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A trade license in Dubai, often called a business license, is the permit that lets your company carry out a specific list of activities, in the place that issued it. On the mainland, the Department of Economy and Tourism issues it. In a free zone, the zone's authority does. The licence type follows what you do: buy and sell goods, provide a service, or make something. Each type sets what the company may do, where, and with which approvals.
What are the main Dubai trade licence types?
Most Dubai free zones sort licences into three families, then add their own.
- Commercial or trading. Buying, selling, importing and exporting goods. General trading is often a separate, dearer licence: at Expo City it is AED 25,000 a year, against AED 10,000 for a service licence. See general trading licence.
- Service or professional. Consultancy, IT services, marketing, design and other work where you sell skills, not goods. IFZA calls this a professional licence. See consultancy licence.
- Industrial. Manufacturing and processing. DMCC, Jafza and Dubai Silicon Oasis all list an industrial licence.
Here is how some zones name their licences on their own pages.
| Zone | Licence types it lists |
|---|---|
| DMCC | Service, Trading, Commercial, Industrial |
| Jafza | Trading, Service, Industrial, Logistics |
| Dubai Silicon Oasis | Service, Trade, Industrial |
| Dubai CommerCity | Trade, Service, Industrial, E-commerce, General Trading, Dual Licence with DET |
| DWTC Free Zone | Event Management, Family Offices, Virtual Assets, E-commerce, Commercial, Professional, General Trading |
| IFZA | Commercial, Professional, Branch |
| International Humanitarian City | Humanitarian Organization licence, Commercial licence |
Source: each zone's licence or business setup page, checked .
The TECOM parks work by segment. Dubai Internet City has segments such as software and IT services, Dubai Media City has media and marketing segments, and so on. Each of Dubai Internet City's main segments covers up to 5 activities.
Specialist licences and permits
- E-commerce. Dubai CommerCity and the DWTC Free Zone both list an e-commerce licence. See e-commerce licence in Dubai.
- Freelance permit. The TECOM GoFreelance permit lets a sole professional work in tech, media, education or design from Dubai Internet City, Media City, Knowledge Park or Design District. A freelancer cannot sponsor staff or trade under a brand name. See freelance licence.
- Dual licence. Dubai CommerCity offers a dual licence with DET, so one business can cover both sides.
- Financial licences. In DIFC the DFSA licenses and regulates financial services, and the DIFC Registrar of Companies registers the entity. You need both.
What does a Dubai trade licence allow?
The licence lists your activities. You may carry out those and nothing else. Adding an activity means amending the licence. See licence amendment.
How much fits on one licence varies:
- Meydan offers more than 2,500 activities and its package covers up to 3 activity groups. Each extra activity is AED 1,000.
- DMCC lists more than 1,000 activities across 20 sectors.
- The DWTC Free Zone lists more than 1,200 activities.
- Dubai CommerCity allows up to 20 activities from four groups on one licence.
The licence also fixes where you trade. A free zone company works inside its zone and abroad. Selling into the UAE market needs a licensed mainland distributor, a mainland branch or company, or a permit. Dubai's Executive Council Resolution No. 11 lets an approved free zone company work on the mainland with a DET permit for up to 6 months or a DET branch licence. Goods moving from the zone to the mainland pay customs duty.
What does a Dubai trade licence not give you?
- Visas. You need an establishment card first, and the visa count follows your office or package. See free zone visa cost.
- A bank account. The bank decides separately. See corporate bank account.
- Tax registration. Corporate tax registration is due within 3 months of incorporation, and VAT once taxable supplies pass AED 375,000. See VAT registration.
- Sector approvals. Some activities need a second authority before the licence is issued.
Which activities need another approval?
| Activity | Extra approval |
|---|---|
| Financial services in DIFC | DFSA licence |
| Education at Dubai International Academic City | KHDA approval or NOC |
| Training at Dubai Knowledge Park | KHDA NOC for training segments |
| Some media activities at Dubai Media City | NMC registration |
| Scientific office at Dubai Science Park | MOH approval |
Dubai Healthcare City's low-cost Zawel licence is open only to activities that need no outside approval, such as IT, marketing or consultancy.
How long is a Dubai trade licence valid, and how is it renewed?
Most Dubai free zone licences run for one year. The TECOM parks say licences "are valid for a period of one year and are renewable on an annual basis". Others offer longer terms: DMCC 2, 3 or 5 years subject to eligibility, Meydan up to 10 years, and International Humanitarian City a two-year option. See licence renewal for fees and late fines.
Can you get a Dubai trade licence online?
Several zones run the whole licence step online. Meydan says setup is 100% online, with the Fawri licence issued in under 60 minutes. DWTC's Business Setup Portal works from anywhere. DMCC describes a fully digital process. You still need to be in the UAE for the visa medical test and Emirates ID biometrics.
Asking which licence fits
Describe your business in the form on this page: what you sell, to whom and from where. We are an independent directory, not DET or a free zone authority. A zone or licensed partner we pass it to tells you which licence type and activities match, and what they cost. For prices by type, see trade license cost in Dubai.
Sources
- https://dmcc.ae/blog/complete-guide-on-dmcc-licences (DMCC licence types and terms)
- https://www.jafza.ae/business-setup/business-license/ (Jafza licence types and renewal)
- https://www.dwtc.com/en/free-zone/set-up-your-business/company-types/ (DWTC Free Zone setup)
- https://dda.gov.ae/-/media/67662280247F46F2B94A853943F014C4.pdf (TECOM segments and GoFreelance permit)
- https://dic.ae/connect/faqs (licence validity in the TECOM parks)
- https://www.meydanfz.ae/faqs (Meydan licence term and activities)
- https://u.ae/en/information-and-services/business/Doing-business/doing-business-in-free-zones/running-a-business-in-a-free-zone- (where free zone companies may trade)
