many free zones in the emirate, such as those listed on the UAE government portal. The key differences:

• Market access. A mainland licence lets you trade directly across the UAE market. The government portal says free zone companies generally need a licensed mainland distributor, a mainland branch or the required approvals to sell directly onshore.
• Office. Mainland licences usually need a physical address with an Ejari-registered lease; free zones often offer flexi-desk packages.
• Ownership. Both now allow full foreign ownership for most activities.
• Tax. Free zones can offer 0% corporate tax on qualifying income, but the conditions are strict.

We compare these trade-offs in depth in our sibling guide to free zone vs mainland UAE.

Foreign ownership and local service agents

According to the UAE government portal on full foreign ownership, Federal Decree-Law No. 26 of 2020 removed the requirement for a majority Emirati shareholder in onshore companies, and the rules were later consolidated in Federal Decree-Law No. 32 of 2021. Activities of strategic impact, including security and defence, banking, insurance and telecoms, can still carry restrictions. The portal's mainland set-up steps also mention a local service agent agreement for certain companies fully owned by non-GCC residents, which is most relevant to some professional licences, so ask DET whether your structure needs one.

What drives the cost of a Dubai trade license

Published guides give very different headline prices because they bundle different things. Rather than rely on a single number, build your budget from these components:

Cost component	Mainland	Free zone
Trade name and initial approval	DET fees	Usually bundled in a package
Licence issue or renewal	DET fees, vary by activity and type	Package price set by the zone
Office or workspace	Ejari-registered lease, often the largest item	Flexi-desk or office, often included
MOA and attestation	For LLCs and some other forms	Varies by zone
Establishment card and visas	Per visa, plus medical and Emirates ID	Per visa; some packages include one or more
External approvals	For regulated activities	For regulated activities
Service provider fees	Optional	Optional

Ask for an itemised quote covering year one and renewal year two. Licence fees are often cheaper in a free zone package, while office rent and visas tend to decide the real total.

Worked example: comparing two quotes

Lina, a marketing consultant, receives two illustrative quotes for her first year. The figures below are hypothetical, used only to show how to compare offers.

Item	Quote A: mainland professional (AED)	Quote B: free zone package (AED)
Licence and registration fees	15,000	12,500
Office or desk	20,000	Included
Establishment card and one residence visa	7,000	6,500
Total first year	42,000	19,000
Monthly equivalent	3,500	1,583.33

Quote B is AED 23,000 cheaper (42,000 - 19,000). But most of Lina's clients are mainland companies in Dubai. If the free zone route means she needs extra approvals or a mainland branch to serve them directly, that cost needs adding to Quote B before she decides. For a typical AED 18,000 project, once she is VAT-registered, her invoice would show AED 18,000 + 5% VAT of AED 900 = AED 18,900.

Legal forms and documents for a Dubai business

Your licence type describes what you do; your legal form describes who owns the business and who is liable. The common choices for small businesses are:

Legal form	Where	Owners	Liability	Typical use
Sole establishment	Mainland	One individual	Unlimited, owner is the business	Small trading or professional businesses
Civil company	Mainland	One or more professionals	Partners liable for the practice	Consultancies, design and engineering practices
Limited liability company (LLC)	Mainland	One or more shareholders	Limited to capital	Growing businesses, most commercial activity
Free Zone Establishment (FZE)	Free zone	One shareholder	Limited	Solo founders in a zone
Free Zone Company (FZCO or FZ-LLC)	Free zone	Two or more shareholders, rules vary by zone	Limited	Partners and small teams
Branch	Mainland or free zone	A parent company	Parent liable	Foreign companies entering Dubai

The UAE government portal notes that the differences between free zone forms mostly come down to the number of shareholders and whether they are individuals or companies, and that not every zone offers every form. Limited liability matters most when you sign large contracts, hold stock or employ staff.

Documents you will usually need

• Passport copies for every owner and manager, plus visa or entry stamp pages for UAE residents.
• Emirates ID for UAE residents.
• Passport-size photographs.
• A completed application with the chosen activities and trade name options.
• For corporate shareholders, attested company documents, a board resolution and a power of attorney.
• For some professional activities, attested degree certificates or professional qualifications.
• A lease or Ejari certificate for mainland premises.

Documents issued abroad often need attestation in the home country and by UAE authorities, which is the most common source of delay. Start that process early if your shareholders are companies or if your activity needs proof of qualifications.

How to get a Dubai trade license, step by step

The UAE government portal sets out the mainland process. Free zones follow a similar path through their own portals.

1. Choose your activity. Pick the exact activities from DET's list or the free zone's activity list.
2. Select a legal form. Common options are sole establishment, civil company for professionals and LLC; free zones use FZE, FZ-LLC or FZCO.
3. Reserve a trade name. It must suit the activity, include the legal form and avoid religious, government or third-party names.
4. Get initial approval. This confirms there is no objection to your business, but does not yet allow you to trade.
5. Prepare the MOA and any service agent agreement. Required for LLCs and some other structures.
6. Secure a location. On the mainland, register your lease with Ejari.
7. Obtain external approvals if your activity is regulated.
8. Submit documents and pay fees. DET issues the licence through its website or service centres.
9. After issue: apply for an establishment card, visas, a corporate bank account, and tax registrations.

Timelines vary. The UAE government portal says free zone licences are typically issued within 14 working days after review and approval, and simple mainland licences can be faster, especially for activities eligible for DET's instant options. The slow parts are usually outside the licence itself: attesting documents from abroad, approvals from sector regulators, finding and registering premises, and opening a bank account. Build in a few extra weeks before you promise a start date to your first client, and keep copies of every approval and receipt, because you will need them again at renewal and when you register for tax.

Tax registrations after you are licensed

Corporate tax

Licensed businesses generally need to register for UAE corporate tax with the Federal Tax Authority, even if they owe nothing. The rate is 0% on taxable income up to AED 375,000 and 9% above it. Small Business Relief is available for revenue up to AED 3 million for tax periods ending on or before 31 December 2026. Our UAE corporate tax guide covers registration deadlines and relief in detail.

VAT

VAT registration is mandatory once taxable supplies exceed AED 375,000 over 12 months and voluntary above AED 187,500. See our UAE VAT registration guide for EmaraTax steps, and our explainer on the TRN number for where it goes on invoices.

Invoicing and staying compliant

Your invoices should match your licence exactly. Include the trade name as licensed, the licence number, address, and your TRN once VAT-registered. VAT-registered businesses must also follow the content rules in our UAE tax invoice requirements guide. Many clients appreciate bilingual documents, so consider an Arabic-English invoice. Plan ahead for structured e-invoicing too: our guide to UAE e-invoicing in 2027 explains the timeline.

Renewal and staying compliant

• Renew the licence before expiry; late renewal can mean fines and blocked visa services.
• Keep your Ejari lease current if your licence depends on it.
• Update DET or the free zone when you add activities, partners or change your trade name.
• File corporate tax returns within nine months of your financial year end, and VAT returns on time if registered.
• Keep invoices and records for the periods the tax law requires.

A simple compliance calendar helps: note your licence expiry, lease end date, visa expiries, corporate tax return deadline and, if registered, VAT return dates in one place. Set reminders a month ahead of each. Most penalties small Dubai businesses pay come from missed renewals and late filings rather than from complicated tax positions, and every one of them is avoidable with a calendar and clean records.

Create invoices for your Dubai business

A Dubai trade license is easier to obtain than ever, but the right licence type and location decide your real costs and who you can serve. Once you are licensed, send professional invoices from day one: use our free invoice generator with your licence details and TRN, and pick a polished layout such as the modern invoice template. It is free, needs no account, and exports a print-ready PDF invoice.