Trade License Cost in Dubai — Full Breakdown (2026)
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Browse NowThe license fee is the small part. A Dubai DET trade license costs AED 600-1,200 in government fees. But by the time you add activity permits, establishment card, chamber of commerce, office space, visa costs, and miscellaneous government charges, the first-year total for a mainland LLC ranges from AED 25,000 to AED 75,000. Free zone packages start lower but carry their own additional costs.
Every business in Dubai needs a trade license. No exceptions. Whether you are a freelancer, a restaurant, a trading company, or a tech startup, the Department of Economy and Tourism (DET) must issue a license before you can legally operate, open a bank account, or sponsor visas.
This guide breaks down every cost component of obtaining and maintaining a Dubai trade license in 2026. For professional setup support, visit the FindCPA company formation directory.
What Is a Dubai Trade License?
A Dubai trade license is a government permit issued by the Department of Economy and Tourism (DET) that authorizes a business to conduct specific commercial, professional, or industrial activities within the emirate. Every legal entity operating in Dubai mainland must hold a valid trade license. The license specifies the permitted business activities, the legal form of the entity, and the trade name. It must be renewed annually.
Types of Dubai mainland trade licenses:
| License Type | Who Needs It | Examples |
|---|---|---|
| Commercial license | Trading and retail businesses | Import/export, general trading, e-commerce, retail shops |
| Professional license | Service providers and professionals | Consultancies, law firms, accounting firms, IT services |
| Industrial license | Manufacturing and production | Factories, food production, assembly operations |
| Tourism license | Tourism-related businesses | Travel agencies, tour operators, hotel management |
| Crafts license | Artisan and craft businesses | Tailoring, carpentry, smithing, handmade goods |
Legal forms available:
| Legal Form | Ownership | Minimum Capital | License Cost Impact |
|---|---|---|---|
| LLC (Limited Liability Company) | 100% foreign ownership allowed | No mandatory minimum (AED 300,000 recommended) | Standard DET fees |
| Sole establishment | 100% single owner (UAE national or GCC) | None | Lower fees |
| Civil company | 100% foreign ownership for professional activities | None | Standard professional fees |
| Branch of foreign company | 100% owned by foreign parent | None | Standard fees + legalization costs |
| Branch of local company | Same ownership as parent | None | Reduced fees |
Since 2020, 100% foreign ownership is permitted for most mainland activities. The previous requirement for a 51% UAE national partner no longer applies for the vast majority of commercial and professional activities. This fundamental change has reduced setup costs by eliminating local sponsor fees.
What Are the DET Government Fees?
DET government fees for a standard mainland trade license total AED 4,000-10,000, comprising the license issuance fee (AED 600-1,200), initial approval fee (AED 120-500), trade name registration (AED 620), activity addition fees (AED 1,000 per additional activity beyond the first three), and Tasheel service center charges. These are fixed government fees that apply regardless of which service provider assists with the setup.
DET fee breakdown:
| Fee Component | Amount (AED) | Notes |
|---|---|---|
| Initial approval | 120-500 | Preliminary step before license issuance |
| Trade name reservation | 620 | Valid for 6 months; renewable |
| License issuance fee | 600-1,200 | Depends on license type (commercial higher than professional) |
| Activity fees (first 3) | Included | Three activities included in the base license fee |
| Additional activities | 1,000 each | Each activity beyond the first three |
| Memorandum of Association (MOA) attestation | 500-1,500 | For LLCs; includes notarization |
| External approval (if required) | 500-3,000 | Activities requiring approval from other authorities (health, education, etc.) |
| Knowledge fee (DED) | 10 (per transaction) | Applied to most DET transactions |
| Innovation fee | 10 (per transaction) | Applied to most DET transactions |
Activity-specific external approvals:
| Business Activity | Approval Authority | Additional Fee (AED) |
|---|---|---|
| Restaurant/food business | Dubai Municipality (food safety) | 2,000-5,000 |
| Healthcare clinic | DHA (Dubai Health Authority) | 5,000-15,000 |
| Educational institution | KHDA | 3,000-10,000 |
| Financial services | SCA or DFSA | 10,000-50,000+ |
| Real estate brokerage | RERA (Dubai Land Department) | 5,000-10,000 |
| IT/telecom services | TRA | 1,000-3,000 |
| Media/advertising | National Media Council | 1,000-3,000 |
| Construction | Dubai Municipality (building) | 2,000-5,000 |
Important. External approval fees can significantly increase the total cost for regulated activities. A healthcare business, for example, pays AED 5,000-15,000 in DHA approval fees on top of the standard DET license fees. Factor these in before budgeting.
How Much Does Office Space Cost?
A physical office or Ejari (registered lease) is mandatory for a Dubai mainland trade license. Options range from AED 6,000-15,000 per year for a flexi-desk/shared workspace (accepted for most professional licenses) to AED 25,000-80,000 per year for a small private office. A physical retail or warehouse space costs AED 50,000-200,000+ depending on location and size. The Ejari registration fee itself is AED 220.
Office space options and costs:
| Option | Annual Cost (AED) | Accepted For | Limitations |
|---|---|---|---|
| Flexi-desk (co-working) | 6,000-15,000 | Professional licenses, some commercial | Limited to 1-3 visa allocations |
| Smart desk (DET approved) | 8,000-12,000 | Professional and some commercial | Purpose-built for license compliance |
| Serviced office (small) | 25,000-50,000 | All license types | 1-5 visa allocations typically |
| Private office (small) | 35,000-80,000 | All license types | Standard for operational businesses |
| Retail space | 80,000-300,000+ | Commercial licenses requiring customer-facing premises | Location-dependent |
| Warehouse | 50,000-150,000 | Commercial/industrial licenses | Industrial areas (Al Quoz, DIP, Jebel Ali) |
| Virtual office | 5,000-10,000 | NOT accepted for mainland licenses | Only valid for some free zone licenses |
Ejari registration. Every lease in Dubai must be registered with Ejari (the Real Estate Regulatory Agency's rental registration system). The Ejari certificate is required for the trade license application. Registration costs AED 220 and is processed through typing centers or the Dubai REST app.
Visa allocation depends on office size. DET allocates visas based on the office area:
- Under 200 sq ft: 1-3 visas
- 200-500 sq ft: 3-6 visas
- 500-1,000 sq ft: 6-10 visas
- Above 1,000 sq ft: 10+ visas (formula-based)
This is critical for businesses planning to hire. If you need 8 employees on sponsored visas, you need enough office space to qualify for 8 visa allocations.
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What Are the Visa and Immigration Costs?
Visa costs for a Dubai mainland company total AED 5,000-8,000 per employee visa, covering the entry permit, status change, Emirates ID, medical test, and visa stamping. The establishment card (immigration card for the company) costs AED 2,000-3,000. An investor/partner visa costs AED 5,000-10,000. These are per-person costs that multiply with each hire, making them a significant component of total business setup cost.
Per-visa cost breakdown:
| Component | Cost (AED) | Notes |
|---|---|---|
| Establishment card (company) | 2,000-3,000 | One-time per company (renewed with license) |
| Entry permit | 1,100-1,200 | Per employee |
| Status change (if inside UAE) | 600-700 | Only if the person is already in the UAE |
| Medical fitness test | 300-500 | Mandatory for all visa applicants |
| Emirates ID application | 370-570 | Per person (2 or 3 year validity) |
| Visa stamping | 500-700 | Per employee |
| Typing/service charges | 500-800 | PRO processing fees |
| Health insurance | 1,800-4,000/year | Mandatory; amount depends on plan |
| Total per employee visa | 5,170-8,470 | First year including health insurance |
Investor/partner visa additional costs:
| Component | Cost (AED) |
|---|---|
| Investor visa application | 1,000-1,500 |
| Entry permit (investor) | 1,100-1,200 |
| Status change | 600-700 |
| Medical test | 300-500 |
| Emirates ID | 370-570 |
| Visa stamping | 500-700 |
| Security deposit (refundable in some cases) | 3,000-5,000 |
| Total investor visa | 6,870-10,170 |
Health insurance is mandatory. Under Dubai Health Authority regulations, every visa holder must have DHA-compliant health insurance. Basic plans start at AED 1,800/year for employees earning below AED 4,000/month. Comprehensive plans range from AED 3,000-8,000/year. The employer is legally responsible for providing health insurance.
What Is the Total First-Year Cost by Business Type?
The total first-year cost of a Dubai mainland trade license ranges from AED 18,000 for a sole professional with a flexi-desk to AED 200,000+ for a trading company with warehouse space and multiple employees. The median first-year cost for a two-person LLC with a small office is approximately AED 40,000-55,000. These figures include all government fees, office space, visa costs, and professional service charges but exclude operational expenses like inventory, marketing, or working capital.
Total first-year cost by business scenario:
| Scenario | DET/Gov Fees (AED) | Office (AED) | Visas (AED) | Professional Fees (AED) | Total (AED) |
|---|---|---|---|---|---|
| Solo consultant (professional license, flexi-desk) | 3,500-5,000 | 6,000-12,000 | 5,000-8,000 (1 visa) | 3,000-5,000 | 17,500-30,000 |
| Two-partner LLC (commercial, small office) | 5,000-8,000 | 25,000-45,000 | 12,000-18,000 (2 visas) | 5,000-8,000 | 47,000-79,000 |
| Small trading company (5 employees, office + warehouse) | 6,000-10,000 | 50,000-100,000 | 30,000-45,000 (5 visas) | 5,000-10,000 | 91,000-165,000 |
| Restaurant | 8,000-15,000 | 100,000-250,000 | 40,000-80,000 (8+ visas) | 8,000-15,000 | 156,000-360,000 |
| IT/tech startup (3 employees, serviced office) | 4,000-6,000 | 25,000-40,000 | 18,000-25,000 (3 visas) | 4,000-7,000 | 51,000-78,000 |
| E-commerce (2 employees, flexi-desk) | 4,000-7,000 | 8,000-15,000 | 12,000-18,000 (2 visas) | 4,000-6,000 | 28,000-46,000 |
| Branch of foreign company | 5,000-10,000 | 25,000-50,000 | 10,000-15,000 (2 visas) | 8,000-15,000 | 48,000-90,000 |
Professional service fees. These cover the PRO (Public Relations Officer) services, document preparation, government liaison, and general company formation assistance. You can handle much of the process yourself through the DET "Invest in Dubai" platform, reducing this cost to near zero — but most businesses use a professional service for speed and accuracy.
What is NOT included above:
- Initial bank deposit or minimum balance requirements
- Business insurance (not always mandatory but recommended)
- Accounting software setup
- Marketing and branding costs
- Inventory or stock purchases
- Working capital
- Fit-out costs (for office or retail space)
What Are the Annual Renewal Costs?
Annual trade license renewal costs AED 15,000-50,000 for a typical UAE SME, comprising the DET license renewal fee (AED 600-1,200), office lease renewal, establishment card renewal, chamber of commerce renewal (AED 500-2,000), and health insurance renewals. Visa renewals add AED 2,000-3,000 per employee every 2-3 years. The renewal cost is lower than the first year because one-time setup fees do not recur.
Annual renewal cost breakdown:
| Component | Annual Cost (AED) | Notes |
|---|---|---|
| DET license renewal | 600-1,200 | Same as initial issuance fee |
| Trade name renewal | 300-620 | Annual |
| Office lease renewal | 6,000-80,000+ | Depends on space type and size |
| Ejari renewal | 220 | Annual |
| Establishment card renewal | 1,000-2,000 | Annual |
| Chamber of commerce | 500-2,000 | Annual membership |
| Health insurance (all employees) | 1,800-8,000 per person | Annual renewal |
| Visa renewal (per employee, every 2-3 years) | 2,000-3,000 per person | Amortized annually: ~1,000-1,500 |
| PRO/service charges | 2,000-5,000 | For renewal processing |
| External approval renewals (if applicable) | 500-5,000 | Municipality, DHA, RERA, etc. |
| Total typical (2-person LLC, small office) | 20,000-40,000 | Excluding operational costs |
Renewal timeline. License renewal applications should be submitted 30 days before expiry. Operating with an expired license is illegal and can result in fines of AED 10,000+. DET sends renewal reminders, but do not rely on them — set your own calendar reminders.
Late renewal penalties. DET charges late renewal fines starting from the first day after expiry. The penalty escalates monthly:
| Delay | Penalty (AED) |
|---|---|
| 1-30 days | 200-1,000 |
| 31-60 days | Additional 200-1,000 |
| 61-90 days | Additional 200-1,000 |
| 90+ days | Varies; license may be suspended |
Cost reduction tip. Review your licensed activities annually. Each additional activity costs AED 1,000/year. If you added activities "just in case" during setup, remove the ones you are not using. Three unused activities save AED 3,000/year.
How Do Mainland Costs Compare to Free Zone?
Free zone trade license packages start at AED 10,000-15,000 for the most affordable zones (IFZA, Meydan, SHAMS) and reach AED 50,000+ for premium zones (DMCC, DIFC). Mainland licenses are more expensive in the first year due to office lease requirements but offer broader business scope. Free zones are cheaper for desk-based businesses but more expensive when physical space, multiple visas, or mainland trading is needed.
| Factor | Dubai Mainland | Free Zone (Budget) | Free Zone (Premium) |
|---|---|---|---|
| License fee (year 1) | 3,500-10,000 | 10,000-15,000 (package) | 20,000-50,000 |
| Office (minimum) | 6,000-15,000 (flexi-desk) | Often included in package | Often included in package |
| Visa cost (per person) | 5,000-8,000 | 3,000-6,000 | 5,000-10,000 |
| Visa allocation | Based on office size (scalable) | Fixed per package (typically 1-6) | Fixed per package |
| Can trade directly in UAE mainland | Yes | No (need distributor or dual license) | No (except DIFC/ADGM for some services) |
| Annual renewal | 15,000-40,000 | 10,000-20,000 | 20,000-50,000 |
| Flexibility to add activities | High | Limited to licensed scope | Limited to licensed scope |
| Bank account opening | Easier (mainland companies face fewer questions) | Varies (some free zones have faster bank processes) | DIFC/ADGM have own banks |
When mainland is cheaper:
- Business needs many employees (visa allocation by office size, not fixed packages)
- Business trades physical goods within the UAE (no need for mainland distributor)
- Business needs flexibility to add activities over time
When free zone is cheaper:
- Business is desk-based (consulting, IT, e-commerce)
- Business needs only 1-3 visas
- Business serves clients outside the UAE (export-oriented)
- Business wants simplified setup process
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Frequently Asked Questions
Can I Get a Dubai Trade License Without an Office?
Not for mainland licenses. A registered lease (Ejari) is mandatory. However, flexi-desk arrangements satisfy the requirement for most professional and some commercial activities, starting at AED 6,000/year. This is the minimum physical presence needed. Some free zones offer virtual office packages, but these are not valid for mainland DET licenses.
How Long Does It Take to Get a Trade License?
A standard mainland LLC license takes 3-7 working days through the DET "Invest in Dubai" platform, assuming all documents are ready and no external approvals are needed. Activities requiring external approval (food, healthcare, education) add 2-8 weeks. Using a professional service provider typically speeds the process. Free zone licenses vary: IFZA can issue in 1-2 days; DMCC takes 2-3 weeks; DIFC takes 4-8 weeks.
What Happens If I Operate Without a Trade License?
Operating without a valid trade license in Dubai is illegal. Penalties include fines of AED 10,000-50,000, closure of the business premises, and potential legal action against the owners. Banks will not open accounts without a valid license. Landlords require a valid license for commercial leases. Clients and suppliers may face liability for transacting with an unlicensed entity. There is no grace period for operating without a license.
Can I Have Multiple Activities on One License?
Yes. DET allows multiple activities on a single trade license. The first three activities are included in the base fee. Each additional activity costs AED 1,000/year. However, mixing commercial and professional activities on one license is sometimes restricted — you may need separate licenses if the activities fall under different categories. Confirm with DET or your formation consultant before assuming all desired activities can be on one license.
Do I Need a Local Partner for a Dubai Mainland Company?
No, for most activities. Since June 2021 (following the amendment to the Commercial Companies Law), 100% foreign ownership is permitted for over 1,000 mainland business activities. A few activities still require a UAE national partner or service agent (e.g., some strategic sectors), but the vast majority of commercial and professional activities are fully open to foreign ownership. Verify your specific activity on the DET portal.
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