How Much Does a Dubai Trade License Cost? Factors That Influence Fees
If you’re planning a business setup in UAE, understanding the cost of a Dubai trade license is crucial. Entrepreneurs often ask, “How much does a Dubai trade license cost?” The answer depends on several variables, including the business activity, the license type, and the jurisdiction (free zone or mainland). In this article, we’ll break down these factors to help you estimate your trade license costs more accurately.
What Is a Dubai Trade License?
A Dubai trade license is an official permit issued by the Department of Economic Development (DED) or a relevant free zone authority, allowing business activities within the UAE. Every company or entrepreneur starting operations in Dubai must obtain a valid license to ensure their activities are legal under UAE law.
General Cost Range of Trade Licenses in Dubai
The cost of a trade license in Dubai generally starts from AED 10,000 to AED 50,000, depending on various factors. Free zones sometimes offer packages with prices as low as AED 6,000 for freelancers or small businesses. However, high-end permits or licenses involving industrial or tourism activities may cost much more.
Before estimating the total cost, it is important to understand the factors that influence it.
Key Factors That Influence Dubai Trade License Costs
1. Business Activity Type
The nature of your business significantly affects your license fee. A company dealing with oil trading will have different licensing fees compared to a consultancy firm.
- Commercial License: For trading activities.
- Professional License: For service provider professions like consulting or design.
- Industrial License: For manufacturing or industrial activities.
You can refer to our guide on types of trade licenses in Dubai to find out which license suits your business best.
2. Jurisdiction: Mainland vs Free Zone
Your decision to set up in Dubai Mainland or a Free Zone will directly impact your trade license cost:
- Mainland License: Issued by DED, typically costs higher but allows you to operate throughout the UAE.
- Free Zone License: Cost-effective and includes office space, but limits your business activities within the zone unless you work with an agent.
Read our comparison of Dubai Free Zones vs Mainland to make an informed decision.
3. Number of Shareholders
The number of shareholders affects the structure and type of license as well as the cost. More shareholders may require additional documentation and processing fees.
4. Additional Approvals and Permits
Certain activities require approvals from additional authorities. For example:
- Health sector businesses need approval from the Dubai Health Authority (DHA).
- Financial institutions need approval from the Central Bank of the UAE.
Each additional approval may add to your overall trade license cost.
5. Office Space Requirements
In the UAE, having a physical address is mandatory for most business licenses. Office rent and Ejari (tenancy contract) fees increase your total business setup expenditure.
Detailed Cost Breakdown for Dubai Trade License
Here’s a quick breakdown of typical expenses involved in acquiring a Dubai trade license:
| Cost Component | Estimated Fee (AED) |
|---|---|
| Initial Approval | 100 – 500 |
| Trade Name Reservation | 660 – 2,000 |
| License Issuance | 10,000 – 30,000 |
| Office Rental & Ejari | 15,000 – 50,000 |
| Chamber of Commerce Fee | 1,200 – 3,000 |
| Other Government Fees | 1,000 – 3,000 |
Note: These costs vary based on business size and structure.
Cost Differences Between Free Zones
Each free zone has its own pricing and packages. Popular free zones include:
- Dubai Multi Commodities Centre (DMCC)
- Dubai Silicon Oasis (DSO)
- Jebel Ali Free Zone (JAFZA)
- Dubai Internet City (DIC)
Packages in these zones may start from AED 6,000 annually for freelancers and go up based on the office size, visa quota, and activity type.
Hidden Costs to Watch Out For
While budgeting, be cautious of hidden charges such as:
- Visa fees for employees or partners
- Immigration card and establishment card fees
- Notarization and legal translation for documents
- Annual license renewal
To learn more, read our article on renewing your trade license in Dubai.
Benefits of Understanding Dubai Trade License Costs
Clarifying the expenses beforehand helps you:
- Plan a realistic budget
- Simplify your business setup in UAE
- Avoid unnecessary delays during the application process
Being financially prepared also gives you the flexibility to scale your business faster within or outside Dubai.
Tax Implications of a Dubai Trade License
While license costs are a major consideration, businesses should also account for:
- Value Added Tax (VAT) of 5%
- Corporate tax starting at 9% (for profits exceeding certain thresholds)
Note that Free Zones may offer exemptions based on activity, so consult a business advisor for tailored advice.
Tips to Reduce Trade License Costs
- Start with a shared office or coworking space
- Choose a specialized free zone with bundled packages
- Use online portals to apply and manage costs
- Consult a business advisor to customize your setup
Learn about official UAE government business practices to make cost-effective, compliant decisions.
Conclusion: Plan Smart for Your Business Setup in UAE
So, how much does a Dubai trade license cost? The simple answer: it depends—but now you know what it depends on. Whether you’re opting for a mainland setup or a free zone, being aware of the influencing factors and cost breakdown helps you plan efficiently. For more expert advice, consult our guide on what to know before opening a company in Dubai.
Ready to start your business journey in the UAE? Understanding licensing costs is your first step to success.
