Dubai has positioned itself as one of the most attractive business hubs in the world. From startups to global corporations, entrepreneurs are drawn to the city’s strategic location, tax benefits, and robust infrastructure. However, before a business can operate legally, obtaining a trade license in Dubai is mandatory.
For many investors, the first question is: What is the real cost of a trade license? Understanding the trade license cost in Dubai 2025 is crucial for budgeting and planning. Costs vary depending on the type of license, jurisdiction (mainland vs Free Zone), number of visas, and additional approvals required. This article provides a complete cost breakdown, highlighting hidden fees, influencing factors, and practical tips to minimize expenses.
Trade License Cost in Dubai 2025
The cost of a trade license in Dubai can range widely—from as little as AED 5,500 in certain Free Zones to AED 50,000+ for mainland setups involving larger activities.
Importance of a Trade License in Dubai
A trade license is the legal foundation of any business. Without it, a company cannot open a bank account, hire employees, or legally invoice clients. It also grants credibility in a competitive market.
Who Needs a Trade License?
Every business in Dubai, whether a one-person consultancy or a multinational corporation, requires a license. This applies to traders, consultants, manufacturers, service providers, and freelancers.
General Cost Range of Trade Licenses
- Free Zones: AED 5,500 – AED 15,000
- Mainland: AED 18,500 – AED 50,000
- Freelancers: AED 7,000 – AED 12,000
Key Authorities Issuing Trade Licenses
Licenses are issued by:
- Department of Economic Development (DED) for Mainland setups
- Free Zone Authorities like DMCC, IFZA, Meydan, Shams, RAKEZ, SPC
Types of Trade Licenses and Their Costs
There are four main license categories in Dubai, each with different costs.
Commercial Trade License Cost in Dubai
The commercial license allows businesses to trade goods and services. Costs:
- Mainland: AED 24,500+
- Free Zones: From AED 12,500
Professional Trade License Cost in Dubai
For service-oriented businesses like consultancy, IT, or healthcare. Costs:
- Mainland: AED 9,950+
- Free Zones: AED 12,500 – AED 50,000
Industrial Trade License Cost in Dubai
Required for manufacturing or production businesses. Costs are higher due to compliance with industrial standards:
- Average: AED 25,000 – AED 40,000+
General Trading License Cost
A general trading license allows multiple product lines under one license.
- Mainland: AED 29,000+
- Free Zones: AED 15,000 – AED 20,000
Free Zone vs Mainland Trade License Costs
The cost of a trade license depends on whether you choose a Free Zone or Mainland setup. Free Zones start from AED 5,500, offering affordable packages and 100% foreign ownership. Mainland licenses cost more but provide direct access to the UAE market and government contracts.
Minimum Free Zone License Costs (Shams, IFZA, SPC, Meydan)
- Shams Free Zone: From AED 5,750
- IFZA: From AED 12,900
- SPC Free Zone: From AED 6,900
- Meydan: From AED 13,500
Mainland Trade License Cost Breakdown
- Trade name registration: AED 620
- Initial approval: AED 345
- Commercial license: AED 10,000+
- Office rent & Ejari: AED 15,000–30,000
- Visa (per employee): AED 3,000–6,000
Pros and Cons of Free Zone vs Mainland
- Free Zone: Cheaper, 100% foreign ownership, tax exemptions.
- Mainland: Access to UAE market, government tenders, local business opportunities.
Cost Impact of Office Space & Location
A major cost driver. Flexi-desk saves money, while prime Dubai locations significantly increase costs.
Hidden and Additional Costs of Trade Licenses in Dubai
Beyond license fees, businesses face additional costs such as visas, office rent, Ejari registration, and external government approvals. Trademark registration, document attestation, and health insurance are also mandatory. These hidden charges can increase overall setup costs significantly, so investors must budget carefully to avoid unexpected financial burdens.
Visa and Residency Costs
Each visa can cost AED 3,000–7,000, depending on type and authority.
Office Rent and Ejari Registration
Ejari registration and office space add AED 15,000–40,000+ annually.
Government Approvals and External Clearances
Certain businesses (healthcare, construction, media) require extra approvals costing AED 1,000–10,000+.
Trademark Registration and Documentation Costs
Trademark registration: AED 6,200. Document attestation and legal translations may add AED 150–500 per document.
Factors Influencing the Trade License Cost
Several factors shape the cost of a trade license in Dubai. These include the type of business activity, chosen jurisdiction, number of visas, and office space requirements. Free Zones are generally cheaper, while Mainland businesses require larger investments but provide greater commercial flexibility and access to the local market.
Nature of Business Activity
Trading activities generally cost more than service-based ones due to additional customs and regulatory fees.
Number of Shareholders or Partners
More shareholders may require higher document clearance and additional fees.
Number of Visas Required
The more visas requested, the higher the total cost. Each visa adds 3,000–6,000 AED.
Location and Jurisdiction of Setup
Free Zones are cost-effective, but Mainland offers wider market access—justifying the higher cost.
Tips to Reduce Trade License Cost in Dubai
Entrepreneurs can reduce trade license expenses by choosing budget-friendly Free Zones, opting for flexi-desk packages, and starting with a single visa. Working with experienced business setup consultants also prevents costly mistakes. Careful planning ensures compliance while minimizing overheads, making it easier to establish a profitable venture at lower costs.
Choose Budget-Friendly Free Zones
Opt for Free Zones like Shams, SPC, and IFZA for cost-effective licenses.
Opt for Flexi-Desk or Co-Working Options
Shared workspaces help avoid expensive office rents while still meeting legal requirements.
Start with a Single Visa and Scale Later
Minimize costs by applying for one visa initially, adding more as the business grows.
Work with Experienced Business Setup Consultants
Consultants identify cost-saving opportunities, handle documentation, and prevent costly mistakes.
Real Examples of Trade License Costs in Dubai
For example, an IT consultancy in IFZA may cost AED 12,900 plus visa fees, while a general trading company in Mainland Dubai can exceed AED 50,000. Freelance permits start around AED 7,500. These examples highlight how costs vary based on license type, location, and business activity.
Example 1 – IT Consultancy in a Free Zone
An entrepreneur sets up in IFZA with a professional license: AED 12,900 + visa cost AED 3,500. Total: AED 16,400.
Example 2 – General Trading Company in Mainland Dubai
Mainland general trading license: AED 29,000 + office rent AED 20,000 + visa AED 5,000. Total: AED 54,000.
Example 3 – Freelancer in Abu Dhabi Free Zone
Freelance permit: AED 7,500 + visa AED 3,200. Total: AED 10,700.
Example 4 – Manufacturing License Setup
Industrial license: AED 25,000 + warehouse lease AED 50,000 + approvals AED 10,000. Total: AED 85,000.
Conclusion
The cost of a trade license in Dubai depends on type, jurisdiction, and activity. Free Zone licenses start as low as AED 5,500, while mainland licenses can exceed AED 50,000 depending on business model. By carefully selecting the right jurisdiction, minimizing overheads, and seeking expert advice, entrepreneurs can start businesses cost-effectively. For seamless setup and compliance, working with trusted Business Setup Consultants in Dubai ensures long-term success.
FAQs
What is the minimum cost of a trade license in Dubai?
The minimum cost starts at AED 5,500 in certain Free Zones. Mainland licenses usually start at AED 18,500.
What is the cheapest Free Zone trade license?
Free Zones like Shams, SPC, and Meydan offer licenses starting from AED 5,500–6,900.
Do I need an office space for a trade license in Dubai?
Yes, office space or flexi-desk is mandatory. Free Zones provide virtual office packages to reduce costs.
How much does it cost to renew a trade license in Dubai?
Renewals generally cost the same as initial setup—AED 5,500 to 15,000 in Free Zones and AED 18,500+ in Mainland.
Can foreigners get a trade license in Dubai?
Yes, foreigners can own 100% of their business in Free Zones and in most Mainland sectors after recent reforms.
Is Dubai trade license tax-free?
Yes, Dubai offers 0% personal income tax. Corporate tax applies at 9% above AED 375,000 annual profit.
How much does a trade license cost in Dubai?
The cost of a trade license in Dubai typically starts from AED 5,500 in Free Zones and AED 18,500 for Mainland setups. Final costs depend on business activity, visa requirements, and office space. Including approvals and hidden charges, total expenses may range from AED 10,000 to AED 50,000+.
What are the three types of trade licenses?
Dubai issues three main types of trade licenses:
- Commercial License – for trading goods and services.
- Professional License – for service-based businesses like consultancy or IT.
- Industrial License – for manufacturing and production activities.
Each license has different costs, approvals, and eligibility requirements based on business activity.
How long does it take to get a trade license in the UAE?
The timeline to obtain a trade license in the UAE usually ranges from 3 to 10 working days if all documents are correct. However, businesses requiring external approvals may take longer. Free Zone licenses are faster to issue, while Mainland setups may involve additional verification and Ejari registration.
