Key takeaways
- Dubai's Law No. 13 of 2011 defines a license as a document authorising a business to conduct an economic activity.
- DET issues Dubai mainland licenses; free zone companies get theirs from their own free zone authority.
- The Ministry of Economy and Tourism lists six license types: industrial, commercial, professional, tourism, agricultural and crafts.
- A Dubai mainland license is valid for one year, renewable, and must be renewed in the last month before it expires.
- Federal law bars any economic activity until your data is entered in the commercial register kept by your licensing authority.
What a trade license is
A trade license is your company's legal permission to do business. Dubai's Law No. 13 of 2011 defines a license as a document authorising a business to conduct an economic activity, meaning any commercial, industrial, artisan, occupational, agricultural, service or other for-profit activity. "Trade license" is the everyday name; official pages also say business license or economic license.
Your activity comes first. u.ae calls it the basis for selecting your legal form and type of license, and the Ministry of Economy and Tourism (MoET) says one license may include more than one business activity.
Federal law adds a second layer. Under Federal Decree-Law No. 37 of 2021, no one may practise an economic activity until their data is entered in the commercial register.
Who issues a trade license in the UAE
The issuing authority depends on where your company is set up:
- Dubai mainland: the Department of Economy and Tourism (DET). Law No. 20 of 2021 made DET the successor to the Department of Economic Development and gave it the job of registering and licensing commercial and professional companies, a role now run by its Dubai Business Registration and Licensing Corporation (Law No. 6 of 2023).
- Other emirates' mainland: the local economic department. u.ae names, for example, the Economic Development Department in Sharjah, the Department of Economic Development in Ajman and, for trade licenses in Fujairah, Fujairah Municipality.
- Free zones: the free zone authority. MoET says free zones issue their own instructions and conditions, and u.ae says a free zone license is issued within 14 working days after review and approval; timelines vary by zone.
If you're weighing a zone against the mainland, start with what a free zone is.
Types of trade license in the UAE
There's no single national list. u.ae sets out three authorities' lists side by side, and MoET publishes one for free zones:
| Who lists them | License types |
|---|---|
| Ministry of Economy and Tourism | Industrial, commercial, professional, tourism, agricultural, crafts |
| Invest in Dubai (Dubai mainland) | Industrial, commercial, professional, eTrader, dual, instant, SME, Intelaq |
| Abu Dhabi Department of Economic Development | Abu Dhabi trader, dual, freelancer, Mobdea, small producers, standard, virtual |
| Ministry of Economy and Tourism, for free zones | Commercial, consultancy/service, industrial, educational, media, e-commerce, offshore, freelancer, warehouse, innovation, manufacturing, others |
People often say "commercial license" for any trade license, but on these lists it's one type among several. Your activities decide which one you need. If you sell online or work on your own, see e-commerce license in dubai and freelance visa vs freelance license.
What a trade license covers, and how long it lasts
When you register, federal law has you give the licensing authority your trade name, legal form, activities, capital if any, premises address and authorised signatories. Three details shape the license itself:
- Activities: what you may do. To expand later, see how to add activities to a trade license.
- Legal form: u.ae says your trade name must be followed by the legal form's acronym, such as LLC or EST.
- Validity: Article 8 of Dubai's Law No. 13 of 2011 makes a mainland license valid for one year, renewable. At the business's request, DET can approve up to four years in coordination with the authority that regulates the activity. You renew in the last month before expiry; see trade license renewal in dubai.
Free zone licenses follow the zone's own regulations, so check its renewal terms. To confirm that a company's license is active, see how to check a trade license in dubai.
Trade license vs commercial registration vs establishment card
They're linked, but each is a different record:
| Record | Issued or kept by | What it does |
|---|---|---|
| Trade license | DET, an emirate's economic department or a free zone authority | Permits the activities on it |
| Commercial registration | Your licensing authority; the data feeds MoET's Economic Register | Records your company's data; federal law requires it before you trade |
| Establishment card | The residency authority: GDRFA Dubai in Dubai, or ICP | Used for your company's immigration transactions |
ICP says the establishment card holds your registered data, such as trade name, license number, partners and type of activity, and that a valid license is required to get one. More in establishment card in the uae.
Dubai Unified License (DUL). DET launched the DUL in December 2023 with the Dubai Free Zones Council: a unique commercial ID being rolled out to businesses across Dubai's mainland and free zones. JAFZA says its QR code retrieves the latest license information and that the DUL is read together with a valid, active trade license certificate, so you still need your license.
How a mainland trade license is issued
u.ae sets out the standard mainland route. In brief:
- 1. Pick your activity. It's the basis for your legal form and license type.
- 2. Choose a legal form, such as an LLC.
- 3. Register a trade name with the emirate's economic department; see trade name rules in dubai.
- 4. Get initial approval. u.ae says it means the government has no objection, but it doesn't give you the authority to run the activity.
- 5. Sign the MOA or LSA, choose a location and get any extra approvals your activity needs.
- 6. Pay and collect the license. Pay within 30 days of receiving the payment voucher, or the application is cancelled.
For the full walk-through, read how to start a business in dubai. Fees are set by each licensing authority, so there's no single UAE price; see dubai trade license cost. Global Sky PRO prepares and submits your application and follows it up; the licensing authority makes the decision. See mainland company formation or free zone company formation.
Sources
- UAE government portal: steps to start a business on the mainland
- Ministry of Economy and Tourism: establishing business in the UAE
- Ministry of Economy and Tourism: establishing business in free zones
- Dubai Legislation Portal: Law No. 13 of 2011 regulating the conduct of economic activities
- UAE Legislation: Federal Decree-Law No. 37 of 2021 on the Commercial Register
- ICP: issuing an establishment card
- JAFZA: the Dubai Unified License
Official sources checked on 10 November 2026. This guide explains published rules in plain English and is not legal or tax advice. Rules change; we check the current position for your case before you act.