Trade License

Types of Trade License in Dubai

Last Updated: August 2025

Starting a Dubai business is an exciting goal. It requires getting the right trade license. Many entrepreneurs feel confused about this process. So, in this article, we will discuss every license type in Dubai. You will learn which license fits your business, and you will also learn how to get it.

What is a Trade License in Dubai?

A trade license is your legal permit to operate. The Department of Economic Development (DED) issues it. Without a license, your business can be shut down. Every business activity needs a specific license type.

Main Types of Trade Licenses in Dubai

Dubai offers six main types of licenses. Each one is for different business activities.

Commercial License

A commercial license is for trading businesses. It works for companies that buy and sell goods, and this license covers many trading activities.

General trading
Import and export
Electronics trading
Software trading
Car rental services
Real estate brokerage

You can have up to 10 activities per license. Foreign investors can own 100% of mainland firms. Likewise, this license gives full access to Dubai’s market.

Industrial License

An industrial license is for manufacturing businesses. You need this license to make or process products.

Manufacturing goods
Food production
Textile making
Assembly plants
Processing raw materials

You must have a physical office or warehouse. Your business must be in a designated industrial zone.

Professional License

Professional licenses are for service-based businesses. It is for skilled professionals and consultants.

Consulting services
Legal services
Medical services
Beauty salons
Graphic design
Repair services
Document clearing

Foreign investors can get 100% ownership, which is a major benefit for professional firms.

Tourism License

Tourism licenses are for travel and hospitality. You need this for any tourism-related business.

Hotels and guest houses
Travel agencies
Tourist camps
Cruise boat rentals
Restaurants

Agricultural License

Agricultural licenses cover farming and related work. This includes cultivation and agricultural trade.

Crop cultivation
Pesticide trading
Greenhouse installations
Agricultural consulting

Crafts License

Crafts licenses are for skilled manual trades. These licenses are for craftsmen and artisans.

Plumbing work
Carpentry
Electrical work
Other skilled crafts

Special License Types

General Trading License: This license offers great flexibility. You can trade many different types of products. It works well for diverse business models.
E-Commerce License: An e-commerce license is for online businesses. You need it to sell products through digital platforms.
- Websites
- Mobile apps
- Social media platforms

License Application Types

Dubai offers three ways to apply for licenses.

Normal License: Takes longer to process. Requires a Memorandum of Association and a site lease.
Instant License: Gets approved in about five minutes. It needs no external approvals for the first year. A virtual office is allowed initially.
e-Trader License: This is perfect for home-based online businesses. It has a simple online application process.

Where Can You Set Up Your Business?

Your business location affects your license choice. There are three main options in Dubai.

Feature	Mainland License	Free Zone License	Offshore License
Trading Area	Anywhere in the UAE	Inside the free zone	Only outside the UAE
Ownership	100% foreign ownership	100% foreign ownership	100% foreign ownership
Office Space	Physical office required	Physical office required	No office allowed
Visas	Eligible for visas	Eligible for visas	Not eligible for visas
Approvals	Government approvals needed	Free zone authority approval	Registered agent required

How to Choose the Right Trade License

Ask yourself these important questions:

What does my business do?
- Selling goods needs a Commercial License.
- Making products needs an Industrial License.
- Providing services needs a Professional License.
Where do I want to operate?
- The local UAE market needs a Mainland License.
- International trade suggests a Free Zone License.
How fast do I need to start?
- For a quick start, choose an Instant License.
- For a home business, get an e-Trader License.

Cost of Trade Licenses in Dubai

License fees vary based on type and location. Total costs include more than just the license fee. Expect to pay for several items.

Initial approval and name reservation fees.
License registration fee. This can range from AED 15,000 to AED 50,000+.
Dubai Chamber membership fees.
Visa processing fees for yourself and employees.
Office rental costs.

Common Mistakes to Avoid

Choosing the wrong license for your activities.
Forgetting to renew your license on time.
Operating without all required approvals.
Mixing activities that need separate licenses.

Get Started on the Right Path

The licensing process can feel overwhelming. Many business owners work with local consultants. These experts help you choose the right license. They also prepare documents and navigate procedures.

The key to success is picking the right license. Your choice must match your business activities. Take time to research your options. Make a decision that supports your growth plans.

FAQs About Types of Trade License in Dubai

How long does a Dubai trade license last?

A trade license is usually valid for one year. You must renew it annually before it expires.

Can I have multiple business activities on one license?

Yes. You can often include up to 10 related activities. They must fall under the same license type.

Does an e-Trader license allow me to get a visa?

No. The e-Trader license is for UAE and GCC nationals. It does not provide eligibility for residence visas.

What happens if I do not renew my license?

Operating with an expired license is illegal. It can lead to heavy fines. Authorities may also shut down your business.

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