Dubai Trading Licence
Cost, Process and Free Zone vs Mainland for Indian Traders
A Dubai trading licence is the permit that lets a company buy, sell, import and export goods in or from Dubai. The Department of Economy and Tourism (DET) issues it for the mainland, or a free zone authority for its zone, and it is renewed every year. JAFZA publishes its general trading licence at AED 15,000 a year.
Key points
A trading licence covers buying and selling goods. Consultancy and other services need a professional or service licence instead.
A general trading licence lets you trade across many product groups; a specific trading licence is cheaper but limited to named activities.
Official licence fees range from AED 5,000 a year (JAFZA, single activity group) to AED 50,265 a year (DMCC general trading), before office, registration and visa costs.
Free zone suits re-export and bonded stock; mainland suits selling directly to UAE customers. Since 2025, free zone firms can also get a DET permit for mainland work.
Every licence is renewed annually, and you can check any Dubai mainland licence online.
For most Indian exporters, the trading licence is the first concrete step in building an Indian company in Dubai. It is also where many overspend on a general trading licence they do not need, or pick a jurisdiction that cannot do what the business requires.
What is a trading licence in Dubai?
A trading licence is a commercial licence that authorises a company to trade physical goods: importing, exporting, holding stock for resale, and buying locally for export. It cannot be used for manufacturing, which needs an industrial licence, or for professional services, which need a professional licence.
The UAE government portal lists six licence types: commercial, professional, industrial, tourism, agricultural and crafts, and Dubai adds variants such as the eTrader and dual licences. A trading licence sits in the commercial category.
Two practical points that searchers often ask about:
Trade licence number. Every licence carries a unique number issued by DET or the free zone. Banks, customs, suppliers and the tax authority use it to identify your company.
Consultancy licences. A consultancy trade licence in Dubai is a professional licence, not a trading licence. If you plan to sell both goods and advice, you may need both activity types on your licence, and the tax treatment of each can differ.
What is the difference between a general trading and a specific trading licence?
A general trading licence lets you trade goods across many unrelated product groups under one licence. A specific (or standard) trading licence limits you to named activities, usually within one or two product groups, and costs less.
JAFZA's published structure shows how this works:
Single group: up to 7 activities from one group, AED 5,000 a year, plus AED 500 per additional activity.
Two groups: up to 6 activities in each of 2 groups, AED 8,500 a year.
General trading: unlimited groups and activities, AED 15,000 a year, fixed.
DMCC uses a similar split: a standard trading and service licence at AED 20,265 a year and a general trading licence at AED 50,265 a year, which covers all activities except oil and gas and regulated activities that need third-party approval.
Choose general trading only if your range genuinely spans several groups. A Surat textile exporter selling fabrics and garments fits a specific licence; a Mumbai distributor of appliances, sanitaryware and electrical fittings that plans to add Chinese products may need general trading. Food, chemicals and medical products need extra approvals either way.
How much does a Dubai trading licence cost?
A Dubai trading licence costs from AED 5,000 a year for a single-group JAFZA licence to about AED 50,000 a year for a DMCC general trading licence, before office, registration and visa costs. Mainland general trading licences carry a separate DET activity fee that raises the government cost to roughly AED 30,000.
Licence | Annual licence fee | Other costs to budget | Source |
|---|---|---|---|
JAFZA trading, single group | AED 5,000 | Registration, facility lease, visas | JAFZA |
JAFZA trading, two groups | AED 8,500 | As above | JAFZA |
JAFZA general trading | AED 15,000 | As above | JAFZA |
DMCC trading and service | AED 20,265 | AED 1,035 application, AED 9,000 registration, AED 2,020 articles, office | DMCC |
DMCC general trading | AED 50,265 | As above | DMCC |
Dubai mainland general trading | About AED 29,685 in DET fees, including a AED 15,000 general trading activity fee | Office lease and Ejari, visas; AED 38,000 to 55,000 in year one with office and one visa | Takween Advisory (provider estimate) |
The licence fee is rarely the biggest number; the facility is. A flexi-desk may do for a company whose stock sits with a third-party logistics provider, but one holding its own inventory needs a warehouse, which can cost far more than the licence.
Visas, Emirates ID, establishment card, audit and tax filings add to the running cost. For a full first-year budget, see how much it costs to start a company in Dubai, and for Jebel Ali specifically, our JAFZA company setup cost guide.
Free zone or mainland for a trading business?
Choose a free zone if your stock is mainly re-exported or sold to resellers outside the UAE. Choose the mainland if you mainly sell to UAE customers, especially end users, retailers or government buyers.
The deciding factors for a trader are:
Where the goods go. In a free zone, customs duty on imported goods is suspended while the goods stay in the zone. When they move to the UAE mainland, duty becomes payable, generally 5% of CIF value under the GCC common external tariff, unless the goods qualify for CEPA preference.
Who you sell to. A free zone company has traditionally sold into the mainland through a local distributor. Since Executive Council Resolution No. 11 of 2025, it can apply for a DET licence or a Free Zone Mainland Operating Permit, which costs AED 5,000 for six months according to the Dubai Media Office.
Corporate tax. A free zone company in a designated zone such as JAFZA may earn 0% qualifying income on distribution to customers who resell, but only if it meets every Qualifying Free Zone Person condition. Sales to UAE consumers are excluded. A mainland company pays 9% on taxable income above AED 375,000.
For the full comparison, including services businesses and banking, read our guide to Dubai mainland vs free zone.
What are the steps and timeline to get a trading licence?
Getting a Dubai trading licence takes four stages: choose activities and jurisdiction, reserve the name and get initial approval, sign the facility and submit documents, then pay and receive the licence. Free zones that process applications in one place are generally faster than mainland set-ups that need external approvals.
Choose activities. Match the exact goods you will trade to the zone's or DET's activity list. This decides specific or general trading, and any extra approvals.
Choose the jurisdiction and legal form. For example, a JAFZA FZE (single shareholder) or FZCO, or a mainland LLC or branch. An Indian parent investing directly will need its own corporate documents and board resolution.
Reserve the trade name and obtain initial approval. On the mainland this is done through DET's Invest in Dubai platform. JAFZA requires its application form and an Environment, Health and Safety undertaking.
Sign the facility lease and submit attested documents.
Pay fees and receive the licence. Then apply for the establishment card, visas, bank account, corporate tax registration, and VAT registration once taxable supplies and imports exceed AED 375,000 a year.
In India, the parent company's overseas investment must be made under the RBI's Overseas Investment Directions, 2022, by filing Form FC through its authorised dealer bank.
How do you renew a Dubai trade licence?
Licences are renewed every year before expiry. Mainland licences can be renewed online through Invest in Dubai using UAE Pass, and provider guides report that eligible licences can also be renewed by SMS to 6969. Free zone licences renew through the zone's portal. Downloading and checking a licence are covered in the FAQs below.
The Greenwolf view
A trading licence is a tool, not a strategy. At Greenwolf, we ask the commercial questions first:
Which role is the UAE playing? A market, a GCC hub, an Africa gateway, a re-export hub, or a regional HQ. Each points to a different licence and location.
Where will the goods physically move? Through a designated zone, into the mainland, or directly from India to a third country with only the invoice passing through Dubai.
Who are the customers? Resellers, end users or government buyers. This decides both the licence and whether any income can be qualifying for 0% corporate tax.
Who will work there? If the people who sell, buy and manage stock stay in India, the profit the UAE entity can defend is small.
Commercial design comes first. Tax follows functions, risks and substance.
Speak with a Strategist
Greenwolf handles the full India-to-UAE trading set-up end to end: choosing the role and jurisdiction, licence and activity selection, ODI filings in India, intercompany pricing, and UAE corporate tax and VAT registration. Speak with a strategist to start.
This article is general information, not advice for a specific case. Fees and procedures change; confirm current figures with DET or the relevant free zone before acting.
Author – Team Greenwolf
10 October, 2026 | 10 Min Read
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