What Is a Trade License?
A trade license is an official permit that allows a business to operate legally in the UAE. It defines the activities a company can carry out, such as trading, manufacturing, or providing services.
Many people confuse a trade license with a business license. In the UAE, a trade license specifically outlines permitted commercial activities, while a business license can be broader depending on the authority that issues it.
Every company in the UAE needs a trade license to function. Without it, businesses cannot sign contracts, open corporate bank accounts, or hire employees.
Types of Trade Licenses in UAE
1. Commercial Trade License in Dubai
This license covers activities like buying, selling, importing, and exporting. Businesses dealing in goods such as electronics, textiles, or food products usually require this license.
A general trading license in Dubai is the most common option, as it allows multiple product categories under one license.
2. Professional License in Dubai
A professional license is meant for service providers. It covers activities such as consulting, legal services, IT solutions, design, and freelancing.
3. Industrial Trade License
This license is required for manufacturing and industrial activities. Companies engaged in the production, assembly, or packaging of goods fall under this category.
Other Popular Licenses
- DED E-Trader License: For online businesses and home-based entrepreneurs.
- Intelaq License: Issued to UAE nationals for small-scale businesses.
- Shop License: Needed for retail outlets and stores.
Why a Trade License Is Important for Businesses
Holding a trade license in the UAE comes with multiple benefits:
- Provides legal authorization to operate
- Builds trust and credibility with clients and partners
- Allows bank account opening and employee visa applications
- Ensures compliance with local laws
Trade License in Dubai: Step-by-Step Process
1. How to Get a Trade License in Dubai
Getting a trade license in Dubai involves a few clear steps:
- Choose your business activity (check the DED activity list).
- Select a trade name.
- Decide on a location: mainland, free zone, or offshore.
- Apply to the Department of Economic Development (DED) or a Free Zone Authority.
- Get initial approval.
- Prepare and submit the required documents.
- Pay Dubai trade license fees.
- Receive your company trade license.
2. Dubai Trade License Costs (Approx.)
| License Type | Mainland | Free Zone | Offshore |
| Commercial | AED 12,000–18,000 | AED 10,000–15,000 | AED 8,000–12,000 |
| Professional | AED 10,000–15,000 | AED 8,000–12,000 | N/A |
| Industrial | AED 15,000–20,000 | AED 12,000–18,000 | N/A |
(Costs vary by activity, location, and approvals.)
Trade License Cost in Dubai and UAE
The Dubai trade license cost depends on your business type and setup.
- LLC trade license cost in Dubai: AED 15,000 – 25,000
- General trading license cost in Dubai: Around AED 12,000 – 18,000
- Cheapest trade license in UAE: Some free zones offer packages starting from AED 6,000–8,000.
Trade License Renewal in Dubai
A trade license must be renewed every year.
Steps to renew your Dubai trade license:
- Apply for renewal through DED or the relevant authority.
- Submit required documents (such as the tenancy contract and BR copy).
- Pay renewal fees.
- Receive the updated trade license.
Dubai trade license renewal fees vary between AED 8,000 and 15,000, depending on activity and structure. Many companies also choose to renew their license online for convenience.
Trade License in Other Emirates
1. Abu Dhabi Trade License
Issued by the Department of Economic Development, Abu Dhabi. Costs are similar to Dubai but vary by activity.
2. Ajman Trade License
Ajman offers one of the most affordable trade licenses in the UAE, making it attractive for small businesses and startups.
3. Low Cost Trade License Options Across UAE
Free zones in Sharjah, Ajman, and Ras Al Khaimah provide packages starting from AED 6,000, making them popular for freelancers and startups.
Tips to Get the Right Trade License in UAE
- Choose the right activity from the DED activity list.
- Compare Dubai trade license fees before applying.
- Select a structure (LLC, Free Zone, or Mainland) that fits your long-term goals.
- Consider consulting with business setup experts for faster approval.
FAQ
1. What is trade license in UAE?
It is the official permit to legally operate a business.
2. Do I need a business license for a website?
Yes, even online businesses require a DED E-Trader License or Free Zone License.
3. How to print or download trade license in Dubai?
You can log in to the DED Trader website or the Dubai Trade portal.
4. How to check trade license validity?
Visit the DED or Free Zone Authority portal and enter your license number.
Conclusion
A trade license is the backbone of doing business in the UAE. It ensures legal protection, credibility, and access to business opportunities.
Whether you plan to set up in Dubai, Abu Dhabi, or any other emirate, choosing the right trade license can make your business journey smoother. Working with professionals can also save you time and cost while keeping you compliant with UAE laws.