Learn how to get a trade license in Dubai with BMS Auditing. We simplify licensing for Free Zone, Mainland, and Offshore businesses. Expert help, fast process.
Acquiring a trade license in Dubai is a crucial step for anyone seeking to set up a business in this competitive global market. As a regulatory requirement issued by the Department of Economic Development (DED), the license guarantees adherence to local regulations and lends credibility to your operations.
With varied license options suited to different business structures and activities, BMS Auditing streamlines the licensing process, making it easy for entrepreneurs and investors to easily manage all compliances.
Types of Trade Licenses
A trade license is an official permit that authorizes individuals or companies to legally conduct business activities in Dubai. Issued by the DED or relevant Free Zone authorities, it confirms adherence to Dubai’s legal and regulatory frameworks. There are three primary categories:
- Commercial License – For businesses involved in trading activities.
- Professional License – For individuals and firms providing services.
- Industrial License – For manufacturing or industrial operations.
The license must be renewed annually to maintain legal standing and continue operations without penalties. Some licenses may have a validity of two or three years.
Mainland, Free Zone, and Offshore Licenses
Understanding the licensing authorities is key to selecting the right business structure:
Free Zone License
Issued by Free Zone authorities, these licenses allow:
- 100% foreign ownership
- No import/export duties
- Full profit repatriation
- Best for businesses focused on international operations.
Offshore License
Ideal for businesses not intending to operate within the UAE. Offers:
- Asset protection
- Tax neutrality
- Confidentiality
Popular among holding companies and asset managers.
Mainland License
Issued by the DED, this license allows:
- Direct trading across the UAE
- Office space flexibility - you can set up anywhere in the Dubai Mainland
- The ability to bid for government tenders
Best for businesses targeting the UAE market as a whole.
Types of Trade Licenses in Dubai
Dubai offers several license types based on your business nature:
- Professional License: For consultancy, legal, medical, or other expert services.
- Commercial License: For trading, import/export, and retail businesses.
- Industrial License: For businesses engaged in manufacturing.
- General Trading License: Enables trade in a wide range of goods.
- E-Commerce License: For digital and online business activities.
Choosing the right type is crucial for compliance and long-term business success.
Benefits of a Trade License in Dubai
- Tax Efficiency: No personal income tax and favorable corporate tax structures.
- Local & Global Reach: Engage in regional and international trade with ease.
- Strategic Location: Dubai’s central location enhances logistics and global connectivity.
- Enhanced Credibility: A valid license builds trust with customers and partners.
- Visa Sponsorship: License holders can sponsor employees and family members.
- Efficient Setup: Fast-track approvals and minimal bureaucracy.
- Government Support: Pro-business policies and streamlined regulations.
Steps to Get a Trade License in Dubai
- Choose a Trade Name – Ensure it’s unique and compliant with UAE naming rules.
- Select Business Structure – Sole proprietorship, LLC, branch office, etc.
- Define Business Activities – Up to 10 activities per license.
- Apply for Initial Approval – Submit to DED or Free Zone authority.
- Prepare Documentation – Including passport copies, Ejari contract, and MoA.
- Choose Business Location – Mainland offices need an Ejari contract; Free Zones may offer flexi-desks.
- Pay Fees & Receive License – Upon approval, make the payment to obtain your license.
Cost of Trade License in Dubai
The total cost depends on various factors such as business type, activity, and location. Typical ranges include:
- General License Cost: AED 15,000 – AED 50,000
- E-Trader License (For UAE/GCC Nationals and select nationalities): From AED 1,070 (plus additional government fees)
- Activity-Based Costs: Vary by sector (e.g., real estate, construction)
Additional expenses may include name reservation, approvals, or notarization fees. BMS Auditing offers tailored pricing and expert advice to streamline the process.
Documents Required
- Passport copies of shareholders
- UAE visa and Emirates ID copies (if applicable)
- No Objection Certificate (NOC) from current employer (if applicable)
- Business plan (for some activities/Free Zones)
- Tenancy contract (Ejari) where applicable
- Completed license application
Trade License Approval Timeline
- Mainland License: 2 to 8 weeks, depending on approvals and documentation
- Free Zone License: Typically 2 to 4 weeks
- Instant License: Available for select low-risk activities (within 24 hours)
How to Renew a Trade License in Dubai
Trade license renewal is required annually. Key steps include:
- Secure any necessary industry-specific approvals
- Clear outstanding fines or violations
- Update and validate tenancy contract
- Submit renewal form with all documents
- Pay the renewal fee
It’s advisable to begin the renewal process at least one month before expiry to avoid penalties or business disruption.
Partner with BMS Auditing for Hassle-Free Business Setup in Dubai
With extensive experience in company formation and compliance in the UAE, BMS Auditing ensures a seamless process from license acquisition to renewal. Let our team guide you through every step—efficiently and cost-effectively.
As a business success partner, we ensure a seamless setup process and guide you through operational efficiency and compliance processes such as accounting, tax, financial audits, ICV certification, and so much more: we go the extra mile for you.
Call us today, and experience exceptional support from the BMS Team!
