A trade license in Dubai is the official permit issued by the Department of Economy and Tourism (DET) for mainland companies, or by the relevant free zone authority for free zone companies, granting legal authorization to operate in the emirate. Mainland trade license costs typically start from AED 12,500 for a basic license, while total first-year cost after supporting fees usually lands between AED 30,000 and AED 50,000 or more, depending on license type and visa count.
Key Takeaways
- Mainland Commercial License fees run AED 12,500 to AED 15,000, before activity fees, EJARI, and visas.
- General Trading License is the most expensive type, starting at AED 15,000 and reaching AED 50,000 or more due to its broad product coverage.
- UAE corporate tax is only 9%, and only applies to net profit above AED 375,000; personal income tax remains 0%.
How Much Does a Mainland Trade License Cost in Dubai?
A mainland trade license grants direct trading rights across the entire UAE market, including access to government contracts. The tradeoff is a higher total cost, since it involves more mandatory components than a free zone setup.
| Cost Component | Estimated Cost (AED) | Notes |
|---|---|---|
| Trade License Fee (DET) | 10,000-15,000 | Varies by business activity |
| Company Name Reservation | 620-2,000 | Official DET fee |
| MOA and Notarization | 1,500-3,000 | Includes notary fee and DET submission |
| EJARI (office lease registration, 1 year) | 3,000-8,000 | Minimum office rent plus EJARI registration |
| Establishment Card | 1,000-2,000 | Required for visa processing |
| UAE Residency Visa per person (2 years) | 4,000-6,000 | Includes Emirates ID and medical fitness check |
| Corporate Bank Account Assistance | 2,000-5,000 | Optional, strongly recommended for first-time applicants |
| Estimated Total Year One | 30,000-50,000+ | Depends on activity and visa count |
These figures are component costs, not a ready-made package price. Many “cheap” quotes circulating online only show the license issuance fee and leave EJARI, the establishment card, or visa costs out of the initial proposal.
Not Sure What the Real Mainland Total Looks Like?
vOffice, an Official Dubai Chamber Partner, builds a fixed-price Mainland LLC package that already includes a 2-year visa and bank account support.
How Much Does a Free Zone Trade License Cost in Dubai?
A free zone trade license suits businesses built around international invoicing rather than direct sales to UAE consumers. Costs typically run 30 to 50 percent lower than mainland.
| Cost Component | Estimated Cost (AED) | Notes |
|---|---|---|
| License Fee (varies by zone) | 5,900-25,000 | IFZA from AED 12,900; Meydan from AED 12,500; RAKEZ from AED 6,000 |
| Company Name Reservation | 500-1,500 | Fee paid to the free zone authority |
| MOA and Submission to Free Zone | 1,000-2,500 | Includes zone administrative fees |
| Flexi-Desk (1 year, mandatory) | 2,000-5,000 | Most zones require at least a flexi-desk |
| Establishment Card | 1,000-2,000 | Required for visa processing |
| UAE Residency Visa per person (2 years) | 3,500-6,000 | Includes Emirates ID and basic health insurance |
| Corporate Bank Account Assistance | 2,000-5,000 | Optional, UAE banking compliance has tightened since 2023 |
| Estimated Total Year One | 18,000-34,000 | 30 to 50% cheaper than mainland on average |
For budget-conscious founders, Northern Emirates free zones such as RAKEZ offer the lowest entry point in the UAE, starting around AED 6,000 for the license alone. It is worth noting, though, that a free zone company is not automatically tax-exempt, which is covered in the tax section below.
For a fuller picture of setup costs across structures, also read vOffice’s Dubai company setup cost guide, which covers mainland, free zone, and offshore side by side.
How Much Does a Trade License Cost in Dubai, Depending on the Type?
Your business activity determines the license type, and the license type is the single biggest driver of total cost. Here are the seven main categories and their typical fee ranges.
1. Commercial License
For businesses buying and selling physical goods: retail, wholesale, import, and export. One license can cover up to ten commercial activities. Cost runs AED 12,500-15,000 on the mainland, excluding activity fees and office rental.
2. Professional License
For service-based businesses such as consultants, IT firms, and marketing agencies. This license type often permits 100% foreign ownership even on the mainland. Cost ranges AED 12,000-25,000 or more depending on jurisdiction and visa count.
3. Industrial License
Required for manufacturing, production, and assembly. Unlike other types, it requires a physical facility such as a warehouse or factory. Cost is higher and varies significantly with the scale of operations and additional approvals needed.
4. Tourism License
For travel agencies, tour operators, and hospitality businesses. Issued jointly by DET and the Department of Tourism and Commerce Marketing (DTCM), adding an extra approval layer and cost on top of the base license.
5. E-Commerce License
For businesses selling goods or services online. Full free zone packages range AED 5,750-20,000 per year. There is also an E-Trader License at roughly AED 1,000 per year, but it is only available to UAE residents with an Emirates ID, not new foreign investors.
6. Freelance Permit
Allows an individual to work independently without forming a full company, available through select free zones like IFZA, Meydan, and SPC Free Zone. Cost runs AED 7,500-20,000 depending on the zone.
7. General Trading License
Technically a sub-category of the Commercial License, it removes the single-category restriction so a holder can trade electronics, food, and textiles under one license. It is the most expensive type: AED 15,000-50,000 or more, depending on jurisdiction and product category count.
| License Type | Best For | Cost Range (AED) |
|---|---|---|
| Commercial | Traders, retailers, distributors | 12,500-15,000+ |
| Professional | Consultants, service firms | 12,000-25,000+ |
| Industrial | Manufacturers, factories | Higher, variable |
| Tourism | Travel agencies, hospitality | Variable + DTCM fees |
| E-Commerce | Online stores, digital business | 5,750-20,000 |
| Freelance Permit | Independent professionals | 7,500-20,000 |
| General Trading | Multi-commodity traders | 15,000-50,000+ |
A deeper look at each type, including activity requirements and use cases, is available in vOffice’s guide to Dubai trade license types.
Picking the Wrong License Type Adds Cost Later
vOffice’s team, trusted by 50,000+ clients, maps your business activity to the right license from the first consultation.
What Is the Cost Difference Between Mainland and Free Zone in Dubai?
| Criteria | Mainland | Free Zone |
|---|---|---|
| Estimated Year One Cost | AED 30,000-50,000+ | AED 18,000-34,000 |
| Foreign Ownership | 100% (most sectors) | 100% |
| UAE Market Access | Full, unrestricted | Limited, unless holding a Mainland Operating Permit |
| Physical Office | Required (min. 200 sqft) | Not required, flexi-desk accepted |
| Corporate Tax | 9% above AED 375,000 | 0% if QFZP qualified, otherwise 9% |
Since Dubai Executive Council Resolution No. 11 of 2025, eligible free zone companies can apply for a Mainland Operating Permit to carry out specific activities in the local market without setting up a separate mainland entity. This slightly changes the jurisdiction decision for businesses that want to start in a free zone while keeping local expansion open.
How Much Tax Applies to a Company in Dubai?
The UAE does not levy personal income tax. For corporate tax, under Federal Decree-Law No. 47 of 2022, the rate is 9%, applying only to net profit above AED 375,000. Below that threshold, the effective rate is 0%.
For free zone companies specifically, the 0% rate does not apply automatically. That status is reserved for Qualifying Free Zone Persons (QFZP): companies earning qualifying income, broadly revenue from outside the UAE or from other free zone entities, while maintaining adequate economic substance in the UAE. Free zone companies that do not meet these conditions pay the same 9% rate above AED 375,000 as mainland companies.
What Hidden Costs Come After Getting a Trade License?
Headline costs in an initial proposal rarely cover the full first-year spend. Here are the components that regularly get left out.
- Annual license renewal: every UAE license must be renewed each year at a cost roughly comparable to initial setup, minus a few one-time charges.
- PRO services: ongoing government document processing such as visa renewals, costing AED 3,000-8,000 per year depending on volume.
- Accounting, VAT, and audit: businesses with annual turnover above AED 375,000 must register for 5% VAT and file returns; accounting services run roughly AED 3,500-7,000 per year.
- Regulatory approval fees: regulated activities such as healthcare, food, and financial services require sector approval, adding AED 500-3,000 per approval.
- Corporate bank account support: UAE banking compliance has tightened since 2023, with verification taking one to four weeks.
A fuller breakdown of these hidden costs, including an offshore comparison, is available in vOffice’s Dubai company setup cost guide.
What Is the Total Cost With vOffice’s Dubai Company Registration Package?
Rather than assembling each component above on your own, vOffice’s packages bundle them into a fixed price, including the residency visa and bank account support that often end up as separate, costly line items.
| Package | Starting From | Includes |
|---|---|---|
| Free Zone LLC | USD 8,000 | Name reservation, MOA, 1-year Flexi Desk, 1-year Virtual Office and Call Answering, 2-year UAE residency visa, Emirates ID, basic health insurance, bank account guidance |
| Mainland LLC | USD 12,500 | Name reservation, MOA, notary and DET submission, 1-year EJARI, 1-year Virtual Office and Call Answering, 2-year UAE residency visa, Emirates ID, VIP medical check-up, bank account guidance |
Prices are starting estimates; your specific business activity still needs a consultation for a final quote. vOffice is the first Indonesian office services provider with a physical presence in Dubai and an Official Dubai Chamber Partner through the Global Partnership Programme.
Ready for a Firm Number Instead of an Estimate?
vOffice’s multilingual team in Jakarta and Dubai can build a quote around your specific business activity.
Frequently Asked Questions
What is the cheapest trade license in Dubai?
DET’s E-Trader License is the cheapest at roughly AED 1,000 per year, but it is only available to UAE residents with an Emirates ID, not new foreign investors. For foreign investors, Northern Emirates free zones such as RAKEZ offer the lowest entry point, starting around AED 6,000 for the license.
Is the 0% tax in Dubai free zones really true?
Not automatically. The 0% rate only applies to companies meeting Qualifying Free Zone Person status under Federal Decree-Law No. 47 of 2022. Companies that do not meet these conditions still pay 9% corporate tax above AED 375,000.
What is the difference between a Commercial License and a General Trading License?
A Commercial License covers one product category or a related group of commodities. A General Trading License removes that restriction, allowing trade across unrelated product categories under one license, at a significantly higher cost.
How long does it take to get a trade license in Dubai?
Free zone registration typically takes about four business days. Mainland takes somewhat longer due to additional approval steps. Residency visa processing adds seven to ten days, and corporate bank verification usually takes one to four weeks.
Can a foreigner own 100% of a company in Dubai?
Yes. Since Federal Decree-Law No. 26 of 2020, 100% foreign ownership is permitted in most mainland business sectors without an Emirati partner, and free zones have long applied this as standard.
Does a Dubai trade license need annual renewal?
Yes. A trade license is valid for one year and must be renewed before expiry through DET’s official portal. Missing renewal deadlines can trigger fines and operational issues, including impacts on employee visa status.
References
1. UAE Ministry of Finance. (2022). Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. Retrieved from
https://mof.gov.ae/corporate-tax/
2. UAE Federal Legislation Portal. (2020). Federal Decree-Law No. 26 of 2020 Amending the Commercial Companies Law. Retrieved from
https://uaelegislation.gov.ae
3. Federal Tax Authority UAE. (2023). Corporate Tax: Registration and Filing. Retrieved from
https://tax.gov.ae/en/taxes/corporate.tax.aspx
4. Dubai Department of Economy and Tourism. (2026). Business Setup and Licensing in Dubai. Retrieved from
https://www.det.gov.ae/
5. Department of Economy and Tourism Dubai. (n.d.). Business Licensing and Setup, Invest in Dubai. Retrieved from
https://invest.dubai.ae
