trade license in Dubai

If you are thinking about starting a business in Dubai must first obtain a trade license. Similarly, this is one of the most important steps new companies take when opening a business in the area. The DED is the government body in charge of issuing the trade license in Dubai and it allows companies to conduct businesses.

In this article, we will make sure you understand everything about these types of licenses and why they are important. In the same vein, the Department of Economic Development categorized companies under licenses; providing them distinction as per their company activity. That is to say, getting the license would depend on your type of business. Let us observe:

  1. Trade license in Dubai
  2. What is the process to obtain a trade license in Dubai?
  3. What are the benefits of obtaining a trade license?
  4. How much does a trade license cost?
  5. How can Connect Free Zone Assist you to obtain a trade license in the UAE?

1. Trade license in Dubai

A trade license is a documentation that will allow you to conduct businesses in Dubai or the UAE. In the same vein, the Department of Economic Development (DED) is the government entity in charge of issuing it. But depending on the category or nature of your company; you will obtain approval from the entity.

For example, financial institutions require permission from the UAE Central Bank. On the other hand, insurance businesses must obtain approval from the Ministry of Industry and Finance. In other words, all industrial and commercial agencies must register to the Chamber of Industry and Commerce.

Similarly, there are 3 types of trade licenses you can apply for if you want to start a business in Dubai:

  • Commercial: It is granted to businesses performing in any commercial trade activity related to commodities, services, and goods. In addition, it is often issued to traders, dealers, suppliers, merchants, etc.
  • Industrial: It is required for businesses conducting manufacturing activities such as food, metals, textile, engine, petroleum products, etc.
  • Professional: Issued to individuals or a group whose work involves taking advantage of their intellectual skills and talents (for instance, accountants, technicians, and marketers).

2. What is the process to obtain a trade license in Dubai?

The process of obtaining trading licenses can be hassle-free and easy if you have experience starting a company in the UAE. But, if you are new and are on your own, seeking help from experts is a common practice in the country. You can follow our guide divided into various steps.

Here is a 10 step guide you can follow in order to obtain the license in the UAE:

2.1. Choose your economic jurisdiction

This is the first decision you must make when starting out in Dubai or the UAE; selecting in which jurisdiction you want to establish your business. For example, the jurisdictions in the city are Free Zones, Mainland, and Offshore Company.

2.2. Decide your company structure

The next step in this process is to choose the business structure. Your organization’s legal structure is the decisive factor for the regulations and rules you will be subjected to in the future; so, you must choose carefully.

2.3. Select your company activities

The activities you want to carry out in the UAE will decide the type of trade license verification you must apply for. That is to say, you need to select all company activities you want to carry out because you cannot perform in any activity you did not state beforehand.

2.4. Obtain the initial approvals

After you have made the first 3 decisions, you must acquire the initial approvals from the DED in Dubai (Department of Economic Development). After that, you must fill out the application form they provide to you.

2.5. Get an office space

You need to obtain office space in Dubai since Ejari and the tenancy contract are needed to obtain the license from the DED. However, you can also choose a virtual office space if you do not need a physical office space.

2.6. Prepare the MOA

The MOA (Memorandum of Association) is a crucial document. It is a common thing to get legal assistance from experts like us when drafting the document. In Connect Free Zone, we can assist you in this and all steps in the trade obtaining process.

2.7. Get the external approvals

The government employees at the Department of Economic Development will indicate some external approvals you must obtain from different agencies and government entities.

2.8. Submit the documentation to the DED

There are some documents that you need to submit to the economic department. Let us observe:

  • Initial approval letter from the DED.
  • The Memorandum of Association.
  • Ejari and tenancy contract.
  • Completed DED application form.
  • Copies of all the partner’s passports.

These are some of the most common documents; however, you may require others depending on the activities you choose.

2.9. Complete the final application

After you complete the previous steps; you must submit the documentation and complete the final application from the Department of Economic Development in Dubai.

2.10. Pay the fees

After you complete all processes and the Department of Economic Development approves your application; you must pay for the trade license fees in Dubai and obtain the license you applied for.

If you are looking for experts’ assistance, you are in the right place. In Connect Free Zone, our team of specialists will take care of your business requirements before and after you start your company.

3. What are the benefits of obtaining a trade license?

This beautiful city has been an important location for local and international trade due to its location. In addition, with the improvement in business activities, trade licenses and renewals have become more popular. Right now, there is a massive market in Dubai for all types of goods and there is a large ex-pat population.

If you want to take advantage of the huge market or use the low-tax incentives to re-export your goods; you must obtain a trade license. This is compulsory to manufacture, distribute, and import any goods in Dubai. Let us observe the most important benefits you will obtain with this license:

3.1. International and local trade

Obtaining the trade license in the UAE will allow you to import or manufacture products mentioned in the license. Subsequently, after completing this, you can distribute these products in the local market of Dubai, export manufactured products, or re-export imported products wherever you want.

You will obtain massive profits if you take advantage of the tax-free policies and other incentives provided by the government.

3.2. No taxes

Most countries rely impose heavy taxes on the import, selling, and manufacturing of various goods. That is to say, this is one of the most important incentives in Dubai and across the UAE; it is almost free from all types of taxation. Therefore, this is also the case with various goods that come with the trade license.

The manufacturing of these goods is possible with minimum costs; various products are in an all-time high demand in Dubai, the Middle East, and worldwide.

3.3. A large number of products

Apart from specific products with sensitive materials or restrictions; almost all products permitted in the city are registered with the general license. With this, you can a trade large number of goods with a single license. In the same vein, you just need to pay the trade license fees in Dubai once and it will provide benefits for several years.

3.4. Simple process

This trade license in the UAE is not only profitable; it is also easy to obtain. In other words, when you compare it to other types of registration procedures; you can obtain your license in just 7 days from the DED after the submission of the required documentation.

This license also makes things easier in the future. There is no need to submit auditing reports in the case of this license. This will save you from annual auditing difficulties.

3.5. Easy sponsor to dependents

Another advantage of the trade license is that it makes it easier for investors and entrepreneurs to apply for visas for their workers and their dependents. In the same vein, you can sponsor your family; becoming easier for them to obtain the UAE residence visa.

4. How much does a trade license cost?

There are certain advantages of obtaining a trade license, as the approximate trade license fees in Dubai are low up to AED 40,000 to 50,000. On the other hand, you will also use this license as a legal structure and for warehousing purposes as well. In addition, the trade license holder is exempt from taxes on profit and income.

Further, individuals can trade in both Mainland Dubai and worldwide. In the same vein, the license holders also benefit from the various visa issuance from their workers; however, it depends on the various factors.

As we mentioned earlier, the trader is exempt from the submission process of audit reports to the Dubai government. In addition, Connect Free Zone can also provide both personal and corporate banking to the holders.

5. How can Connect Free Zone Assist you to obtain a trade license in the UAE?

In Connect Free Zone we want to help you establish your business in Dubai. That is why we offer you the most outstanding packages, pricing, and discount if you want to start your company in any Free Zone or Mainland. On the other hand, we also can sponsor your business with our sponsorship solutions.

Establishing a company in any area of this emirate may be an overwhelming process at first; especially if you are on your own. That is to say, we will assist you to establish your business in the best free zones in the UAE.

Working side-by-side with us is the best way to discover the best location for your company. Similarly, we can ensure you take advantage of the different jurisdiction advantages. In other words, we compare free zone rules, regulations, prices, and locations regarding your business PRO services.

Would you like Connect Free zone to assist you in obtaining a trade license in the UAE? If you want your organization to easily obtain the trade license in the UAE, or if you have additional questions. You can always contact us at

On the other hand, you can submit your resume and apply for one of many job positions by going to You can also send it to

Connect Freezone

Connect FreezoneConnect free Zone is the go to place when it comes to company set up services, you will find standard pricing, discounts and packages for the most popular free zones across the UAE as well as the ability for Connect FZ to sponsor your company and set up on mainland Dubai.

Leave a comment