All posts by: Ammar

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Step-by-Step Guide to Getting a Trade License in Dubai

Starting a business in Dubai begins with obtaining a trade license. This license is issued by the Department of Economy and Tourism (DET) or a Free Zone Authority, depending on where you set up your company. It serves as the legal approval that allows your business to operate. In this guide, we’ll walk you through the process step by step. 1. Choose Your Business Activity Dubai allows thousands of activities across sectors like trading, services, consultancy, e-commerce, logistics, and manufacturing. Mainland: Activities are approved by the DET. Free Zone: Each free zone has its own approved list. Tip: Make sure your activity matches your business model—choosing the wrong one can delay approvals. 2. Select the Right Legal Structure Your legal structure defines ownership, liability, and scope of operation. Sole Establishment – Owned by one person. LLC (Limited Liability Company) – Most common, flexible for multiple partners. Branch of Foreign Company – For companies expanding into Dubai. 3. Decide Mainland or Free Zone Mainland: Full access to the UAE market but requires a physical office. Free Zone: Offers 100% foreign ownership and tax incentives but limited to the free zone or international markets. 4. Reserve a Trade Name Your business name must follow UAE naming rules: No offensive words. Must reflect the business activity. Can include your personal name if desired. Reservation is done through DET or the Free Zone Authority portal. 5. Apply for Initial Approval This confirms that the government has no objection to you starting your business. Initial approval is a must before moving to the next steps. 6. Prepare the Required Documents Typical documents include: Passport copies of shareholders. Visa/Emirates ID (if applicable). Memorandum of Association (for LLCs). Lease agreement for office space (mainland). 7. Get Office Space (if required) Mainland companies must lease office space and register the tenancy with Ejari.Free zones usually provide flexible office solutions like co-working spaces or flexi-desks. 8. Submit Final Application & Pay Fees Once documents are in order, submit your application to the DET (for mainland) or the Free Zone Authority. Pay the license issuance fee. 9. Receive Your Trade License After approval, you’ll receive your official trade license, and your company is legally established. You can now open a bank account, apply for visas, and begin operations. Costs & Timelines (2025 Update) Mainland License: Approx. AED 12,000 – AED 25,000 (depending on activity and office space). Free Zone License: Starts from AED 8,000 – AED 15,000 (with flexi-desk). Timeline: 1–4 weeks depending on approvals and documentation. Final Thoughts Getting a trade license in Dubai is a structured process, but the details can vary depending on your business activity and setup choice. 👉 At Dubai Setup Advisors, we help entrepreneurs navigate every step of the process, from choosing the right activity to securing approvals—saving you time, effort, and costly mistakes.

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Mainland vs Free Zone vs Offshore: Which Dubai Business Setup is Right for You?

Setting up a company in Dubai is one of the most rewarding business moves entrepreneurs can make. The UAE has become a global hub for trade, technology, and investment—but before you dive in, you’ll need to decide where to establish your company. The three main options are: Mainland Company Free Zone Company Offshore Company Each comes with its own advantages, restrictions, and costs. In this guide, we’ll break them down so you can choose the right setup for your goals. 1. Dubai Mainland Company A mainland company is licensed by the Department of Economy and Tourism (DET) and allows you to trade freely within Dubai, across the UAE, and internationally. Advantages: Full access to the UAE market (can trade directly with local businesses and government). Unlimited office space options across the UAE. Ability to apply for unlimited employee visas. No restriction on business activities (subject to approvals). Considerations: Higher setup costs compared to free zones. Office space requirement is mandatory. Best For: Businesses targeting the UAE market directly (e.g., retail, contracting, restaurants, professional services). 2. Dubai Free Zone Company Free zones are special economic areas that allow 100% foreign ownership and come with tax and operational benefits. Dubai has more than 30 free zones, each catering to specific industries. Advantages: 100% foreign ownership (no local partner required). 0% corporate and personal income tax (subject to UAE corporate tax rules). Quick and affordable setup process. Easy access to international markets through airports and ports. Considerations: Limited to operating within the free zone or outside the UAE—can’t directly trade in the mainland without a distributor. Office/warehouse options are restricted to the free zone area. Best For: Startups, SMEs, and international companies focusing on exports, e-commerce, consulting, and tech services. 3. Dubai Offshore Company Offshore companies are registered for international business purposes only. They cannot operate within the UAE market but are ideal for asset protection and global expansion. Advantages: 100% foreign ownership. No minimum capital requirement. Privacy in company ownership and financial records. Can own property in certain designated areas in Dubai. Considerations: Cannot conduct business within the UAE. No physical office space allowed (virtual address only). Best For: International trading, holding companies, asset management, and tax planning. Final Thoughts: Which One Should You Choose? Mainland if your target is the local UAE market. Free Zone if you want cost efficiency and 100% ownership while serving international clients. Offshore if you’re looking for a holding or investment vehicle with global reach. Each option has unique benefits, and the right choice depends on your industry, target market, and growth plans. At Dubai Setup Advisors, we help entrepreneurs and investors choose the perfect setup, handle all paperwork, and ensure compliance—so you can focus on growing your business.