How to Get a Trade License for a Business in Dubai

To get a trade license for a business in Dubai, you must first determine the correct jurisdiction (Dubai Mainland or a specific Free Zone), select permitted business activities, secure initial approval from the relevant authority, register a compliant trade name, finalize premises or flexi-desk requirements, submit constitutional documents, pay license fees, and complete post-licensing registrations for visas, banking, VAT, Corporate Tax, UBO, and ESR—typically within 5 to 20 working days depending on structure.

This guide is written for founders, CFOs, and decision-makers who want bank-ready, tax-ready, audit-ready outcomes—not marketing shortcuts.

Most “business setup in Dubai” blogs reduce licensing to a checklist. In practice, licensing decisions drive banking outcomes, tax exposure, audit scope, and regulatory risk for years. The fastest license is not the best license if it blocks bank accounts, restricts activities, or triggers avoidable compliance costs.

As a business setup consultant in Dubai advising banks, auditors, and regulators daily, Business & Beyond focuses on what actually works on the ground in 2026.

Step 1: Choose the correct jurisdiction (the decision that defines everything)

Dubai offers two primary routes. The right choice depends on where you operate, who you invoice, and how banks will assess you.

Dubai Mainland (Onshore)

Licensed by Dubai Department of Economy and Tourism (DET/DED).

Best for:

• Serving UAE clients directly
• Government & semi-government contracts
• Retail, restaurants, clinics, contracting, professional services with local footprint

Key reality (2026):

• 100% foreign ownership is permitted for most activities
• Office/ejari is mandatory
• Higher scrutiny during bank onboarding—but stronger credibility long term

Typical timeline: 5–10 working days
Indicative cost: AED 12,000 – 30,000 (license + first-year requirements)

Free Zone Companies

Licensed by individual Free Zone Authorities.

Best for:

• International trading, consulting, holding structures
• Tech, media, logistics, and digital businesses
• Faster setup with bundled visas and flexi-desks

Key reality (2026):

• You may invoice UAE clients only via compliant structuring
• Banks assess Free Zone entities differently depending on activity and substance

Popular examples founders actually use:

• IFZA – broad activities, fast issuance
• Meydan Free Zone – cost-effective, good for services

Typical timeline: 3–7 working days
Indicative cost: AED 14,000 – 35,000 (package-dependent)

Step 2: Select business activities (this is not a formality)

Dubai licenses are activity-based, not generic.

What blogs say: “Choose any activity and add more later.”
What works: Choose exact activities aligned with banking, VAT, and audit reality.

Examples:

• “Management Consultancy” ≠ “Business Consultancy” (banking impact differs)
• “General Trading” triggers higher AML checks than specific trading categories
• Mixing regulated + non-regulated activities can delay approvals

Execution advice:
Lock activities before trade name submission. Changing later means amendments, fees, and re-screening.

Step 3: Trade name reservation (compliance matters)

Trade names must:

• Reflect activity (no misleading terms)
• Avoid restricted words (bank, finance, insurance, authority, etc.)
• Match English–Arabic transliteration rules

Common delay: Rejected names due to implied regulated activity.

Timeline: Same day to 2 working days
Cost: AED 600 – 1,000

Step 4: Initial approval (the green light)

Initial approval confirms:

• Shareholders are acceptable
• Activities are permitted
• No security or regulatory objections

Documents typically required:

• Passport & visa copies
• Entry stamp / Emirates ID (if resident)
• Shareholding structure

Timeline: 1–5 working days

Step 5: Premises & address compliance

Mainland:

• Physical office with Ejari registration is mandatory

Free Zone:

• Flexi-desk, smart desk, or serviced office (authority-approved)

Banking reality:
Banks increasingly request proof of operational substance, even for flexi-desk entities.

Step 6: Legal documents & license issuance

Depending on structure:

• MOA / AOA or Free Zone Articles
• Board resolutions (corporate shareholders)
• Power of Attorney (if applicable)

Once signed and fees paid, the Trade License is issued.

Total licensing timeline:

• Free Zone: 3–7 working days
• Mainland: 5–10 working days

Step 7: Visas, establishment card & immigration

After license issuance:

• Establishment Card
• Entry permits
• Residence visas & Emirates ID

Typical cost: AED 3,500 – 5,500 per visa
Timeline: 7–14 days

Step 8: Banking, tax & post-license compliance (where failures happen)

Corporate Bank Account

Banks assess:

• Activity risk
• Jurisdiction
• Shareholder background
• Substance & contracts

Reality check:
Licenses alone do not open bank accounts. Structuring does.

VAT & Corporate Tax

Registered with Federal Tax Authority.

• VAT registration mandatory at AED 375,000 taxable turnover
• Corporate Tax at 9% applies from first financial year (with Free Zone nuances)

UBO & ESR

Filed with Ministry of Economy where applicable.

Missed filings = fines + banking red flags.

2025–2026 regulatory updates founders must factor in

• Enhanced AML screening during bank onboarding
• Tighter activity–substance alignment
• Increased scrutiny of Free Zone “no-substance” entities
• Mandatory Corporate Tax registrations even for dormant companies

Real-world cost & timeline summary

Item	Mainland	Free Zone
License issuance	AED 12k–30k	AED 14k–35k
Timeline	5–10 days	3–7 days
Office	Mandatory Ejari	Flexi-desk allowed
UAE client invoicing	Direct	Structured
Banking complexity	Medium–High	Medium

What most consultants say vs what actually works

Consultants: “Free Zone is cheaper and faster.”
Reality: The wrong Free Zone delays banking and increases compliance cost.

Consultants: “You don’t need an office.”
Reality: Banks increasingly demand substance proof.

Consultants: “VAT and tax later.”
Reality: Poor tax planning blocks accounts and audits.

When should you engage a business setup consultant in Dubai?

If your structure involves:

• Corporate shareholders
• Regulated or high-risk activities
• International tax exposure
• Banking in Tier-1 UAE banks

Then DIY licensing is false economy.

Business & Beyond structures companies so that banks approve, auditors sign, and regulators stay satisfied—from day one.

Final advisory takeaway

Getting a trade license in Dubai is straightforward.
Getting the right trade license—one that survives banking, tax audits, and regulatory reviews—is a strategic exercise.

If you want your business setup in Dubai to be future-proof, structure first. License second.