Dubai Trade License: Types, Costs & How to Apply in 2026
A trade license is the foundational document that authorises you to conduct business in the UAE. Every company—whether a solo freelancer, a general trading firm, or a multinational branch office—requires a valid trade license issued by either a free zone authority or the Department of Economy and Tourism (DET) for mainland operations. In 2026, Dubai offers more license options and pricing tiers than ever, with packages starting as low as AED 5,750. This guide covers the three primary license types, their costs across major free zones, the application process, and renewal requirements.
Types of Trade Licenses in Dubai
The UAE categorises business licenses into three main types. Your choice depends on the nature of your business activities and directly affects which activities you can list on your license.
Commercial (Trading) License
A commercial license permits the buying, selling, importing, and exporting of goods. This includes general trading, wholesale, retail, and distribution activities. General trading licenses are the most versatile, allowing you to trade in virtually any legal commodity. However, they come at a premium—a general trading license at DMCC starts from AED 30,000, while IFZA offers commercial licenses from AED 15,000. Free zones in Ajman and Ras Al Khaimah provide more affordable commercial options from AED 8,500.
Professional (Service) License
Professional licenses cover service-oriented businesses: management consultancy, IT services, marketing, legal advisory, education, healthcare consulting, and similar activities. They are generally the most affordable license type because they do not involve the handling, storage, or transport of physical goods. Most free zone “starter” or “freelance” packages are professional licenses. At SHAMS, a professional license costs AED 5,750; at IFZA, AED 12,000; and at DMCC, approximately AED 25,000.
Industrial (Manufacturing) License
Industrial licenses are required for businesses involved in manufacturing, processing, or assembling products within the UAE. These licenses require additional approvals from the Ministry of Industry and Advanced Technology and typically include physical warehousing or factory space. RAKEZ and Ajman Free Zone are popular choices for industrial licenses, with packages from AED 12,000 that include warehouse space allocations. Dubai Industrial City and JAFZA cater to larger-scale manufacturing operations.
Trade License Costs by Free Zone (2026)
| Free Zone | Professional | Commercial | Activities Included |
|---|---|---|---|
| SHAMS | AED 5,750 | AED 9,500 | 1 |
| Ajman Free Zone | AED 6,500 | AED 10,000 | 1-3 |
| RAKEZ | AED 8,500 | AED 12,000 | 1-3 |
| IFZA (Dubai) | AED 12,000 | AED 15,000 | Up to 3 |
| Meydan (Dubai) | AED 9,500 | AED 14,000 | 1-2 |
| DMCC (Dubai) | AED 25,000 | AED 30,000 | Up to 5 |
| Mainland (DET) | AED 15,000+ | AED 25,000+ | Varies |
Prices are first-year all-inclusive packages. Visa costs may be additional. Use our free recommendation tool to compare packages for your specific activity.
How to Apply for a Dubai Trade License
The application process is largely standardised across free zones, with minor variations in platform and documentation requirements. Here is the step-by-step process:
- Select your activity codes — Choose the specific business activities you want to license. Each free zone has its own activity list; your activities determine your license type.
- Reserve your trade name — Submit up to three preferred company names. The name must not be identical to an existing registered company and must comply with UAE naming guidelines.
- Submit your application — Upload the required documents (passport, photo, proof of address, business plan) through the free zone's online portal.
- Pay license fees — Once your application is approved, pay the license, registration, and establishment card fees. Most free zones accept credit card and bank transfer.
- Receive your license — Your trade license, Memorandum of Association, and share certificate are issued digitally, typically within 2 to 5 business days.
Trade License Renewal
All trade licenses expire after one year and must be renewed before the expiry date. The renewal process is simpler than initial registration—typically involving an online payment and confirmation that your company details remain unchanged. Renewal costs are lower because you avoid one-time registration and establishment fees. Most free zones offer early renewal discounts and auto-renewal options. Late renewal attracts daily penalties, and an expired license can result in visa cancellation and inability to conduct bank transactions. For more on the overall licensing journey, read our company formation guide or explore free zone company options with detailed zone comparisons.
Special License Types
Beyond the three core types, several specialised licenses cater to specific business models:
- Freelance Permit — For independent professionals. See our freelance visa guide for details.
- E-Commerce License — Dedicated to online businesses. Our e-commerce license guide covers the best zones and costs.
- Dual License — Some zones (DMCC, DAFZA) offer dual licenses that allow both free zone and mainland activity simultaneously.
- Instant License (DET) — Dubai's instant license programme allows mainland registration in 15 minutes for specific activity categories, valid for one year with simplified requirements.
Frequently Asked Questions
What is the cheapest trade license in Dubai?
The cheapest trade license starts at AED 5,750 at SHAMS free zone in Sharjah, which includes a freelance or professional license with one activity. Ajman Free Zone offers packages from AED 6,500. For a Dubai-based license, IFZA starts from AED 12,000.
What is the difference between a commercial and professional license?
A commercial (trading) license allows you to buy, sell, import, and export physical goods. A professional license covers service-based activities like consulting, IT services, marketing, and design. Professional licenses are typically cheaper and have simpler requirements since they do not involve goods handling.
Can I add activities to my trade license later?
Yes. Most free zones allow you to add additional activities to your existing license for a fee, typically AED 1,000 to AED 5,000 per activity. Some zones include up to three activities in the base package. Mainland licenses can also be amended through the DET portal.
When do I need to renew my trade license?
Trade licenses in the UAE are valid for one year and must be renewed annually. Most free zones send renewal reminders 30 to 60 days before expiry. Late renewal incurs penalties, typically 1% of the license fee per day or a fixed fine. Renewal costs are usually 10-20% lower than initial setup costs since you do not pay first-time registration fees again.
Do I need a trade license for freelancing in Dubai?
Yes. Freelancers in the UAE must hold a valid freelance permit or professional license. Several free zones offer dedicated freelance packages: SHAMS from AED 5,750, IFZA from AED 12,000, and Dubai Internet City from AED 15,000. A freelance license allows you to invoice clients, open a bank account, and sponsor your own visa.