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Looking to start your own business in Dubai? Securing a trade license is your first step to operating legally, accessing local markets and unlocking growth. This guide walks you through every key detail from choosing the right license type to submitting your paperwork and going live.

What Is a Trade License and Why You Need One

A trade license is an official permit issued by a UAE government authority that lets you conduct specific business activities here. Without it you cannot:

  • Open a corporate bank account
  • Rent office space or warehouse facilities
  • Legally invoice clients or secure government contracts
  • Apply for employee or investor visas

Whether you choose a mainland, free-zone or offshore license, getting this document is mandatory before you trade.

Which License Type Suits You?

Dubai offers three main license categories:

  1. Mainland License
    • Operate anywhere in the UAE, onshore and off-shore
    • Requires a local UAE national sponsor or service agent for certain activities
  2. Free-Zone License
    • 100 percent foreign ownership
    • Zero personal and corporate tax (subject to thresholds)
    • Customs duty exemptions for imports and exports
    • Restricted to commercial activity within or through that zone
  3. Offshore License
    • Best for holding companies, asset management or international trade
    • No office requirement, but no local UAE visa eligibility

Who Can Apply and What You’ll Need

Most entrepreneurs can apply: entrepreneurs, freelancers and established companies. Requirements vary, but you’ll generally need:

  • A valid passport copy and UAE entry stamp (or visa copy)
  • Passport-style photos
  • A no-objection letter from your current sponsor (if on employment visa)
  • Proof of address (for certain free zones)
  • Bank reference or experience certificates (for professional services)

Step-by-Step Application Process

Follow these five milestones to get your license:

  1. Select Your Jurisdiction
    Choose mainland, free-zone or offshore based on activity, ownership and visa needs.
  2. Reserve Your Trade Name & Activity
    Propose up to three business names and pick the exact activities you intend to offer.
  3. Secure Initial Approval
    Submit your name reservation and activity list most free zones issue initial clearance in one working day.
  4. Prepare & Submit Documents
    Gather passport copies, application forms and any specialist approvals. Submit through the zone’s online portal or DED e-channels.
  5. Pay Fees & Collect License
    Pay government and admin fees, sign your license documents and pick up your physical license (or download it digitally).

Detailed Documents Checklist

  • Passport copy (all shareholders and managers)
  • UAE visa copy (if resident)
  • No-objection certificate (for sponsored employees)
  • Memorandum & Articles of Association (for corporate applicants)
  • Office tenancy contract (for mainland) or flexi-desk agreement (for free-zone)
  • Bank reference letter (for certain activities)

Costs & Fees Breakdown

Item Mainland (AED) Free Zone (AED)
Trade Name Reservation 620 500
Initial Approval 110 600
License Issuance 10 000–15 000 4 500–6 000
Office/Desk Rent 15 000+ 3 000–5 000
Visa Processing (per visa) 3 000–5 000 2 500–4 000

Tip: Packages often bundle license, visas and flexi-desk starting from AED 4 899 for free-zone setups.

How Long Will It Take?

  • Free Zone (Standard): 1–3 business days
  • Mainland (Standard): 3–7 business days
  • Fast-Track Options: Same-day or 24-hour approval at higher fees

Bookmark these to submit and track your applications online.