Dubai is a top spot for global business, and it affirmed its position as one again, as 70,500 new companies joined the chamber in 2024. That’s a whopping 33% increase in new member registrations with Dubai Chamber of Commerce. This highlights the importance of having the right trade license to successfully run your business in Dubai.
But, when registering your company, you need the right business or trade license. You can apply for different business licenses in the UAE, based on your activity and where you want to set up. This includes deciding between Free Zone, Mainland, or Offshore, as each option comes with its own rules, benefits, and costs.
As one of the leaders in the field, GAL Business Center knows which trade license you need to set up your business in Dubai. Drawing on our experience, we’ll walk you through different aspects of choosing the right trade license for your business.
Let’s get started.
Types of Trade Licenses Dubai Offers
A trade license is your legal ticket to do business in Dubai. It shows the government what kind of work you’re doing, whether you’re selling products, offering services, or manufacturing goods.
Dubai offers different types of trade licenses depending on your activity, and you must apply to the relevant authorities. For instance, mainland businesses must apply for a DED trade license in Dubai through the Department of Economic Development.
On the other hand, if you’re setting up shop in a Free Zone in Dubai, you’ll apply through the relevant Free Zone authority. The most common trade licenses include commercial, professional, and industrial licenses.
1. Commercial Trade License
You’ll need a commercial trade license in Dubai if your business involves trading. Whether you’re buying and selling goods within the UAE or across borders, you’ll need this trade license. It typically covers general trade, import/export, and retail.
This license is suitable for shops, wholesalers, and online stores. For example, if you’re launching an eCommerce business in Dubai, a UAE trading license can allow you to sell goods both locally and internationally.
2. Professional Trade License
A professional license in the UAE is for service-based businesses. If you’re a consultant, designer, teacher, or any kind of freelancer, this is what you’ll need to operate legally.
This trade license comes with 100% foreign ownership for some activities. So, if you’re starting a marketing agency or working as a freelancer in Dubai, this could be your legal go-ahead.
3. Industrial Trade License
If you’re setting up a manufacturing facility, you’ll need an industrial trade license in Dubai. This trade license covers everything from food processing to making clothes or assembling electronics.
You’ll need a physical facility, proper machinery, and environmental clearance. If you’re planning a factory setup in the UAE, this license ensures your operations are legal and compliant.
Mainland Vs Free Zone License? Which Is Right for Your Business
Choosing the right business jurisdiction in the UAE is just as important. It decides where and how you can operate your business and which trade licenses you need.
Mainland License: A Mainland license gives you full access to the UAE market. It’s perfect if you want to open a retail shop, cafe, or salon in popular spots like Dubai Mall or Jumeirah. You can work with clients across the UAE and even bid on government contracts. It also gives you more flexibility in hiring staff and choosing office locations.
Free Zone License: A Free Zone license is best for startups or international businesses. You get 100% foreign ownership, tax benefits, and a quick setup. For example, a logistics firm or a global trading company can set up in a Free Zone and serve your clients worldwide with lower overheads.
Remember These 5 Key Factors When You Choose a Trade License
When you choose a trade license in Dubai, look beyond the paperwork. This means you need to think about:
1. Business Activity
Your business activity license must match what you actually do. Whether it’s consulting, trading, or manufacturing, Dubai’s licensing system is specific. Choosing the wrong activity can lead to fines or worse, closure of your business.
2. Location
Where you set up, Mainland or Free Zone, affects what license you need and how you can carry out your business activities. Mainland gives you access to the local UAE market. On the other hand, Free Zones are great if you’re targeting international clients or want full foreign ownership. So, choose the location that fits your business model.
3. Ownership Requirements
If you want to keep full control of your business, go with a Free Zone license. It allows 100% foreign ownership. Some mainland licenses still need a local partner, depending on your industry. It’s best to hire a company formation expert who can help you choose the right license.
4. Cost of License
Cost is another factor you’ll need to consider, especially if you’re hiring a consultant. Actual licensing fees may vary depending on the type and location of your business. This also applies to consultants who may offer package deals for startups in Free Zones.
However, mainland licenses might be a little expensive as they typically require setting up a physical office or getting government approvals. Of course, you can explore options like serviced offices, which are considerably cheaper than their traditional counterparts.
5. Visa Eligibility
Not all business activity licenses offer the same visa benefits. Some let you sponsor more staff or apply for residence visas easily. If you’re planning to grow your team or bring family, make sure your license supports that.
How GAL Business Center Simplifies the Licensing Process
If you need trade license support in UAE, you should hire someone like GAL Business Center. Whether you’re launching a startup or expanding, we make trade license registration easy for you.
Our experts guide you through the full business setup, from choosing the right jurisdiction to complete the paperwork for a trade license. Our team helps you figure out exactly what type of license you need and where to register.
Here’s what we do:
Complete all your business-related paperwork through our professional PRO services. Our team handles all your documentation and compliance requirements, saving you time and avoiding delays.
Plus, we offer flexible office solutions, including coworking spaces, virtual offices, and serviced offices. These solutions meet the licensing needs for both Free Zone and Mainland setups. In short, we’re your one-stop solution for startup licensing in Dubai.
Take the First Step Towards Business Success
If you’re setting up a business in Dubai, choosing the right trade license is a big step. It depends on what your business does, who owns it, and where you plan to operate — Mainland or Free Zone. That’s where GAL Business Center comes in.
We make your Dubai company setup stress-free. From picking the right trade license to handling documents and office space, we’ve got your back. Ready to start your business journey in Dubai?
Contact us today and set your business up for success!