Starting a business in Dubai is exciting, but the process can feel a little overwhelming if you’re new to the city’s rules and regulations. One of the first things you’ll need is a trade license, which officially allows your business to operate legally.
Many entrepreneurs wonder: “How much will it actually cost to get a trade license in Dubai?” The answer depends on a few factors like your business activity, whether you choose a mainland or free zone setup, and the type of license you need. Understanding these costs upfront can help you plan your budget and make the whole setup process much smoother.
In this guide, we’ll break down the different types of trade licenses, cost of trade license, and what you need to consider when starting your business in Dubai.
Types of Trade Licenses in Dubai
The cost of a trade license in Dubai depends on the type of business activity and whether you set up your company in a mainland or free zone. Here are the main types of trade licenses:
- Commercial License
- For trading activities such as import, export, and retail.
- Suitable for businesses like shops, trading companies, and import-export operations.
- Professional License
- For service-based businesses such as consultancy, IT services, and freelancers.
- Required for individuals or companies providing professional services in Dubai.
- Industrial License
- For manufacturing and industrial activities.
- Allows companies to produce, store, and distribute products.
- Free Zone License
- Issued to businesses operating in Dubai’s free zones.
- Cost varies depending on the free zone and type of business activity.
Cost of Trade License in Dubai Mainland
If you are setting up a business in Dubai mainland, the trade license fee typically ranges based on the type of license and business activity. Here’s an approximate breakdown:
| License Type | Estimated Cost (AED) | Notes |
| Commercial License | 10,000 – 15,000 | Fees vary depending on business activity; includes initial registration |
| Professional License | 10,000 – 15,000 | Cost may increase if additional approvals or permits are required |
| Industrial License | 15,000 – 20,000 | Includes industrial permit fees and registration charges |
Additional Costs:
- Local sponsor fees (for mainland companies, if applicable)
- Office rent or flexi-desk fees (mandatory for licensing)
- Government service fees (for name reservation, approvals, and renewals)
Cost of Trade License in Dubai Free Zones
Setting up in a free zone offers attractive advantages, including 100% foreign ownership and tax exemptions, but the trade license cost can vary widely depending on the free zone and type of business.
| Free Zone | Estimated Cost (AED) | License Type |
| DMCC | 15,000 – 20,000 | Commercial/Service |
| Dubai Multi Media City | 12,000 – 18,000 | Media/Professional |
| Dubai Silicon Oasis | 10,000 – 15,000 | Tech/Professional |
| Jebel Ali Free Zone (JAFZA) | 15,000 – 25,000 | Trading/Industrial |
Note: Most free zones include benefits like visa processing and office space in the license package. Some also offer flexible packages for startups to reduce initial costs.
Factors That Affect Trade License Cost
Several factors can impact the total cost of a trade license in Dubai:
- Business Activity – Trading, industrial, and professional activities have different fees and requirements.
- Office Space – Mainland companies must have a physical office; free zones may offer flexi-desk options.
- Number of Visas – Additional visas for employees increase the cost.
- Approvals and Permits – Certain business activities require government approvals, adding to the fee.
- Location – Free zone vs mainland; fees vary by jurisdiction.
How to Save on Trade License Costs
- Choose the right free zone: Some free zones offer startup packages with lower licensing fees.
- Opt for flexi-desk or shared office: Reduces initial office rental costs.
- Hire a business setup consultant: Consultants can guide you through licensing requirements, avoid unnecessary fees, and ensure compliance.
Conclusion
The cost of a trade license in Dubai depends on the type of license, business activity, and location. Mainland licenses typically start around AED 10,000, while free zone licenses range between AED 10,000–25,000 depending on the package.
Before proceeding, it’s essential to carefully evaluate your business needs, budget, and licensing options. Consulting a business setup consultant in Dubai can help you choose the most cost-effective option while ensuring full compliance with UAE regulations.
Dubai’s business environment is highly supportive, and with the right planning, obtaining a trade license can be a smooth and cost-efficient process.
