The Complete Guide to Dubai Trade License Types and Costs in 2026

To legally conduct any business activity in Dubai, you must secure a trade license. Issued by the Department of Economy and Tourism (DET) for mainland companies, or by individual free zone administrators, your trade license defines what you can trade and the legal regulations surrounding your business.

Understanding the license types, the setup fees, and the yearly renewals can save you thousands of dirhams. Below, we break down the four main trade license categories and outline typical setup costs in 2026.

1. The Four Primary License Types

Choose the category that matches your company's core operations:

• Commercial License: Required for businesses involved in the general trade, buying, selling, or distribution of physical goods (e.g., e-commerce, general trading, wholesale, retail).
• Professional License: Issued to individuals or groups offering skilled services, advice, or consultation (e.g., IT consultancy, management consulting, audit firms, educational services). This usually allows 100% ownership but may require a Local Service Agent.
• Industrial License: Mandatory for businesses involved in the manufacturing, processing, packaging, or assembling of raw materials and semi-finished products. Requires a physical warehouse location.
• Tourism License: Required for travel agencies, tour guides, hotels, and companies organizing outbound/inbound tourism activities in the UAE.

2. Breakdown of Trade License Costs in 2026

Setup costs vary depending on the jurisdiction (Mainland vs Free Zone) and whether you rent a physical office. Here is a typical cost breakdown for a mainland professional/commercial setup:

• Trade Name Approval: AED 620 (One-time fee to reserve your business name).
• Initial Approval: AED 120 (Grants permission to proceed with office leasing).
• DET License Fee: AED 8,000 - AED 15,000 (Varies based on activities and commercial lease value).
• Virtual Office/Ejari: AED 5,000 - AED 12,000 per year (Renting co-working space or physical office).
• Local Agent/Service Fee: AED 3,000 - AED 10,000 per year.

"Renting a virtual office package in a Free Zone is the cheapest entry route for consulting businesses, whereas Mainland licensing is optimal for direct retail or distribution setups."

3. Steps to Obtain Your Dubai Trade License

The standard licensing process follows these key stages:

1. Select your business activities.
2. Submit trade name options for reservation.
3. Obtain initial approval from the DET or Free Zone Authority.
4. Lease a workspace and get the registered Ejari tenancy contract.
5. Prepare legal drafts (Memorandum of Association).
6. Pay the DET license invoice and collect your active license.

Conclusion

Getting a trade license in Dubai is a clear and organized process, but requires coordinating approvals, legal translation, and notary procedures. Working with an experienced corporate services provider like Tanzeel ensures you select the correct business activities and secure your trade license quickly and affordably.