UAE Trade License in 2026: Mainland vs Free Zone, Costs, Renewal and Tax Duties

Planning to start a business in Dubai or elsewhere in the UAE? Before you can trade, invoice or sponsor a visa, you need a trade licence from a licensing authority. This guide is for founders, freelancers and SMEs choosing between a mainland licence from Dubai's Department of Economy and Tourism (DET), a free zone licence, or an offshore company. You'll get the setup steps, what really drives the cost, how renewal works, and the corporate tax and VAT registrations that most guides leave out.

Quick answer

A UAE trade licence is the permit that lets a company carry out specific business activities. In Dubai you get a mainland licence from the Department of Economy and Tourism (trade anywhere in the UAE) or a free zone licence from one of the free zone authorities (trade within the zone and abroad). Offshore companies are holding vehicles and can't trade locally. Licences renew every year, and every company must also register for corporate tax.

• Free zone packages start from published prices — e.g. Meydan AED 12,500 with a flexi-desk

• Mainland totals vary widely with activity, office rent and approvals

• Corporate tax: 9% above AED 375,000 — register within 3 months or pay AED 10,000

• VAT registration is mandatory above AED 375,000 of taxable supplies

• Most activities allow 100% foreign ownership on the mainland since 2021

What a UAE trade licence is (and the main licence types)

A trade licence names your company, its legal form, its owners and — most importantly — the activities you're allowed to carry out. Trade outside those activities and you risk fines, so choose them carefully. The UAE lists more than 2,000 business activities.

Nationally, licences fall into types such as commercial (buying and selling goods), professional (services, consulting, crafts), industrial (manufacturing), tourism and agricultural. Dubai's DET also offers specialist options, including the instant licence, the eTrader licence for social-media sellers (for UAE and GCC nationals resident in Dubai), the dual licence, and SME-focused licences.

Since late 2023, DET has given every Dubai business — mainland and free zone — a Dubai Unified Licence (DUL) number with a QR code. Customers and suppliers scan it to check your licence, which is now how most "trade license verification Dubai" checks happen.

Mainland vs free zone vs offshore: which do you need?

Your customers decide this more than your budget. If you'll sell to shops, consumers or government bodies across the UAE, look at the mainland. If you trade internationally, work online, or mainly need a UAE base and a visa, a free zone is usually cheaper and faster.

Mainland vs free zone vs offshore (2026)

	Mainland (DET)	Free zone	Offshore (e.g. RAK ICC)
Who licenses you	Department of Economy and Tourism	That zone's authority	Offshore registrar via a registered agent
Where you can trade	Anywhere in the UAE, incl. government contracts	Inside the zone and abroad; mainland needs extra permission	Not inside the UAE — holding and international only
Foreign ownership	100% for most activities	100%	100%
Office	Physical premises with Ejari in Dubai	Flexi-desk options common	Registered address only
Residence visas	Yes, linked to office size	Yes, within package allocation	Generally no
Corporate tax	9% above AED 375,000	0% on qualifying income if conditions met; otherwise 9%	Depends on residence and activity — take advice

Who licenses you

Mainland (DET)

Department of Economy and Tourism

Free zone

That zone's authority

Offshore (e.g. RAK ICC)

Offshore registrar via a registered agent

Where you can trade

Mainland (DET)

Anywhere in the UAE, incl. government contracts

Free zone

Inside the zone and abroad; mainland needs extra permission

Offshore (e.g. RAK ICC)

Not inside the UAE — holding and international only

Foreign ownership

Mainland (DET)

100% for most activities

Free zone

100%

Offshore (e.g. RAK ICC)

100%

Office

Mainland (DET)

Physical premises with Ejari in Dubai

Free zone

Flexi-desk options common

Offshore (e.g. RAK ICC)

Registered address only

Residence visas

Mainland (DET)

Yes, linked to office size

Free zone

Yes, within package allocation

Offshore (e.g. RAK ICC)

Generally no

Corporate tax

Mainland (DET)

9% above AED 375,000

Free zone

0% on qualifying income if conditions met; otherwise 9%

Offshore (e.g. RAK ICC)

Depends on residence and activity — take advice

Ownership: Federal Decree-Law No. 26 of 2020, in force since early 2021, ended the rule that mainland companies needed a majority Emirati shareholder. Some strategic activities — security and defence, banking and insurance, telecoms, commercial agencies and a few others — still have restrictions.

Free zone reach: a free zone company that wants mainland customers needs approval from its free zone and a licence from the emirate's economic department. Many simply sell through a mainland distributor.

How to get a trade licence in Dubai (mainland)

Dubai mainland licences are issued through the Invest in Dubai platform run by DET, which you sign in to with UAE Pass. The official sequence is:

Dubai mainland licence — step by step (2026)

1. 1

   Choose your activities

   Pick activities from DET's list. They set your licence type (commercial, professional, industrial) and which external approvals you need.

2. 2

   Choose a legal form

   Options include a sole establishment, general or limited partnership, LLC and private or public joint stock company. Most foreign-owned SMEs choose an LLC.

3. 3

   Reserve a trade name

   The name must match the activity and legal form, carry the right suffix (LLC, EST), and avoid religious or government references.

4. 4

   Get initial approval

   DET's 'no objection' to the business. It lets you move to the next steps but doesn't let you trade yet.

5. 5

   Sign the MOA and lease premises

   Sign the Memorandum of Association (LLCs). In Dubai, register your lease with Ejari.

   Tip: Check the space suits your activity before you sign — some activities need specific premises.

6. 6

   Get external approvals and pay

   Some activities need approval from another regulator. Then pay the fee voucher — u.ae says within 30 days — and download your licence.

   Invest in Dubai

Free zones run their own, usually fully online, process: pick a package, submit passport copies and a business plan if asked, sign the zone's documents and pay. Meydan Free Zone, for example, advertises its Fawri licence at AED 15,000 issued in under an hour.

Documents you'll usually need

• passport copies of all owners and managers (plus Emirates ID or visa page if resident)
• a passport-size photo; UAE residents on an employment visa may be asked for a no-objection letter from their employer
• trade name and initial approval (mainland)
• signed MOA or the free zone's incorporation documents
• tenancy contract with Ejari (mainland Dubai) or the free zone's desk or office agreement
• any external approvals for regulated activities

What a Dubai trade licence costs — and what drives it

Ignore headlines promising "the cheapest trade license in Dubai" until you know what's included. The total is a stack of government, premises and visa costs.

Setup consultants commonly quote mainland totals of roughly AED 10,000 to AED 50,000, with the licence fee itself the largest variable. DET calculates your exact government fees on Invest in Dubai once you've chosen activities and legal form — use that, not an agent's estimate, as your benchmark.

Worked example: a one-person consultancy

Sara is a marketing consultant who'll mostly bill clients in Europe. A Meydan Free Zone licence at the published AED 12,500 covers her licence and flexi-desk; her own investor visa is extra. If her taxable income is AED 300,000, it falls within the AED 375,000 band at 0% — and with revenue under AED 3 million she can elect Small Business Relief — but she must still register for corporate tax within three months. Her supplies are below AED 375,000, so VAT registration is optional.

Had she needed walk-in clients across Dubai, a mainland licence with a real office and Ejari would have been the right — and more expensive — choice. Try the startup cost calculator to compare both.

Dubai trade licence renewal

Trade licences are issued for a year (some free zones sell multi-year licences at a discount). Renew before the expiry date:

• Mainland: renew with DET online through Invest in Dubai or DET's other digital channels, signed in with UAE Pass. Your Ejari and any external approvals must still be valid, and outstanding fines must be paid. DET shows the renewal amount before you pay.
• Free zone: renew with your free zone authority, usually via its portal, together with your desk or office agreement.
• Late renewal attracts fines and an expired licence can hold up visa renewals, banking and other government services.

Keep your corporate tax and VAT registrations in step with your licence. If you add activities or change ownership at renewal, update your EmaraTax profile too.

Corporate tax and VAT: the duties that come with your licence

Getting the licence is only half the job. The Federal Tax Authority (FTA) expects every company to register for corporate tax and, above a threshold, for VAT. Both registrations are free on EmaraTax.

UAE tax numbers for licence holders (2026)

9%

Corporate tax rate

on taxable income above AED 375,000

AED 10,000

Late CT registration penalty

waived if first return filed on time

AED 375,000

Mandatory VAT threshold

taxable supplies in 12 months

5%

VAT standard rate

AED 3 million

Small Business Relief revenue cap

until 31 December 2029

Corporate tax. Companies set up on or after 1 March 2024 — mainland and free zone — must apply to register within three months of incorporation. Individuals running a business register once turnover exceeds AED 1 million. Missing the deadline costs AED 10,000, although the FTA's waiver initiative cancels it if you file your first return within seven months of the end of your first tax period. Tax is 0% up to AED 375,000 and 9% above. Free zone companies can keep 0% on qualifying income only if they meet the qualifying free zone person conditions. Estimate your bill with our UAE corporate tax calculator.

Small Business Relief extended. On 7 August 2026 the Ministry of Finance announced Ministerial Decision No. 131, extending Small Business Relief to tax periods ending on or before 31 December 2029. Resident businesses with revenue up to AED 3 million can elect it to be treated as having no taxable income and use simpler compliance.

VAT. Register within 30 days once taxable supplies and imports over the past 12 months exceed AED 375,000 (or will in the next 30 days). Voluntary registration is possible from AED 187,500. Use the UAE VAT calculator to price quotes at 5%.

Your first-year compliance calendar

Day 0

Licence issued — note the expiry date

Within 3 months

Register for corporate tax on EmaraTax

Within 30 days of crossing the threshold

Register for VAT

1 January 2027

E-invoicing starts for businesses with revenue of AED 50m or more

Before expiry

Renew Ejari, approvals and the licence

Within 9 months of year-end

File the corporate tax return

E-invoicing is coming. In May 2026 the Ministry of Finance confirmed that mandatory e-invoicing starts on 1 January 2027 for businesses with revenue of AED 50 million or more, and moved their deadline to appoint an accredited service provider to 30 October 2026. Smaller businesses follow in a later phase — check the Ministry's timeline.

Mistakes that cost founders money

• Choosing activities too narrowly. Adding one later means an amendment fee and sometimes new approvals. List everything you'll realistically do in year one.
• Picking a free zone, then needing mainland customers. Check where your buyers are before choosing.
• Treating the package price as the total. Visas, medicals, Emirates ID and bank-account requirements usually sit outside it.
• Forgetting corporate tax registration. It's required even if you owe no tax, and the AED 10,000 penalty applies per company.
• Letting Ejari lapse. On the mainland, an expired tenancy can hold up your renewal.

Official links

• Invest in Dubai (DET licensing platform)Apply, renew and pay for mainland licences
• Department of Economy and Tourism — business licensing
• u.ae — steps to start a business on the mainland
• u.ae — full foreign ownership of companies
• FTA — Corporate Tax registration
• FTA — VAT registration
• Ministry of Finance — Small Business Relief extension

What to do next

Write down your activities and where your customers are, then compare one mainland quote from Invest in Dubai with two free zone packages. Once licensed, register for corporate tax straight away and set up invoicing — our UAE VAT calculator and corporate tax calculator help you price and plan from the first month.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

How much does a Dubai trade license cost in 2026?

There's no single price. A free zone licence can start from a published package — Meydan Free Zone lists AED 12,500 with a flexi-desk — while setup consultants commonly quote mainland totals from about AED 10,000 to AED 50,000. The total depends on your activities, legal form, office rent, external approvals and how many visas you need.

Can a free zone company trade in mainland Dubai?

Not directly. A free zone company generally operates inside its zone and internationally. To sell to customers on the UAE mainland, it needs permission from its free zone authority and a licence from the emirate's economic department, or it can work through a mainland distributor. A mainland licence lets you trade anywhere in the UAE.

How do I renew my trade license in Dubai?

Mainland licences are renewed annually with the Department of Economy and Tourism through the Invest in Dubai platform or DET's channels, using UAE Pass. Keep your tenancy (Ejari) and any external approvals valid, clear outstanding fines and pay the renewal fees. Free zone licences are renewed with the free zone authority instead.

Do I need to register for corporate tax with a trade licence?

Yes. Every UAE company, including free zone companies, must register for corporate tax — new companies within three months of incorporation. Registration with the FTA is free, but registering late carries a AED 10,000 penalty. Tax is 9% on taxable income above AED 375,000.

When must a UAE business register for VAT?

Registration is mandatory once taxable supplies and imports over the past 12 months exceed AED 375,000, or are expected to in the next 30 days. You can register voluntarily from AED 187,500. Apply on EmaraTax within 30 days of becoming liable; the FTA charges no fee to register.

Can a foreigner own 100% of a mainland company in Dubai?

For most activities, yes. Federal Decree-Law No. 26 of 2020, in force since early 2021 and consolidated in the 2021 Commercial Companies Law, removed the majority-Emirati shareholder rule. A list of strategic-impact activities — such as defence, banking, insurance and telecoms — still has ownership limits or extra approvals.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 7 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Steps to start a business on the mainland — UAE Government (u.ae) · accessed 7 October 2026
2. 2.Full foreign ownership of commercial companies — UAE Government (u.ae) · accessed 7 October 2026
3. 3.Corporate Tax Registration (service card) — Federal Tax Authority · accessed 7 October 2026
4. 4.FTA Decision No. 3 of 2024 on registration timeline for Corporate Tax — Federal Tax Authority · accessed 7 October 2026
5. 5.VAT Registration (service card) — Federal Tax Authority · accessed 7 October 2026
6. 6.Ministry of Finance confirms applicable taxable income threshold for Corporate Tax — UAE Ministry of Finance · accessed 7 October 2026
7. 7.Extension of Small Business Relief until 31 December 2029 — UAE Ministry of Finance · accessed 7 October 2026
8. 8.Targeted amendments to eInvoicing system decisions — UAE Ministry of Finance · accessed 7 October 2026
9. 9.Meydan Free Zone — licence packages — Meydan Free Zone · accessed 7 October 2026
10. 10.RAK ICC Business Companies Regulations 2018 — RAK International Corporate Centre · accessed 7 October 2026
11. 11.Trade licence cost Dubai — fee breakdown — EGSH (setup consultancy) · accessed 7 October 2026