A trade license in Dubai is a permit issued by the Dubai Department of Economy and Tourism (DET) that authorizes a business to legally operate and conduct specific commercial activities within the emirate. Without one, a company cannot open a UAE bank account, hire staff, sign contracts, or trade in the local market.
Dubai currently recognizes eight main activity-based license types, each tied to a specific category of business. Choosing the wrong type affects your ownership rights, visa eligibility, and ability to sell directly to UAE customers. This guide breaks down each license type, who it applies to, and what the setup actually costs in 2026.
Key Takeaways
- Dubai recognizes 8 activity-based trade license types: Commercial, Industrial, Professional, Tourism, Agriculture, Craftsmanship, General Trading, and E-Commerce, each issued under the DET framework.
- Since the UAE Commercial Companies Law amendment (Federal Decree-Law No. 32 of 2021), 100% foreign ownership is permitted in most mainland business activities, not just in free zones.
- A standalone DET mainland license starts at approximately AED 12,000 per year. A full company setup package including visa and bank account assistance starts from USD 8,000 (Free Zone) or USD 12,500 (Mainland) with InvestinAsia.
- Every license type can be obtained on the mainland (DET) or inside one of Dubai’s 40+ free zones. The jurisdiction choice determines trading rights, tax treatment, and office requirements.
- The Instant License through the Invest in Dubai portal can be issued in as little as five minutes for eligible activities and legal forms.
What Is a Trade License in Dubai?
A trade license is the foundational document of any business registered in Dubai. It defines what your company is legally permitted to do, who owns it, and under which jurisdiction it operates.
The license is issued either by the DET for mainland companies or by the relevant free zone authority for free zone businesses. It must be renewed annually. Operating without a valid license can result in fines, business closure, or visa cancellation for the business owner.
Dubai’s licensing framework draws from Federal Law No. 1 of 1979 (UAE Industries Act for industrial activities), Federal Decree-Law No. 32 of 2021 (revised Commercial Companies Law), and DET’s own administrative regulations. Understanding which regulation governs your business type helps you apply for the right license from the start.
Also read; How to Register a Company in Dubai: Complete Guide for Foreign Investors (2026)
How Many Types of Trade Licenses Exist in Dubai?
The DET currently recognizes eight types of trade licenses based on business activity. Each type covers a distinct category of operations. A single license can list up to 10 related business activities, except for a General Trading License, which covers an unrestricted range of product categories.
| # | License Type | Best For | Example Activities |
|---|---|---|---|
| 1 | Commercial | Buying, selling, distributing goods | Electronics retail, logistics, car rental |
| 2 | Industrial | Manufacturing and production | Food processing, textiles, metal fabrication |
| 3 | Professional | Skill-based service providers | Consulting, accounting, medical, design |
| 4 | Tourism | Travel and hospitality | Travel agencies, hotels, tour operators |
| 5 | E-Commerce | Online sales and digital services | Online stores, apps, digital platforms |
| 6 | General Trading | Multi-category traders | Diverse product lines, re-export, wholesale |
| 7 | Agriculture | Farming and agri-business | Crop cultivation, pesticide trading, greenhouses |
| 8 | Craftsmanship | Skilled trades | Plumbing, carpentry, electrical work |
What Is a Commercial License in Dubai?
A commercial trade license from the DET authorizes a company to buy, sell, import, export, and distribute specific goods or services. It is the most widely issued license type in Dubai and covers activities including retail, wholesale, logistics, real estate brokerage, and car rental.
Each commercial license can list up to 10 related business activities. If your product range spans multiple unrelated categories, you need a General Trading License instead.
Foreign Ownership on a Commercial License
Since Federal Decree-Law No. 32 of 2021 took effect, foreign investors can hold 100% ownership of a mainland commercial company in most sectors. The previous requirement for a 51% UAE national shareholder was removed for the vast majority of commercial activities.
The exception applies to strategic sectors such as oil and gas, defense, and certain government-regulated fields. Verify your specific activity with the DET before applying if you operate in a regulated sector.
Foreign investors operating inside a free zone have always held 100% ownership automatically, without restriction. The 2021 reform brought the mainland largely in line with free zone ownership rules.
What Is a Professional License in Dubai?
A professional license in Dubai covers businesses where the primary output is expertise, skill, or intellectual service rather than a physical product. Typical holders include management consultants, architects, lawyers, accountants, IT specialists, medical practitioners, and marketing agencies.
Professional license holders on the mainland have held 100% foreign ownership rights even before the 2021 reform. This is because professional activities are tied to an individual’s qualifications and cannot be “owned” by a local partner in the same way a trading business can be.
Local Service Agent Requirement
For certain professional activities on the mainland, non-GCC foreign nationals are required to appoint a Local Service Agent (LSA). The LSA holds no equity in the business. They act only as a nominal government liaison for administrative procedures.
This requirement varies by activity type and legal structure. In practice, many foreign service businesses choose free zone professional licenses to avoid the LSA step entirely, since free zones do not require one.
What Is an Industrial License in Dubai?
An industrial license authorizes businesses to manufacture, process, or assemble goods. The UAE Industries (Development and Regulations) Act of 1951 makes this license mandatory for any company that transforms raw or imported materials into finished or semi-finished products for sale.
Industrial license holders include companies in food processing, textiles, metal fabrication, chemical production, paper manufacturing, and equipment assembly. The license grants the right to establish and operate a factory or industrial facility within Dubai.
Where to Set Up an Industrial Business
Mainland industrial businesses must lease approved industrial land or a warehouse in designated zones such as Al Quoz or Jebel Ali. Many manufacturers also choose the Jebel Ali Free Zone (JAFZA) for direct port access, streamlined customs procedures, and proximity to major logistics infrastructure.
What Is a Tourism License in Dubai?
A tourism license covers businesses operating in Dubai’s travel and hospitality sector. Eligible activities include inbound and outbound tour operations, travel agencies, hotel management, cruise services, guest houses, restaurants, and desert safari camps.
Tourism licenses differ from other license types in one important way: they require additional approval from Dubai’s Department of Tourism and Commerce Marketing (DTCM) before the DET issues the final license. This adds a step to the application timeline that applicants should factor in.
What Is an E-Commerce License in Dubai?
An e-commerce license authorizes a business to sell goods or services through electronic platforms, including websites, mobile apps, and online marketplaces. It is one of the fastest-growing license categories in Dubai, reflecting the UAE’s rapid shift toward digital commerce.
This license is available on the mainland through the DET and across many free zones. Free zone e-commerce licenses are often more affordable and may include dedicated warehousing and logistics support for businesses focused on cross-border fulfillment and re-export.
Is an E-Commerce License the Same as a Commercial License?
Not exactly. A commercial license covers physical trading operations. An e-commerce license specifically authorizes digital sales channels. If you run both a physical retail presence and an online store, you may need to add both activities to your license, or apply for the appropriate license type that covers your dominant channel.
What Is a General Trading License in Dubai?
A general trading license is a broad commercial license that allows a company to trade in an unrestricted range of goods and product categories under a single document. Unlike a standard commercial license, it does not limit you to 10 related activities. You can trade in electronics, food products, consumer goods, industrial equipment, and apparel simultaneously.
This license is the preferred choice for wholesale distributors, re-exporters, and supply chain operators who need to handle multiple product lines without applying for separate activity approvals. It is also common among Dubai-based trading companies that invoice international clients across various industries.
A general trading license costs more than a standard commercial license. Annual DET fees are higher, and the license is typically easier to obtain in a free zone than on the mainland. Many international traders who use Dubai as a re-export hub choose a free zone general trading license for this reason.
What Are Agricultural and Craftsmanship Licenses in Dubai?
An agriculture license covers crop cultivation, greenhouse installations, pesticide and fertilizer trading, and agricultural consultancy. The DET issues it with additional approvals required from the Ministry of Climate Change and Environment. This is a niche license primarily relevant to agri-business operations inside or near the UAE’s agricultural zones.
A craftsmanship license is for skilled tradespeople, including plumbers, carpenters, electricians, and specialized technicians. It applies to both individual craftsmen and companies that employ certified tradespeople to perform hands-on skilled work within Dubai. Relevant approvals may be required from Dubai Municipality depending on the specific trade.
Both license types account for a small share of total DED registrations. Foreign investors pursuing these activities should verify the precise activity codes and the sequence of approvals with the DET before starting an application.
Getting the DET activity code right on the first application matters more than most setup guides explain. The DET’s approved activity list runs to over 2,000 entries. Choosing the wrong code can delay your license, require a paid amendment, or restrict the activities you can invoice against. For foreign investors unfamiliar with the local classification system, this is one area where professional guidance saves more than it costs.
If you are still working out which license type and jurisdiction fit your specific business, InvestinAsia’s Dubai market entry team can confirm the right structure before you apply.
Not Sure Which License Type Your Business Needs?
One wrong activity code means amendments, delays, and wasted fees. InvestinAsia confirms the right structure before you apply.
Mainland vs Free Zone vs Offshore: Which License Jurisdiction Do You Need?
When people ask about types of trade license in Dubai, they are often asking two questions at once. The first is about the activity type: commercial, professional, industrial, and so on. The second is about the license jurisdiction: where the license is issued and what it allows the company to do inside or outside the UAE. Both decisions shape your setup.
Mainland License (DET-Issued)
A mainland license from the Dubai Department of Economy and Tourism allows your company to operate anywhere in the UAE without restriction. Mainland businesses can serve local consumers, open retail stores or warehouses, participate in government tenders, and trade directly across the UAE market.
Mainland companies must lease a physical office space registered through the Ejari system. Since 2021, most activities permit 100% foreign ownership. Corporate tax of 9% applies on annual profits exceeding AED 375,000, with profits below this threshold taxed at 0%.
Also read: Dubai Tax Rate and Regulations 2026: Complete Guide for Every Entity
Free Zone License
A free zone license is issued by one of Dubai’s 40-plus free zone authorities, including JAFZA, DMCC, DAFZA, Dubai Silicon Oasis, and many others. It allows 100% foreign ownership, full profit repatriation, and in most cases 0% corporate tax on qualifying income under Federal Decree-Law No. 47 of 2022.
The trade-off is trading access. Free zone companies cannot sell directly into the UAE mainland market without appointing a local distributor or setting up a licensed mainland branch. They work best for international operations, digital businesses, consultancy, re-export, and companies whose primary clients sit outside the UAE.
Offshore License
An offshore company in Dubai, typically issued by authorities such as JAFZA Offshore or RAK International Corporate Centre, holds assets and conducts international operations without a physical presence inside the UAE. It cannot hire staff locally, lease an office, or trade within the UAE market.
Offshore structures are used primarily for holding companies, international trading vehicles, and asset protection arrangements. They are not suitable if you plan to operate a business, employ staff, or invoice clients from within Dubai.
Also read; Free Zone vs Mainland in Dubai: What Foreign Investors Must Know
Notes from InvestinAsia Consultants
One pattern we see regularly: clients assume they need a general trading license when a commercial license with five to seven carefully chosen activities would serve them just as well, at a fraction of the annual cost. A general trading license is the right call when your product range is actually diverse and changes unpredictably from year to year. If you can define your products in advance, a targeted commercial license is almost always more cost-effective and simpler to renew. The same logic applies to the jurisdiction choice: many foreign founders default to free zone because it sounds simpler, when their actual business model requires UAE market access and a mainland structure makes more sense.
How Much Does a Trade License in Dubai Cost?
The cost of a Dubai trade license depends on the license type, the number of business activities listed, whether you apply on the mainland or through a free zone, and whether you include supporting services such as a visa and bank account setup.
Fees below are approximate and subject to change. Verify current rates with the DET or your chosen free zone authority before budgeting.
| Cost Component | Approximate Amount | Notes |
|---|---|---|
| DED License Fee (base, annual) | From AED 12,000 | Varies by activity type |
| Activity Fee (per activity) | AED 150 to AED 500 | Per activity listed on the license |
| Initial Approval Fee | AED 120 | Applied via Invest in Dubai portal |
| e-Trader License (home business) | AED 1,070 + AED 300 (Chamber) | For Dubai-based home businesses only |
| Annual Renewal Fee | Similar to initial fee | Late renewal triggers additional fines |
| Full Setup Package, Free Zone LLC (InvestinAsia) | From USD 8,000 | Includes 2-year visa, Emirates ID, bank account guidance |
| Full Setup Package, Mainland LLC (InvestinAsia) | From USD 12,500 | Includes MOA notarization, Ejari, 2-year visa, bank account |
The InvestinAsia setup packages include business name reservation, Memorandum of Association preparation and notarization, submission to the DET or relevant free zone authority, one year of virtual office and call answering service, a two-year UAE residency visa and Emirates ID, VIP medical check, and corporate bank account guidance.
Also read; Dubai Free Zones: Complete List of 25+ Zones Compared (2026)
What Documents Are Required for a Dubai Trade License?
Required documentation is broadly consistent across all activity types, with certain regulated sectors requiring additional external approvals before the DET issues the license.
Standard documents for a new DET trade license application include:
- Completed application form (available via the Invest in Dubai portal)
- Passport copies of all shareholders and authorized signatories
- Notarized Memorandum of Association (MOA)
- Initial approval certificate from the DET
- Ejari-registered lease agreement for the business premises (mainland only)
- Proof of approved trade name
Regulated activities require additional clearances: healthcare businesses need Dubai Health Authority (DHA) approval; financial services require UAE Central Bank or Securities and Commodities Authority (SCA) clearance; food businesses need Dubai Municipality sign-off. Factor in extra time for these steps when planning your setup timeline.
How to Apply for a Trade License in Dubai
The application runs through the DET’s Invest in Dubai portal (investindubai.gov.ae) for mainland licenses, or directly through the chosen free zone authority for free zone licenses. Clean applications with all documents prepared typically take a few business days.
Step 1: Define Your Business Activity and License Type
Identify your primary business activity from the DET’s official list of over 2,000 registered activities. Your activity determines your license type. If your business spans multiple categories, for example consultancy and product sales, you may need to apply for two license types or opt for a broader general trading structure.
Step 2: Choose a Legal Structure
Common structures for foreign investors include a Limited Liability Company (LLC) on the mainland or a Free Zone LLC inside a free zone. Each structure has different ownership, liability, and visa quota implications. Single foreign founders most often use a sole establishment (mainland) or a free zone FZ-LLC.
Step 3: Reserve a Trade Name
Your trade name must comply with DET naming conventions. It cannot duplicate an existing registered name, use offensive language, or include religious references. Personal names in trade names are permitted only for sole proprietorships and certain professional firms.
Step 4: Obtain Initial Approval
Submit a basic application to the DET with your passport copy and proposed activity description. Initial approval confirms the government has no objection to the business concept. The online fee is AED 120. Processing typically takes around 10 minutes through the portal.
Step 5: Submit Full Application and Pay License Fees
Once initial approval is in hand, prepare and submit the full application including the notarized MOA, signed and registered lease agreement, and all supporting documents. Pay the applicable license fee and activity fees. The DET reviews and issues the trade license.
Step 6: Apply for Residency Visas and Open a Bank Account
After the trade license is issued, apply for UAE residency visas for yourself and any employees. Corporate bank account opening happens at this stage. UAE banks typically require the trade license, MOA, Emirates ID, and proof of residential address as the minimum documentation set. InvestinAsia’s Dubai setup packages coordinate the visa and banking steps alongside the licensing process.
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Frequently Asked Questions
Can a foreigner own 100% of a Dubai mainland company under a trade license?
Yes. Since Federal Decree-Law No. 32 of 2021 took effect, foreign investors can hold 100% ownership of a mainland company in most business sectors, including commercial, professional, and industrial activities. The requirement for a 51% UAE national majority shareholder was removed for the vast majority of non-strategic activities. Foreign investors inside free zones have always held 100% ownership automatically.
What is the difference between a commercial license and a general trading license in Dubai?
A commercial license covers up to 10 specific, related business activities. A general trading license is a broader type of commercial license that covers an unrestricted range of goods and product categories under a single document. The general trading license costs more and suits businesses trading multiple unrelated product lines. If you can define your products in advance, a targeted commercial license is almost always more cost-effective.
How long does it take to get a trade license in Dubai?
For eligible activities and legal forms, the DET’s Instant License through the Invest in Dubai portal can be issued in approximately five minutes. Standard applications with complete documentation typically take a few business days. Activities requiring external regulatory approvals, such as healthcare or financial services, may take several weeks. A full company setup including visa and bank account typically runs 7 to 14 business days with professional assistance.
Do I need a physical office to get a Dubai trade license?
Mainland DET licenses require a registered office lease verified through the Ejari system. Free zone companies can satisfy this requirement with a flexi-desk or shared office arrangement, which is significantly cheaper than a dedicated mainland office. Some free zones also allow virtual office solutions for specific license types and business activities.
How much does it cost to renew a trade license in Dubai?
Renewal fees are typically similar to the initial annual license fee, starting from approximately AED 12,000 for a DED mainland license. Renewal is mandatory each year. Late renewal triggers fines. To renew, you need at least one month remaining on your tenancy contract, an updated registered lease, and copies of current shareholder passports.
Is there a corporate tax on Dubai businesses holding a trade license?
Yes. Since June 2023, the UAE applies a 9% corporate tax on annual business profits exceeding AED 375,000. Profits below this threshold are taxed at 0%. Free zone companies that meet the qualifying free zone income criteria under Federal Decree-Law No. 47 of 2022 may maintain a 0% effective tax rate on qualifying income. Personal income tax remains 0% for all business owners in the UAE regardless of license type.
References
1. Dubai Department of Economy and Tourism (DET). (2026). Mainland business licensing. Retrieved from
https://www.dubaidet.gov.ae/en/licences-and-permits/business-licensing
2. UAE Ministry of Economy and Tourism. (2026). Establishing business in the UAE. Retrieved from
https://www.moet.gov.ae/en/establishing-business-in-the-uae
3. The Official Platform of the UAE Government. (2026). Verify business licences. Retrieved from
https://u.ae/en/information-and-services/business/important-digital-services/inquire-about-licences-names-and-activities
4. Invest in Dubai. (2026). Request to issue a trade licence. Retrieved from
https://www.investindubai.gov.ae/en/business-setup/business-setup-services/request-to-issue-a-trade-licence
5. vOffice. (2026). Dubai company registration service (Free Zone and Mainland). Retrieved from
https://voffice.co.id/en/services/company-registration-dubai
6. Rauniyar, R. (2026, April 8). Trade license UAE: Types, importance, documents and application process. ClearTax UAE. Retrieved from
https://www.cleartax.com/ae/trade-license-uae
