Business Licensing in Dubai, UAE

Trade License Dubai, UAE

A mainland company is an A trade license is a government-issued permit that allows you to conduct specific business activities in a particular jurisdiction. In the UAE it grants the holder the right to engage in commercial transactions and access essential services such as business banking and visas. Without a valid trade license it is illegal to sell goods or services in the UAE. Whether you’re launching a start-up, expanding an existing operation or selling online, a trade license provides legal recognition and builds credibility with consumers and suppliers.entity licensed by the Department of Economic Development (DED) that can operate anywhere in the UAE and internationally. Unlike free zones, mainland firms have no geographic trading restrictions and may work directly with government clients. Recent legal reforms allow full foreign ownership across hundreds of activities, making mainland incorporation ideal for international investors seeking complete control.

Types of Trade Licenses in Dubai, UAE

Dubai offers several license categories tailored to different business activities.

Commercial License

Required for buying and selling and trading goods and services such as logistics, retail, car rental, chemicals, real-estate brokerage and general trading.

Professional License

For professionals and service providers like consultants, accountants, tax advisers, IT specialists and marketing managers.

Industrial License

Necessary for businesses engaged in manufacturing and industrial activities, including garment manufacturing, dairy production and machinery factories.

Freelance Permit

Available in some free zones for individuals in creative fields such as acting, photography, writing and design.

Additional Types of Licenses

E-commerce License

Designed for businesses selling products or services through online platforms. This license enables companies to operate digital stores, manage online marketplaces, and provide e-services, making it ideal for startups and established brands entering the digital economy.

EXIM License

Required for businesses engaged in import and export of goods across international borders. It facilitates smooth global trade operations, covering industries such as textiles, machinery, raw materials, consumer goods, and more.

VARA License

Issued by Dubai’s Virtual Assets Regulatory Authority, this license governs activities involving cryptocurrencies and digital assets. It is essential for businesses dealing in blockchain, digital exchanges, custodial services, and other virtual asset-related operations.

Understanding which license best aligns with your activities is essential, as each type has its own regulatory requirements and permissible activities.

Understanding Free Zone, Mainland, and Offshore License – A Brief Overview

Choosing the right jurisdiction determines how and where you can operate.

• Mainland License

Issued by the Department of Economy and Tourism (DET) and allows you to do business anywhere in the UAE and internationally. Mainland companies can trade directly with the local market and typically require a physical office. They are subject to VAT and corporate tax and must meet annual audit and regulatory requirements.

Free Zone License

Obtained from a specific free zone authority. Free zones offer 100% foreign ownership, duty-free import/export, simplified customs procedures and streamlined licensing through a single-window system. However, free zone businesses can only trade within their zone or internationally and require a local distributor or NOC to operate on the mainland.

Offshore License

Offshore companies are separate legal entities created for international operations and wealth management. They allow complete foreign ownership, provide tax optimization, privacy and asset protection and are exempt from customs duties and income tax on foreign-sourced income. Offshore entities are ideal for holding assets or conducting global trade but cannot conduct business within the UAE and do not issue visas.

We assess your target market, cost considerations and staffing needs to determine whether a mainland, free zone or offshore structure is best for your goals.

Industry-wise Business License Services Dubai, UAE

Each industry has unique regulatory requirements. Our consultants help you select the right license and obtain industry-specific approvals. For example.
General Trading and Wholesale

Requires a commercial license and may need additional permissions for regulated goods such as alcohol, pharmaceuticals or frozen foods.

Professional Services

Such as management consultancy or accounting need a professional license and may require proof of qualifications or professional indemnity insurance.

Industrial Operations

Require an industrial license plus approvals from civil defense and environmental authorities; a physical facility meeting safety standards is mandatory.

Tourism and Hospitality

Must obtain a tourism license and secure approvals from the Department of Tourism and Commerce Marketing.

Agricultural & Craftsmanship Activities

Involve additional permits from relevant ministries and compliance with health and safety regulations.

Benefit of Having a Trade License in Dubai

Obtaining a trade license unlocks numerous advantages.
Legitimacy & Customer Trust

Operating with a license establishes your credibility and protects customers, enabling you to sign contracts and open bank accounts. Engaging in economic activity without a license is illegal and can lead to penalties.

Access to Visas & Residence Permits

Licenses provide eligibility to sponsor investor and employee visas. Some license types, such as general trading licenses, allow multiple visas and streamline family sponsorship.

Trading Flexibility

General trading licenses permit the import, export and sale of numerous goods locally and internationally, reducing barriers to trade.

Financial Benefits

Dubai offers full repatriation of capital and profits and no restrictions on currency exchange or foreign ownership in many sectors. Free zones and offshore jurisdictions provide additional tax advantages.

Simple Online Commerce

You need a trade license even to sell products on digital platforms; e-trader licenses and packages in certain free zones make online business affordable and compliant.

Documents Required for Getting a Trade License Dubai

Preparing accurate documentation speeds up the licensing process. Typical requirements include.

  • Personal Documents

    Passport copies of all shareholders and managers, passport-sized photographs, residence visa or entry stamp copies and Emirates ID (if applicable).

  • Corporate documents

    Notarized certificate of incorporation, Memorandum and Articles of Association, board resolution authorizing company formation and a copy of the parent company’s trade license if a corporate shareholder is involved.

  • Name Reservation & Approvals

    A trade name approval certificate from the relevant authority and initial approval from DET or the free zone authority.

  • Tenancy Contract

    A lease agreement for your office or warehouse that is attested by Ejari for mainland companies.

  • Power of Attorney and NOCs

    If another person will represent you, provide a notarized power of attorney; expatriate partners sometimes require a No-Objection Certificate from current sponsors.

We provide a comprehensive checklist based on your chosen jurisdiction to avoid delays.

Step-by-Step Mainland Company Formation Process in Dubai

Setting up a business in Dubai involves several stages. Our team guides you through each step:

1. Choose a Legal Structure and Trade Name

Decide whether to operate as an LLC, sole proprietorship, branch or free zone entity. Select a unique name that complies with DET naming regulations.

2. Define Business Activities

You may list up to ten activities on one license; ensure they match the permissible scope of your chosen license type.

3. Submit Initial Approval Application

Complete the application form and submit it with passport copies, name approval and memorandum to DET or the relevant free zone authority.

4. Secure an Office or Warehouse

For mainland licenses, provide a tenancy contract attested by Ejari; free zone packages may include flexi-desk or co-working options.

5. Prepare Legal Documents and Pay Fees

Draft the Memorandum of Association (MOA) or Local Service Agent Agreement, sign it before a notary and pay the licensing and registration fees.

6. Obtain Government Approvals

Some activities require approval from external bodies such as the Municipality, Ministry of Health or Tourism Department. We liaise with these authorities to secure all approvals.

7. Receive Your Trade License

Once documents are verified and payments cleared, DET or the free zone authority issues the license. In the mainland, licenses are valid for one year and renewable.

How to Renew a UAE Trade License

Licenses must be renewed annually to remain valid. Neglecting renewal can result in fines, visa cancellation and suspension of bank accounts. To renew.

Check Lease and Permits

Ensure your tenancy contract and any permits (e.g., food safety, civil defense) are valid. Some authorities require an inspection or updated Ejari certificate.

Obtain Approvals

For regulated activities, secure updated approvals from relevant ministries or free zone authorities.

Submit Renewal Application & Pay Fees

Provide the existing license, updated lease, and required documents via the DET or free zone portal and pay the renewal fee. We monitor due dates to prevent penalties.

How to Modify a UAE Trade License

Businesses often need to adjust their license as they evolve. Amendments may include changing the trade name, adding or removing activities, modifying the office address or altering ownership structure. This requires filing an amendment application with supporting documents and obtaining approvals from DET or the free zone authority. Specific changes may involve:

• Trade Name Change or Rebranding.

• Adding/Withdrawing business activities or changing the primary activity.

• Changing Business Location.

• Replacing a Local Sponsor or Adding / Removing Partners.

• Updating Management Details or Authorized Capital.

Proper documentation and government approvals are critical. We manage the process end-to-end to ensure compliance and minimize downtime.

How to Cancel a UAE Trade License

Closing a company or cancelling a license is a serious decision that requires careful planning. Authorities require
Clearances & NOCs

Closing a company or cancelling a license is a serious decision that requires careful planning. Authorities require

Settling Liabilities

Discharge financial obligations to employees, creditors and partners to avoid legal disputes.

Publication & Notification

In some cases, publish a notice of company dissolution and inform stakeholders.

Final Audit & De-registration

File final returns, cancel visas and bank accounts, and return the license for cancellation. Mistakes can lead to fines and reputational damage.

Our specialists manage every step, ensuring your exit from the market is complaint and efficient.

How to Freeze a UAE Trade License

If you wish to pause operations without dissolving the company, DET allows a license “freeze.” This suspends commercial activities for up to three years; sole establishments registered with DET may only freeze for one year. Requirements include.
Freezing Request Letter

A letter explaining the reason for freezing.

Cancelling all Employee Visaa

Ensure there are no sponsored employees and obtain a clearance certificate from the Ministry of Human Resources and Emiratization.

Payment of Freezing Fees

DET charges around AED 2,000 per year plus monthly penalties and may conduct an inspection.

Freezing enables you to retain the license without the full costs of renewal or cancellation. We can handle the application and ensure proper documentation.

How DSA Helps

Dubai Setup Advisors (DSA) are specialists in UAE company formation and licensing. We provide.

Strategic Consultation
Trade Name Reservation & Licensing Approvals
Legal Documentation, Drafting & Translation
Workspace & Ejari Tenancy Solutions
Bank Account Opening & Financial Setup
Visa & Immigration Processing
PRO & Legal Documentation Services
Post-Incorporation Support & Growth Enablement

Why Choose Us?

At Dubai Setup Advisors (DSA), we go beyond basic company registration. We provide strategic guidance, legal clarity, and operational support tailored for global entrepreneurs and investors entering the UAE market. Here’s why clients from over 30 countries trust us to build their presence in the Emirates:

Extensive Experience

End-to-End Service

Transparent Pricing

Global Perspective

Personalized Approach

Comprehensive Network

FAQs (Frequently Asked Questions)

A general trading license allows you to import, export and sell multiple goods ranging from clothing and accessories to furniture and electronics. Regulated items such as alcohol, pharmaceuticals or frozen food require additional approvals.

No. UAE law requires a valid license for any commercial activity, including e-commerce. You need a license even when selling products on online platforms.

Yes. Free zones and offshore jurisdictions allow full foreign ownership. Mainland companies also offer 100 % ownership in many sectors, though some activities still require a local partner.

Timeframes vary by jurisdiction and activity, but with complete documentation the process can take as little as a few days for straightforward free zone licenses. Mainland applications involving external approvals may take longer.

Operating with an expired license can lead to fines, visa suspensions and closure of your bank accounts. It’s important to initiate renewal before the expiry date.

Yes. You can amend shareholding by submitting an application and obtaining approvals from the relevant authority. This may involve changes to the Memorandum of Association.

Freezing temporarily suspends your license (up to three years) while preserving the company; cancellation permanently dissolves the business and requires settling liabilities and obtaining clearances.

No. Offshore structures are designed for international operations and do not provide visa eligibility. If you need visas, consider a mainland or free zone entity.

A professional license is typically required for consultancy services and allows 100 % foreign ownership. You may operate in a free zone or mainland depending on your market focus.

Costs vary widely by jurisdiction, license type and number of visas. Our consultants provide a detailed quote after assessing your specific requirements.

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