Applying for a trade license in Dubai

A Trade License in Dubai is a legal document that authorizes you to start and operate a business. It is issued by the Dubai Economic Department (DED), which operates under the umbrella of the Department of Economy and Tourism (DET). This license confirms that your business complies with UAE laws, and operating without it is considered illegal.

Here are the key types with examples:

• Commercial License: For businesses involved in trading activities, such as electronics trading, clothing retail, or general trading companies. Learn more about Commercial Trade Licenses in UAE
• Professional License: For service-based businesses like legal consultancies, IT services, or marketing agencies can check out our Company Trade License online solutions for professional services.
• Industrial License: Ideal for manufacturing entities, such as furniture production, packaging plants, or food processing units. Explore our Industrial Trade License services
• Tourism License: Required for businesses in the tourism sector, including travel agencies, tour operators, and hotel booking services.
• Grocery Trade License: For retail food or grocery operations, see our dedicated Grocery Trade License page

To start your business, you can apply for trade license in UAE and follow the step-by-step process to select your business activity, legal structure, and obtain all approvals.

1. Choose Your Business Activity: Decide on the exact nature of your business by selecting from the DET‑approved activities list. This choice will determine which trade license type, commercial, professional, industrial, etc., is most suitable for your business needs.

2. Select a Legal Structure: Choose the legal form of your company (e.g.,  Limited Liability Company (LLC), Sole Establishment). The structure affects ownership rights and visa eligibility

3. Reserve Your Trade Name: Pick a unique name for your business and get it approved by the relevant authority. Make sure the name:

• • It is not offensive or religious
  • Reflects your business activity
  • Avoids names of countries or government entities
  • Isn’t already registered by another company.

4. Get Initial Approval: Obtain a No-Objection Certificate (NOC) from the DET to proceed.

5. Draft a Memorandum of Association (MOA): This is required for certain company structures.

6. Find a Business Location: You must have a physical address in Dubai to complete your trade license application. A tenancy contract registered under Ejari is mandatory and must be submitted as part of the required documentation.

7. Submit Your Application: Provide all documents to the DED and pay the fees (see “Documents Required for Trade License in Dubai” below for more details).

8. Receive Your License: Once approved, you will get your official Trade License from DET.

9. Proceed with Post-License Steps: After obtaining your Trade License, you can apply for visas, open a corporate bank account, and complete mandatory compliance requirements such as VAT Registration in the UAE to ensure your business operates legally and efficiently.

Note: For a complete checklist of required paperwork, refer to the section titled "Documents Required for New Trade License Application in Dubai" below.

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The documents you need will depend on who the owners are.

Documents for Individuals (Emiratis vs. Expats)

• For all individuals:
  • Completed application form
  • Passport copies of all partners/shareholders
  • Copy of Emirates ID (for residents)
  • Copy of visit visa (for non-residents)
• For Emiratis: A copy of the family book (Khulasat Al Qaid).
• For Expats: No Objection Certificate (NOC) from their current sponsor if they are a resident.

Note: Expats holding freelance or investor visas may not require a No Objection Certificate (NOC). However, it’s essential to confirm this requirement with the relevant Free Zone authority or the Department of Economic Development (DED) office, as regulations may vary.

Documents for Corporate Shareholders

• Certificate of Incorporation of the parent company
• Board resolution to establish a subsidiary in Dubai
• Memorandum and Articles of Association of the parent company
• Good standing certificate for the parent company

Notarization and Translation Tips

• All documents from outside the UAE must be notarized, attested, and legalized by the UAE embassy in the country of origin.
• Documents not in Arabic may need to be legally translated by a certified translator in the UAE.

The Dubai Trade License cost varies based on your chosen business activity, legal structure, and location.

Here is an estimated breakdown of the main Trade License Dubai fees:

• Initial Approval: Around AED 250
• Trade Name Reservation: Approximately AED 620
• License Registration: Can range from AED 15,000 to AED 50,000
• Office Rent: Varies greatly based on location and size.
• Government and Other Fees: Can add a few thousand dirhams.

For a precise quote, it is best to consult with the DET or a business setup professional like Safe Ledger FZCO.

For a more simplified breakdown of the steps, refer to our complete guide on how to get a trade license in Dubai

Verifying a business' Trade License in Dubai is crucial whether you're a new entrepreneur, an investor, or a customer dealing with a UAE-based company. A valid Trade License confirms that a business is officially registered with the Dubai government and is legally permitted to operate under UAE law.

Why Trade License Verification Matters?

Conducting a Trade License check helps ensure:

• Legitimacy: Confirms that the business is legally registered and recognized.
• Compliance: Ensures the business meets regulatory standards set by the DET, formerly known as DED.
• Protection from Fraud: Prevents dealings with fake or non-licensed entities.
• Due Diligence: Important when entering into contracts, partnerships, or making purchases.
• Insight: Reveals business activity, legal structure, and license status.

How to Verify a Dubai Trade License Online?

You can verify any company’s Trade License status in Dubai via the official DET portal using the following steps:

Step 1: Visit the Official DET Portal

Go to the official website of Dubai's Department of Economy and Tourism (DET):
“ded.ae”

Step 2: Navigate to "License Verification"

Under E-Services, choose the "Search License Information" or "License Status Enquiry" tool.

Step 3: Enter Relevant Details

You can search using one of the following:

• Trade License Number
• Company Name
• Registered Owner’s Name
• Activity or Legal Form

Step 4: View License Details

The search result will provide:

• Trade License status (Active / Expired / Cancelled)
• Company name and registration number
• Legal structure (LLC, Sole Establishment, etc.)
• Business activity
• Issuance and expiry dates
• Registered address

Verifying Licenses Outside Dubai

Each emirate has its own Department of Economic Development or equivalent authority. For businesses registered in other emirates, use the corresponding portals:

• Abu Dhabi: “added.gov.ae”,  Abu Dhabi Department of Economic Development (ADDED)
• Sharjah: “sedd.ae”, Sharjah Economic Development Department (SEDD)
• Ajman: “ajmanded.ae”, Ajman Department of Economic Development
• RAK: “economic.rak.ae” – Ras Al Khaimah DED
• Fujairah: ded.fujairah.ae
• Umm Al Quwain: “uaqded.gov.ae”

Note: Always ensure you're using the official portals. If in doubt, consult a business setup expert like Safe Ledger FZCO to help with verification and documentation.

When applying for or managing your Trade License, you must choose specific business activities from the DET-approved list. You can also modify these activities later through official procedures if your business model evolves.

Dubai DED Activities List

The Dubai DED activities list includes thousands of options across various sectors. For example:

• General trading
• E-commerce
• Marketing consultancy
• Cafes and restaurants
• Real estate brokerage

You must choose the activities that best match your business operations from this official list. You can find this list on the DED's website “eservices.dubaided.gov.ae”.

How to Add or Change Business Activity in a License?

To add or change a business activity in your license, you need to apply for an amendment with the DED. This involves getting initial approval for the new activity, submitting the required documents, and paying a fee.

Here's a step-by-step process to download your Trade License in Dubai through the official platform of the Department of Economy and Tourism (DET), formerly known as DED:    .

Step 1: Visit the Official DET Portal

Go to the official Dubai Department of Economy and Tourism website: “ded.ae”

Step 2: Click on ‘License Services’

From the homepage, navigate to “License Services” under the business services section.

Step 3: Select ‘Print License’ or ‘License Verification’

Choose the option labeled ‘Print License’ or use ‘Verify License’ if you want to view it before downloading.

Step 4: Enter Your License Details

Provide the required information such as:

• Trade License Number
• Company Name or
• Unified Number

Step 5: Verify and Proceed

Once details are entered, the system will display your current valid Trade License.

Step 6: Download and Print

Click on the Download or Print option to save a PDF copy of your license for your records or physical use.

Dubai offers various business zones with unique benefits.

• Dubai Silicon Oasis (DSO): Ideal for technology, electronics, and engineering companies. Offers 100% foreign ownership and modern infrastructure.
• Dubai Media City (DMC): Perfect for media, advertising, and communication businesses. Provides a creative and collaborative environment.
• Dubai Internet City (DIC): A leading tech hub for software development, IT services, and e-commerce companies.

The Dubai Economic Department (DED), now part of the Department of Economy and Tourism (DET), is the main government body that issues Trade Licenses for businesses operating on the Dubai mainland. They regulate business activities and ensure compliance with local laws.

Obtaining a Trade License in Dubai is not just a legal requirement; it's a strategic move that unlocks numerous advantages for your business. This official document serves as your gateway to operating within one of the world's most dynamic economic hubs.

Here are the key benefits of securing a Trade License for your Dubai-based enterprise:

1. Establishes Legal Identity and Credibility

A Trade License solidifies your company's official standing and builds trust in the marketplace.

• Legal Recognition: A Trade License provides your business with a legal identity, ensuring you are operating in full compliance with UAE laws and regulations. This protects you from potential fines and other legal complications.
• Enhanced Reputation: Having a valid license boosts your company's credibility and trustworthiness in the eyes of clients, partners, and investors. It signals that you are a serious and legitimate enterprise.

2. Unlocks Full Operational Capability

This license is the key to essential business functions and services in the UAE.

• Corporate Bank Account: You cannot open a business bank account in the UAE without a Trade License. This is essential for managing your finances, processing payments, and maintaining a professional image.
• Visa Sponsorship: A Trade License lets you apply for residency visas for yourself, your family, and employees, essential for living and building a team in Dubai.
• Lease Commercial Property: Whether you need an office, a warehouse, or a retail shop, a Trade License is mandatory to lease any commercial property in Dubai.

3. Offers Major Financial Benefits

It opens the door to Dubai's favorable economic environment, helping you maximize profits.

• Access to a Lucrative Market: The license grants you access to the thriving local and regional markets, allowing you to trade goods and provide services without restriction.
• Favorable Tax Environment: Dubai offers a highly attractive tax regime. While a corporate tax has been introduced:
  • 0% tax on profits up to AED 375,000;
  • 9% on higher income; Free Zones may qualify for 0%

The rates are among the lowest in the world, and there is no personal income tax, allowing you to maximize your profits.

• Full Repatriation of Profits: Businesses in Dubai, especially those in free zones, can enjoy 100% repatriation of capital and profits back to their home country.

4. Facilitates Business Growth and Expansion

Your license acts as a springboard for scaling your operations both locally and internationally.

• Access to Global Markets: Dubai's strategic location and world-class infrastructure make it a perfect hub for international trade. A Trade License facilitates import and export activities, connecting your business to the global supply chain.
• Eligibility for Government Contracts: A licensed company is eligible to bid for and undertake lucrative government projects and tenders.
• Attracts Talent: A legally established company is more attractive to top talent from around the world, helping you build a skilled and diverse workforce.

Even a small oversight can delay your business setup or lead to compliance issues. Avoid these common pitfalls:

• Choosing the Wrong Business Activity: Selecting an activity that doesn’t accurately reflect your business can result in delays, license rejections, or even fines later on. It can also restrict you from offering the full scope of your services legally.
• Incorrect Legal Structure: Choosing the wrong legal form, like LLC, Sole Establishment, or Branch, can impact your liability, tax obligations, ownership rights, and ability to open corporate bank accounts or apply for visas.
• Incomplete Documentation: Missing or incorrectly attested documents are one of the most common reasons for delays in license approval. Always verify the latest checklist from the licensing authority to avoid setbacks.
• Ignoring Zoning Regulations: Each business activity must align with approved commercial zones. For example, you cannot run a manufacturing unit in a residential area—doing so may lead to license cancellation or fines.
• Not Planning for All Costs: Entrepreneurs often overlook hidden costs such as visa quotas, office rent, insurance, and renewal fees. A clear financial plan helps avoid budget shortfalls and operational interruptions.

When you "buy a license," you are legally taking ownership of the entire business that holds that license.

• Company Acquisition: The process involves a legal transfer of company shares from the old owner to you and is subject to approvals by the DET, formerly DED..
• Inheriting the Business: You acquire everything associated with the company, its name, bank account, employees, assets, and liabilities.
• DED Approval is Mandatory: The entire ownership transfer must be documented and formally approved by the Dubai Department of Economy and Tourism (DET).

A Trade License in Dubai is typically valid for one year from the date of issue. To continue operating your business legally, you must complete the renewal process every year.

Trade License Renewal (Dubai) Process

The renewal process is now simple and can be completed online through the DED e-services portal. The key steps include:

1. Valid Tenancy Contract: Ensure your office's Ejari (tenancy contract) is valid for at least one month.
2. Submit Application: Apply for renewal through the official DED/DET portal (ded.ae).
3. Pay Fees: Make the payment for the renewal fees.
4. Receive Renewed License: Once payment is processed, you can download your updated Trade License.

To continue operations seamlessly, check out our Trade License Renewal services for fast online processing. Start your business in Dubai with confidence. Contact us today!