Step-by-Step Guide with Cost and Requirements For How to Get a Trade Licence in Dubai

Getting a trade licence in Dubai is the main step that turns your business idea into a legal company. Whether you are planning to open an online store, consultancy, or trading business, you’ll need a valid licence to operate legally in the UAE.

Many first-time business owners think it’s a complicated process, but if you understand the steps clearly, it’s actually quite simple. Here’s a detailed, step-by-step guide that explains everything from choosing your licence type to knowing the real costs and requirements in 2025.

1. What Is a Trade Licence?

A trade licence is an official document issued by the Dubai economic authorities that allows you to carry out your specific business activity legally. It proves that your company is registered, approved, and compliant with UAE business laws. Without it, you cannot open a company bank account, apply for visas, or even advertise your business.

Main licence categories in Dubai:

Commercial Licence – For trading or selling goods (import/export, wholesale, retail)
Professional Licence – For service providers, consultants, freelancers, marketing, IT, etc.
Industrial Licence – For manufacturing, packaging, or production activities
Tourism Licence – For travel agencies, tourism companies, or hotel operators
E-Commerce Licence – For online businesses and digital selling

2. Choose Where to Register – Mainland or Free Zone

Before you apply, you need to decide where to get your licence.

Mainland Licence: Issued by the Dubai Department of Economy and Tourism (DET). It allows you to trade freely across the UAE and take local clients.
Free Zone Licence: Issued by individual Free Zone authorities (like IFZA, DMCC, or RAKEZ Free Zone. It allows 100% foreign ownership and is ideal for online or international businesses.

• If your clients are mostly in Dubai or across the UAE, go for a Mainland licence.
• If your clients are international, a Free Zone licence is often more affordable and faster to get.

3. Choose a Business Name:

Your company name must follow UAE naming rules.
Avoid religious or offensive words, and make sure the name matches your activity.

Example:
✅ “Bright Consulting Services FZE” (accepted)
❌ “Bright Mafia Consulting” (rejected)

Your chosen name will be reserved by the authority once approved.

4. Prepare the Required Documents

You’ll need the following basic documents for most setups:

• A passport copy of all shareholders and managers
• Passport-size photo
• Residence visa copy or entry stamp
• NOC (No Objection Certificate) from the sponsor if already on a UAE visa
• Business plan (for specific activities)
• In most Free Zones, you can submit everything online. Mainland setups may require physical submission at the DET or through a business consultant.

5. Choose Your Office Option

In Dubai, every business must have an office, but there are flexible options depending on your budget and business type:

• Flexi Desk: Shared workspace, affordable for startups (available in most Free Zones)
• Dedicated Office: Private workspace for your team
• Warehouse / Industrial Space: For logistics or manufacturing
• Virtual Office (for some licences): Online registration with minimal space requirement

The type of office you choose also decides how many visas you can apply for later.

6. Submit the Application & Pay the Fees

Once you have selected your licence type, name, and location, it’s time to submit your final application.
You’ll need to pay:

• Licence registration fee
• Name reservation fee
• Office rent (if applicable)
• Visa and establishment card fees
• After payment, you’ll receive your Trade Licence usually within 5 to 10 working days in Free Zones, or 10 to 14 days for Mainland.

7. Open a Business Bank Account

With your trade licence in hand, you can now open a UAE business bank account.

Most banks will ask for:

• Trade licence copy
• Office tenancy contract
• Passport and visa copy
• Business plan or company profile
• Choose a bank that matches your transaction needs (for example, Emirates NBD, Mashreq, or Wio Business for online banking).

8. Apply for Residence Visas

Once your licence is issued, you can sponsor yourself, employees, and family members for residence visas.

Typical process:

• Entry permit
• Medical test and Emirates ID registration
• Visa stamping
• Each visa costs around AED 3,000 – 5,000 depending on the authority and type of package you choose.

9. Know the Renewal Process and Costs

Every Dubai business licence must be renewed annually.
Don’t forget to budget for:

• Licence renewal fee
• Office lease renewal
• Visa renewal (if applicable)
• Average yearly renewal cost:

Free Zone: AED 6,000 – 12,000
Mainland: AED 10,000 – 15,000
Keep all your documents and receipts ready to avoid late renewal penalties.

10. How Much Does It Really Cost?

Free Zone Setup:

Basic packages: AED 6,000 – 15,000 (may include 1 visa)
E-commerce or service licence: AED 8,000 – 12,000
Renewal: AED 6,000 – 10,000

Mainland Setup:

Trade licence: AED 10,000 – 18,000
Office rent: From AED 5,000 annually
Visa cost: AED 3,000 – 5,000
These are average figures actual costs depend on your business activity and selected authority.

Getting a trade licence in Dubai is easier than most people expect, as long as you understand your options and prepare your documents correctly. Start with the right licence type and authority, choose an office that fits your budget, and plan your renewals early. Once your business is registered, focus on building visibility online and reaching the right clients. That’s where your real success begins.