Dubai continues to attract global entrepreneurs with its world-class infrastructure, tax advantages, and access to high-growth markets. But whether you’re launching a digital agency, opening a retail shop, or scaling a logistics firm, one step remains non-negotiable: securing a valid trade licence. Without it, your business cannot operate legally in the UAE.
In this article, we break down what a trade licence in Dubai allows you to do, how to choose the right type, and how to obtain one with minimal friction. If you’re planning to start or scale a business in Dubai, this guide will give you the clarity and confidence to move forward.
What is a Dubai Trade Licence?
A trade licence, also known as a business licence, allows you to perform commercial activities in the UAE. It supports the following business activities:
- Company formation
- Importing and exporting
- Selling goods and services
- Manufacturing
- Commissioning
- Consultancy
Once you have a trade licence, you’re legally allowed to do business in Dubai. You can also apply for other licences that will allow you to conduct specific activities, like playing music or serving alcohol.
What a Trade Licence in Dubai Authorises You to Do
Business Activities and Legal Scope
A trade licence in Dubai is your legal permission slip to conduct specific types of business activities. These activities must be selected from an official list issued by the Department of Economy and Tourism (DET) or your chosen free zone authority. For example, you cannot run a consultancy business under a general trading licence, nor can you engage in manufacturing with a professional licence. Your permitted activities must match your actual operations.
Geographical Limitations and Operational Boundaries
A common misconception is that once you have a Dubai trade licence, you can operate anywhere in the UAE. This is only true for mainland companies. Free zone licences generally allow trade within the zone and internationally but restrict direct business with the mainland unless you work through a distributor or set up a mainland branch. Free zone companies looking to trade in the mainland must appoint a local distributor licensed in the UAE who can clear goods and handle deliveries.
Types of Trade Licences Available in Dubai
Commercial Licences
Issued to businesses involved in buying and selling goods, whether wholesale, retail, or import-export. This is the most common licence type and covers general trading, specialised product trading, and logistics. Companies with a commercial licence can also conduct related support services such as storage and distribution.
This licence is ideal for entrepreneurs involved in the movement or sale of physical products. Businesses intending to trade in restricted categories like alcohol, medical equipment, or arms may need additional approvals from relevant authorities.
Professional Licences
Designed for individuals or businesses offering services based on intellectual or artistic skill. This includes consultants, designers, IT professionals, and other service providers. A professional licence is typically issued to businesses where the founder or team members have recognised qualifications or specialised expertise, and it allows full foreign ownership even on the mainland.
Professional licences also support multiple legal structures, including LLCs, Civil Companies, and Sole Establishments.
Industrial Licences
Required for manufacturing or industrial activities, including production, assembly, and packaging. These licences usually require specific approvals and facility inspections. Businesses must secure a physical warehouse or factory premises and may also be subject to inspections from Dubai Municipality or other regulators. This licence is crucial for companies looking to build a manufacturing base in the UAE.
Tourism Licences
Issued by the Department of Tourism and Commerce Marketing (DTCM), these licences cover businesses offering travel and hospitality services. There are three subcategories: inbound tour operator licences (for local excursions), outbound tour operator licences (for international packages), and travel agent licences (for ticketing and reservations).
Applicants must submit a no-objection certificate from the Civil Aviation Authority, a clean criminal record certificate, and a bank guarantee.
Freelance Licences
Freelance permits are typically issued through free zones and are suitable for solo professionals operating independently. These are common among media, technology, and creative professionals, such as content creators, filmmakers, writers, animators, and consultants. Freelance licences are especially useful for individuals who want flexibility without setting up a full business entity.
Agricultural Licences
This licence is required for businesses involved in crop cultivation, farming, and plant trading. It also covers activities like pesticide and fertiliser trading and pest control. These licences are niche but essential for agri-tech startups or supply chain businesses dealing in food security and botanical products.
Craftsmanship Licences
This category covers manual trades such as plumbing, carpentry, welding, and blacksmithing. Businesses offering skilled labour in maintenance and building services need a craftsmanship licence to operate legally in Dubai. The licence is issued to both individual craftsmen and companies that employ such professionals.
Instant Trade Licences
For low-risk activities that don’t require external approvals, the DET offers Instant Trade Licences on the mainland. These can be issued within minutes, allowing entrepreneurs to start operating immediately. The licence is valid for one year and allows businesses to defer securing office space until renewal. It’s ideal for startups and solo founders who need a fast, low-barrier entry point.
E-Commerce Licences
With the rise of digital trade, e-commerce licences now cover businesses selling goods or services online. These can be obtained through DET or free zones that support digital business models. An e-commerce licence enables businesses to run online stores, app-based platforms, or digital marketplaces.
How to Choose Between a Mainland and Free Zone Trade Licence in Dubai
Mainland Benefits and Responsibilities
Mainland trade licences allow you to do business across the UAE without restriction. This includes serving the local population directly, bidding for government contracts, and opening offices or retail outlets anywhere in Dubai. However, mainland businesses must meet additional compliance obligations and are directly subject to UAE’s corporate tax and VAT regulations.
Free Zone Advantages for Startups and SMEs
Free zones such as DUQE offer 100 percent foreign ownership, fast-track licensing, and simplified visa processes. They are ideal for businesses with international clients, online operations, or those in the early stages of growth. Free zones also offer corporate tax exemptions for qualifying income, making them highly attractive to startups.
Which Setup Suits Your Business Model Best?
If your business model requires frequent interaction with customers inside the UAE, or if you plan to open a retail space, a mainland licence may be the better fit. For digital-first businesses, exporters, or holding companies, a free zone setup typically offers more value.
It’s also worth noting that mainland companies can access options like the Instant Licence, which allows entrepreneurs to launch without securing office space for the first year, although this will be required on renewal.
Why Entreprenuers Setup in DUQE Free Zone
Central Location and International Credibility
Based on the iconic Queen Elizabeth 2 ship at Mina Rashid, DUQE offers a distinctive business address in the heart of Dubai. This gives your company immediate credibility with partners, clients, and banks. Its strategic location also places you near Dubai’s key transport hubs, making it ideal for logistics, shipping, and international business meetings.
Startup-Focused Infrastructure
DUQE offers licence packages starting from 12,500 that include use of a flexi-desk facility and eligibility for residence visas. The free zone is designed to support service providers, creatives, e-commerce ventures, and scalable B2B models. Entrepreneurs benefit from shared workspaces, networking opportunities, and access to professional service partners for accounting, banking, and legal support.
Tax and Regulatory Alignment
DUQE companies benefit from 0% corporate tax under the Qualifying Free Zone Person regime, subject to compliance with FTA requirements. The zone also assists with VAT registration, UBO declarations, and ESR filings. This proactive regulatory support helps founders stay compliant while focusing on business growth, especially when navigating multi-jurisdiction tax exposure or structuring holding entities.
You can learn more about DUQE’s trade licence options here.
Required Documents to Apply for a Trade Licence in Dubai
Before applying for your trade licence, you will need to gather a number of essential documents. These help the relevant authority verify your identity, legal structure, and intended business activity.
- Valid passport copies of all shareholders
- UAE residence visa and Emirates ID (if applicable)
- Trade name reservation certificate
- Business activity selection and business plan (for some activities)
- Tenancy contract or office lease (Ejari for mainland, flexi-desk for free zones)
- Initial approval from the licensing authority
- Signed Memorandum of Association (for multi-shareholder entities)
If any of the shareholders are corporate entities, you will also need to provide the parent company’s Certificate of Incorporation, board resolution authorising the new company, and a Certificate of Incumbency.
Delays are common when documents are incomplete or do not match application details, so accuracy and consistency are essential for timely approval.
How to Apply for a Trade Licence in Dubai
1. Activity Selection and Legal Structure
Identify your business model and match it with permitted activities from the relevant authority’s activity list. Some free zones have broader options, while others are industry-specific. Once your activity is confirmed, choose your legal entity structure: this may be an LLC, sole establishment, or in a free zone, an FZE or FZCO depending on the number of shareholders.
2. Trade Name and Initial Approvals
Choose a name that follows UAE rules. Avoid religious, political, or restricted terms, and ensure it is unique and can be written in Arabic script. Submit your name reservation and request initial approval, which confirms your business activity and ownership structure meet regulatory requirements.
3. Document Submission and Fee Payment
Once your trade name and initial approvals are confirmed, submit the required documents along with any third-party approvals needed for specific activities (such as health, education, or financial services). Pay the applicable licence and registration fees. You may also be asked to sign incorporation documents in front of the authority or a notary.
4. Customs Registration for Trading Activities
If you are engaging in the import or export of goods, you must also register with UAE Customs and obtain an importer’s code. This step is essential to begin bringing goods in and out of the UAE and should be factored into your timeline.
5. Licence Issuance and Registration
After document verification and fee settlement, your trade licence and Certificate of Incorporation will be issued. In free zones like DUQE, this step is often completed within a few business days. You will also receive your company’s Articles of Association and share certificates, depending on the structure.
6. Visa Application and Banking
If your setup includes residence visas, register the company with immigration and labour departments, apply for an establishment card, and begin the visa process. With your trade licence, company documents, and Emirates ID, you can now approach UAE banks to open a corporate account.
Many free zones assist with this step through pre-vetted bank partners. With a general trading licence, you will also have the eligibility to sponsor employees and family members for residence visas.
How Long Does It Take To Get a Trade Licence?
In most cases, it will take between 1 day-4 weeks to get your trade licence once you have applied. The exact time will vary depending on the licence you have applied for and the type of business you are operating. However, most trade licence applications are processed and issued within five to seven working days if all documents are in order.
Your trade licence is valid for one year. To avoid fines or disruption, renew your trade licence on time with the right approvals, documents, and tenancy compliance.
What to Do After Receiving a Trade Licence in Dubai
Corporate Tax and VAT Registration
Mainland companies must register for VAT and corporate tax once they meet the required thresholds. Free zone companies may qualify for 0% corporate tax, but they must maintain compliance with the Federal Tax Authority to retain these exemptions. This includes proper accounting, economic activity alignment, and timely submissions.
Other Regulatory Filings
Depending on your business activity and legal structure, you may also need to file Ultimate Beneficial Owner (UBO) declarations, economic substance reports, and maintain audited financial statements annually. These filings are essential to remain compliant and avoid administrative penalties.
For help with ongoing compliance and filings, you can explore DUQE’s value-added services for streamlined regulatory support.
Launch Your Business with the Right Trade Licence
Getting a trade licence in Dubai is the legal foundation of your business. It defines what you can do, where you can operate, and how quickly you can grow within the UAE market. By choosing the right licence and setting up with a trusted free zone like DUQE, you’re building on clarity, compliance, and long-term success.
DUQE gives you the tools, structure, and regulatory alignment to operate with clarity and confidence, from launch to scale. Even better, you can begin your application remotely, without being in the UAE. If you’re ready to launch with confidence and stay fully compliant, speak to our team today and start your Dubai business the right way with DUQE.
Frequently Asked Questions
Why Is a Free Zone a Good Option for Foreign Investors?
Free zones are a great option for foreign investors because they offer 100% foreign ownership, full profit repatriation, and streamlined setup without the need for a local sponsor. They also provide tax benefits and tailored support, making them an ideal entry point for international entrepreneurs.
How Much Does a Trade Licence Cost in Dubai?
Costs vary by jurisdiction and licence type. Mainland licences typically start around 13,000, while DUQE Free Zone visa-inclusive packages range from 12,500 to 23,000.
What Is a Trade Certificate in Dubai?
A trade certificate in Dubai is an official document issued alongside your trade licence. It confirms your company’s legal registration, activity, and ownership details. Banks, suppliers, and government departments may request it as proof of your business’s legitimacy.
What Happens If I Trade Without a Licence?
Operating without a valid trade licence in Dubai is illegal and can lead to heavy fines, business closure, and blacklisting. Authorities may also freeze your bank accounts or suspend visa privileges until compliance is restored.
Can I Operate Across the UAE With a Free Zone Licence?
Not directly. Free zone companies can operate within their zone and internationally, but doing business in the mainland requires a distributor or local branch.
Is DUQE Free Zone a Good Choice for Digital Startups?
Yes. DUQE offers flexible, low-cost packages tailored for e-commerce, services, tech, and consulting businesses, with fast processing and visa support.
Can I Add or Change Activities on My Trade Licence Later?
Yes, but you must apply through the licensing authority, and some changes may require extra approvals or fees.
What Happens if I Don’t Renew My Trade Licence?
Failure to renew can result in fines, blacklisting, and suspension of immigration and banking services. Timely renewal is essential to stay compliant.