Starting a business in Dubai or the UAE is one of the most lucrative decisions for entrepreneurs and investors. The UAE offers a vibrant business ecosystem, zero income tax, and a strategic location between Europe, Asia, and Africa. However, before you start operations, obtaining a trade license (business license) is mandatory.
This guide will walk you through what a trade license is, types of licenses available, the steps to apply, required documents, and costs involved.
What is a Trade License in Dubai or UAE?
A trade license, also called a business license, is an official permit issued by the Department of Economic Development (DED) or relevant Free Zone Authority, allowing a company to operate legally in the UAE.
It defines your business activity, the jurisdiction where you can operate, and compliance obligations. Without this license, conducting business in the UAE is illegal
How to Apply for a Trade License in Dubai or UAE?
The application process varies slightly between Mainland and Free Zones, but the core steps are similar:
Step 1: Choose Your Business Activity
Decide what products or services your company will offer. Dubai allows over 2,000 business activities, and your license will depend on the activity chosen.
Step 2: Select Jurisdiction (Mainland or Free Zone)
- Mainland: Operate anywhere in UAE and internationally.
- Free Zone: Operate within the free zone or internationally, with benefits like 100% ownership and tax exemptions.
Step 3: Reserve Your Trade Name
Pick a unique company name that complies with UAE naming rules (avoid offensive or religious terms). You can reserve the name through the DED or Free Zone Authority.
Step 4: Submit Initial Approval
Submit the basic documents to the authorities for initial approval to start the licensing process.
Step 5: Prepare the Required Documents
Common documents include:
- Passport copies of shareholders
- UAE residence visa (if applicable)
- Business plan (for some activities)
- No Objection Certificate (NOC) from current employer (if applicable)
Step 6: Choose Office Space
For Mainland, a physical office space is mandatory. For Free Zones, you can opt for flexi-desk options.
Step 7: Submit Final Application & Pay Fees
After final approvals, pay the required license fee to the authority. The trade license will then be issued.
