Introduction
Getting a trade license in Dubai is the first step to establishing your business legally in the UAE. Whether you are starting a small retail business, an international consultancy, or a holding company, understanding the correct license type, process, and requirements is crucial for smooth operations.
At MHK Accounting & Taxation UAE, we help entrepreneurs navigate the complex licensing procedures efficiently.
Types of Trade Licenses in Dubai
| License Type | Ideal For | Ownership | Key Benefit | Regulatory Authority |
|---|---|---|---|---|
| Mainland | Local trading, service providers | Up to 100% foreign ownership (depending on sector) | Can trade anywhere in UAE and government contracts | Dubai DED |
| Free Zone | Export, IT, consultancy, global business | 100% foreign ownership | 0% corporate tax, fast setup | Respective Free Zone Authority |
| Offshore | Holding, asset management, global operations | 100% foreign ownership | Confidentiality, zero local trade restrictions | JAFZA, RAKICC, ADGM |
Step-by-Step Guide to Getting a Trade License in Dubai
Step 1: Choose the License Type
Decide whether your business will operate as Mainland, Free Zone, or Offshore. Consider your market access, ownership, taxation, and business activities.
Step 2: Choose a Business Activity
Select your business activity carefully as it determines the license category and fees.
- Mainland: Commercial, professional, industrial
- Free Zone: IT, consultancy, trading, eCommerce
- Offshore: Holding, asset management, international consultancy
Step 3: Reserve Your Trade Name
Submit your proposed trade name to Dubai DED (for Mainland) or the Free Zone authority. Ensure it complies with UAE naming regulations.
Step 4: Initial Approval
Obtain initial approval for your business activity and license type. This step confirms that the UAE government allows your intended operations.
Step 5: Prepare Documents
Typical documents required include:
- Passport copies of shareholders
- UAE residence visa copies (if applicable)
- Memorandum of Association (MOA)
- Lease agreement (Mainland & Free Zone)
Step 6: Lease Office Space
Mainland and Free Zone companies require physical office space. Offshore companies do not require UAE office premises.
Step 7: Final License Issuance
Submit all documents to the relevant authority. Pay fees, and your trade license will be issued.
Key Costs Overview
| License Type | Initial Fee | Office Cost | Visa Quota | Notes |
|---|---|---|---|---|
| Mainland | AED 10,000 – 15,000 | Mandatory | Based on size | Government approval needed |
| Free Zone | AED 12,000 – 25,000 | Mandatory | Depends on Free Zone | 0% corporate tax for qualifying businesses |
| Offshore | AED 15,000 – 20,000 | Not required | Not eligible | Confidential, international operations only |
MHK’s Expert Guidance
At MHK Accounting & Taxation UAE, we assist with:
- Choosing the right license type
- Preparing all documents
- Liaising with authorities
- Ensuring compliance with FTA and Ministry of Economy regulations
Call-to-Action
Ready to start your Dubai business?
Let MHK Taxation UAE guide you through the licensing process with ease and compliance.
FAQ
1. Which trade license is suitable for a new retail store?
Mainland trade license is ideal for retail stores as it allows trading anywhere in the UAE and government contract eligibility.
2. Can Free Zone companies sell directly in UAE Mainland?
No, Free Zone companies require a local distributor or branch to trade in the Mainland.
3. Are Offshore licenses allowed to operate locally in Dubai?
No, Offshore companies are restricted to international trade and asset holding; they cannot operate locally.
4. How long does it take to get a trade license in Dubai?
Depending on the license type, it usually takes 1–4 weeks for processing, approvals, and issuance.
5. Can MHK help with all types of trade licenses?
Yes, MHK provides complete guidance for Mainland, Free Zone, and Offshore trade licenses in Dubai, ensuring compliance and fast approvals.
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