Trade Licence in United Arab Emirates
UAE trade licences split into mainland (DED) and free zone - the right choice depends on whether you'll sell inside the UAE or trade internationally.
Last verified: 2026-06
Overview
A trade licence is the legal permission to operate a business in the UAE. Mainland licences are issued by each emirate's Department of Economic Development (DED in Dubai, ADDED in Abu Dhabi, etc.) and let you trade anywhere in the UAE. Free zone licences are issued by zone authorities (DMCC, JAFZA, ADGM, DIFC, IFZA, RAKEZ, and many more) and offer 100% foreign ownership but restrict direct UAE-market sales.
Since 2021, foreign ownership of mainland companies is allowed in most activities (no local sponsor required), bringing the mainland setup much closer to free zones. Costs vary widely - small free zones can issue a single-activity licence for under AED 11,000/year, while a Dubai mainland LLC with office, visas, and several activities runs AED 25,000+ in year one.
Documents required
- Passport copies of all shareholders
- Proposed company name (3 options - it must comply with naming rules)
- Business activity selection (from DED/free zone list)
- Office lease or flexi-desk agreement (mainland and many free zones)
- Shareholder visa copies (if already UAE residents)
- Memorandum of Association for LLC structures
Eligibility
- Aged 21+
- Selected activity matches what the licence type allows
- Office space matches the activity (warehouses, clinics, food businesses have specific requirements)
- No active bankruptcy or commercial ban
Fees
| Item | Amount | Notes |
|---|---|---|
| Mainland LLC (Dubai DED, first year) | 20,000-30,000 AED | Includes initial approval, MOA notarisation, trade name, licence, and Ejari. Office rent extra. |
| Free zone licence (single activity) | 11,000-20,000 AED | Smaller zones like IFZA, SHAMS start lower; DMCC and DIFC run higher. |
| Trade licence renewal | 10,000-15,000 AED | Annual; varies by emirate and zone. |
| Free zone visa quota | 3,500-5,000 AED | Per visa slot; flexi-desk packages typically include 1-2. |
| Establishment card | 1,200 AED | Annual, required to apply for employment entry permits. |
Step by step
- 1
Choose jurisdiction
Decide mainland vs free zone based on customers (UAE B2C/B2B = mainland), activities, and visa needs.
either
- 2
Reserve trade name and initial approval
Submit 3 trade name options and the activity list to DED or the chosen free zone. Initial approval issued in 1-3 days.
1-3 days · online
- 3
Office and MOA
Sign an office lease or flexi-desk agreement, then notarise the MOA (mainland LLCs).
3-7 days · either
- 4
Pay and issue licence
Pay the licence fee. Trade licence is issued digitally; physical copy available on request.
1-2 days · online
- 5
Establishment card and visa quota
Apply for the establishment card with MOHRE/free zone authority and the immigration card with ICP/GDRFA. These unlock visa applications for owners and staff.
5-7 working days · online
Processing time: 2-4 weeks from name approval to fully operational licence with visa quota.
Where to do it online
- MOHRE
Establishment file and labour-related services for mainland companies
- ICP
Immigration card and visa quotas for the company
- GDRFA Dubai
Same for Dubai-issued company immigration files
DED-approved service centres and free zone customer service desks bundle licence, Ejari, and MOA in a single visit. Independent business setup consultants typically charge AED 5,000-15,000 on top of government fees, which is worth it for first-timers.
Renewal
Trade licences renew annually. Renewal must be completed within 30 days of expiry to avoid the AED 250-500/month late fee. Office lease must remain valid - Ejari renewal in Dubai is a common cause of late licence renewal.
Fines & penalties
- Late renewal: AED 250-500/month
- Operating without an active licence: AED 5,000+ fines and possible business closure
- Trading outside licensed activities: AED 5,000+ per incident
Common pitfalls
- Choosing a free zone without checking visa eligibility for your activity
- Letting Ejari lapse - it cascades and blocks the trade licence renewal
- Mismatched activities - if you do work outside the licensed list, even occasional, you risk fines
- Forgetting corporate tax registration (9% above AED 375,000 profit, from 2023)
FAQs
Free zone single-activity packages start around AED 11,000-15,000/year. Dubai mainland LLCs run AED 20,000-30,000 in year one, less on renewal. Confirm current amount on DED or the relevant free zone.
Mainland (DED) if you'll sell directly to UAE customers or government. Free zone if your customers are international or other UAE businesses willing to work with a free zone entity, and you want simpler setup and lower fees.
No, not for most activities. Since 2021, foreign ownership of mainland companies has been allowed across most commercial and industrial activities.
Depends on the package and office size. Flexi-desk packages typically allow 1-3 visas; a private office unlocks 5-7+ depending on square metres.
Yes, since 2023: 9% on taxable profit above AED 375,000. Free zone companies with qualifying income still get 0% on that income, but corporate tax registration is mandatory regardless.
Skip the hassle
A vetted typing centre can handle the paperwork end-to-end.
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