Dubai continues to be one of the most attractive destinations in the world for foreign entrepreneurs. With its strong economy, business friendly regulations, and access to global markets, the city offers unmatched opportunities for those looking to start or expand a business. One of the first and most important steps in this journey is obtaining a trade license.
This guide explains, in simple and practical terms, how foreigners can get a trade license in Dubai, what types of licenses are available, the costs involved, and the common mistakes to avoid. Whether you are a first time entrepreneur or an experienced business owner entering the UAE market, this step by step guide will give you clarity before you begin.
Why Dubai is a Preferred Destination for Foreign Business Owners
Foreign entrepreneurs choose Dubai for several practical reasons. The UAE government has made consistent efforts to attract international investment by simplifying company formation and offering long term stability.
Key reasons include:
- 100% foreign ownership available for most business activities
- Zero personal income tax
- Strategic location connecting Asia, Europe, and Africa
- World class infrastructure and logistics
- Strong banking and financial ecosystem
- Clear legal and regulatory frameworks
Because of this, thousands of foreigners set up businesses in Dubai every year across trading, services, ecommerce, consulting, and professional sectors.
What is a Trade License in Dubai
A trade license in Dubai is an official legal document that allows a business to operate within the UAE. It defines what activities the company is permitted to carry out and under which jurisdiction it can operate.
Without a valid trade license, it is illegal to conduct business in Dubai. The license also plays a critical role in opening a corporate bank account, applying for visas, signing contracts, and dealing with suppliers or clients.
Types of Trade Licenses Available in Dubai
Before applying, foreigners must choose the correct type of trade license based on their business activity.
Commercial License
Issued for trading activities such as buying and selling goods, import export, general trading, and distribution.
Professional License
Issued for service based activities such as consulting, IT services, marketing, education, accounting, and advisory services.
Industrial License
Issued for manufacturing, processing, and industrial production activities. This license usually requires additional approvals and physical facilities.
Choosing the correct license type is critical, as incorrect classification can lead to compliance issues later.
Step by Step Guide to Getting a Trade License in Dubai for Foreigners
Step 1. Finalize Your Business Activity
The first step is selecting the exact business activity you want to conduct. Dubai authorities maintain an approved list of activities, and your license must clearly match what your business does in practice.
Some activities require additional approvals from government departments or regulatory bodies, so this step should be done carefully.
Step 2. Choose Mainland or Free Zone Jurisdiction
Foreigners can choose to set up their business either in the mainland or in a free zone.
Mainland companies allow you to trade directly with the local UAE market and government entities. Free zone companies are ideal for international trade, ecommerce, and export oriented businesses and usually offer faster setup and lower initial costs.
Your choice should be based on your target customers, business model, and long term expansion plans.
Step 3. Select and Reserve a Trade Name
The trade name represents your brand and must comply with UAE naming regulations. It should not contain offensive terms, religious references, or names of government bodies.
Once approved, the trade name is reserved for your use and linked to your license application.
Step 4. Apply for Initial Approval
Initial approval confirms that the UAE authorities have no objection to you starting a business under the chosen activity and structure.
At this stage, basic documents such as passport copies and application forms are submitted. Initial approval does not allow you to operate yet but allows you to move forward with the setup.
Step 5. Secure Office Space or Business Address
Most trade licenses require a registered office address. Depending on your jurisdiction, this could be:
- A physical office
- A shared office
- A flexi desk facility
The size and type of office often determine how many visas you can apply for later.
Step 6. Prepare and Submit License Documents
This step involves submitting all required documents, which may include:
- Passport copies of shareholders
- Entry visa or residence visa if applicable
- Trade name reservation certificate
- Initial approval certificate
- Office lease agreement
- Memorandum of association if required
Accuracy is critical at this stage, as errors can delay the process.
Step 7. Pay Government Fees and Receive Trade License
Once documents are approved, you will pay the required government fees. After payment, the trade license is issued.
At this point, your company is legally registered and allowed to operate within the scope mentioned on the license.
Estimated Cost of Getting a Trade License in Dubai
The cost of obtaining a trade license in Dubai varies depending on jurisdiction, activity, and office requirements.
| Cost Component | Estimated Range AED |
| Trade license fee | 5,500 to 20,000 |
| Trade name and initial approval | 500 to 2,000 |
| Office or flexi desk | 3,000 to 60,000 |
| Visa cost per person | 3,000 to 7,000 |
| Additional approvals | Varies by activity |
Some free zones offer startup packages starting from AED 5,500, while mainland setups may cost more depending on office size and approvals.
Can Foreigners Own 100% of a Dubai Company
Yes. Foreigners can own 100% of their business in Dubai for most activities, especially in free zones and many mainland sectors. Certain regulated activities may still require additional approvals or conditions, but the majority of standard business activities allow full foreign ownership.
Common Mistakes Foreigners Should Avoid
- Choosing the wrong business activity
- Selecting a jurisdiction without understanding limitations
- Underestimating total setup and compliance costs
- Applying without proper documentation
- Ignoring banking and visa requirements during planning
Avoiding these mistakes saves time, money, and frustration.
Opening a Corporate Bank Account After Licensing
Once the trade license is issued, you can apply for a corporate bank account. Banks will review:
- Business activity and model
- Shareholder background
- Source of funds
- Office presence
Bank account opening can take a few weeks, and professional guidance helps improve approval chances.
Visas and Residency for Foreign Business Owners
A trade license allows you to apply for residence visas for shareholders and employees. Visa availability depends on office size and license type.
Residency visas typically include:
- Investor or partner visa
- Employee visas
- Family sponsorship options
How AB Capital Services Helps Foreigners Get Trade Licenses in Dubai
AB Capital Services supports foreign entrepreneurs through every stage of the trade license process. Their team helps you choose the right jurisdiction, activity, and structure based on your business goals, not just cost.
With clear communication, dedicated managers, and multilingual support, AB Capital ensures your setup is smooth, compliant, and future ready.
Why AB Capital Services is Different
- Dedicated agency leaders and relationship managers
- Clear and transparent communication
- Strong customer support at every step
- Assistance with licensing, visas, banking, and compliance
- Support available in English, Hindi, Malayalam, Arabic, and Punjabi
- Registered and FTA approved agency
- Experience with over 1500 companies formed in the UAE
This approach helps foreigners start their Dubai business with confidence.
FAQs about Trade License in Dubai for Foreigners
How long does it take to get a trade license in Dubai?
A trade license can be issued within a few days to a few weeks depending on the jurisdiction, activity, and document readiness.
Can I start a business in Dubai without visiting the UAE?
Yes. Many trade licenses can be issued remotely, and visas can be processed later when required.
Is a local sponsor still required?
For most activities, no. Foreigners can own 100 percent of the company.
Do I need an office to get a trade license?
Yes, but options range from flexi desks to full offices depending on the license type.
Can I change my business activity later?
Yes, activities can be amended, subject to approval and additional fees.
Final Thoughts
Getting a trade license in Dubai as a foreigner is a structured and achievable process when done correctly. The key lies in choosing the right activity, jurisdiction, and support partner from the beginning.
With the right planning and professional guidance, Dubai offers one of the most rewarding environments in the world for foreign entrepreneurs ready to build a long term business.