Get a Trade License in Dubai With Momentum
Business Licenses in Dubai
Getting a trade license is a non-negotiable part of starting a business in the UAE. If you start your business operations without it, all your activities will be classified as illegal and your company risks being terminated.
You will need a valid trade license for every jurisdiction in UAE, namely:
There are trade licenses for every type of business, so make sure to pick the right one. Our team of expert business setup consultants can help you with this.
| Free Zone Trade License | Mainland Trade License |
|---|---|
| Unrestricted trade within free zone and international markets | Unrestricted trade inside and outside the country |
| Full foreign ownership | Full foreign ownership |
| Easy to set up and start a business | Ability to seamlessly expand operations |
| No corporate taxes | Low corporate tax |
Types of Trade Licenses in UAE
There are five main types of trade licenses that you can apply for: a general trading license, a tourism license, an e-commerce license, a professional license, and an industrial license.
The application process for each license will be different based on whether you’re planning on a free zone business setup or a mainland business setup. Regardless, trade licenses in UAE must be renewed every year.
General Trading License
You will need this type of license for activities related to importing and exporting goods for trade. This license supports both retail and wholesale goods, so it is a good choice for business owners dealing in multiple products.
E-Commerce License
If you’re considering business setup in Dubai for selling products online (both digital and physical), you need an e-commerce license. Only UAE citizens and GCC nationals can apply for the e-trader license, which allows individuals to work from their residence without needing an office address.
Professional License
A professional business license in Dubai is best suited for business and entrepreneurs offering specialized services. Some examples include: Audits, Insurance, Consulting, Tax, Marketing & Advertising, Law, Medicine
Industrial License
Businesses conducting manufacturing and industrial activities need to apply for this type of trade license in UAE. Our consultants can help you apply for the license, find an office space, and even open a bank account.
Advantages of Trade Licenses in UAE
100% business ownership
100% repatriation of profits
Access to participate in government projects
(only for mainland companies)
Low corporate tax
No income taxes
Access to state-of-the-art infrastructure
Stable business environment
Multiple lucrative business location options
Can I Renew My Trade License?
Your trade license has to be renewed annually. You can renew it on the Department of Economic Development (DED) website if it is a mainland license, or through the relevant free zone authority if it is a free zone business license. Late renewals can get you penalties starting at AED 250, so it’s best to do it on time.
If you’re not sure how the process works, Momentum’s got your back. Our expert consultants can handle your trade license renewal process, from getting approvals from the relevant authorities, preparing the paperwork, to submitting your application.
How to Apply for a Business License in Dubai
If you choose to start your company with Momentum, we offer an end-to-end business setup service that streamlines the company formation process and gets you started as soon as possible.
Pick Your Business Activities & Structure
Your application for a trade license in Dubai or anywhere in the UAE starts with the type of business and formation structure. Certain licenses allow you to conduct more than one business activity if they are of similar nature.
Register Your Trade Name
A unique business name is essential for every trade license application. You will need to register your trade name with the relevant authorities. The application will ask for at least three name options so make sure you’re prepared.
Get Approval
Most businesses will need initial approval from the government before they can submit their trade license Dubai application. This is when the authorities will review your business application and decide whether it is compliant with the UAE laws.
Apply for the License
After you get approval, you should fill out the application form, attach the necessary documents, and pay the license fee. The cost of the application will depend on the type of license you’re applying for.
Trade licenses can take anywhere from one day to 5-6 weeks to be approved, depending on the business location and type of license. Our team will keep you updated on the status of your application and help you submit any extra documents if needed.
Documents for Trade License Application
- Completed application form
- Owner(s) and shareholder(s) personal ID documents (Passport, photo, Visa)
- Certificate of Initial Approval
- Business plan (for free zones)
- Articles of Association (must be attested)
- Business name approval
- Ejari
Cost of Trade License in Dubai, UAE
Generally, a free zone license costs less than a mainland license because of the way the jurisdictions are set up. However, mainland companies offer unrestricted access to the local market and easy operational expansion.
On the other hand, it’s much easier to set up a business in a free zone. Free zone companies can also avoid corporate tax if they’re a QFZP (Qualifying Free Zone Person).
You can expect to pay AED 5,000 to AED 15,000 for a free zone license, and AED 15,000 to AED 35,000 for a mainland trade license in UAE.
Apply For a Trade License in Dubai With Momentum
Applying for a trade license with Momentum means experiencing a streamlined, efficient application process that gets you a trade license as soon as possible. We make sure that you’re completely prepared and submit all the necessary documents on time. Whether it’s mainland, free zone, or offshore company formation, we’ve got you covered.
FAQ
Do You Need a Trade License for Free Zone Companies?
Even free zone companies need business licenses in Dubai to operate legally in the country. It is generally less expensive to apply for a trade license in a free zone than on the mainland.
Where Should I Apply For a Trade License in Dubai, UAE?
Even free zone companies need business licenses in Dubai to operate legally in the country. It is generally less expensive to apply for a trade license in a free zone than on the mainland.
Is There an Instant Trade License in Dubai?
You can get this type of trade license in five minutes by applying on the DED website. Available only to UAE and GCC nationals, there is no need for a physical office space, and it is valid for a year. A business setup consultant can help you with the application process.
How Long Does Renewing a Trade License in Dubai Take?
It takes around 3-5 working days to renew a trade license. Momentum consultants are experienced in effectively handling your license renewal process and can get it done before the expiration deadline.
How Many Types of Trade Licenses are There?
There are five main types of trade licenses: industrial, e-commerce, general trading, tourism, and professional. Each type of license is available both in the free zone and on the mainland.
Are There Any Cheap Free Zones in the UAE?
Sharjah Media City, Sharjah Research Technology & Innovation Park (SRTIP), Meydan Free Zone (MFZ), and International Free Zone Authority (IFZA) are all free zones with relatively low set up costs.
Where Can I Renew My Trade License?
You can generally renew your business license in Dubai through the same portal that you applied for your license. Alternatively, you can renew your license through visiting a service center or by texting your license number to 6969.
Does Everyone Need a Trade License in Dubai?
Every business owner and entrepreneur needs a valid trade license to carry out business activities in the country. Operating without a license is illegal and can result in fines and serious legal consequences.
What is the Cheapest Trade License Price?
It costs AED 5,510 for a 0-visa trade license in Sharjah Research Technology & Innovation Park. You can get a trade license in Dubai for around AED 12,500 from the IFZA (International Free Zone Authority) free zone.
How Many Activities Can I Conduct Under One License?
Every type of trade license has a different limit on the amount of activities that can be conducted. For example, a commercial license allows for up to 10 similar activities. Generally, you can have three activities under one license.
