Dubai trade license cost

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Trade License in Dubai: Types, Procedures, Fees & Renewal

For every entrepreneur who wishes to own a business in the most prominent economic center of the world, Dubai; One of the first things you should do is obtain a trade license. To start a business in Dubai, you need to go through the entire process of obtaining it. In addition, you must pay the Dubai trade license cost to complete the procedure and start your new business.

In this article, you will see all the necessary information about the Dubai trade license. The process for obtaining this document will depend on your business activities and preferred business structure. However, we will start by defining trade licenses and their types. So you can decide according to your type of business.

  1. Do you know what is a trade license?
  2. What are the types of business licenses in Dubai?
  3. Do you know the Dubai trade license cost?
  4. A step-by-step guide to getting a business license in Dubai
  5. How to get a trade license instantly?
  6. Learn how to obtain a license for e-commerce in the UAE
  7. Step-by-step guide on how to renew the business license in Dubai

1. Do you know what is a trade license?

This license is a document that will designate the activities that can be carried out by any company in the UAE. Also, a new trade license in Dubai is issued by the department of economic development or DED. In this way, all business licenses are valid for many business activities in Dubai.

The activities included in this license include the export and import of merchandise and commercial activities. On the other hand, you find that companies located in free zones are eligible for commercial licenses in Dubai. In addition, those professionals who offer certain specific services in the industry may apply for this license.

Thanks to the good average cost of living in Dubai, many people decide to start a business in the region. However, they do not know about the necessary licenses to be able to start your company correctly. For this reason, continue reading this article to get all the important information about these licenses.

2. What are the types of business licenses in Dubai?

You can find that there are 4 main licenses in Dubai. However, there are exclusive licenses for free zones and certain specific commercial activities. For this reason, with the information that will be given below you will be able to learn more about these:

2.1 The business license

In Dubai, the business license allows companies to carry out different business activities. Among these activities, you can contemplate buying and selling different goods. However, you will only be able to carry out activities for specific elements that are mentioned in the license.

2.2 The industrial license

Thanks to this license, the company will be able to carry out different activities such as the manufacture of products. In addition, you will be able to import all the raw material that is necessary for this product. Consequently, you can also export this product once its manufacture is complete.

When looking for a business license, it is important that you make sure that you have a physical office located in Dubai. This is because it is mandatory to have one to request this license.

2.3 The professional license

In general, this license is required for all service providers, as well as professionals. Additionally, it has an important advantage and that is that it is not necessary to have a local sponsor. In this way, you will be able to have 100% ownership of the company that applied for the license.

2.4 The tourist license

Because Dubai uniquely values ​​tourism, it offers a separate license for those companies that are ultimately involved in the tourism industry. In this way, all the regulations, rules, compliance, Dubai taxes, and permits are different for this particular sector.

3. Do you know the Dubai trade license cost?

We now move on to one of the most important issues in the entire process, the cost of a general trading license in Dubai. Dubai General Business License Fee will vary according to your business activities and requirements. However, by reviewing the overhead charges, an estimate of the total cost of the license can be made.

The license fee starts at AED 12,000. On the other hand, the fee for the activities ranges from AED 150 to 500 depending on the type of business you perform. However, there are other requirements where you will need to spend. Among these, you find the activity class guide fees, the fee for license translation, license replacement, etc.

Please note that these fees are only for obtaining your business license and are not the full cost of forming your company in Dubai. It is known that Dubai does not have a minimum wage established in its law. However, the average of this salary is very good and may be enough for you to start your own business in Dubai.

4. Step-by-step guide to getting a business license in Dubai

Many people in the world decide to go set up their business and emigrate to Dubai, for all the advantages that this attracts. The first thing you should know is that the Dubai Department of Economic Development (DED); is in charge of issuing business licenses. That is, the DED is the one who decides the classification of licenses and their business activities within Dubai.

The UAE is characterized because it welcomes foreign investment and provides different investment opportunities for this to happen. Therefore, they allow entrepreneurs to form their companies without much effort. In addition, the company registration procedures and costs are quite attractive for both parties. Below, you will see all the steps you must follow to obtain your Dubai trade license, which is the first step to forming your company in this country.

4.1 Obtaining Initial Approvals and Trade Name Registration

The first thing you should do is reserve the business name of your company. To do this, you must write to the DED, request the name of your company and wait to see if it is available, if it is, you will be given permission.

On the other hand, you must request an initial permit to carry out commercial activities. In other words, what are you going to do with the Dubai trade license you request? It is important that you know that the price of these initial permits is included in the Dubai trade license cost.

4.2 Obtaining the notarial act of the deed of incorporation of the company

The next step to obtain a business license in Dubai is necessary to obtain a notarization from the company’s MOA. Obtaining this document does not take long, it can be obtained in less than a day by going to the DED in Dubai. To apply for a business license, it must be submitted together with this certification.

4.3 Documents deliver

When a person applies for a trade license in Dubai, they must submit the original version of the documents. In principle, the applicant must visit the commercial registry that you find in the DED. However, if you have all the documents duly legalized, the name of the company is added to the Mercantile Registry. Once everything is finished you must pay the Dubai trade license cost and all the documents, the MOA, and the business license application form are sent to the Federal Ministry of Economy.

5. How to get a trade license instantly?

Before carrying out any business registration procedures, it is expected that you will have to go through a long waiting period. However, there is an alternative so that you can obtain your trade licenses much faster; the truth is that you can get them instantly.

To obtain a business license instantly, you must go to the DED and apply for a commercial trade license or a professional business license. This can only be done if your business activities are by the license. If that is your case, you can obtain your license in 5 minutes. In addition, there is no need to submit the MOA or the first-year rental agreement.

On the other hand, it is important that you know that this alternative has limitations. Only companies whose activities do not require external approval are eligible for this option. That is approval by government entities other than the DED.

This application can be submitted online through the DED electronic services portal. If you want to do it in person, you can go to the service centers, or to the smart rooms with the minimum of documents and the money to pay the Dubai trade license cost. Once you have the license, you can start hiring employees and doing business. It is important that you inquire about the minimum working hours allowed in the UAE.

6. Learn how to obtain a license for e-commerce in the UAE

There is another type of commercial license called an electronic commerce license, which has special and different characteristics. The E-Trader license was introduced by the Dubai Department of Economic Development (DED). Having this document allows you to create and promote the business online. However, it is important that you know that this license is only granted to work from home. In addition, it gives entrepreneurs the advantage of not having local partners.

Another advantage that this license grant is that fewer documents are required. For instance, you don’t need the Ejari contract. This is because since you do not need an office, and you work from home, it is not necessary that you have a lease.

On the other hand, if you want to work from home there is another option for the e-commerce license. This is to work as a freelancer in the UAE. Depending on your tastes and what you want to achieve, you can choose between creating a company online or working as a freelancer. In Dubai, there are different job options for everyone.

7. Step-by-step guide on how to renew the business license in Dubai

The trading license is valid for only one year, therefore, you must perform the trading license renewal process. If you do not do it in the indicated time, restrictions and sanctions will be imposed on you that can be serious for the company. Next, you will see the steps you must follow to renew the license.

7.1 Leasing contract

To request the renewal of the trade license, you must have a current lease. The minimum period of validity is one month from the expiration date of the commercial license. If your lease does not have a valid period of validity, it must first be renewed.

7.2 Application for license renewal

Having a valid trade license can bring many benefits to entrepreneurs, for instance, requesting a residence visa for the owner and employees. But, if the license is expired, all benefits are lost. The renewal process is easy, you just have to apply to the DED and present the following documents.

  • BR/1 form typing.
  • Photocopy of the expiring business license.
  • Photocopy of the current lease agreement.
  • Photocopies of the passports of the shareholders and investors.

7.3 Make the payment

After submitting the documents and verifying their authenticity, the DED will send you a receipt so you can make the payment. Once you pay the Dubai trade license cost, you will get your license renewed.

Previously, you saw everything you need to go through to obtain a Dubai trade license. In case you decide on a simpler alternative, you can work as a freelancer from anywhere in the world. If you decide to opt for this option, you can be a beneficiary of the freelance visa Dubai.


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