Thinking of setting up your dream business in Dubai? One of the first and most essential steps you’ll need to take is obtaining a Trade License. For expats looking to start a company in one of Dubai’s famous Free Zones, this document is the key to unlocking the legal operation of your business while enjoying exclusive benefits like 100% ownership and tax advantages.
But what exactly is a trade license, what types are available, and how much does it cost? In this guide, we’ll explore everything you need to know about Free Zone trade licenses and help you navigate the process with confidence.
1) Why you need a Trade License
2) Different types of Licenses in Dubai
3) How much does a Trade License cost in a Free Zone in Dubai?
4) How to get a Trade License in the UAE
5) Advantages and disadvantages of getting a Trade License
6) Frequently Asked Questions
A Trade License in Dubai is an official document issued by relevant authorities that allows you to legally conduct business in your designated industry. Whether you’re running a tech startup, a media company, or any other sort of business, this license is a mandatory requirement for business operations in the UAE. Without it, you are not legally able to provide any services or products, or operate any type of business from the UAE.
There’s a few reasons why you need a Trade License to operate, but these are the key reasons:
Now that you know that it’s mandatory to have a Trade License to operate a business, you should also know that there is no one-size fits all Trade License. You will get a different type of license depending on the kind of business that you run. So choosing the correct one during your Incorporation process is essential. Our Advisors can help you with this.
These are the most common Trade Licences in the UAE:
1. Commercial License
Some Free Zones also issue freelance permits for individuals offering personal services (e.g., writers, photographers, developers) and branch licenses if you’re opening a branch office of an existing company.
Work with our Team to find the best License and Free Zone for your Business
The cost of a Free Zone trade license in Dubai depends on several factors, including the type of license, the Free Zone you choose, and any additional services required. You can read our comprehensive cost guide here, but in general here’s what to expect:
More often than not, having an office space is compulsory to get your Trade License. For this, there’s a few options you can look into:
Pro Tip: Look for Free Zone promotional offers! Some Free Zones bundle trade licenses, visas, and co-working spaces into all-inclusive packages. If you don’t see any offer, reach out to us! We often get the best deals as soon as they drop.
Starting a business in a Free Zone may sound complicated, but the process is actually simplified compared to mainland setups. Here’s a step-by-step breakdown:
There are over 20 Free Zones in Dubai alone, each specializing in different industries. Research to find which Free Zone aligns with your business activity (e.g., Dubai Internet City for tech startups or JAFZA for logistics and heavy trade).
From media to trading to recruitment, ensure you define your activity correctly based on your industry. Note that every Free Zone has a list of Activities they permit within it, so once you’re in touch with the team, you can ask to see it and choose the right activities to be on your License. Licensing inaccuracies may lead to delays or compliance issues later on.
You will have to submit 3 trade name options for approval, ensuring they comply with UAE naming guidelines. Avoid prohibited words and check if the name is already registered.
Once you have done all the above you will need to submit some documentation to officially submit your application. Typical necessary paperwork includes:
You cannot complete your application without paying the incorporation fees to the Free Zone. You will need to pay the initial registration and setup fees, which typically cover your license, office space, and visa quota.
Once fees are cleared and documents are approved, your trade license will be issued within a few days. You’re now legally ready to start your business in Dubai! After this, you can start the process of applying for your resident visa or your employees’.
Contact Us to start your Business Incorporation Today.
If you’re not yet sure if a Free Zone is the correct corporate structure for your business - Let’s go over some of the basics. You can also read this article to learn more about the differences between Free Zone and Mainland Companies in the UAE.
Advantages
These are some of the perks of operating in a Free Zone, and the reasons why most Expat choose this kind of incorporation:
Disadvantages
While Free Zones have clear benefits, they’re not ideal for every business. Here are some challenges:
Yes! Free Zones offer tiered packages so companies can scale their visa quotas as needed—though this may involve additional costs.
Yes, most Free Zones allow you to add or change Trade License activities, but you’ll need to apply for an amended or extra license and pay additional fees.
In most cases, at least a Flexi-desk solution (shared or virtual office) is required, although private offices are not mandatory for smaller businesses.
In a nutshell, A Free Zone trade license is often the best option for expats looking to access international markets, enjoy tax benefits, and set up operations quickly. However, if you’re planning to target the local UAE market or open physical storefronts, it may not be the right fit.
Ready to get started? Check out our Business License Cost Calculator or connect with one of our team members to find the ideal Free Zone for your operational needs and budget. With the right setup, running a business in Dubai can be as rewarding as it is exciting!
