Getting a trade license in Dubai is the first and most important legal requirement for starting any business within the UAE. Whether you want to set up a physical store, consultancy firm, online business or industrial activity, you must obtain the correct trade license from the Dubai Department of Economy and Tourism or the relevant free zone authority.
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This comprehensive guide explains how to register your trade license, how to renew it, how to maintain compliance through the year and how Dewey & LeBoeuf can support you at every step. The goal is to give you a practical, legally accurate, and fully actionable blueprint.
Dubai is one of the most attractive business locations in the world. Investors choose Dubai because of its low tax environment, simplified company procedures, world class infrastructure and direct access to global markets. But the key to doing business legally and successfully in Dubai is a properly issued and well maintained trade license.
What is a Trade License in Dubai
A trade license is an official document that authorizes your company to operate legally in Dubai. It specifies your activities, your legal structure, and the jurisdiction where you can conduct business. You must secure the correct license category based on your exact business activity.
Dubai issues three primary types of trade licenses:
- Commercial License for trading or selling goods.
- Professional License for service, consultancy or skilled work.
- Industrial License for manufacturing or industrial production.
Depending on your business model, you may apply through the mainland authority (Dubai Economy and Tourism) or a free zone such as DMCC, DIFC, JAFZA, or DAFZA.
Why a Trade License is Essential
A trade license in Dubai gives your company legal recognition, protects you under UAE commercial laws and allows you to:
- Operate legally within the UAE.
- Open corporate bank accounts.
- Apply for visas and work permits.
- Import or export goods.
- Sign commercial contracts.
- Rent office or warehouse space.
- Advertise your business publicly.
Operating without a valid trade license can lead to fines, closures, blacklisting, legal actions, and immigration penalties.
How to Register a Trade License in Dubai
Getting your trade license in Dubai involves several structured steps. Below is the complete process explained clearly so you can understand all the requirements to register a trade license in Dubai.
Step 1. Choose Your Business Activity
Select the exact activity you plan to conduct. Dubai Economy provides a list of more than 2,000 approved business activities. Free zones also have their own lists. Your activity must match your business model because licensing, fees, and approvals depend on this classification.
If you choose the wrong activity, your bank account, immigration processes, and compliance checks can be affected. Dewey & LeBoeuf helps clients select the most suitable business activity to avoid future restrictions.
Step 2. Choose Mainland or Free Zone
This is one of the most important decisions in the licensing process.
- Mainland license allows you to conduct business anywhere in the UAE and internationally.
- Free zone license allows you to operate within the free zone and internationally but does not allow direct onshore trade unless you use local distributors.
Mainland is suitable for service businesses, contracting, and sales within the UAE. Free zones are ideal for international trading, e-commerce, holding companies, and specialist industries like fintech or logistics.
Step 3. Select a Legal Structure
The most common structures include:
- LLC for commercial trading or general business.
- Sole Establishment for service professionals.
- Free Zone Company (FZCO or FZE).
- Branch of a foreign company.
- Representative office.
Each structure has different legal implications. Our Dubai office provides full legal structuring support based on your ownership, liability, and operational needs.
Step 4. Reserve Your Company Name
Choose a trade name that follows UAE naming rules. Avoid offensive terms, political references, religious words or names similar to famous brands. Submit three preferences so the authority can approve one.
Name reservation fees vary from AED 600 to AED 1,000 depending on the jurisdiction.
Step 5. Prepare Required Documents
You will typically need:
- Passport copies of all shareholders.
- Passport sized photo.
- UAE residence visa copy (if applicable).
- Emirates ID copy (if applicable).
- Business activity description.
- Memorandum of Association for LLCs.
- Office lease agreement (after initial approval).
If you are a foreign investor, we assist with notarization, legalization and drafting the correct documents.
Step 6. Get Initial Approval
Initial approval is formal confirmation that the Dubai government has no objection to your business activity. After initial approval, you may proceed with signing the MoA, selecting office space, and completing final licensing steps.
Step 7. Secure Office Space or Flexi Desk
Mainland companies must have a physical office or flexi desk. Free zone companies can choose shared desks, serviced offices, or private facilities. The lease contract must be submitted with Ejari registration.
Step 8. Submit Final Licensing Application
After completing all documents, the application is submitted to the authority. Once approved, you receive your trade license electronically. Processing time may take 1 to 10 days depending on the license type and the jurisdiction.
How to Renew a Trade License in Dubai
Your trade license must be renewed every year. Failure to renew may cause penalties, delays in immigration processes, and potential blacklisting. Below is the complete process explained clearly so you can understand all the requirements to renew a trade license in Dubai.
Step 1. Check the Expiry Date
Most trade licenses are valid for 1 year. Authorities may give fines for late renewal.
Step 2. Renew Your Lease and Ejari
For mainland companies, the office lease must be renewed first. Without valid Ejari, the license renewal cannot proceed. Free zones also require a valid office or desk contract.
Step 3. Update Corporate Documents if Needed
If shareholders, managers or activities changed during the year, these must be updated.
Step 4. Pay the Renewal Fees
Fees vary based on business activity and location. Mainland renewal fees generally range between AED 8,000 and AED 20,000. Free zones differ by authority.
Step 5. Receive Your Renewed License
The updated license will be issued electronically. Dubai authorities have simplified renewals, making the process fast when all documents are in order.
Dewey & LeBoeuf assists clients with annual renewals, document updates, and compliance filings so they can continue operating seamlessly.
Compliance Requirements after Getting a Trade License
Your responsibility does not end with obtaining a trade license. Dubai requires several ongoing compliance steps to keep your business legally valid.
1. Annual License Renewal
Your company must renew its trade license every year.
2. Annual Financial Audit
Most companies must prepare audited financial statements and submit them when required.
3. Beneficial Ownership Reporting
Companies must file UBO declarations to maintain transparency.
4. VAT Registration
If your revenue exceeds AED 375,000 annually, VAT registration is mandatory.
5. Corporate Tax Compliance
UAE now has corporate tax regulations for certain entities. Your business may need to register, file returns and maintain audit ready accounts.
6. Immigration and Visa Compliance
Business owners must keep visas, establishment cards, and labor files valid.
7. Economic Substance Reporting
Depending on your activity, ESR filing may be required annually.
8. AML and CFT Compliance
Certain professional businesses and traders must follow anti money laundering rules.
Our Dubai based legal team assists with full compliance management so that your business always stays protected and penalty free.
Common Problems Investors Face and How We Solve Them
- Incorrect activity selection that causes banking or immigration issues.
- Delayed renewal due to missing Ejari or expired documents.
- Difficulties obtaining visas after incorporation.
- Penalties due to late filing or incorrect compliance reporting.
- Legal disputes because of poorly drafted MoA or shareholder agreements.
Dewey & LeBoeuf provides preventive legal planning, corporate governance support, and long term compliance management to avoid all such risks.
FAQ About Trade License in Dubai
Who issues the trade license in Dubai?
The Department of Economy and Tourism issues mainland licenses. Free zone authorities issue licenses for free zone companies.
How long does it take to get a trade license in Dubai?
It usually takes between 1 and 10 days depending on activity and approvals.
Can foreigners own 100 percent of the business?
Yes. Dubai now allows full foreign ownership for most activities.
Is corporate tax applicable?
Corporate tax may apply based on the business category. Your company must check eligibility and register accordingly.
Do I need an office to get a trade license?
Yes. Mainland companies require office space or a flexi desk. Free zones offer flexible options.
Why Choose Dewey & LeBoeuf for Trade License Support
Dewey & LeBoeuf is a global law firm with a strong corporate and commercial practice in Dubai. Our legal team assists entrepreneurs, startups, SMEs, international investors and corporate groups in setting up, renewing and maintaining their trade licenses in full compliance with UAE law.
We provide:
- Complete trade license registration services.
- Legal structuring and activity selection support.
- Drafting and notarizing all corporate documents.
- Office address, visa assistance and immigration support.
- Annual renewal and full compliance planning.
- Tax, VAT, ESR and UBO advisory.
- Bank account and regulatory guidance.
If you want to operate in Dubai legally, safely and efficiently, our team provides precise, transparent and professional legal solutions tailored to your business.
Contact Dewey & LeBoeuf Dubai today to begin your trade license registration and receive a full legal consultation from our experts.
E-mail: info@deweyleboeuf.com
Phone: +971 58 690 9684
Address: 26B Street, Mirdif, Dubai, UAE