Step-by-Step Guide to Getting a Dubai Trade License
A trade license is the most fundamental requirement for starting any business in Dubai. This comprehensive guide explains everything you need to know about obtaining, maintaining, and renewing your Dubai trade license in 2025.
What is a Dubai Trade License?
A Dubai trade license is an official document issued by the Department of Economic Development (DED) that permits businesses to operate legally within the emirate. It specifies your approved business activities and is mandatory for all commercial operations in Dubai mainland.
Without a valid trade license, you cannot legally conduct business, open a corporate bank account, hire employees, or sponsor visas in Dubai.
Types of Trade Licenses in Dubai
Commercial License
AED 10,000 - 15,000For trading and import/export activities
Permitted Activities:
- General trading
- Import/Export
- Wholesale
- Retail stores
- E-commerce
Professional License
AED 8,000 - 12,000For service-based businesses and professionals
Permitted Activities:
- Consulting
- Marketing
- IT Services
- Legal services
- Medical services
Industrial License
AED 15,000 - 25,000For manufacturing and industrial activities
Permitted Activities:
- Manufacturing
- Production
- Assembly
- Food processing
- Packaging
Application Process
Determine Business Activity
Choose your business activities from the DED approved list. This determines your license type.
Choose Trade Name
Select a unique company name that complies with UAE naming conventions.
Initial Approval
Submit initial approval application with required documents to DED.
Get External Approvals
Obtain necessary approvals from relevant authorities (if applicable to your business).
Sign Tenancy Contract
Secure physical office space and register Ejari contract with RERA.
Final License Issuance
Submit all documents and receive your trade license from DED.
Required Documents
- Passport copies of all shareholders/partners
- Visa copies (if already in UAE)
- Recent passport-sized photographs
- Business plan outlining activities
- Tenancy contract (Ejari registered)
- No Objection Certificate (if employed)
- External approvals (industry-specific)
- Memorandum of Association (MOA)
License Costs Breakdown
Processing Timeline
The complete trade license process takes approximately 5-7 working days for straightforward applications. However, businesses requiring special approvals (food, healthcare, education) may take 2-3 weeks. Starting early and having all documents ready significantly speeds up the process.
License Renewal Process
Dubai trade licenses must be renewed annually before the expiry date. The renewal process is simpler than initial issuance but still requires:
- Valid tenancy contract (Ejari renewal)
- Updated external approvals (if applicable)
- Payment of renewal fees
- Chamber of Commerce renewal
Pro Tip: Start renewal process 30-60 days before expiry to avoid late fees and business disruption.
Common Mistakes to Avoid
- ❌ Choosing wrong business activities (limits future operations)
- ❌ Selecting non-compliant company names
- ❌ Insufficient office space for visa requirements
- ❌ Missing external approval requirements
- ❌ Not maintaining valid Ejari contract
- ❌ Late renewal causing penalties
Activities You Can Add to Your License
Most businesses can list multiple activities on a single trade license. However, you must choose activities from the same category (commercial, professional, or industrial). Adding activities costs AED 1,000 - 2,000 per activity through a license amendment process.
Conclusion
Obtaining a Dubai trade license is the foundational step for any business in the emirate. While the process has become more streamlined in recent years, having expert guidance ensures you choose the right license type, avoid costly mistakes, and get your business operational quickly. ARZ Al Najah's experienced team can handle your entire trade license application from start to finish.