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26 March, 2022

An Ultimate Guide to Trade license in Dubai

Dubai is one of the top choices for entrepreneurs and business owners to set up a new venture or for expanding their business. With its favorable and effective policies, and laws Dubai outshines and attracts various investors, and business owners.

But if you’re somewhere struck with how to begin? Whom to trust? Then, you’re in the right place. Let’s explore together.

The Trade license /business license is an important segment to provide legal identification to the company. It validates business/company as a legal entity. The trade license is issued by the Department of Economic Development (DED) and is used for various import, export, and other commercial activities.

Types of trade license in Dubai –

There are four types of trade license in Dubai which are used for various trading, and commercial activities.

  • Professional License: licenses for service-related business professionals rendering specific services
  • Commercial or Trade License: licenses for general trading
  • Industrial License: licenses for industrial and manufacturing activities
  • Tourism license – License for travel and tours industry

You can choose the right type of trading license depending on your industry, business activity, and jurisdictions. First, you need to acknowledge your specific business needs to make a better decision.

Types of Trade license in Dubai

Fig: Types of Trade license in Dubai


The Free Zone, Offshore, and Mainland License –

The trade license you will apply for will vary depending on whether you’re starting a free zone or mainland business.

  • Mainland license – This license is for businesses operating in Dubai mainland and requires approvals by various government entities, and finally issued by DED.
  • Free zone trade license – This license is issued by authorities in particular free zones. The limitations and benefits vary with each free zone.
  • Offshore license – This license for the offshore company requires an offshore incorporation certificate and is not allowed to operate within the UAE, Dubai.

Process for trade license in Dubai –

The DED is the government body responsible for issuing trade licenses. First, you have to reserve a trading name under DED, followed by submission of the Memorandum of Association (MOA), and other important documents. There is several paperwork and documentation, and once your business and others are verified, a trade license can be issued within three days.

A trade license is only valid for one year, and it needs to be renewed. In case of failure for the same, your license will expire and that poses a ban on your business activity. In this scenario, it’s important to get your license renewed to avoid any such circumstances.

Benefits –

  • Tax benefits – Tax incentives is one of the major reasons which attracts investors, and businesses to Dubai. It exempts investors from paying taxes on sales, manufacturing, and others. It provides an opportunity to earn revenue and invest it in other production and operational activities.
Tax Benefits while processing Trade license in Dubai

Fig: Tax Benefits while processing Trade license in Dubai


  • Boost trade – Trade license opens up a huge opportunity for business activities. You can either send your products to local markets or trade abroad and earn profits. It provides scope for expansion, and growth of the business.
  • Nurtures trustworthiness – A trade license is a benchmark to reflect the credibility of the business. And once your business is verified by DED, it symbolizes that you’re having a fair-trade abiding by the law. It helps customers to build trust, and approach your business, and its services.
  • Easy set-up – A trade license allows you to trade freely, without any problems. And as far as the license is concerned, the process is extremely fast. All the verification, documentation is done in a quick way to allow business owners to initiate business as early as possible. So, it becomes an easy setup for businesses.

UAE is the right start to explore the possibilities of your business. If you’re seeking some organization and consultancies to ease your processes, then you should connect with The Corporate Group. With its excellence, positive mindset, and right approach it can prove to be the best choice.

Frequently Asked Questions

What exactly is a trade license?

A trade license is a method to legally validate your business under the laws and regulations of the UAE.

Can we get a license immediately?

Yes, the DED offers an instant license for a business that wishes to start immediately. It allows you to trade freely without getting involved in documentation processes. It is valid for up to one year then documentation, and another process becomes necessary.

Why do we need a trade license in Dubai?

A trade license is necessary to ensure that your business is running smoothly under the laws of the UAE. It is backed by several benefits such as tax redemption, better opportunities, easy setup, and much more.

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