At a glance
- Local name
- Trade Licence
- Country
- United Arab Emirates
- Process steps
- 9
- Fee items
- 14
- Online portals
- 7
- FAQs
- 8
- Pitfalls covered
- 8
- Last verified
- 2026-06
What is Trade Licence in UAE?
A UAE trade licence is the legal permission to operate a business in the UAE. Mainland licences are issued by each emirate's Department of Economic Development (DED in Dubai, ADDED through TAMM in Abu Dhabi, SEDD in Sharjah, AJDED in Ajman, EDD in Ras Al Khaimah, etc.) and authorise trade anywhere in the UAE, including direct sales to retail customers, government tenders and B2B with mainland companies. Free zone licences are issued by zone authorities (DMCC, JAFZA, ADGM, DIFC, IFZA, RAKEZ, Meydan, Dubai South, Hamriyah, SAIF Zone, twofour54, Masdar, Sharjah Media City, and dozens more) and offer 100% foreign ownership, tax incentives and faster setup but restrict direct sales to the UAE mainland unless the company appoints a local distributor or opens a mainland branch.
Since the November 2020 federal reforms (implemented through 2021 and 2022), 100% foreign ownership of mainland companies is allowed across most commercial and industrial activities, removing the previous requirement for an Emirati 'local sponsor' to hold 51% of the shares. A short list of strategic activities (defence, fisheries, certain energy categories) still requires Emirati participation. This change has narrowed the gap between mainland and free zone significantly, although the operational difference (mainland for UAE sales and tenders, free zone for international trade) still matters.
Cost varies enormously by jurisdiction. A small free zone in Ras Al Khaimah (RAKEZ) can issue a single-activity service licence without visa quota from about AED 5,500 to 6,000 per year. Ajman Free Zone's basic 1-visa package starts at AED 10,800. Meydan Free Zone in central Dubai runs AED 12,900 to 15,000 with one visa. IFZA in Dubai is around AED 17,500 for a 1-visa flexi-desk package and is one of the most popular options for small consulting and trading businesses. Dubai mainland LLCs with office, multiple activities and a few visas typically cost AED 25,000 to 35,000 in year one (including the AED 15,000 DED activity fee for general trading and the Chamber of Commerce membership). DMCC and DIFC, the premium free zones, run materially higher and serve larger companies and regulated financial services.
Year-one costs are higher than renewal costs because of one-off items: trade name reservation (AED 620), initial approval, MOA (Memorandum of Association) notarisation for LLCs, the establishment card and immigration card at MOHRE and ICP/GDRFA, and the Ejari or Tawtheeq registration for the office space. Renewal years are simpler: just the licence renewal fee (AED 10,000 to 15,000 for mainland depending on activities, AED 8,000 to 15,000 for most free zones), Ejari renewal, establishment card renewal, and Chamber membership for mainland.
Visa quotas depend on the package and office size. Flexi-desk (a shared desk address with no dedicated office) typically allows 1 to 3 visas; a small private office of 12 to 20 sqm unlocks 4 to 6 visas; a 50 sqm office can support 12 to 15 visas; larger offices scale roughly linearly. Each visa slot carries a separate immigration card fee (AED 1,200 to 2,000) and the standard residence visa cost stack for the employee. Free zones bundle the first visa or two into the package; subsequent visas cost AED 3,500 to 5,000 each in government fees.
Two things have changed materially since 2023 and 2024 and shape decisions in 2026. First, federal corporate tax kicked in on 1 June 2023: 9% on taxable profit above AED 375,000, with free zone companies still able to enjoy 0% on 'qualifying income' (broadly, B2B income within the same free zone or exports) but mandatory corporate tax registration with the Federal Tax Authority regardless. Second, the 5% VAT regime that has been in place since 2018 affects every B2B and B2C transaction once revenue crosses the AED 375,000 annual threshold (compulsory) or the AED 187,500 voluntary threshold. Both registrations are done online through tax.gov.ae and missing them attracts AED 10,000 administrative penalties.
What documents do I need for Trade Licence?
Bring originals AND coloured photocopies of every item. Files are rejected at counter for a single missing page or unattested certificate.
Documents required
- ✓Passport copies of all shareholders and the appointed manager
- ✓Proposed company name (3 options, compliant with DED or zone naming rules: no religious references, no royal references, no offensive terms)
- ✓Business activity selection from the official DED or free zone activity list
- ✓Office lease or flexi-desk agreement matching the activity (warehouses, clinics, food businesses have specific space requirements)
- ✓Shareholder visa copies if already UAE residents
- ✓No-objection from existing UAE sponsor if a shareholder is already on a residence visa
- ✓Memorandum of Association (MOA) for LLC structures, notarised by a UAE-licensed notary
- ✓Board resolution authorising the application (corporate shareholders)
- ✓Attested commercial register extract and good-standing certificate (corporate shareholders)
- ✓Initial approval from any sector regulator (DET, DHA, ADFCA, RTA, KHDA, etc.) for regulated activities
Eligibility
- →Aged 21 or above for shareholders and managers
- →Selected activity matches what the licence type allows under the DED or free zone activity catalogue
- →Office space matches the activity (warehouses for trading, clinics for healthcare, kitchens for food businesses, with specific sqm thresholds)
- →No active bankruptcy declaration or commercial ban on any shareholder
- →Federal corporate tax registration with the FTA before the first tax period
- →VAT registration with the FTA at AED 375,000 annual revenue (compulsory) or AED 187,500 (voluntary)
How much does Trade Licence cost in UAE in 2026?
Government fees current to 2026-06. All payments via the relevant portal wallet or SADAD-equivalent rail; service-centre cash counters typically charge a small extra typing fee.
| Item | Amount | Notes |
|---|---|---|
| Mainland LLC (Dubai DED, year 1 total) | 20,000 to 30,000 AED | Includes initial approval, MOA notarisation, trade name, licence, Chamber of Commerce membership and Ejari registration. Office rent is extra and varies by location. Confirm current amount on DED. |
| General trading licence (mainland) | 27,500 to 35,000 AED | DED activity fee of AED 15,000 plus standard licence fees and Chamber membership; required for broad trading rights. |
| E-commerce / freelance (DED Dubai) | from 1,050 AED | Lighter category; allows individual sole-establishment e-commerce activity. Limited to specific activity codes. |
| Trade name reservation | 620 AED | Paid at the DED step before submitting MOA. |
| Free zone licence (Ajman Free Zone, 1-visa) | 10,800 AED | Cheapest Dubai-adjacent option for a 1-visa package. |
| Free zone licence (IFZA Dubai, 1-visa flexi-desk) | 17,500 AED | Popular consulting and trading choice; flexi-desk address included. |
| Free zone licence (Meydan Free Zone) | 12,900 to 15,000 AED | Central Dubai address; 1 to 3 visa packages available. |
| Free zone licence (Dubai South) | 10,000 to 12,900 AED | Logistics-focused zone near Al Maktoum airport. |
| Free zone licence (RAKEZ, no-visa basic) | from 5,750 AED | Cheapest free zone overall for a service licence without visa quota. |
| Freelance permit (RAKEZ, with 1 visa) | 17,070 AED | Includes the residence visa fee bundle. |
| Trade licence renewal | 10,000 to 15,000 AED | Annual mainland renewal. Free zone renewal usually AED 8,000 to 15,000 depending on zone. |
| Establishment card (MOHRE) and immigration card (ICP/GDRFA) | 1,200 to 2,000 AED | Annual per card. Required to apply for employment entry permits for staff. |
| Additional visa slot (free zone) | 3,500 to 5,000 AED | Per visa beyond the package allocation. |
| Corporate tax registration | free AED | Mandatory at FTA, but no fee. Late registration penalty: AED 10,000. |
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How do I apply for Trade Licence step by step?
The end-to-end flow for Trade Licence in UAE. Total wall-clock time: Two to four weeks from name approval to a fully operational licence with visa quota, assuming office is signed and document chain is clean. Bank account opening adds another 2 to 8 weeks for the first transactions. Free zones with bundled packages can be live in 7 to 10 working days for simple service activities..
- 1
Choose mainland or free zone
Decide based on customers and activities. Mainland (DED) if you will sell directly to UAE retail customers, government departments or mainland B2B clients, or if you need a physical office accepting walk-ins. Free zone if your customers are international or other free zone entities, you want 100% foreign ownership without nuance, and you prefer a faster lighter setup. Hybrid setups (free zone for HQ plus mainland branch) are common for trading and consulting businesses with both UAE and international customers.
⏱ 1 to 2 weeks📍 either - 2
Reserve trade name and get initial approval
Submit three trade name options and the proposed activity list to DED (mainland) or the chosen free zone. Names must comply with rules: no religious or royal references, no offensive terms, and unique within the emirate. Initial approval is usually issued within 1 to 3 days. Trade name reservation is AED 620 in Dubai mainland, similar in other emirates and zones.
⏱ 1 to 3 days📍 online - 3
Sign office lease or flexi-desk
Mainland LLCs need an Ejari-registered (Dubai) or Tawtheeq-registered (Abu Dhabi) office space, with a minimum size depending on activity. Free zones offer flexi-desk (shared address with no dedicated space, supports 1 to 3 visas), small private offices (12 to 20 sqm, 4 to 6 visas) and larger offices scaling visa quota with sqm. The lease is required before the licence can be issued.
⏱ 3 to 7 days📍 either - 4
Notarise MOA and pay licence fee
LLC structures require a notarised Memorandum of Association (MOA). Dubai mainland MOAs are notarised through DED's online notary service or at a Notary Public office. Free zones have their own template MOAs. Pay the licence fee through the DED or zone cashier. The trade licence is issued digitally; a printed certificate is available on request.
⏱ 1 to 3 days📍 online - 5
Establishment card and immigration card
Apply for the establishment card with MOHRE (mainland) or the zone authority's labour file (free zone), and the immigration card with ICP or GDRFA. These two cards together unlock the ability to apply for employment entry permits for owners, shareholders and staff. Annual cost AED 1,200 to 2,000 per card.
⏱ 5 to 7 working days📍 online - 6
Open a corporate bank account
Choose a UAE bank (Emirates NBD, ADCB, Mashreq, RAKBank, FAB) and submit the trade licence, MOA, shareholder passports, visa copies, business plan and recent personal bank statements. Bank account opening for new companies has tightened post-2023: smaller free zones see longer due diligence, and the application can take 4 to 8 weeks. Mainland LLCs and DMCC companies typically clear in 2 to 4 weeks.
⏱ 2 to 8 weeks📍 either - 7
Register for corporate tax and VAT
Mandatory federal corporate tax registration through tax.gov.ae for every UAE entity, regardless of revenue or profit, with a deadline within months of licence issuance (the FTA has phased deadlines). VAT registration becomes compulsory at AED 375,000 annual revenue (voluntary from AED 187,500). Late or missing corporate tax registration attracts AED 10,000 administrative penalty.
⏱ 1 to 2 weeks📍 online - 8
Apply for owner and staff visas
With the establishment card and immigration card active, the company can issue employment entry permits for the owner and staff. Each visa goes through the standard MOHRE work permit, ICP/GDRFA entry permit, medical, Emirates ID and stamping cycle (2 to 4 weeks per person). Free zone visas often run a slightly faster cycle (10 to 14 days).
⏱ 2 to 4 weeks per person📍 online - 9
Annual renewal
Trade licences renew annually. Renewal must be completed within 30 days of expiry to avoid the AED 250 to 500 per month late fee. The office lease (Ejari or Tawtheeq) must remain valid; an expired lease is the most common cause of a late licence renewal. Renewal cost is similar across the categories: AED 10,000 to 15,000 mainland, AED 8,000 to 15,000 most free zones, plus the establishment and immigration card renewals.
⏱ Same day if all clearances pass📍 online
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Which portal do I use for Trade Licence in UAE?
These official portals handle Trade Licence for UAE. Each page on Wathim has the login flow, common errors and sibling fallback when one is down.
Establishment file, WPS and labour-related services for mainland companies; required for any mainland staff visa.
Portal guide →Immigration card and visa quotas for the company; entry permits and residence visas for owners and staff.
Portal guide →Same services for Dubai-issued company immigration files.
Portal guide →Authorised Dubai service centres for company immigration and document submissions in a single visit.
Portal guide →Federal SSO used for DED, MOHRE and ICP services that the trade licence depends on.
Portal guide →Abu Dhabi DED unified services for mainland CR, MOHRE establishment and tax registration.
Portal guide →Dubai DED services, including Instant Licence and Invest in Dubai trade-licence flows.
Portal guide →💡 DED-approved service centres in Dubai and equivalent counters in other emirates (Tasheel, Tas-heel, Amer) bundle name approval, MOA notarisation, Ejari registration, licence issuance and immigration card opening in one visit. Independent business setup consultants (Creative Zone, Virtuzone, Shuraa, Meydan Free Zone customer service) typically charge AED 5,000 to 15,000 in service fees on top of the government rates, which is usually worth it for first-time founders unfamiliar with the activity catalogue, the visa quota implications and the tax registrations.
How do I renew Trade Licence and what are the penalties?
Trade licences renew annually. Renewal can be started up to 30 days before expiry through DED's portal, the relevant emirate's economic department, or the free zone customer service portal. Renewal must be completed within 30 days of expiry to avoid the AED 250 to 500 per month late fee. The office lease (Ejari or Tawtheeq) must remain valid; an expired lease is the single most common cause of a late licence renewal in Dubai. Establishment card and immigration card renew on similar cycles. Corporate tax and VAT registrations do not need annual renewal but require annual return filings.
Fines & penalties
- ⚠Late licence renewal: AED 250 to 500 per month
- ⚠Operating without an active licence: AED 5,000 or more in fines and possible business closure
- ⚠Trading outside licensed activities: AED 5,000 or more per incident plus warning letter
- ⚠Late corporate tax registration: AED 10,000 administrative penalty
- ⚠Failure to file a corporate tax return on time: AED 1,000 first month, AED 2,000 per month thereafter
- ⚠Failure to register for VAT at the AED 375,000 threshold: AED 10,000 administrative penalty
- ⚠Working on a tourist visa for the company before staff visas are issued: AED 50,000 fine on the company plus possible block on staff visa applications
- ⚠Failure to renew Ejari or Tawtheeq: cascades into a licence renewal block
- ⚠Failure to maintain an active establishment card: blocks all new staff visa applications
What goes wrong with Trade Licence applications?
These failures repeat across every Trade Licence case Wathim sees in UAE. Catch them before submitting to save a counter rejection.
- !Choosing a free zone without checking visa eligibility for your activity: some zones restrict certain professional activities and others restrict the number of visas per package below what you actually need
- !Letting Ejari or Tawtheeq lapse: it cascades and blocks the trade licence renewal in Dubai, and the equivalent in other emirates
- !Mismatched activities: doing work outside the licensed list, even occasionally, risks fines per incident
- !Forgetting corporate tax registration: late registration attracts AED 10,000 administrative penalty regardless of revenue or profit
- !Forgetting VAT registration at the AED 375,000 threshold: same AED 10,000 penalty, plus VAT on retroactive sales
- !Assuming a free zone licence allows direct UAE mainland sales: most do not; you need a mainland branch, a local distributor or a service agreement structure
- !Underestimating bank account opening time: 2 to 8 weeks is normal, longer for smaller free zones, and the company cannot collect on UAE invoices without an active AED account
- !Choosing a flexi-desk for a 5-visa team: visa quota rarely supports more than 1 to 3 visas on a flexi-desk; a small private office is needed for larger teams
Where can I file Trade Licence in person in UAE?
Multiple networks handle this: RAK Government, Sharjah eServices, TAMM.
Frequently asked questions about Trade Licence in UAE
Free zone single-activity service packages start around AED 5,500 (RAKEZ no-visa basic) and run up to AED 17,500 (IFZA 1-visa flexi-desk). Dubai mainland LLCs run AED 20,000 to 30,000 in year one including the AED 15,000 DED activity fee for general trading, Chamber of Commerce membership and Ejari. Renewals are typically AED 10,000 to 15,000 plus establishment and immigration card renewals. Confirm current amount on DED or the relevant free zone.
Mainland (DED, ADDED, SEDD, etc.) if you will sell directly to UAE retail customers, government tenders or mainland B2B clients. Free zone if your customers are international, other free zone entities or UAE businesses willing to work with a free zone supplier, and you want simpler setup, lower fees and 100% foreign ownership without strategic-activity caveats. Hybrid setups (free zone HQ plus mainland branch) are common for businesses with both UAE and international customers.
No, not for most activities. Since the November 2020 reforms (rolled out through 2021 and 2022), 100% foreign ownership of mainland companies is allowed across most commercial and industrial activities. A short list of strategic activities (defence, fisheries, some energy categories) still requires Emirati participation.
Depends on the package and office size. Flexi-desk packages typically allow 1 to 3 visas; a small private office of 12 to 20 sqm unlocks 4 to 6 visas; a 50 sqm office supports 12 to 15 visas. Each additional visa beyond the package allocation costs AED 3,500 to 5,000 in government fees plus the residence visa cost stack.
Yes, since 1 June 2023: 9% on taxable profit above AED 375,000, with corporate tax registration mandatory for every UAE entity regardless of revenue or profit. Free zone companies with 'qualifying income' (broadly B2B income within the same free zone or exports) can still enjoy 0% on that income but must register and file returns. Late registration attracts an AED 10,000 administrative penalty.
A RAKEZ no-visa service licence from about AED 5,500 per year is the cheapest formal trade licence available, suitable for consulting and small services without UAE staff. For freelancers needing a visa, RAKEZ freelance permit with one visa runs around AED 17,070 per year. Dubai's DED e-commerce or freelance permit starts from AED 1,050 but only for specific activity codes and within Dubai's regulatory framework.
Two to four weeks for mainland LLCs, DMCC and DIFC companies at the major banks (Emirates NBD, ADCB, Mashreq, RAKBank, FAB), and 4 to 8 weeks for smaller free zones and newer entities. Banks have tightened due diligence post-2023, with thorough source-of-funds and business-plan reviews. The company cannot collect on UAE invoices without an active AED account, so plan this step into the timeline early.
Yes. A freelance permit through a free zone (DMCC, RAKEZ, IFZA, twofour54, Dubai Internet City and others) or DED Dubai's e-commerce / freelance category gives you a residence visa, an immigration file and the right to invoice UAE and international clients. Costs range from AED 7,500 to 17,070 per year for the permit plus the residence visa cost stack. The MOHRE freelance and part-time work permit categories also exist for residents already on another visa who want a side gig.
