Getting a trade license in Dubai is the first and most important step to legally operate a business. The process may seem complicated at first, but when broken down into clear steps, it becomes straightforward. Whether you are an entrepreneur, freelancer, or investor, following the correct procedure ensures your business is set up smoothly.
The first step is to determine your business activity. Dubai offers thousands of approved business activities across sectors like trading, services, consultancy, and manufacturing. Choosing the right activity ensures your license covers everything you want to do. If you plan to expand later, it’s better to list multiple activities under the same license.
Next, decide on the legal structure of your company. Options include sole proprietorship, limited liability company (LLC), branch office, or free zone company. Each structure has different requirements for ownership, liability, and taxation. For example, an LLC allows foreign ownership with a local sponsor, while a free zone company offers 100% foreign ownership.
After that, you’ll need to choose a jurisdiction: Mainland, Free Zone, or Offshore. Mainland businesses can trade directly in the UAE market, while Free Zone companies are more cost-effective and ideal for international trade. Offshore companies are mainly used for holding assets or international business.
The fourth step is choosing and reserving your company name. The UAE has strict naming rules—you cannot use offensive words, religious terms, or duplicate an existing registered name. Once approved, your name is reserved for use in your trade license.
With the basics in place, you can now apply for your trade license with the Department of Economy and Tourism (DET) for mainland businesses or the respective Free Zone authority. You’ll need to submit documents such as your passport, visa copy, and No Objection Certificate (if applicable).
After document submission, you will receive an initial approval. The next step is to secure office space. Depending on your license, you may need a physical office, shared desk, or even a virtual office in some Free Zones. A tenancy contract (Ejari) is often required for Mainland businesses.
Once approvals are granted, you will pay the required license fees. Costs vary depending on your activity, jurisdiction, and visa requirements. After payment, you’ll officially receive your trade license and can begin operations.
Finally, don’t forget to apply for visas and open a corporate bank account. These steps allow you to legally hire staff and manage your finances. With your trade license in hand, you are ready to start your business journey in Dubai.