Cost Breakdown of Obtaining a Trade License in Dubai

Having a trade license is a legal requirement when you run a business in Dubai. It legitimises your company and ensures that you comply with local regulations. There are several types of trade licenses in the UAE, including commercial, industrial, and professional. You must choose the right one for your business’s operations. 

The trade license cost in Dubai depends on the type of business you’re setting up. Having an idea of how much you need to pay will help you effectively budget and plan for your venture. 

Read this article for a cost breakdown of getting your Dubai trade license and the different types available. 

Overview of the Different Types of Trade Licenses in Dubai

Each trade license available in Dubai has a different purpose and should align with your business activities, whether it’s retail, consultancy, or manufacturing. 

Here’s a quick overview of the three main types. How to get a trade license in Dubai will depend on the option you choose from below.

Commercial License 

Commercial Licenses are a requirement for businesses in the retail and wholesale trade. It allows them to import, export, and then sell goods within the UAE and globally. 

The average cost of obtaining a Commercial License is AED 24,500 in mainland Dubai and starts from AED 12,500 in the free zones.

Professional License 

If your business is involved in service-related operations, you will need to register for a professional license. The Department of Economic Development will ask for proof of a professional degree and experience in your field. They will only issue a professional license to an individual.

Service-related operations include consultancy, healthcare, education, and more. The mainland Dubai trade license cost for professional licenses starts at AED 9,950. In the free zones, it could range from AED 12,500 to AED 50,000.

Industrial License

Businesses in manufacturing and production will need an industrial license. Registering for one is typically higher than obtaining a commercial or professional license because of the need for expensive equipment and facilities. 

A trade license cost in Dubai for industrial and manufacturing purposes runs, on average, at AED 25,000.

How Much Is a General Trading License in Dubai?

A general trading license in Dubai allows you to sell a variety of different goods under one license. It could be any physical product, from food to electronics. It does not include cars, alcohol, weaponry or any medical products - you will need a specific license to import or export these. 

How much is a general trading license in Dubai? It varies depending on whether you are in the mainland or free zones. On average, you can expect to pay AED 29,685 total for a general trading license, including registering a trade name, immigration card, and approval fees. However, this depends on whether you’re requesting a general trading license on the mainland or free zones. 

The License fees alone cost approximately AED 12,500 to AED 15,000. 

General Trading License Cost in Dubai Free Zones vs. Mainland

The general trading license cost in Dubai depends on whether you’re registering your business in a free zone of the mainland. 

If you’re registering for a general trading license in mainland Dubai, the cost is between AED 12,500 and  AED 15,000. However, you will also need to pay other fees, like DED Activity fees (AED 15,000) and your Trade Name Reservation Cost (AED 620). 

The amount you will pay to register for general trading in the free zones is the same as the mainland, but you don’t need local sponsorship and will benefit from tax exemptions after you obtain your license. 

Many free zones, like the DMCC, offer business setup packages. This includes an office space, visa, and general trading license, which you can pay for in one.

Additional Costs to Consider for Trade Licenses in Dubai

Once you pay the fee and receive your general trading license fee, you cannot immediately start selling. You will also need to pay for visa fees, office rental fees, and document-clearing costs on top of your initial trade licensing payment. 

Here is a breakdown of additional fees on top of a trade license cost in Dubai:

Visa: AED 5,000 initially and between AED 3,000 and AED 6,000 per employee

Office Rental: An average of AED 34,189

Document Clearing Costs: AED 150 per document

Trademark Registration: AED 620

Initial Approval: AED 345

Notarisation of MOA: AED 350

Sponsorship Fees: AED 6,000

Customs Registration:

• Import: AED 15.00 – AED 100.00
• Export: AED 15.00 – AED 100.00
• Transit: AED 15.00 – AED 80.00
• Transfer: AED 80.00

This is only a general estimation. The actual Dubai trade license cost and associated fees will depend on whether you’re registering in the mainland or free zones, and your business structure and type.

Hidden Fees for Trade Licenses

As you budget for a trade license in Dubai, you need to be aware of hidden fees that could compromise your budget. 

Certain industries, including food, healthcare, construction, and telecommunications, will require different approvals from government authorities like the Dubai Municipality or the Ministry of Health. This can take extra time and increase costs. 

Certain business types may also need permits from the Dubai Civil Defense or Telecommunications Regulatory Authority. 

Other hidden fees include: 

• Corporate bank account setup 
• Business insurance 

How to Get a Trade License in Dubai: Step-by-Step Process

Here’s how to get a trade license in Dubai in seven simple steps. 

• Choose a Company Name 

Select a name that complies with UAE regulations and ensure it’s unique and not used by another business. 

• Choose Your Trade Activities 

Specify what your business will engage in. 

• Fill Out an Application Form 

Complete an application form for a trade license and submit it to the Economic Development (DED) for initial approval. 

• Gather Relevant Documents 

Prepare all necessary documents for submission. This includes a Memorandum of Association (MoA) a copy of your passport (and any partners), and a tenancy agreement for your office. 

• Obtain Any Additional Approvals 

If your trade activities require external approval, make sure you secure these before you submit your second application. 

• Submit Your Application 

With all your documents ready, you can submit your trading license application to the DED. 

• Pay the License Fees 

Finally, pay the trade license registration fee. This will vary depending on your business structure and whether you’re registering on the mainland or in free zones.

Planning for Trade License Costs in Dubai

Understanding how much you can expect to pay for trade licensing costs is crucial if you want to establish a successful business in Dubai. Your expenses won’t just be the initial license fees. You will also need to pay ongoing costs like visa fees and office rental. 

Consulting with a professional can help you navigate these expenses and avoid any unexpected financial burdens that could negatively impact your business’s future success. They may also help you speed up the business registration process so you can start trading in the UAE.