About EGSH
What Determines the Cost of a Trade Licence in Dubai
The total cost of obtaining a trade licence in Dubai is not a single fixed amount. It is a composite figure determined by several independent variables, each set by a different authority or commercial arrangement. Understanding these variables is essential for accurate budgeting.
The Department of Economy and Tourism (DET), formerly known as the Department of Economic Development (DED), is the competent authority for issuing and renewing all mainland trade licences in Dubai. Every business operating on the Dubai mainland must hold a valid DET trade licence matching its actual economic activities and legal form.
Several distinct cost layers determine the final amount. The DET licence issuance fee forms the core charge. Activity fees vary depending on the number and type of economic activities selected from the DET catalogue of over 2,000 options. The legal form chosen for the company — sole establishment, limited liability company, civil company, or branch office — affects both the licence fee structure and the documentation requirements. Premises-related charges, including the Market Fee and Ejari registration, add a recurring cost tied to office rent. External sector-specific approvals, where applicable, introduce additional fees from regulators such as the Dubai Municipality, the Dubai Health Authority (DHA), or the Roads and Transport Authority.
The distinction between mainland and free zone licensing is fundamental. A mainland trade licence from the DET permits the holder to trade directly within the local UAE market and across the entire national territory. A free zone licence, issued by the relevant free zone authority, typically restricts direct mainland trade unless specific arrangements are in place. This jurisdictional difference directly affects both the cost structure and the commercial reach of the business.
Register Your Trade Licence in Dubai
Officially regulated fees
No hidden charges
Queue-free service
VIP support at no extra cost
From AED 130
Explore EGSH Government Services in Dubai
Types of Trade Licences and Their Cost Ranges
The UAE's Ministry of Economy recognises six primary categories of economic licences: commercial, industrial, professional, crafts, tourism, and agricultural. In practice, the three most common categories for Dubai mainland businesses are commercial, professional, and industrial.
A commercial licence authorises buying, selling, importing, exporting, and distributing goods. It is the most widely issued licence type and carries the broadest activity scope. Government fees for a commercial trade licence on the Dubai mainland typically range from AED 12,000 to AED 25,000, depending on the specific activities selected and the legal form of the entity. General trading licences — which permit multi-category import, export, and distribution — tend to fall at the higher end of this range.
A professional licence covers activities where income derives primarily from the qualifications, skills, or intellectual effort of the practitioner. Common examples include management consultancy, IT services, legal advisory, and engineering. Professional licence fees are generally lower than commercial licence fees, with DET government charges starting from approximately AED 10,000. Professional entities may also be structured as civil companies, which carry different documentation requirements compared to LLCs. The distinction between professional and commercial classifications affects both the applicable legal forms and ongoing compliance obligations. A detailed comparison of these classifications — consultancy licence types in Dubai.
An industrial licence authorises manufacturing, processing, assembly, or packaging activities. It carries the highest fee range among the three main categories, with DET government charges typically ranging from AED 15,000 to AED 25,000. Industrial licence holders must also register with the Ministry of Industry and Advanced Technology (MoIAT), which requires a minimum manufacturing facility capital of AED 250,000 and a minimum of 10 employees for an Industrial Production Certificate. These federal requirements apply in addition to the DET licence fees.
Get Business Services in Dubai Through EGSH
Authorised One-Stop Government Services Centre
- All government services in one place
- Completed in one visit
- VIP service without queues
- Regulated government fees
Step-by-Step Government Fees for a New Trade Licence
Obtaining a new trade licence on the Dubai mainland follows a defined sequence. Each step carries its own government fee.
Trade Name Reservation
The first step is reserving a trade name through the DET. The standard government fee for trade name reservation is AED 620. The reservation certificate is valid for 180 days, during which the applicant must complete the remaining incorporation steps. Premium or restricted names may carry higher fees. The name must comply with UAE naming conventions: it must reflect the business activity, cannot contain religious references or names of government bodies, and must be unique within the DET register. EGSH processes trade name reservations through the official DET systems with the certificate issued within minutes of a complete submission.
Initial Approval
The second step is obtaining initial approval from the DET, which confirms that the authority has no objection to the proposed business activity, legal form, and ownership structure. The government fee for initial approval is AED 120. Initial approval is not a licence — it is a prerequisite checkpoint that precedes incorporation documents and final licence issuance.
Memorandum of Association
For entities with multiple partners or shareholders, including LLCs, a Memorandum of Association (MOA) must be drafted and notarised. The MOA specifies the share capital, ownership structure, management arrangements, and profit distribution. Notarisation fees for the MOA typically range from AED 900 to AED 2,000, depending on the legal form and capital amount. Single-owner sole establishments do not require a notarised MOA.
DET Licence Issuance Fee
The licence issuance fee is the core government charge calculated by the DET based on the selected business activities, legal form, and applicable regulatory requirements. This fee varies from approximately AED 10,000 for a straightforward professional sole establishment to AED 25,000 or more for a multi-activity commercial LLC. Activity-specific fees range from AED 150 to AED 15,000 per activity, and businesses may register up to 10 activities under a single licence. Each additional activity beyond the initial selection incurs a supplementary charge.
Why Choose EGSH for Government Services in Dubai
VIP Service
Personal assistance and priority processing with no queues.
Affordable Fees
Official government rates with transparent, fixed pricing.
All Services in One Place
Comprehensive range of UAE government services under one roof.
One-Visit Completion
Most procedures are completed in a single visit to the centre.
Premises-Related Costs
Every Dubai mainland business requires registered premises. The DET will not issue or renew a trade licence without a valid Ejari certificate linked to an active tenancy contract.
Ejari Registration
Ejari is the Dubai Land Department (DLD) tenancy registration system. The standard Ejari registration fee is AED 220 when processed through a Real Estate Services Trustee centre. Registration through the Dubai REST app or DLD website costs AED 177.75, which includes AED 100 for tenancy registration, AED 10 knowledge fee, AED 10 innovation fee, AED 55 service partner fee, and AED 2.75 VAT on the partner fee. EGSH, as an authorised Real Estate Services Trustee centre, processes Ejari registration directly through the DLD system.
Market Fee
The DET levies a Market Fee calculated as a percentage of the annual rent for the business premises. The standard rate is 5% of annual rent for commercial premises and 20% for warehouses. This fee is collected during licence issuance and renewal. For a business renting office space at AED 50,000 per year, the Market Fee adds AED 2,500 to the annual cost. The Market Fee is a government charge, not a landlord payment, and must be factored into the total licensing budget.
Office Lease
The cost of leasing commercial premises varies significantly by location, size, and type. Virtual office or flexi-desk arrangements start from approximately AED 5,000 to AED 10,000 per year and satisfy the DET's premises requirement for certain activity types. Dedicated office spaces in business districts range from AED 15,000 to AED 60,000 or more per year. The office lease is a commercial expense paid to the landlord and is separate from government fees.
Immigration and Labour Setup Costs
After obtaining the trade licence, businesses that intend to sponsor visas for owners, partners, or employees must establish immigration and labour files with the relevant authorities.
Establishment Card
The Ministry of Human Resources and Emiratisation (MOHRE) issues the Establishment Card, which is a prerequisite for applying for work permits and labour contracts. The Establishment Card requires a valid trade licence and submission of establishment details including owners, authorised signatories, business activity, and location. Establishment Card fees are set by the MOHRE and depend on the company classification.
Visa Costs
Each residence visa for an owner, partner, or employee involves multiple government fees paid to different authorities. These typically include the entry permit fee, medical fitness examination fee payable to the DHA, Emirates ID application fee payable to the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), and visa stamping fee payable to the General Directorate of Residency and Foreigners Affairs (GDRFA). The combined per-person cost for a standard employment residence visa ranges from approximately AED 3,000 to AED 7,000. Investor and partner visas may carry different fee structures. EGSH provides investor and partner visa processing through its authorised Amer centre.
Visa costs are recurring. Each visa must be renewed within its validity period, and renewal fees are broadly comparable to initial issuance fees.
Visit EGSH for VIP Service Without Queues
You can stop by EGSH during working hours without an appointment or book your visit at a time that suits you best.
Address
Art of Living Mall, Al Barsha 2, Dubai
Operating hours
Monday–Thursday, Saturday: 9:00 am–5:00 pm
Friday: 9:00 am–12:00 pm, 2:00 pm–5:00 pm
Sunday: Closed
Trade Licence Renewal Costs
A Dubai mainland trade licence is valid for one year from the date of issuance. Renewal is a mandatory, paid government service that must be completed before the licence expires.
The DET does not publish a single fixed renewal fee. Renewal costs are calculated based on the same variables as the initial licence: activity type, licence category, legal form, and associated government charges. In practice, the renewal fee structure is broadly comparable to the initial issuance fee. For typical small and medium mainland businesses, the overall renewal cost — including the DET fee, Market Fee, and Ejari renewal — ranges from AED 8,000 to AED 15,000. Larger or regulated businesses may pay in excess of AED 20,000.
EGSH processes trade licence renewals through official DET channels, ensuring the renewal is registered in government records with an accurate fee calculation.
The renewal process requires a valid Ejari certificate with at least one month of remaining validity. All existing external approvals linked to the licence must also be current. If any sector-specific approval has expired, the primary trade licence renewal will be blocked until that approval is reinstated.
Penalties for Non-Compliance
Dubai's Commercial Compliance Manual sets out a structured system of administrative fines for licensing violations. Understanding these penalties is essential for maintaining compliance and avoiding unnecessary costs.
The fine for failing to renew a trade licence within the specified time limit is AED 250. This penalty is imposed by the DET for the delay itself and does not replace the obligation to complete the renewal and pay standard fees. Continued non-compliance escalates the consequences.
Operating without a valid trade licence — whether due to non-renewal or failure to obtain a licence — carries a fine of AED 5,000. Practising an economic activity that is not listed on the trade licence is a separate violation carrying a fine of AED 2,000. Failure to resolve a violation within the deadline set by the DET results in an additional fine of AED 5,000.
Corporate Tax and VAT Obligations
Trade licence costs must be viewed within the broader framework of ongoing fiscal obligations. Since June 2023, all businesses registered in the UAE are subject to the federal corporate tax regime. The standard corporate tax rate is 0% on taxable income up to AED 375,000 and 9% on income exceeding that threshold. Corporate tax registration through the Federal Tax Authority (FTA) EmaraTax platform is mandatory for all resident juridical persons, including mainland companies. Registration must be completed within three months of incorporation.
Value Added Tax at 5% applies to most goods and services in the UAE. Businesses with taxable supplies exceeding AED 375,000 per year must register for VAT. The trade licence details must be entered accurately during both VAT and corporate tax registration. Non-compliance with tax registration deadlines carries separate penalties under FTA regulations.
These tax obligations are not DET fees, but they are recurring costs directly linked to holding a trade licence and must be included in comprehensive business budgeting.
Mainland Versus Free Zone: Cost Comparison
Investors choosing between a mainland and a free zone trade licence should evaluate costs alongside commercial objectives. The headline licence fee does not capture the full cost difference between the two structures.
Free zone licence packages typically start from AED 5,500 in northern emirates free zones and from AED 10,000 to AED 12,900 in Dubai-based free zones such as IFZA, Meydan Free Zone, and Dubai South. These packages often include a flexi-desk or virtual office, which eliminates the need for a separate lease and Ejari registration. Some free zone packages bundle visa allocations into the licence fee.
Mainland commercial licences involve higher aggregate government fees — typically AED 25,000 to AED 35,000 when factoring in the DET licence, Ejari, Market Fee, and mandatory documentation. However, a mainland licence grants unrestricted access to the local UAE market, permits direct trade with government entities, and avoids the gate-pass fees that free zone companies incur when moving goods to the mainland.
How EGSH Facilitates Trade Licence Services
The Emirates Government Services Hub (EGSH) is an authorised government services centre in Dubai that holds DET licensing authority alongside DLD trustee licences, Amer immigration services, and Tasheel labour services. Applicants can complete trade name reservation, initial approval, licence issuance, and renewal directly through EGSH using official DET systems. The centre also processes the related immigration, labour, and real estate registration steps — including Ejari, visa applications, and establishment card setup — at a single location.
EGSH processes trade licence registration through the DET's digital systems. All government fees are paid at official rates. Final approval of any licence application rests with the DET and other relevant government authorities. For businesses approaching their annual renewal deadline — trade licence renewal costs and penalties explains the DET renewal process, fee structure, and compliance requirements in full.
Related Government Services
Frequently Asked Questions
How much does a trade licence cost in Dubai in 2026?
A Dubai mainland trade licence typically costs between AED 10,000 and AED 50,000 in total government fees. The exact amount depends on the licence type (commercial, professional, or industrial), the number of business activities, the legal form, and premises-related charges including the Market Fee. The DET calculates the specific fee when the application is submitted through the Invest in Dubai portal or an authorised service centre.
What is the cheapest type of trade licence in Dubai?
A professional licence for a sole establishment with a single activity is generally the least expensive mainland option, with DET government fees starting from approximately AED 10,000. Free zone licence packages in northern emirates start from approximately AED 5,500 for zero-visa configurations.
How much does it cost to renew a trade licence in Dubai?
Trade licence renewal fees are broadly comparable to the initial issuance fees. For most small and medium mainland businesses, the total renewal cost — including the DET fee, Market Fee, and Ejari renewal — ranges from AED 8,000 to AED 15,000. The specific amount is calculated by the DET based on the licence details.
What happens if I do not renew my trade licence on time?
Failure to renew within the specified time limit carries an administrative fine of AED 250 from the DET. Operating without a valid licence after expiry carries a further fine of AED 5,000. An expired licence also blocks visa renewals, may trigger bank account restrictions, and can escalate to administrative closure and blacklisting in severe cases.
Can I get a trade licence in Dubai without a physical office?
Most free zones offer virtual office or flexi-desk arrangements that satisfy licensing requirements without a traditional office lease. On the Dubai mainland, certain professional and digital activities may be eligible for virtual office arrangements through DET-approved providers. However, most mainland commercial activities require a registered physical premises with a valid Ejari certificate.
What is the Market Fee for a Dubai trade licence?
The Market Fee is 5% of the annual rent for commercial premises and 20% for warehouses. It is a government charge collected by the DET during licence issuance and renewal. This fee is separate from the licence fee itself and must be factored into the total annual licensing budget.
Do I need a local sponsor for a Dubai trade licence in 2026?
Following amendments to Federal Decree-Law No. 32 of 2021 on Commercial Companies, most mainland activities now permit 100% foreign ownership without a local Emirati partner. Some regulated activities may still require specific ownership structures or local service agent arrangements. The DET's Invest in Dubai portal confirms foreign ownership eligibility for each activity at the time of application.
What are the ongoing costs after obtaining a trade licence?
Annual ongoing costs include trade licence renewal fees, Ejari renewal, the Market Fee, visa renewal fees for each sponsored employee, MOHRE establishment card renewal, corporate tax filing, and VAT compliance (if registered). Businesses in regulated sectors must also maintain current external approvals from the relevant authorities.
Explained by
Shaimaa Sayed Awais
Dubai Economy & Tourism (DET) Services Consultant
Shaimaa Sayed Awais is a DET Services Consultant with 7 years of experience in business setup in Dubai. She specialises in trade licence procedures, including trade name reservation, initial approval, MOA preparation, and licence issuance, ensuring compliant and efficient company formation.
Official Sources and References
-
Department of Economy and Tourism, Dubai (DET) — The competent authority for mainland trade licence issuance, renewal, and business regulation in Dubai.
-
Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) — Federal authority responsible for residence visa regulation, Emirates ID issuance, and entry permits.
-
General Directorate of Residency and Foreigners Affairs, Dubai (GDRFA) — Dubai authority responsible for residency and visa processing.
-
Ministry of Human Resources and Emiratisation (MOHRE) — Federal authority responsible for work permits, labour contracts, and establishment cards.
-
Ministry of Industry and Advanced Technology (MoIAT) — Federal authority responsible for industrial registration and the Industrial Production Certificate.
-
Federal Tax Authority (FTA) — Federal authority responsible for corporate tax and VAT administration.
-
Ministry of Economy (MoEC) — Federal authority responsible for commercial company regulation and economic licence classifications.
Important Notice
The information in this article is current as of April 2026. Government fees, eligibility criteria, document requirements, and regulatory procedures are subject to change without prior notice. The DET calculates specific licence fees based on the details of each application, and the figures cited in this article represent indicative ranges based on available official and industry data. Final approval of any trade licence application rests with the relevant UAE government authority. Applicants should verify current fees and requirements directly with the DET through the Invest in Dubai portal or through an authorised service centre such as EGSH before making business decisions.
